Archive for Real Estate Investing
Don’t Fall Victim to the List Price Trap
Posted by: | Comments
One of the key mistakes many people make, especially newbie real estate investors, is thinking they got a heck of a deal just because they purchase a property for less than list price. Even back when we were in a robust market, it was very common to get 3-5% off of list price. Don’t fall victim to confusing list price with actual property value.
In many cases, the list price is just a pie-in-the-sky price that the seller thinks he/she should get – or wishes to get – for their home. It can often be overstated by a savvy listing agent giving susceptible home owners an inflated price in order to get the listing.
To get a more realistic value for a property, you need to look at 4 key areas.
1. Sold Comparables – What have other comparable properties in the area recently sold for? This is by far the best way to value a property. It’s best to stay within a neighborhood if possible, a mile radius, and only look at homes that have sold within the past 6 months. You’ll need to look at similar homes in size, number of bedrooms and bathrooms, and overall lot size. Also look to see what selling costs were paid by the seller to get the real net price. Your local MLS is the best source of information for calculating comps.
2. Assessment Value - You can get this from the county tax records. The assessment value is used to calculate county property taxes. Historically this value was a % lower than actual market value. The % is often consistent within a county or area. However, with the recent decline in home values, this may no longer be the case as market prices are now often lower that assessment values. You can get free access to county tax records at Netronline.com.
3. Online Comparable Sites. Let me say up front that these sites can be all over the board in values. Here are four sites I look at. Zillow.com , Eppraisal.com, CyberHomes.com and RealEstate.com.
Eppraisal will actually show the Zillow and CyberHomes values if available so I always start there first. I take the average of these four sites. These values are not a good as sold comps but is a good indicator. KEYPOINT: Everyone goes to these sites (including your buyers) looking for values so I strongly suggest you have an idea what these sites say your house is worth.
4. Rent - What is the cash flow of the property in regards to rent prices in the area. You can go to sites such as these to get comparable rent prices for an area. My favorite three are RentSlicer.com, Zilpy.com and RentOMeter.com.
Access to the MLS is key in getting accurate market values. If you do not have access to your local MLS service, here are four suggestions.
- Get to know a Realtor (or two) that will look up information for you.
- Get to know a Realtor REAL WELL and they may offer you access. (They’re not suppose to do this so be real careful here.)
- Marry a Realtor.
- Get your real estate license.
While the listed price will give you an idea of current competition as you go to sell, you need to work off of actually solds for market value.
Do your homework and your own analysis to make sure you know what you’re buying. Listing Price is nice but list doesn’t cut it in making sure you’re getting a good deal.
5 Success Tips For Real Estate Investing
Posted by: | Comments
Planning and establishing objectives is a good first step in getting started with any project. Then it’s time to act. This is especially true in Real Estate investing.
Many people struggle just getting started. But let’s say that you are successful in getting things off the ground, often its easy to get distracted and lose focus along the way. What do you do when you come across barriers that hinder your progress? I’m going to share with you 5 tips that are critical for your Real Estate investing success.
1. Keep On Keeping On – Have you ever failed at anything? I know I have. You feel devastated, like there’s no tomorrow, ready to just give up. However, I’ve learned over the years that it’s at such times as these that doors actually start to open.
Failing is not bad… if you learn from it. Actually success is a poor teacher, we learn more about ourselves when we fail. People are often so afraid of failing that they never do anything worthwhile – they play it safe. Sometimes, the greatest risk you can take is to play it safe.
So go out and try something new. “Since the way we learn is by making mistakes, the greatest risk of all is to wait too long to begin making those mistakes.” Robert Kiyosaki
2. Be a Decision Maker – Successful people are decisive people. When opportunities come your way, evaluate them carefully, make a decision, and then take appropriate action. Realize that indecision wastes time that could be spent on more productive tasks. You can avoid unnecessary risks by implementing your decisions gradually. Don’t attempt to make every decision at the beginning. Each action is contingent upon the success of the one that preceded it. “When I’ve heard all I need to make a decision, I don’t take a vote. I make a decision.” Ronald Reagan
3. Develop a Good Attitude – While having a good attitude may not guarantee your success, your odds are much greater than with a bad one. No one controls your attitude unless you voluntary surrender it. Others may do something to influence it but you control it.
Ask your self this question. “If I had a friend who talked to me like I sometimes talk to myself, would I continue to hang around with that person?” Decide if you’re going to get bitter or better. Either focus on the good and deal with the bad, or vice versa. Do yourself a favor, be an optimist. Believe you me, life will me more enjoyable.
4. Make Good Use of Your Spare Time – What are doing with your spare time? I remember someone saying that it’s what you do in your spare time determines your future.
Are you…
• Watching TV or reading?
• Napping or developing a skill?
• Talking to your friends or studying marketing?
We all have 24 hours in a day — how wealthy you become depends on how you spend those 24 hours. It all comes down to the choices we make every single day. In fact, you shouldn’t let one day go by without making sure you are taking at least one proactive step towards reaching your dream. It’s so easy to just do what you “feel” like doing. The next time you are looking for something to “kill time” ask yourself, “is this helping me more forward or is it just causing me to just run in place.”
Turn your spare time into money time. Most people live off out their primary income source. It’s what you do in your spare time that will mainly determine how you spend your retirement. It’s OK to goof off when you were a kid. What are you doing now?
5. Don’t Overlook Small Details – There is an old expression that says, “If you take care of the little things, the big things will take care of themselves.” It’s another way of saying that every job is composed of many small details, any one of which, if overlooked, can create big problems later.
If you have trouble dealing with annoying details- set aside a time during your work cycle (daily, weekly, or monthly) to deal with such unpleasant tasks. Prepare yourself mentally to deal with those tasks, and you may find that you dispense with them quickly and efficiently. You may even find that the job wasn’t nearly as unpleasant as you expected it to be.
There you have it. Heed this advice and just watch the difference it’ll make in your life.
To Your Success…
Wayne
It’s Not A Setback, Only A Test!
Posted by: | Comments
Although I wasn’t an Einstein in school, I did O.K with my grades. Got a small scholarship… nothing to really brag about but I felt like I accomplished something. To be honest with you, I’d usually study for tests just enough to get a good grade. I think that’s what most students do. There are exceptions on both ends – the straight A kids and those who always got F’s no matter what.
But what always got me were those darn POP tests. Just when you least expected it – BAM!
Well that’s what I think we’re going through now with our economy – especially in the Real Estate market. Foreclosures, short sales, REO’s, declining market prices are all making the headline news. Most didn’t see this coming and many are just caught flat-footed and off-guard. (The sad reality is even if we KNEW it was coming, many would still be in the same pickle as they are in today).
Let’s be honest, for many it’s rough out there. The realities of this economy are painful for many.
As with every challenging situation, some people will respond positively and effectively, while others will miss the boat and be left behind. The winners are those that will act quickly, make the best of the situations and move forward. The losers, well they’ll whine, complain and wait for the government to help them out. They may never recover.
Here’s my advice… take this opportunity to look at where you currently are in your financial journey. If you’re not where you want to be, take a positive step in the right direction. Real Estate Investing is the ticket for so many people but for whatever reason, they never seem to make it happen.
Is it YOUR time? It’s not a setback, unless you allow it. If you feel you just made a bad grade, you can still pass the course with flying colors.
Learn How To Stop Being P.O.O.R
Posted by: | Comments
It amazes me how many people who are not where they want to be financially, just won’t do anything about it. It’s like they suffer from the proverbial “deer in the headlights“ syndrome. They’re just frozen in not taking action and not knowing what to do. It could be that maybe they’re a little scared. Been burnt before. Tried and failed. That’s understandable… but really not a good excuse.
The word POOR actually serves as a great acronym that describes the reason for the condition – Passing Over Opportunity Repeatedly.
If this describes you in any way, don’t feel alone because you’re in good company. Most people find themselves in this boat.
Here’s the bottom line… if you consider yourself “POOR” and would rather be “RICH” then you’re got to make some changes.
We are currently looking at the best opportunity to get rich in real estate that this country has seen in the last 50 years. The number of foreclosures continue to rise. So are the opportunities to purchase real estate at wholesale, fire-sale, and greatly discounted prices. You just need to know how to capitalize on this trend.
So now is the time for you to spring into action and not let this one… pass you by.
Opportunity is knocking, are you going to answer the door?
There’s nothing to it… but to do it. Go here to find Great Foreclosure Values in the Atlanta area.
Don’t Let This Once-in-a-Lifetime Opportunity Pass You By
Posted by: | Comments
We are currently experiencing a very unique situation that we may not see again in our lifetime. I’m talking about the tremendous opportunity in real estate resulting from the tidal wave of residential foreclosures over the past 2-3 years. Because of recent price declines, many see real estate as very risky right now. Understandably so, people are just plain scared to jump in. But let me tell you – this crisis will eventually run its course and the opportunity to pick up great deals will also run its course. This opportunity is temporary.
Real Estate has always been one of the best ways to create wealth. The riskiest time for any investment is at the top of any cycle. Wouldn’t you agree with me that we are no longer at the top? I wish I could call the bottom – no body can – but I see 7 reasons why now may be the time to seriously consider getting in or increasing your holdings.
1. The fluff is gone. Back in the late 90’s Alan Greenspan spoke of “irrational exuberance” when referring to the speculative build up around the internet boom. Well that’s exactly what we had from 2001 – 2006 in real estate. Well that froth is now gone – and along with it the speculative and even fraudulent (in some cases) activities that ran up prices.
2. Prices have flattened and/or dropped in just about all markets. Prices for home in all price ranges are at unbelievable levels now. It’s a good time to pick up value.
3. Government Programs. Say what you will and think what you think about our over-reaching government but you can’t deny that government initiatives are making an impact on home sales. First time home buyers made up better than 50% of all homes sold in 2009 thanks to the home buying tax credits. Congress extended the deadline once already. Don’t be surprised if they do that again. I’d bet on it.
4. Mortgage interest rates are at all time lows. I remember thinking back in my 20’s how “lucky” my parents were to have a mortgage rate of 4.5%. At that time rates were 14-15%. Well that time is here again. Low interest rates will continue to spur buying where prices will eventually steady.
5. As people are forced out of their homes due to foreclosures - they all need a place to live. They have to rent from someone – so why not from you? Rents are bound to climb and this can generate very high rates of return for you if you pick up a property at a good price and at a low interest rate.
6. Simple supply and demand. The population is growing and they all need a place to live. God isn’t making anymore land.
7. The National Association of Realtors (NAR) predicts there will be 5 million home sales in 2010. They estimate nearly half – or 2.5 million will be foreclosures or either short sales. It’s a great time to pick up great value.
So what are you waiting on? I believe we’re right smack dab in the middle of “The Perfect Storm” for real estate investors. It’s time to get off of the fence and profit from what I believe is the opportunity of a lifetime.
Make Profits With a Atlanta Real Estate Investment With These Tricks And Tips
Posted by: | CommentsThose who are experienced in real estate investing already to know where to find Atlanta real estate investment. Yet, if you are a new investor you’ll need to figure out first where low cost homes are before you buy and sell. When looking to start a real estate business you’ll first need to find the property to sell.
It’s easy to bring in these leads through marketing in newspapers and magazines, online and more. However, the best leads must be checked out first over the phone. They collect enough information to decide if the property is a good option and then meet with the owner. When you find a home that’s suitable to resale, you’ll want to contract in order to buy the home.
When you find a home you like you’ll buy it within a set number of days, for instance 30 to 90 days is usually seen. Lots of investors like to buy these homes with their own capitol. When you sell that home you’ll be able to make all of your costs back with a nice gain. Investors can also start marketing Atlanta real estate investment to their buyer’s list with the homeowner’s permission.
The title company is your next stop after signing an agreement to purchase contract. When trying to get a buyer to purchase the house before closing they’ll let the title company know they are looking to perform an ‘Assignment of Contract’. Letting another buyer purchase the home in your place is done with an Assignment of Contract document and of course, the homeowner’s consent. It’s a great idea because this method lets you sell your ‘option’ on the homeowner’s property to another investor.
When the investor finds a buyer for the property they will sign the ‘Assignment of Contract’ document together later the buyer pays a small ‘assignment’ — around two or three thousand dollars. It can be more if the house ends up being worth more or is a better deal for the buyer. When closing the deal on an Assignment of Contract you’ll introduce the buyer to the homeowner at closing and everyone will sign all the correct contracts and documentation and get copies of such. You’ll also want to take copies of the forms, contracts and agreements over to the title company so they can process the title transfer.
On occasion the buyer will express interest in taking the documents over themselves, let them. So, whether you close on assignment or traditionally it’s important to have a buyer lined up as well as some Atlanta real estate investment. Knowledge of the process makes it go more easily and lessens the risk of encountering problems along the way.
To Learn more…http://atlanta-real-estate-investment.com/
A Guide to the Zestimate for Real Estate Professionals
Posted by: | CommentsIf you’re a real estate professional you probably have heard about Zillow.com. Zillow has become one of the most popular real estate sites on the internet. Zillow provides tons of real estate information… all for FREE. You can search for homes for sale, home prices, home values, recently sold homes, mortgage rates, apartment rentals, and much more.
For a real estate investor, this is a fast and easy way to get a snapshot of a home’s value. But you do need to understand how Zillow calculates it’s home valuation – called a Zestimate.
This video does a great job of explaining just how they arrive at their Zestimate.
How to Invest in Atlanta Real Estate
Posted by: | Comments
Despite the recent bursting of the real estate bubble, real estate investing remains a very lucrative way to create wealth. Just look at the mistakes that others have made, learn from them, and don’t repeat the same mistakes.
It really is that simple. But how do you get started? Here’s a quick roadmap for getting started in real estate investing in the Atlanta market.
Establish Your Goals – What are your goals for investing in real estate? Everyone is a little different with various goals and objectives for getting involved with real estate investing. Below are some common reasons for beginning investors.
- Get rich quick – Yea, right. Investing in real estate is hard work and it requires both time and money. That said, we’ll show you how to increase your odds for success.
- Additional cash flow – If you’ve read Rich Dad Poor Dad, you’re probably ready for some cash flow opportunities. This is a great strategy but make certain that you buy at the right price. If you pay too much for your properties then you might find cash flowing in the wrong direction.
- Buy and Hold - Real estate is a great investment for wealth building as it (almost) always appreciates in value. The key is to buy smart as to cover your short-term risks.
- Fire my boss - Most beginning real estate investors have goals to quit their job and become their own boss. I strongly suggest you keep your day and start investing “on-the-side” until you get up to speed on the nuisances of your market and you truly understand risks.
Find Your Favorite Niche – There are so many different ways to make money in real estate. There are also so many ways to lose money in real estate. You need to find your niche and become good at to ensure long term success. Don’t stretch yourself too thin in trying to do everything and not become good at anything.
Build Your Team – whenever you speak with someone in the real estate business, ask them for referrals of good painters, lawyers, contractors, tax advisors, etc. When you need one, call them up and let them know that they were referred to you.
Begin Local - Great opportunities are everywhere in the Atlanta area. Begin looking for properties that are close to your home base and avoid purchasing properties that are hours away. I suggest to start with that you limit your areas to within a hours drive. Every minute that you spend on the road is time away from locating new opportunities.
Start Looking Around – When it comes to this business today, just put the word out there that you buy distressed properties to people you know. Even if you aren’t prepared to purchase, start looking for deals. Team up with a realtor and search the MLS for wholesale deals, fixer-uppers, foreclosures and short sales.
Never Stop Learning – Take every opportunity to educate yourself in all aspects of real estate investing. Read books, articles, blogs about getting started in rehabbing and wholesaling. Then visit the marketplace and contact a few investors that have been around a while. Learn as much as you can and your education will continue to pay out dividends as you grow and mature in the business.