Tag: investment property

 7 Basic Steps to Quick Cash!

Quick CashThere are two definitions for flipping in the Real Estate investment industry, Retail flipping and Wholesale flipping. Retail flipping can be defined as buying a property wholesale, rehabbing it if necessary, and re-selling it on the retail market for profit.

Wholesale flipping can be defined as acquiring an interest in a wholesale property and then quickly selling that interest for profit (usually to another investor). This article concerns the second definition, wholesale flipping. If you have little cash and little access to credit lines, the quickest way to break into the Real Estate investing industry and produce quick cash is to learn to how to flip houses with no money to other investors. Wholesaling properties for quick cash is something that anyone can do, even the beginning investor. Following is a description of the seven basic steps involved in flipping a houses.

However, if you are not an investor or do not intend to be an investor, it does not mean that you can’t learn from what investors know to acquire properties. Remember, knowledge is power and will give you the power to acquire properties and profit even if it is a one- time purchase. You might get your first property with the intend to just own it and live in it but I will guarantee you that once you know how to do it you will do it again.

  Step 1: Faming & Assessing the Property Before Makin the Offer…

Farming is the term used in the real estate industry to say KNOW YOUR AREA, know the market trend, know where properties are for sale. This is an important process for it allows you to be in the KNOW! Once you know what is for sale and where, you will know how to make an assessment on the property. The farming has to be done by the individual but the assessment could be done buy the team of people you have put in place to make the process simpler. Even if you like to be involved in all steps of the process it is a good idea to work with people that have access to resources you need such as, mortgage bankers, realtors, contractors, etc.

Step 2: Making the Offer and Signing the Contract…

Whether you go after foreclosure properties, FSBO  properties (for sale by owner), or properties listed in the MLS; you will never, I repeat, never be able to flip a property unless you first make an offer on it, and second, lock it up with a contract. When you make your offer, you always need to keep your exit strategy in mind. Since your exit strategy is to flip the property to a rehab investor, your offer should be based on an accurate estimate of the retail value of the property after repairs less the amount of repairs, the holding costs for the rehabber, the rehabber’s closing costs to both buy and sell, a profit margin for the rehabber, and lastly a profit margin for you, the wholesaler. The maximum that most rehabbers will pay for good properties is 70% of Market Value minus the repairs and other expenses named above. A simpler formula is 65% of market value less repairs (as 5% usually covers the other expenses). Your wholesale profit will usually fall between $1,000 and $7,500. Never get too greedy unless you have the ability to close the deal yourself. Once your offer is accepted, you need to meet with the seller to sign the contract. On properties listed in the MLS, your offer will be initially made with a signed contract and agreed changes to that offer will be initialed.

Steps to Quick Cash

Step 3: Start Title Work Once the contract is signed…

Get the contract to the Title Company so that they can immediately start title work on the property. They will order a title search and schedule a closing date. There are a couple of reasons to start the title work ASAP. First, you want to make sure the title work is completed before the closing date as well as wanting enough time to cure any title problems that might arise. Second, you want to be able to close right away should your buyer have the ability to do so.

Step 4: Begin Marketing to Find a Buyer…

There are several avenues for marketing your properties. However, your main method should be to call the people on your “Buyers List.” A “Buyers List” is a list of real buyers that you have compiled by qualifying them as to their ability to close for cash quickly. You should also qualify these buyers as to the specific areas that they buy in, the type of properties that they buy, the price  range of properties that they buy, and what percentage of Market Value that they pay for properties. The better that you become at compiling your “Buyers List,” the easier it becomes to wholesale properties. Therefore, setting up their “Buyers List” becomes the first step for most successful “newbie” flippers. Another avenue is to market your property to investors is by running ads in the investor section of newspapers as well on investor-oriented web sites like AIREO.com, thecreativeinvestor.com, dfwrein.com, etc.

Step 5: Come to an Agreement With a Prospective Buyer…

At some point, someone will show an interest in buying your property. Whether you have one interested buyer or many buyers at the same time will depend on how good deal is. The more buyers that you have, the less flexible you have to be in reaching a final sales price. You must learn to qualify you buyers correctly for two reasons. First, you want to continually add good qualified buyers to your “Buyers List.” Second, you can’t afford to let someone, who cannot close, tie your property up keeping you from selling it to a real buyer prior to the closing date. Remember you are under contract to close with your seller even if your buyer doesn’t close with you. Make sure the prospective buyer has cash or an available line of credit to close with. Make the buyer provide proof of funds if necessary.Quick Cash

Step 6: Sign a Contract and Collect a Deposit…

After verifying your buyer’s source of funds, meet with them and sign a contract. You should require the buyer to put up a $1,000 Earnest Money Deposit with the signed contract. I’ve found that this $1,000 deposit separates the men from the boys. Anyone who does not have the ability to put up a $1,000 Earnest Money Deposit is not a real cash buyer. You can also use a one-page “Assignment of Contract” form to sell you interest in the deal to another investor. This assignment form allows another investor to take your place in completing the transaction. I recommend only using an assignment of contract with investors that you know well. It is much less binding on your buyer to show up for closing and you may get left holding the bag. The assignment does, however, lower the closing costs because there is only one closing instead of two.

Step 7: Submit Documents to Title Co. & Schedule the Closing…

Take the executed sale documents to the Title Company and Schedule a closing date. Now here’s the best part. Go to closing and collect your check! Flipping properties is a great way to make money from Real Estate. It is also the easiest way for a “newbie” to make money while learning the Real Estate business. However, it is true that you can’t steal in slow motion. The very best deals go very fast. The quicker an investor learns the basics of evaluating properties and correctly estimating repairs, the better his chance of finding, as well as recognizing, the very best deals. Money is made in Real Estate when you buy it. Therefore, it behooves the new investor to do  whatever it takes to master these tasks as quickly as possible. The very success of his Real Estate investing career is dependent upon it.

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Related Article :- Cash Flow Calculator, What Do You Need To Buy A House, Avoid Foreclosure Options,  Cash Flow AnalysisHow To Flip Houses With No Money, What Do You Need To Buy A HouseHomes For Sale InHomes Rent To OwnReal Estate Valuation SoftwareRent To Own By OwnerRent to own homes free listingsSteps To Selling A HouseReal Estate Analysis

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How to Improve Efficiency with Team Work and Real Estate Flipping Software

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If you need to organize your house flip expenses, simplify the scheduling process, have at your finger tips estimates of project profitability and compare estimated project expenses, then you will need real estate flipping software that provides report and picture documentation for current and future use.  There is a lot more to flipping property than buying a house, applying a fresh coat of paint, trimming some bushes, and reselling the home for profit. Flipping is not that easy, and even more so when it comes to managing all of the above without the help of real estate flipping software.

The more skills you have, the better equipped you will be to enter into real estate transactions and investing.  Now, if you thought you could do this alone, let me stop you right there. It takes team work to make this work. So the first thing you’ll want to do is to form your own team comprising of real estate agent, attorney, contractor, accountant, home inspector and an insurance agent. Flippers typically work against the clock, so to renovate a home on budget and then turn it around and sell before overheads gobble up your profit, you’ll not only require a good team, you will also need real estate flipping software to ensure that the work is completed in a timely and efficient manner.

Some people say that until you can do things like change a sink, install a countertop, do basic electrical and  plumbing work or fix a roof, you’ll be unable to turn substantial profit in house flipping. Well, arguably, house flippers that make the most money tend to be handy people, but you’re going to be surprised to find out that having the ability to step in and lend a helping hand when time or money constraints kick in isn’t the be all and end all. I’m not a handyman myself, and yet I’ve built and renovated property with attention to detail and perfection by employing a team of experts on the field, needless to say, my savvy and good taste do come in really handy. With time, even you will develop that instinct that distinguishes you from the average house flipper if you take interest in your work and put your mind and heart in it.

I wonder if you’ve realized how critically important it is for the buyer to know about the area in which they are buying property. It helps to know the acreage, number of rooms, and the type of homes that are the most desirable in the area in which you’re looking to buy. And just as important, you’ll want to know what houses in the general vicinity have recently sold for; and if there are any future development plans in the pipeline… such as new schools, condominiums and shopping malls, as this could affect supply and demand.

If you’re the kind of person that wants to improve efficiency with real estate flipping, then team work is of paramount importance because it helps you streamline your workflow into more manageable segments under supervision by experts in their field. That said… you’ll also benefit tremendously with real estate flipping software because it will enable you to log AND to manage your projects by providing important financial and project viability data on prospective projects. Needless to say, it can become an invaluable member of your real estate flipping team.

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How to Invest in Real Estate for Better Returns without Over-Improving Property

hobalIf your only experience is that extensive remodeling projects add significant value to the price of a home no-matter their location, then you’re about to find out in this article that, unlike homeowners who splash out on remodeling when putting their homes up for sale, savvy real estate investors looking to flip property to turn a quick profit would do quite the contrary. More often than not, extravagant upgrades fail to pay for themselves. Read on to find out how to renovate strategically and which renovations really add value to your property IF you want to invest in real estate.

The difference between investors and owners is that, investors carefully choose their remodeling projects. They tend to focus more on properties that will result in the most value for the least amount of effort and cost. They would pay close attention to the other homes in the neighborhood to avoid over-improving the property. Adding expensive amenities in a more down market area, for example, is unlikely to result in a significantly higher selling price.

So a savvy real estate inves more living space. According to the National Association of Realtors, siding, kitchens and windows are the most beneficial upgrades, often recouping 80% or more of their costs during resale. If you’re the kind of person that wants to turn a tidy profit when you invest in real estate, then learning how to invest cost effectively for better returns without over-improving your property will be exactly what you’re looking for, IF what you want or will have their wits about them all the time, to ensure that their investment turns the maximum profit possible.

The more strategic your approach to remodeling and sprucing up your property prior to putting it on the market, the more significant your return on investment will be when you sell. You’re going to be surprised to discover how effective a little more thought and care with your remodeling expenditure can add to your profit margin. Some investors say that until they’d learned the hard way, how to implement these important cash control strategies to investing in real estate, they’d consistently failed to hit their income projections.

I wonder if you’ve realized that projects that offer the most bang for the buck include new siding, remodeling the kitchen, bathroom, fitting in new windows, decks and adding more living space. According to the National Association of Realtors, siding, kitchens and windows are the most beneficial upgrades, often recouping 80% or more of their costs during resale.If you’re the kind of person that wants to turn a tidy profit when you invest in real estate, then learning how to invest cost effectively for better returns without over-improving your property will be exactly what you’re looking for, IF what you want is to make a success of investing in real estate.

Make sure you steer well away from personal preferences like swimming pools, tennis courts, hot tubs, wine cellars, basement game rooms and ponds.Chances are other people may be unwilling to pay extra to have these amenities. There’s certainly no harm in adding these items to a house you plan live in, but don’t expect potential buyers to be willing to pay a premium to get them when you are ready to sell. And when you’re buying to sell, even more so—you’ll want to tailor your projects to suit the marketplace, first and foremost, because remember: you are investing in real estate to make profit.

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How to Flip a House for Quick Profit

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If you have ever desired to flip a house to turn a quick profit, then you will discover in this article the simplest technique to flipping properties, not to mention the other potential income generators in real estate investing. Based on buying undervalued properties, property flippers generally don’t put any money into a house for improvements. Their main concern is the intrinsic value of the property and the potential to turn a quick profit without having to make alterations and upgrades to the property. In essence, with the pure flipper, it’s all about the money. This type of investor doesn’t keep enough cash to pay a mortgage on a house long-term, so they’ll want to offload properties as fast as possible to avoid making losses. Because the more you hold on to unsold property, the more money you’ll stand to lose. So, learning how to flip a house will give you insider information—privy only to those deeply involved in the business of flipping—and it will also show you the ropes as it were, to help you get started with investing in property for quick profit.

And there is another type of property flipping that is likely to catch your attention. So let’s take a quick look at the second class property flipper. Who exactly are they? Well, believe it or not, they’re investors that make their money by buying property at reasonable prices and adding value by renovating them. Depending on the extent of the improvements, this can be a longer-term investment. The drawback is that it is very time intensive and oftentimes only allows investment in one property at a time. You’re going to be amazed, however, to discover just how effective this method can be for you. Some people say that until you’ve mastered the ins and outs on how to flip a house, fast cash in the property market is likely to elude you.

I wonder if you’ve noticed how people are also making money with real estate investment trust (REIT)—a corporation that uses investors’ money to purchase and operate income generating properties. Bought and sold on the major stock exchanges, just like any other stock, REIT’s may well be your ticket to making money in real estate.  And if you’re the kind of person that wants to avoid paying corporate income tax, then this will be exactly what you’re looking for because, a corporation must pay out 90% of its taxable profits in the form of dividends, to keep its status as a real estate investment trust.

In Summary:  We have looked at a couple of exciting real estate investment options. However, let me assure you, we’ve only scratched the surface. Needless to say, there are countless variations of how to flip a house and how to invest in real estate in general. Evidently, as with any real estate investment out there, gains are not assured. Make your choices carefully and try to weigh out the costs and benefits of your actions, before you dive in.

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5 Minute Online Investment Property Analysis Strategy to Save You Time

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If you have only experienced looking at every single property listed online in person, then you will appreciate information on how to do an investment property analysis to save you time. Since it’s impossible to go and look at every single property that grabs your attention, this article will show you how to quickly analyze an investment property just to see if it’s worth looking more into. I know a lot of properties come up all the time, and so here’s a five minute analysis tip sheet to help you figure out whether the property you THINK you want is something you should pursue.

Bearing in mind that the more you scour through property listings online, the more properties you see and the more you’ll want to go out to view potential buys, this quick property analysis strategy will help you whittle down your options right in front of your computer screen before you even set foot outside your door. So let’s get started by looking at the numbers.
You’re going to be surprised how quickly and easily you can do an investment property analysis and just how effective it can be for you.  Let’s say you’ve seen a fourplex property you like and the asking price is $119,900. You then take a look at what they say the rent is—not always reliable so don’t take their word for it. Flip through pictures of the rooms to assess what work would need to be done to revamp the property and roughly estimate what that might cost. Now let’s take a closer look at the numbers. At $119,900 I would round it up to 120,000. Now let’s say I’m going to put down 20% ($24,000) down payment on a mortgage, which puts the figure at $96,000 on a 30 year repayment. I’m not going to figure tax and insurance to it just yet, and so I’m left with a principal and interest of $515.92. Now let’s take a look at the 50% rule on a property like this, which says 50% that comes in goes out to expenses and whatever is left is what you pay your mortgage with.

Some people say that until you understand your area very well, making a sound property analysis would be far more challenging at best. In this particular area a two bedroom apartment is going to rent for $500, and a one bedroom apartment for $400 a month. So let’s say our fourplex property generates rental income of $1,700 a month, minus 50% expenses would leave us with $850 to pay the mortgage (which is around $515 a month); which leaves you with $335 per month, which gives you $4,020 per year. Now let’s combine the down payment of $24,000 with perhaps a few thousand dollars in closing costs. Let’s say that ultimately we’ve put down $30,000 on this property, we’d be making a 13% return on investment. What I would look for more importantly is the cash flow numbers—in this case $335 a month. At minimum, I would shoot for $100 per unit per month. I wonder if you’ve noticed that looking at these figures as they are, they’re clearly not very enticing.

Now supposing our mortgage is for $20,000 less and we put down around $24,000. Now let’s say we leave all the other figures the same, this time the principal and interest come to just over $400. At that point it does make sense as it leaves your minimum $100 per month per unit requirement. So THAT becomes more enticing, wouldn’t you agree? So very quickly, that is how to analyze a property before driving out to look at it. If you’re the kind of person that wants to save time on researching for properties to buy, then knowing how to make a quick investment property analysis will be exactly what you’re looking for.

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Driving for Dollars? Consider Real Estate Investment Software Apps for Smart Phones

If you are in the habit of driving for dollars around neighborhoods and are yet to experience the easiest way ever to dig up information on houses you like, then you will love the infinite advantages of Smart Phone apps to make your work a heck of lot easier. Real estate investment software helps you pull up detailed data on property with a simple snap shot. That is quite honestly how easy it is. This article will expound on the simplicity of gathering all of the information you need on properties you drive by and wish to invest in, using your Smart Phone.

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The more you spend time driving around neighborhoods in search of vacant houses that may be suitable to invest in, the more you’ll want to find a way to gather important information on properties more efficiently. The world has moved on. There’s absolutely no need to hang on to archaic methods when there is something on the market that simplifies an otherwise long and meandering process. So let’s take a closer look at how a real estate software download free app for Smart Phone actually works.

Real Estate Investment Software

If you’re going around neighborhoods and you find a vacant house, what an Smart Phone app for real estate investors will do is pretty neat and simple—to say the least. Quintessentially, it’s got a camera button on there that allows you to hold up your phone and take a picture of a house. It’ll then save the photo on your phone and then it’s going to go and look up the information from a database to show you the address, and more information about the property, such as: number of bedrooms, square footage, the last sale date and so forth. The important thing is it will save all of this information on your phone so that once you’ve done all your driving around in search of properties, when you get home you can quickly retrieve information on all the properties you took pictures of.

Real Estate Investment SoftwareYour next step would be to look up on the public records to find the owner of the properties you’re interested in (and you’re going to be amazed at how simple and effective this really is for you), and send them a letter in the post or via some other kind of communication to make an appointment to view the properties. Some people say that the easier it is to find information on-the-go, the more fun real estate valuation software adds to the experience. I wonder if by now you’ve realized just how quick and simple it is to find information on properties you want to buying a house with cash. If you’re the kind of person that needs to minimize the workload in searching for property, then I’m sure you will appreciate that real estate investment evaluation software is exactly what you’re looking for. It certainly doesn’t get better than this for the real estate investor. In the shortest time possible, best real estate investment software will make a world of difference in helping you find the ideal house to invest in.

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Related Article :- Cash Flow Calculator, What Do You Need To Buy A House, Avoid Foreclosure Options,  Cash Flow AnalysisHow To Flip Houses With No Money, What Do You Need To Buy A House

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Kaleidoscope into the Day of a Real Estate Investor Involved in Rehabbing and Flipping

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If you have ever wondered what the day of a real estate investor involved in rehabbing and flipping property was like, then this article will walk you through the life of a real property investor and shed light on how they check out property they’re interested in; and why they use rehab analyzer software to speed up their assessment of the viability of potential properties to buy. You’re going to be fascinated to discover just how effectively rehab analyzer software can work for you when you learn from an insider. So let’s go take a closer look!.

Let’s call our real estate investor Bill. Bill wants to buy a property in a neighborhood—let’s call this neighborhood Flipping Street. Now, before touching the property he decides to drive around Flipping Street to look at other properties. His mission is to find out what property was selling for in the neighborhood. He then finds out from the Multiple Listing Service (MLS) that other homes in the area were selling for between $60,000 and $75,000. A quick mental calculation tells our Bill that he might have to invest $20,000 on renovations and after all is done there could be a substantial profit to be made. With this in mind, he figures that this deal warrants a visit to the home that’s up for sale.

A drive around Flipping Street suggests that the neighborhood is in far better condition than he’d expected. There weren’t many “For Sale” signs in the area; the lawns were well manicured; there were no junky cars or boats around; by and large it was a neighborhood of homeowners who were proud of their properties and took good care of them. An inspection of the house in question indicates the usual upgrades and renovations are needed. Bill notes the house needs a good lick of paint both inside and out. It also needs a new roof, kitchen, flooring, lighting and several other minor bits and pieces. After inspecting the house and its neighborhood, Bill uses a rehab analyzer to quickly and easily analyze rehab opportunities to make profit projections. The analyzer indicates that the profit he stands to make from this property is between $20,000 and $28,000 which he feels is a good return on investment for a small deal such as this. He quickly makes an offer a little above the asking price of $22,000 just in case other investors are also bidding on the property, and sure enough, he is notified the following day that his offer had been accepted and that they would close the deal in 30 days.

The more you dither after identifying a lucrative property to flip, the more likely you are to lose a golden opportunity to another bidder. I wonder if you’ve realized how smart our Bill was as he went about purchasing this piece of real estate for flipping. He did his research by checking out the neighborhood and the going rates for property in that neighborhood. He then took a look at the property in question to see what it looked liked and what needed fixing, AND what it was going to cost to rehab. He ran his findings through rehab analyzer software to get an estimate on repairs and whatnot. And voila, he made an offer the minute he found out that there was money to be made. Bill is testament to the fact that until you’ve input the information to hand into the rehab analyzer software, you’ll have no idea within a reasonable degree of accuracy whether or not the property you’re interested in buying is a sensible purchase based on your investment criteria. If you’re the kind of person that wants to turn a quick profit in real estate flipping, then Bill’s simple but sound strategy would be just what you’re looking for.

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