Real Estate Investment Blog

3 Qualities to Look for in an Equity Partner

1. Previous Experience Investing in Real Estate

Someone that has been involved in this business before can understand all of the highs and lows involved. His/Her experience will speak for themselves when faced with making important decisions, especially when things go wrong.

2. Sufficient Liquidity

Your future partner should have an impressive portfolio as well as enough liquidity when compared to the equity investment made on your property. If they have financial issues, then they will have that underlying issue putting unwanted pressure on the property to perform greater and faster than realistically expected. Plus, if your property needs additional captial last-minute, your parter may not be able to provide.

3. Intelligence and Rationality

Over the course of your relationship, there will be times where you will put your trust in your partner’s judgement. You would expect them to make an intelligence and rational conclusion to any problem that comes their way. Because if you can’t rely on your partner’s judgement, then this relationship will probably lot last.

Marketing Strategies Used In Real Estate Investments

Finding motivated sellers is always a challenging task and one has to be innovative in locating sellers. Let’s look at the unique marketing strategies to find motivated sellers in real estate investments.

Car Signs:
Magnetic car signs along with phone numbers on your cars can be used to express your desire to buy homes. On viewing the signs, more sellers will get in touch with you. You can use these signs on all your cars and even request your friends to use these signs.

Door Hangers:
You can also use door hangers to show that you are interested in buying houses. Phone numbers should also be displayed in it. These door hangers give direct publicity and advertising. You will have to manage the situation if some house owners get angry with it. It might also bring positive feedback to you.

Service Professionals:
You can prepare a business card to show your intention along with your contact details and distribute them to service professionals like electricians, plumbers, painters, masons. You might not get an immediate response but this will be useful in future.

Annual Promotion:
Initially you need to convert the deals as much as possible and once you think that your business is established you can start promoting it. Promotional campaigns can boost up your business and help you in finding more sellers. A big billboard placed in an important area can catch the attention of passers. Radio, television shows and seminars can be arranged to make your business more popular. Though the expenditure is high, these strategies will make lot of sellers knock your door and you will get more business.

Internet Marketing:
Include your web address on your business cards […]

Tips To Achieve Success In Real Estate Investing

Real Estate Investing involves large sums of finances. It is very important that you handle them with care so that you may not run into a heavy loss. This is one among the best sources for discussing real estate investing, real estate investments, no money down and no down payment creative real estate techniques and everything related to real estate investing. Investors make use of a hedging tool that provides investment profit protection and profit enhancement. An option is such a derivative dealing product used by investors for the same purposes mentioned above.

Even though these below mentioned tips tags along with several risk factors, it can still be used as effectively as a stand-alone trading vehicle. Investing in real estate is the best tip anyone could ever find for making quick money in today’s world. The risk could be high in the field for a beginner but as you get the necessary expertise in the market, you can expect great returns. But one needs to be highly careful in real estate investing if he/she is a beginner. You should gather sufficient details and look at the company’s potentiality for investing.

Real Estate Investing Tips:

1. When you are investing in a property you need not wait until you sell it off at a higher rate, as you are charging rent, which is an income for you. So even if you are a fresher in the industry, you don’t have to worry about the return on investment.

2. Investing in real estate property is your control. Even if you want to renovate or upgrade you property, you definitely can! And you can sell the property whenever the market reaches a […]

Why the First Multi-Family You Buy is So Important

52Your first multi-family property is a critical move in your real estate investing career. You’re moving past wrong information and psychological barriers on into new territory to achieve your financial goals. Well, you made the right decision. Multi-family properties open a huge door of profits for the new and experienced investor to achieve their financial goals.

Your first building block of wealth

Multi-family homes are an easy way to get into investing for first time homebuyers. There are loans for owner-occupant home buyers who want to purchase a multi-family home of up to four units which allows home owners the ability to borrow more because they can use the rental income for loan qualification purposes. They’ll also receive owner-occupant financing with little down and lower interest rates as compared to commercial property loans.

There’s less competition

Multifamily investing is still shrouded in myth and misunderstanding. For that very reason, there’s less competition which means more opportunities for you and I to profit! People in general avoid commercial property because they believe that it is too far out of their reach. They see the price tag. They see the work involved and then they run back to working their plan of buying one house at a time. What they’re really missing is the opportunity to learn a new way to profit from real estate – a new system of buying right. Your first multi-family property will take you through the process of putting a tested and proven system to structure the deals the right way.

Significant cash flow can be created

Your first multi-family property will outperform in profits what your single family investments can do. There’s no doubt that you can […]

The Benefits of Hiring a Real Estate Management Company

Are you maximizing your time as a real estate investor? Time is money in any business, and nothing is closer to the truth than within the real estate niche. While you could certainly attempt to manage all components of your business on your own, you may be spreading yourself too thin, causing you to lose sight of the most important end goal- revenue generation. Leverage a real estate management company to focus on your investment property needs on a day to day basis, and watch your overall bottom line increase despite the added cost to hire the group of professionals.

Here are the primary benefits of hiring a real estate management company:

  • Time Savings – A real estate management company will work to address maintenance issues, tenant issues and the overall daily management of your investment property, allowing you to focus on what you do best, managing the business.
  • Added Expertise – In many cases, issues that arise regarding your investment properties will require you to tap the experience or expertise of other professionals. Searching for qualified professionals will not only take time on your part, but will require you to learn basic fundamentals of property management. Hiring a professional real estate management company will allow you to leverage their expertise to address any and all property and tenant issues on your behalf.
  • Up to Date – A real estate management company will work to ensure that your investment business is in compliance with all applicable state and federal laws for your property. And, the company will work to help you organize your business affairs, making tax time simple and easy for your business.

These are only a few of the benefits of hiring […]

Why Learn Market Cycles in Real Estate?

In order to be successful in the real estate business, it is vital not only to research, but to learn and to become familiar with the current market trends. Understanding the market cycles, you as the potential buyer, can make smart investment decisions by developing a strong market strategy. This strategy can help you to weigh out the potential risks and rewards to investing at any point in the market cycle, and it imperative to making a profit in the area of real estate.

The first advantage to knowing and understanding the market cycles is the ability to know when you are getting a good deal. Many times sellers will overprice their properties based on the belief that their property’s value will appreciate. Let me tell you, it is not wise to buy solely on expected numbers. If the property does not work on paper, why would it work at all?

When starting your real estate career, it is wise to use real numbers rather than the hopes and dreams of the sellers made up numbers. A mistake like this can take you out of the investing game early. To make the most money in real estate always use actual numbers and buy properties with signs of growth and appreciation. If you study the market, and know you are in a current down cycle, it is important to know you are buying a property for a good deal. A deal that allows you to hold on to the property during the down time, with the possibility of still making profit.

Also, if you are aware that a down cycle is going to occur, you want to make […]

Why Invest in Apartment Buildings?

Now is a great time to purchase real estate! Let’s face it; we are now living in a buyers market. With more and more properties on the market, sellers are facing some stiff competition, and are being forced to lower their prices in order to contend with other hungry sellers. This leaves ambitious buyers with a great opportunity, however, while timing could not be more perfect to buy your first piece of real estate, it is vital to know what kind of property is going to best maximize your profits. After all, the goal of investing in real estate is making as much money as possible, while spending little.

When most people think about investing in real estate, the first thing that comes to their mind is duplexes and single-family homes. This is because many people are under the false impression that certain money saving strategies like fix and flip, and no money down is only available when buying single-family units. In fact, these same options are available when purchasing multi-family units like apartment buildings. In reality, purchasing an apartment building is often the smarter, and most cost effective choice. An apartment building can be easier to occupy, less time consuming, and can also be the most efficient way to maximize your profit.

With the demand for houses increasing in today’s buyers market, developers are continuing to build more homes. As we all know “demand” gives these developers the power to price these new properties as they see fit, and that price is more than likely going to be high, however, many people cannot afford to pay the $1,200.00 mortgage that comes along with the increased price of the […]

Rehabbing Properties

Among the reasons to be in real estate, quick cash is one of the most attractive upsides, especially for new investors looking to get started in a new business/career. When investors think of what it means to invest in real estate, there are two common things that come to mind. One is the holding of rental properties. The other is fixing up rundown properties and selling them for a profit.

I’ll be discussing the idea of holding properties, particularly apartments in later articles and also cover this extensively in my training programs. I’d like to briefly discuss the idea of rehabbing properties and how this fits into your model for generating quick cash in real estate.

Having rehabbed over 820 properties of my own in just a fourteen-year period, I have a lot of experience with this means of generating quick cash and know that it can be a useful tool in building your own real estate business. Rehab opportunities are everywhere and, once you see them as investment properties, instead of rundown junkers, your perspective will have changed for the better.

The secret to successful rehabbing starts with an accurate assessment of retail value post rehab, meaning after the job is done. Too many investors overestimate what they can sell a property for after fixing it up or underestimate either costs or time needed to sell it. Either way, profits can diminish and so too can morale, especially after having invested months into a single project.

My suggestion is to always err on the conservative side when estimating resale value of a property that needs rehabbing. Use lower sales prices, embellished repair estimates, and figure the job […]

Know the Players in Commercial Real Estate

Every line of business has its pundits who like to refer to the business as being a sort of game. I don’t dismiss this notion, and actually am a believer that game theory has its place in real estate. Every game has an objective, a set of rules, a concept for what it takes to win, and of course players or participants. Who are the players in commercial real estate? This article explores that very issue.

First, let’s look at this from the investor side of things. Every market has investors, large and small, who are interested specifically in commercial caliber real estate. Some of these are what I call Tier One investors, who look for small to medium-sized commercial buildings. Tier Two investors look for even larger buildings (exclusively so) and Tier Three investors are perhaps the biggest players of all, responsible for developing new properties.

While this player breakdown is pretty loose and definitely unofficial, I think you get the general idea. Some investors are finders of properties and some are creators or developers of properties. Any and all of them may build funding for their projects through collaboration with others but all are people you would benefit from knowing in your area as you start building your own business. These players may have deals to offer and some may be interested in collaboration so these contacts are essential.

Next, we have professional players, who would include personnel like commercial realtors, bankers, appraisers, property managers, contractors, bird dogs and the like. As you can imagine, these players are also very important but they are more from a supporting role to help get things done in […]

Tips for Negotiating Your Commercial Property Deal

Successful negotiation skills are an art form and must be mastered for you to achieve your investment goals. People who put negotiations on the back burner thinking that they’ll get by or they’ll let someone else handle the deal will often find that they end up with a whole load of work without the pay off. Here are a few tips for negotiating your commercial property deal.

Tip #1: Do Your Homework

You’ll need to know everything you possible can about the property, the sellers, and any related pieces of information that forms the big picture in your mind of what you’re dealing with. You’ll want to be familiar with facts and figures as much, if not more than, the owners themselves.

Tip #2: Learn to Handle the Negotiations

No one is more motivated than you in getting this deal done. For that very reason, make it a point to brush up on your people skills and learn to handle the negotiations yourself. The negotiation process is the deal breaker and leaving it in the hands of someone else who isn’t as motivated as you is risky. With that in mind, there is one exception to that rule – if you have a person on your team (i.e. – real estate agent or lawyer) who is able to successfully handle the deal. This means you know how they operate and what their competence level is because you’ve seen it first hand; not because they told you they’re good at it. They also know you; what your goals are and how you would handle any situations that arise during the negotiation process.

Tip #3: Determine Outcomes before You Even Get to the Table