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May 17th, 2012
Paying full price for a home may actually bring better profits in the long run.
Dallas, TX—HomeVestors has spent the last 15 years buying and selling as is homes. After 50,000 properties and a ton of real estate investors and homeowners, they have learned a lot about the real estate industry. One of the most important things they have learned is sometimes real estate investors have to pay more for a property to get a little more out of it.
Very few homeowners ever experience the exact same situation. However when they are read to sell, they want out of their home fast. This opens up a lot of opportunities for real estate investors to make offers. The first thought of most real estate investors is to offer the lowest price possible and see if they take it. That is not always the best practice.
There are times when the homes needing to be sold are in perfect condition. They have been updated and need no renovations. They are move-in ready. Offering a low ball offer is sure to anger the homeowner and get the offer thrown out. It does not ensure an acceptance or counteroffer at all.
These move-in ready houses are wonderful for real estate investment properties. The investor has to do nothing to get it ready to rent. This saves a lot of extra money up front. The investor can immediately put it on the market and accept renters, which shortens the amount of time the home sits before it is rented out.
Offering more isn’t always available to the real estate investor if the entire amount is needed upfront. As an alternative to traditional financing, an investor could offer the fills price, but ask for a lease to own, subject-to, or seller financing option. This allows the investor to pay the full amount over time for the property. Since the property is to be rented, chances are the rental rate will provide more than enough to cover the mortgage payment, insurance, and property taxes and still allow for the real estate investor to make a profit each month. The profit can be saved to pay off the loan faster, spent as salary for the investor, or reinvested in the business.
Full price may seem as extreme as a low ball offer, but over time it can actually pay the real estate investor more.
About HomeVestors of America Inc.
Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties. Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community. In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction. For more information, visit www.HomeVestors.com.
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May 16th, 2012
Every real estate investor has his favorite type of real estate investment. This niche may or may not be the best type of real estate investing. In order to be the most successful, an investor will make sure that no matter what, he has a diversified real estate investment portfolio. The reason is no matter what the local real estate market is like he will always have some type of investment that is making money for him.
Wholesaling involves find an as is property, buying it as cheap as possible, and selling it to another investor for a profit. Depending on your area of the country, wholesaling may currently be a little bit of challenge. This greatly depends on the property and the amount of profit you expect to receive from the sale of the property. In better days, profits could be very high, but now real estate investors should expect to receive a much smaller profit.
Renovating and reselling is another are of real estate investing. This area is doing about as well as wholesaling. It still involves finding a property and buying it for as little as possible. Then, the investor repairs the property bringing it up to code and hopefully current with today’s trends. Once completed, the investor sells the property for a profit…hopefully at its full property value.
Rentals are fabulous in just about every real estate market. Everyone needs a place to stay, and not everyone can buy a home. These can bring in a consistent monthly cash flow to help build your real estate business.
Lease options and subject-to real estate are also good to add to your portfolio. They allow you to pick up extra investment properties without having to fork over a lot of cash at once.
Finding the perfect investments for your real estate business can be quite tricky. A good real estate mix or sampling is the best way to start a diversified portfolio for most beginning real estate investors. Pick the easiest ones or most affordable ones to start with and add on from there.
For more information on real estate investing call or visit us at Homevestorsfranchise.com. We are the nation’s leading home buying franchise with over 15 years of experience buying and selling as is properties. We have a large assortment of real estate franchise and real estate investment opportunities. Come let our company help grow your real estate business.
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May 15th, 2012
Besides the contract, the most crucial piece of writing that a real estate investor puts together is the offer. All the right wording and numbers have to be used to get the seller to take a bite. Otherwise, the real estate investor will never get a second glance, let alone a phone call.
When putting together the offer, there are a few things that definitely should be included. These items inform the seller what to expect from signing until move in. In the offer, the real estate offer must include an offer amount, payment method, sale terms, and timeline.
The first item in any written offer should be the amount being offered for the property. This is what the homeowner will be searching the letter for. By putting it first, you immediately get the attention of the homeowner and if it’s the right amount, they will continue to read through your proposal. With the offer amount, make sure you include any estimate for repairs or terms of sale that will help to justify your final price. This information helps to keep the seller engaged instead of turning off when they don’t believe the amount is high enough.
The next item that should be included in any written offer is the way you intend to pay for the property. Knowing that the property is going to be purchased is great, but the homeowner has to take into consideration how you will be paying for it. If you are planning to use bank financing, the homeowner will know they have a longer wait on their hands before they can expect to receive payment. If you are planning to pay cash, they can expect to receive all of the money right away. If you need to work with the seller for a rent-to-own or seller finance arrangement, those terms will have to be spelled out explicitly. This is so the homeowner understands exactly what to expect and when to expect to receive payment.
The last item that should be included in a written offer is the timeline. This helps the homeowner to understand just what kind of time frame he is looking at. This timeline should include a proposed date to move out, a closing date, a move in date, and when he can expect to receive payment for his home. These will help the homeowner to figure out if your offer is a good fit and if it will give him time to find a new place to live.
The offer makes a huge impact on the homeowner. The right information makes a quick transaction possible. For more information about real estate investing, call or visit us today at Homevestorsfranchise.com. We are the nation’s number one home buying franchise with over fifteen years of experience in the real estate industry. We have a large selection of real estate franchise and real estate investment opportunities available. Come see how we can help you grow your real estate business.
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May 11th, 2012
Whether you are starting an entire real estate business or looking to invest in just one property, finding the starting capital or seed money is extremely important. Where to locate it can be quite perplexing, especially if you aren’t used to raising funds for projects. The main thing to keep in mind is you can do it.
Where’s the Money At?
Start Here
Finding the seed money is everyone’s problem. It begins by locating the deal that you want to invest in. Knowing where the property is, its condition, approximate value, and the potential profit helps potential money lenders see the value in giving their money to you. Your supporting evidence answers a lot of questions and removes any doubts they might have about your credibility or the actual existence of this property. Put this information into a nice presentation folder. It not only makes it pretty to look at, but it also organizes the information in a logical manner for easy flipping through.
Go to Your Network First
Most people use this as a last resort. That is a big mistake that beginning investors make. After all, if someone is going to loan you money, it will probably be a person that knows you well. They are more likely to take a chance on you and to be a little more forgiving if there are problems paying them back.
Of course, your network includes friends and family. It should also include those that you come into contact with every day that might have a little extra cash that they want to invest. The postman, the gas station attendant, your pastor, etc. all have investment needs of their own. Putting in a few dollars for a healthy return will help them and you to slowly build your net worth.
After you have hit your network, figure out how much money you still need to make the investment. That amount may easily be put onto credit cards, taken from savings, or even pulled from your retirement account. If the amount is still too great, you may consider heading to your bank.
No one wants to have to take out a second mortgage or get a home equity line of credit. Unfortunately, some investment properties do require those kids of actions to get started in the real estate business. The good news is by working with your network first, you have proved that there is value in your idea. When you approach the bank for the money, the amount you have already pooled will be taken into consideration. The larger the amount, the greater the likelihood the bank will finance your investment dream.
For more information on real estate investing, call or visit us today at Homevestorsfranchise.com. We are the nation’s largest home buying franchise. Our company has a wide variety of real estate investment and real estate franchise opportunities to help you grow your real estate business. Call or visit us today for more information.
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May 7th, 2012
Real estate investors can save time, stress, and money by using professionals for advice and help with investment properties.
Dallas, Texas – HomeVestors has knocked out many of the problems first time real estate investors have with investment properties. Their experience has proven there are a few things new investors can keep in mind that will help to reduce the number of problems they experience trying to rent properties.
The area a real estate investment property is in determines the features and amenities that must be included in a rental property. Although HGTV and DIY have raised people’s knowledge and expectations about what should be in a home, not every location is a good fit for million dollar features. Properties should always be at least a step above builder’s grade. Although builder’s grade can be nice features, they are the very cheapest materials that builders can get to complete a home in a timely manner. A step above makes a home feel like it is quality built and carefully designed.
A real estate agent is a valuable resource. He can provide information about competing rental properties in the area. In addition, he can spell out what should be included in an investment property to make it move quickly on the market. He can assess the property for its potential value, which can help determine its acceptable level of monthly rent. The real estate agent will also be able to show and help lease the property for you.
Property management companies are another valuable resource for investors. They take on the people problem in real estate investing. This includes handling contracts, accepting and tracking down rental payments, taking care of maintenance problems, and more. This frees up time for real estate investors to do other things and reduces their stress level daily.
Insurance is a valuable investment. It covers replacing an investor’s rental property structure in case something should happen. All tenants should have renter’s insurance. It helps to replace the renter’s items that were lost, damaged, or destroyed. It can be required as a part of living in a rental unit.
About HomeVestors of America Inc.
Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties. Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community. In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction. For more information, visit www.HomeVestors.com.
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May 4th, 2012
If a person wants to be successful at anything, they have to have the background and knowledge to make them successful. In real estate, the only way to get this knowledge is to become an active participant in the real estate industry. That is where many real estate investors have trouble. Instead of getting into it, they prefer to fly solo. Real investors know this isn’t smart. Instead, they utilize these three success hints:
Build a network. Every professional knows the value of a good network. It doesn’t matter if the industry is church work or construction. A good network will provide ideas, resources, and support that aren’t available to those that fly solo. A one man army did not win this nation’s freedom. A one man network will not make a successful real estate investor either. Try going to social events, business owner meetings, Main Street Organizations, etc. A successful real estate investor has a network that is filled with people from all backgrounds. That way there is always someone out there with the right answer.
Be location knowledgeable. The property in every city or town is valued differently. Smart investing requires an active knowledge of the area. This includes which locations are growing, dying, etc. The census is a great source for numbers and can help to identify areas with growth potential. Having this knowledge will help investors make smarter decisions about potential real estate property locations, and everyone knows that location is … everything.
Be aware of the economy’s status. The economy greatly affects the state of the real estate industry. Knowing how it is trending helps to determine which decisions are the right ones for any real estate investment. If the economy is booming, sell while prices are going up. If the economy is unstable or in a decline, it would be better to hold onto any real estate investments. It would be wise not to purchase any other investment properties until the volatile economy stabilizes.
Economy, location, and network are the three pieces that get real estate investors started in active real estate participation. That is a great leap towards success. For more topics related to real estate investment, visit us at HomeVestorsfranchise.com. Our company is the nation’s number one home buying franchise. We have a large selection of real estate investments and real estate franchise opportunities available to help you grow your real estate business. Call or visit us today for more information.
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May 1st, 2012
Beginning real estate investors are easily beguiled by the types of property sales. The leading home buying franchise clears up the confusion.
Dallas, Texas – HomeVestors has spent the last 15 years making home buying and real estate investment an art. Through their experiences, they have cleared up many of the confusing areas that can lead a beginning real estate investor down the path of financial hardship. The most prominent area of confusion is the type of property sale.
Real estate investors typically deal with four types of property sales. These include the standard sale, REO sale, foreclosed sale, and the short sale. Although there can be true treasures in every type of sale, there are certain occasions that are better for investors than others.
Foreclosures
Foreclosed properties have been repossessed by the bank due to someone defaulting on their loan. These properties are generally left as is, and depending upon the previous owner, they may require a lot of work. Generally, foreclosures are auctioned off on the courthouse steps, and buyers and required to bring cash or check to pay with. Once the property is bought, it is the new owner’s responsibility to make any needed renovations and repairs.
REOs
An REO property is a bank owned property that did not sell at auction. Since it did not sell, the bank was forced to take it back over. These real estate properties are sold as is, and the bank is not responsible for any needed repairs. If the bank is feeling generous or wants to get more out of a home, they may have the place cleaned or painted. This is not generally the case. Be careful with REOs. The bank’s sale price may be really close to the standard sale price, and an inexperienced real estate investor may pay too much for a property he has to fix up.
Short Sales
A Short sale property is has never been foreclosed on, and it never has to be defaulted on. Usually, these are properties that sellers must get out of for financial or job related reasons. Instead of waiting until they default, sellers take a proactive approach and agree to sell their home, even if the price is smaller than the amount they owe.
With short sale, the catch is the seller must have a buyer, have the proof that their home is worth less on the market now, and must get the banks approval to sell. The bank will send out an appraiser. Depending upon the difference between the appraised value and the offer, the bank may or may not approve the sale. The problem with short sales is they aren’t short. The entire paperwork process can take up to 2 years to complete, and on top of that, the seller may still have to pay the difference between what is owed and what the real estate sells for.
If a real estate investor is looking for a quick investment, a short sale is not a viable option. Although foreclosures and REOs require work to get them in shape to rent, these two types of property sales are better for fast property turnaround.
About HomeVestors of America Inc.
Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties. Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community. In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction. For more information, visit www.HomeVestors.com.
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April 30th, 2012
The housing market is down, and current prices are low. Now is a great time to buy a second home. Many people question this, but it is the perfect way to start a career in real estate investing. Unless you plan on staying there a lot, your second home can actually make you money as a real estate investment property.
Rental Opportunities
There are several different types of rentals. For your property, you should pick the one that best suits your property needs and your responsibility/liability. A short-term rental is a furnished property with a contract for less than 30 days. A corporate lease is a fully furnished property with a contract for greater than 30 days. Traditional renting allows you to rent the property furnished or unfurnished for any period of time. Usually, contracts are signed for a period of 6 or 12 months. Real estate investors can use any of these to generate funds. The nice thing about short term rentals is you can easily generate enough to cover your monthly mortgage payment in just one or two visits without the yucky part of coping with the same problematic tenant for 12 months at a time.
Where to Find One
Finding the perfect spot for your second home may be a little bit of a challenge. In your local community, talk to the banks to find out what is available in short sales, foreclosures, and bank owned properties. If you want to venture outside your local community, start by looking online to find real estate agents in the areas you are interested in. These real estate agents will be able to give you background information on the area and can point you in the direction you need to go.
When you are talking to agents, look for areas that typically draw tourists, including ski areas, beaches, and tropical islands. Homes in tourist locations tend to rent more often and for a higher rate.
Keep in mind that short term rental properties need plenty of bedrooms and bathrooms and a nice kitchen. Even though families are on vacation, they will probably want to cook to help cut their expenses.
Advice
Be sure to seek out the advice of your mentor/adviser and a lawyer. They will help you figure out if something is a good deal, and look for potential legal issues that could complicate your buying/renting process. For more ideas in real estate investing, call or visit us at Homevestorsfranchise.com. We have a large assortment of real estate franchise and real estate investment opportunities to help you grow your real estate business. Come let us help your business grow today.
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April 26th, 2012
Real estate investors have difficulty making consistent money through investing. The nation’s largest home buying franchise has pinpointed some of the problems in the investment process.
Dallas, Texas – Fifteen years ago, HomeVestors® discovered the necessity for real estate investors to buy, sell, and rent properties at a profit. The company has spent the last decade fine tuning their real estate investment approach. This has eliminated many of the common mistakes that investors when getting started.
Not Watching Trends
Although day traders spend day and night glued to news station, most real estate investors simply flip to something more interesting to watch. These investors get in trouble due to a lack of knowledge about the economy and its trickle down effects. Out of ignorance, they make moves that are not financially feasible given the current market condition for their area.
Too Many Deals Passed
A second place investor get in trouble is by passing on smaller deals. Fishing shows are filled with sportsman that catch and release those nice, tasty pan-sized fish in hopes of bringing in the big one. Most real estate investors work under the same hope of landing the ultimate real estate deal, and they miss out on lots of filling smaller transactions. Smart investors know that several small profit transactions can add up to one large profit transaction.
Long Pauses in Business
Some investors buy property and then have nothing else to do accept wait for its value to go up. In the meantime, they pay for the maintenance as well as the mortgage, insurance, and property taxes. A monthly income can be generated by renting or leasing these same properties. The money can be used to pay for the property’s bills or to create a consistent monthly income for the investor.
Not Staying Within Their Areas of Expertise
Many real estate investors have a niche market that guarantees a client base of some kind. They learn these properties, and what their customers expect. They know what quality rehab is required for their customer base, and get good at buying that level. When they get in trouble is when they venture outside their level of expertise. They get good at lower priced houses, so they decide to buy a more expensive house, but do not understand what quality that customer expects. Or, if they are used to buying more quality house, and buy in a lower market, they spend too much on the rehab making the house unprofitable.
About HomeVestors:
HomeVestors is the number one ranked home buyer and real estate franchise in America. They are the well-established real estate brand also known as the We Buy Ugly Houses people. Their marketing and real estate investing strategies have proven successful, and have resulted in over 50,000 properties bought across the United States.
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April 25th, 2012
It doesn’t matter if you are a beginner real estate investor or a pro, sometimes it is easy to fall prey to tricks and traps that others lay for you. Instead of letting a little tricky situation get in your way, here are some tips to help you avoid getting trapped.
Don’t fall prey to pressure. It is very easy to be pushed into a deal or venture because you are a nice person. Never sign a deal without sleeping on it and talking to the people in your real estate team trusted mentor/advisor. If it can’t wait, it isn’t worth venturing into, and you know what they say if it sounds too good to be true, it probably is.
Only invest what you feel comfortable investing. By the same token, do not invest more money than what you have available. Good deals come along all the time. If you can’t afford to pay your rent, you can’t afford to put any money into an investment. If the deal feels like it isn’t on the up and up, don’t invest a lot of money in it. Your gut is probably telling you something your head just hadn’t realized yet, and ignoring it could cost you thousands.
Get everything in writing. Although it would be nice to be able to do business on a handshake, our world just isn’t made that way anymore. A man’s word is no longer is bond, and unfortunately, it also doesn’t stand up in court like it used to either. Make sure that everything is spelled out in black and white, and get signatures, notaries, and witnesses whenever possible. It sounds silly, but you can never have too much proof or substantiating evidence if things should turn out poorly.
Don’t count your chickens before they hatch. In other words, don’t invest or spend money you don’t have yet either. When those great real estate investment opportunities come along, they will either still be there when the money comes through from the last investment sale or another great one will come along. Otherwise, you may be in the red up to your eyeballs with no way to pay it down.
These are basic ideas that have been passed along for generations, but when it comes to real estate business, they sometimes get forgotten. For more ideas on real estate investing success, call or visit us at Homevestorsfranchise.com. We have a wide variety of real estate franchise and real estate investment opportunities available to help you grow your real estate business. For more information, call or visit us today.
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