Archive for December, 2011

Foreclosure and Renters

Thursday, December 15th, 2011

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It is hard to imagine, but there are a large number of renters that have found themselves out on the street due to no fault of their own.  Although they have been paying their rents  on time every month, the money was not applied to the landlord’s mortgage on the property. As a result, the renters found themselves without a roof over their heads.

Don’t be Embarrassed

The biggest mistake real estate investors make is not informing their renters of any possible trouble. Due to denial, embarrassment, or self-preservation, real estate investors neglect to tell the people the foreclosure will affect the most…the renters. There are lots of options for renters if they know plenty of time ahead of the foreclosure.

Renter Options

Although you are still legally tied into the lease until the contract is fulfilled, finding another rental home is certainly a viable option. The more time you have to look, the better your chances are of finding something you will like.

A second option for renters is the option of negotiating the sale of the home before the foreclosure. Although some real estate investors do not want to short sale their properties,  renters may be able to negotiate the stopping of foreclosure proceedings and the buying of the property. This option is a win-win for both the real estate investor and the renter.

A third option for renters is to buy your home at the auction or after the auction from the bank.  If the real estate investor did not want to work with you before the foreclosure proceedings, waiting is your best bet. After the sheriff evicts you, you are likely to get a better price on the home at the auction. If the home doesn’t sell at the auction, the bank is more than happy to negotiate the terms of the property sale with you later.

Becoming a property  owner is one of the best things you can do for yourself and your family. Moving from a renter to a homeowner may take time, but it is worth it.

If you or someone you know is having trouble with a mortgage, don’t wait until it too late to let someone know. Several of our franchises specialize in buying and selling pre-foreclosure and foreclosure homes. The good news is that most of the time we can close within 7 days, and we provide cash or a cash equivalent at closing.  Visit us today at WeBuyUglyHouses.com to find out what we can do for you. If you are a real estate investor, visit us at Homvestorsfranchise.com to find out more on real estate investment and real estate franchises.

Advice for New Real Estate Investors

Thursday, December 15th, 2011

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Many beginning real estate investors want good advice to help them get a sound footing. Here are some of the best tips available to help you get on your way to a successful real estate business.
Quality

Although it is tempting to jump at every available opportunity, choose your investments carefully. It is better to have one or two quality investments than twenty or thirty average or low performing ones. Although every investment is a learning opportunity, stressing yourself out or making  yourself to rushed or hurried doesn’t teach you anything.

Write Down Your Goals

Although it is difficult in the beginning to visualize, try to put don in words what your goals are for yourself and  your business. Having a plan or vision for where you want your business to go helps you to focus your efforts and stay on track. Goals can always be changed as you move along, but setting down realistic ones is the first step. The next step is to create a time frame or plan to help you achieve those goals.

Keep the Best Investments

Use your best judgment. It is hard to keep investments when it comes down to cash resources for food or other investments. Those good deals often increased greatly in value over time. If you can hang on to them instead of selling them, you will reap the benefits later of those investments.

 

Let Your Market Set Your Price

Many investors feel guilty about making a profit off of some of their investments. Don’t! Don’t over inflate prices in your investments, but down short change yourself either. Give honest, ethical prices based on comps and the market. You are worth the money.

Keep Business…Business

Although it tempting to give away your services or investments, don’t. There are ways to contribute to charity that don’t involve you sacrificing your company or credibility. Don’t let someone live rent free or take advantage of you.

Keep Your Safety Net
Real estate investment takes awhile before it becomes profitable. Having a real paying job also gives more creditability to you when you are applying for loans and working with credit card companies.

Use Financial Partners Wisely

In the beginning, it is easier to find capital to use for real estate investment if you have a financial partner that supports your business. Over time, you may come to a point where you feel it is better not to use a financial partner. It is ok to do some investments on your own and to split others. It is even okay to part ways with your financial partner. Just make sure there are good records on every deal, and that you are communicating your wants, needs, and wishes for the business.

These are just a handle of the topics and ideas available for you on real estate investment. For more ideas on real estate investment or real estate franchise opportunities, visit us at Homevestorsfranchise.com.

Contract Clauses

Wednesday, December 14th, 2011

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As a real estate investor, you know that buying, renting, or selling real estate can turn into a rather lengthy process. Some people want to use specialized nonstandard contracts and they want to add in unusual contingencies and other clauses that are questionable. These odd contracts can set off warning bells for real estate lawyers as well as smart buyers and sellers. 

Instead of using a nonstandard contract, an intelligent real estate investor will use the standard real estate broker contract. However, to protect yourself and your business interests, add these crucial clauses or addendums at the end.

Selling Contracts (you are the seller):

Seller’s Choice of Escrow Company – The escrow company manages the deposit of funds, deed or other instrument by one party of the contract for the delivery to the other contract party upon completion of the contract conditions. This clause gives you the right to choose the company that will handle contract.

Inspection Clause – For the seller’s best interest, an inspection clause should be added that limits the amount of time given to the inspection period. This keeps the buying process from dragging on forever. In addition, the clause should insist upon inspection by a licensed professional inspector. Some professionals even recommend not leaving the clause open-ended and setting certain areas that the seller will be liable for such as the roof, HVAC, etc.

Permission for Seller to Contact the Lender – With any financing company, the buying process can easily get drawn out. What is worse is not knowing why things are being drawn out. Since the buyer’s lender won’t talk to you without the express written permission of the buyer, a clause should be added to the contract that covers permission for all participants in the contract.

Buyer Qualification – Real estate investors don’t want to waste time waiting for deals to go through or fall through. Limiting yourself to prequalified or preapproved buyers will help. However, it may need to be included in the contract that the buyer must prove they are preapproved or the contract is invalid.

Buying Contracts (you are the buyer):

Buyer’s Choice of Escrow Company –This clause gives the buyer the right to choose the company that will handle contract. This ensures that your interests are covered.

Offer length – There is nothing more hand tying than a deposit for an offer that is tied up for years. Placing a reasonable offer time length will help to ensure your offer is well thought through. Be aware that a short offer length will make lawyers and sellers think there is something sketchy about your offer. A decent length is 2-3 months. If they can’t possibly decide by then, they really aren’t interested in selling their property.

Before you negotiate and sign your next real estate transaction, check your contract to make sure everyone’s best interests are being covered. A good mentoring relationship, like the ones available with a  Homevestors franchise, can help you with those pesky contract clauses. For more information on real estate franchises or real estate investment, visit us at Homevestorsfranchise.com.

Don’t Give Up!

Monday, December 12th, 2011

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Many real estate investors come and go, especially if they don’t make themselves a millionaire within a few weeks. Some people will tell you that real estate investment is easy. The concepts are easy, but actually working them is not. Here are why some investors fail:

Hard Work
Real estate investment takes hours, days, and weeks of hard work. Many investors start to get frustrated long before they become successful. Unlike easy desk jobs, real estate investment requires hours in a chair as well as hours in the field scoping neighborhoods and talking to people. Usually when it starts to look bleak is when it starts turning around. Don’t let hard work frustrate you and don’t give up!

Too Good To Work Hard
Some real estate investors make the mistake of having success and believing they know it all. The crazy part is after they have success, they do not want to continue working for more successes. These real estate investors quit doing the things that made them successful in the first place. This is a huge mistake. If you find something that is working, keep it up!

The Easy Way

Who doesn’t want millions of dollars from following one simple plan? Unfortunately, too many investors give their life savings for that secret to millions. Just remember, the easy way isn’t always the best way. Once you find what works, stick with it. The hard work will be worth it.

Be Successful with Small Steps

Instead of leaping in all at once into anything, take your time. Stick your toe in the water and ease your way in. Instead of pouring your life savings into one get rich quick scheme, research and consider all of the investment opportunities available to you in your area. There are lots of ways to start becoming a real estate investor besides just buying a property. Once you’ve had success, stay with the plan. With each success, examine what works the best and tweak your efforts a little. Don’t give up on your business or on your plan. Stick with it.

Real estate investment isn’t easy, and it isn’t one size fits all. It is one way to be successful. For more information and topics related to real estate investment, visit us at Homevestorsfranchise.com. We have fabulous real estate franchise opportunities as well as opportunities available for real estate investment. Visit us today for more information.