Archive for May, 2012

HomeVestors Says Real Estate Investors Should Ask Questions before Investing

Thursday, May 31st, 2012

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HomeVestors has had over 15 years of experience in the real estate industry. They have worked with experienced and beginning real estate investors. Each investor has given HomeVestors the opportunity to learn from their mistakes. The main concern they have found is potential investors fail to ask enough questions before diving into real estate investment.

The first question investors should ask is for professional help. It would be nice to think that getting into real estate just meant an investor had to buy a property. Unfortunately, it involves so much more. There are laws about investment properties, land lording, and tax issues. Knowing these and having someone to consult really saves investors from making a lot of mistakes.

The next question real estate investors should ask is how to find or where to find financing. It would be nice if everyone had great credit, huge savings accounts, or friends that could loan them the money. This isn’t always the case, and it creates some pretty hairy situations and bad reputations when real estate deals fall through. Professional investors should be able to give you a heads up. This should involve real names, places, and addresses.

The third question every investor should ask is which type of real estate investment is the most profitable for the current market place. Every market is different. Rentals perform better in urban areas, but lease-to-owns are the preferred option in others. Finding out this information beforehand will help investors make better property choices.

The last question most real estate investors need to ask is who should be involved in their real estate investment team or business. After all, taking all the responsibility on one person puts too much stress and work on one individual. A team lets the people with the best knowledge in specific areas use their expertise to handle those problems. It cuts back on the time needed to find a property, buy it, fix it, and get it on the market to rent or sell.

Having knowledge of what to expect, what to do, and who to rely on from beginning helps to make a better real estate investor. Asking questions and doing a little research is the only way to find this information.

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.

HomeVestors says Hard Money Loans can Solve Financing Problems

Thursday, May 31st, 2012

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After 15 years in the real estate industry, HomeVestors has worked with real estate investors of every kind. The largest problem that these investors have faced over the years is how to pay for their real estate investment properties. Since banks are limiting the amount of funds they hand out, finding money for business purchases is becoming harder and harder. Smart real estate investors will choose to explore hard money loans.

Hard money loans make it possible for investors to purchase real estate investments. These loans are obtained from private, individual lenders. They normally have a higher interest rate than a normal bank loan, but their requirements and restrictions are more relaxed.

There are a lot of benefits to using hard money loans. The type of real estate investment does not matter. They can be used for foreclosures, short sales, rehabs, residential, and commercial.  The money can be used to purchase the property, to construct, or to renovate it.

Since they are typically handled by an individual, private loans or hard money loans provide real estate investors with options they haven’t previously had. The loans are usually more flexible. They can arranged to fit the investor’s needs more easily. In addition, hard money loans have fewer contingencies to be added to real estate transactions. This allows for higher consideration from sellers.

Another benefit for real estate investors is their expediency. Hard money loans are usually quicker to the  obtain than traditional loans. Instead of the weeks and months waiting to hear of the bank’s approval, most private lenders will let investors know within days if the money is available. In addition, the lenders typically are less concerned with the borrower’s credit score and more concerned with their personal character and the amount of money the loan will make them.

Real estate investors need to go in with their eyes open. Although the loans are easier to obtain, the loan rates and terms are typically higher than traditional loans, especially since there’s no competition. Generally, the terms are set up where a quick repayment will ensure higher profits for the real estate investor, but longer repayments may start eating those profits up.  In addition, the real estate investor must have enough money tucked away to prove he will be able to pay back the loan no matter what happens in the future. Private lenders love loaning money, but they do need that money returned. Failure to pay may result in the investor losing some assets in order to repay the loan.

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.

HomeVestors Says Real Estate Investment Has Property-less Options

Tuesday, May 29th, 2012

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HomeVestors is the nation’s number one home buying franchise. Over the last 15 years, they have helped countless real estate investors grow their real estate businesses. In that time, HomeVestors learned that there are different needs and commitment levels of real estate investors. Some investors can manage full the property investments while others need options with less personal time and sweat commitment. HomeVestors says there are other options for less than full commitment investors.

Private lending is one way to invest in property that most individuals do not think about. Investors can provide private loans to other individuals that need some help financing their home or investment property. The real estate investor always receives the amount of the loan plus interest over time, and if the loan is not repaid, the property transfers to the lender. There is nothing to worry about for the real estate lender. The entire transaction can be handled through a specialized real estate broker, which takes the stress and worry away.

Real estate investors that do not want to assume the full responsibility for a property may think about going in with a group of investors. On larger properties, many real estate investors may put their money together to purchase. Usually, a property management company is hired to take care of running the property and taking care of the tenants. Usually the records are maintained and reviewed quarterly. Any problems are voted on and profits are split amongst investors at that time.

For some real estate investors, even that minimal commitment is too much. For these individuals, real estate notes provide a way of getting into real estate investment without a whole lot of work. Notes are the promissory notes from buyers to pay back the amount they borrowed to make the purchase. Most banks and financial institutions trade and sell these as they need the money. Purchasing these provides real estate investors a worry free way of investing. Not only do investors not have to handle the property, but the loan is also backed by the actual land. If by chance the loan should default or fold, the land can be foreclosed upon.

Real estate investment does not have to be a heavy commitment. Investors just have to keep an open mind when it comes to defining their real estate niche.

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.

 

 

HomeVestors Says Inexperience Can Lead to Poor Property Selection

Wednesday, May 23rd, 2012

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HomeVestors has purchased many properties over the last few years. Their work with distressed homeowners and real estate investors has helped them to navigate the real estate market without some of the problems inexperienced investors make.

Without a lot of guidance, novice investors are left holding properties they are never able to rent. Before purchasing a property, starting investors should consult other real estate investors for advice. Although there are lots of people and professionals that will offer you advice, be leery of any that doesn’t come from someone that has investment experience. Most of the time, the advice on properties doesn’t fit what an investor really needs.

Inexperienced investors have problems locating good areas for rental properties. Usually, they end up in areas where no one would want to live or in areas saturated with rental homes. In both cases, it is virtually impossible to rent or sell these real estate investment properties.

Be wary of locations with more than one or two rental homes. These areas are not stable and less likely to appreciate in value. In addition, there is too much competition in that area.

When finding properties with potential, be careful of the kind of potential being described. New homes are gorgeous. However, buying one now starts dating the home. Trying to sell it later only leads to buyer disapproval. After all, they can just get a brand new one right down the road.

This means when an investor is looking for future potential, he should look less for potential decades down the road and more for immediate returns. This includes brand new properties with access to public transportation an hour away from downtown. Instead, invest in the cheap short sales and bank owned properties that are more desirable and could bring profits now.

Real estate investors should not be afraid to diversify. This means that they should consider all sorts of property types, styles, and sizes. Not every family is going to need a 4/2 or even a 5/3. Sometimes, all that is needed is a 1/1 or 2/1 or maybe even a studio loft. Keeping this in mind, real estate investors will have a better chance of appealing to a large segment of the real estate market.

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.

HomeVestors Says Investors Must Give a Little Extra to Get a Little More

Monday, May 21st, 2012

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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.

HomeVestors says Choose Coaches Carefully

Monday, May 21st, 2012

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The wrong program can cost investors more than money.

Dallas, Texas Through hard work and diligent dissection of the buying and selling process, HomeVestors has become the nation’s leading home buying franchise. Over the last 15 years, they have worked with numerous real estate investors and purchased over 50,000 investment properties. These investors have recounted numerous horror stories about real estate investing. HomeVestors says many of these stories could have been avoided with the right coach, mentor, or training program.

Proper knowledge and experience can keep investors from losing thousand on a deal, and will help keep them from doing anything that could land them in jail. That is why it’s imperative that real estate investors find a training program that not only fits their personality and life style, but also is a reputable program designed to truly help the investors business to succeed.

When looking for a program that really works, look for ones that have been around for a long time. If they have recently jumped into business and made a million dollars, there is no possible way they can know everything about real estate. They may have been lucky, and anyone can too. The chances are that their program or secret may be intriguing but is not going to work for every person or in every market. The more experience a coach or program has, the greater the possibility is they have worked through many of the situations or obstacles a novice or beginning real estate investor will face.

The second thing to find is a program that has real certifications and holds memberships in business associations and organizations. This means the creator has taken the time to not only get out and network about the program, but also has taken the time to build a solid business these groups will back. Many organizations and associations will not accept businesses that are unethical, disreputable, or refuse to uphold the beliefs of the group.

The management and organization of the program should tell investors whether or not they will receive anything out of the coaching. A good business is one that has carefully thought through the coaching process and what real estate investors need. Knowing that everyone has a busy lifestyle, they should be able to provide a real estate investor with everything he needs to know about the program upfront. This information should include the price, what is include for that price, how the coaching will take place, when or where it will happen, and by what means the coaching will happen. In addition, it should include how to contact the coach in normal circumstances and extreme ones, and who to talk to if the coach is not available. After all, most people do sleep sometime. Who will take the reins then? If a coaching program cannot provide this information ahead of time, the chances are they are not experienced coaches or they are not organized enough to be ones. Coaching program don’t have to be perfect, but if money is going to be spent on them, a little extra digging can figure out if they will be worth the investment.

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

HomeVestors Says Investors Need Rental Properties

Friday, May 18th, 2012

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HomeVestors has over 15 years of experience in the real estate industry. They have worked with many real estate investors, and have learned a lot about how to successfully profit through real estate investments. One of the best ways they have found is through rental properties.

Rental properties are phenomenal investments. Everyone needs a place to live, but not everyone can afford to buy a home. By investing in rental properties, there will always be a need for an investor’s goods…his rental properties. Therefore, the investor is almost guaranteed to have an income of some kind off of his investments.

There are some tricks that real estate investors can use to have better rental success. The first tip is to pick good areas. These are not always the ones you think are hot commodities. Although the latest desirable neighborhoods are good ideas, they also can cost an investor an arm or a leg with no guarantee on the amount of return he may receive. However, places close to public transportation, great schools, and restaurants offer other benefits that are usually a lot more appealing.

The next step is to work with the utility companies. They will help you to figure out which method of running and paying for the utilities is the best. Some investors prefer to have one system for multi-unit properties. Others prefer to have a separate measuring system for each unit. In some ways this is easier. In others, it makes it more challenging to keep up with the utilities between renters. Make sure that the renter completely understands how they will be paying for their utilities.

The third step real estate investors need to work on is attracting good tenants. Getting people to apply for residency is one thing. Finding the renters that are going to appreciate a rental property and take care of it is another story entirely. Social media helps to get the word out quickly on newly vacant properties. A good application process, as well as a thorough background check, credit check, and rental history check should be a good indication of whether or not the candidate will make a good tenant. Although the money is needed, do not accept any questionable tenant. It could actually be harmful to the real estate investor or the property.

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.

HomeVestors Says Investors Must Give a Little Extra to Get a Little More

Thursday, May 17th, 2012

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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.

The Right Type of Real Estate Investing

Wednesday, May 16th, 2012

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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.

Offer Writing Need to Knows

Tuesday, May 15th, 2012

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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.