Archive for July, 2012

Don’t Make These Mistakes

Tuesday, July 31st, 2012

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The benefit of purchasing over 50,000 as is properties is the wealth of knowledge you gain. Inexperienced and seasoned real estate investors are always looking for ways to make money. Unfortunately, their pursuit of the big bucks often leaves them open to making big time mistakes.

The first large mistake is with home selection. Don’t pick new homes. Although they are pretty, they normally cost more per square foot than their alternative resell properties. Make sure that the investment home is at a reasonable enough level to allow for future profits.

The second mistake real estate investors make is buy a property that sounds like an unbelievable deal. The deal is not the problem. The danger occurs when the investor just sees dollar signs and fails to take into account the other factors that can make the property a fabulous investment. To make a good investment, choose properties that are in a good location. They should be close to parks, good schools, great shopping, and superb restaurants. Those are items that families want and are willing to pay to be close to.

The third mistake investors make is to buy real estate because they like it.  An investor’s tastes should be taken into consideration, but not everyone is going to have the same tastes. Instead, look for properties based on their potential. Is there a chance of the property appreciating quickly? Is the property in an area that other people are dying to move into? Real estate investors will not make money on homes unless people are willing to rent them. Just because the investor likes 5 bedroom 3 bath homes in the suburbs doesn’t mean that these are going to be good rental properties.

The fourth mistake real estate investors make is purchasing homes in the neighborhood where they live. While it does make it more convenient to check up on the place, convenience does not make up for the ability to rent the home. The main thing to remember is the property needs to be in a desirable location and have access to the amenities people love, including parks, restaurants, and shops. If your neighborhood provides those things, the property may be a good investment. If it doesn’t, the chances of renting the house and keeping good tenants are greatly reduced.

Keeping these mistakes in mind will help real estate investors make better investing decisions. For more information on real estate investing, call or visit us today at Homevestorsfranchise.com. We have a large assortment of real estate franchise and real estate investment opportunities available. Come see us today and see what 15 years of experience can do to help grow your real estate business.

What’s a Bird-dog?

Wednesday, July 25th, 2012

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If you’re thinking about being a bird-dog, you may want to rethink that decision. You see, it’ll take a lot of training and practice for you to be great at it. Even if you say you’re a fast learner, your instincts simply cannot match the pros’ in just a few weeks’ training. You have to know what it really takes to be a bird-dog before you can become one. And of course, you must understand what a bird-dog really is.

A bird-dog is someone who identifies good properties to invest in (usually distressed), place the properties under contract, then reassign them to rehabbers for repairs, renovations, and resale. Bird-dogs earn through fees they collect from rehabbers. So where did the term bird-dog come from? Rehabbers are like hunters while the houses are like the birds hunted. When hunters go out in search of birds, they usually use hunting dogs or bird-dogs. Bird-dogs, therefore, are those who point the investors to the good finds.

So what does it take to be an effective bird-dog?

Build your local network of investors. Go to the Real Estate Investors Association meetings in your area. You’ll meet a lot of investors you can cater to, so talk to them. Find out what they’re really looking for and what types of properties they consider as good investments. Ask on how they compute for the rehabbing outlay and markup so you know how much they’re willing to spend. Jot down notes and learn from what they have to say. You’re working for them and not yourself, so their opinion truly matters.

Know how to hunt. Being a bird-dog doesn’t mean finding any distressed property there is. Given what you’ve learned from your meetings with investors, you need to think like them when hunting. Know what distressed properties are really feasible for rehabbing and reselling for profit. Remember, you only get paid if the rehabber agrees that your find is indeed worth investing in, so don’t waste everybody’s time. Thoroughly screen the properties in your area.

Do the math. Make the necessary computations before assigning a property to a rehabber. Obtain the significant figures – comparables, sold comparables, days on market (DOM), lowest selling price, and holding cost among others. Knowing these things, how to compute them, and how they affect the sale will let you know if a house is worth investing in or not.

Distinguish the real rehabbers from the flippers. You don’t want to assign a house to people who say they can close the deal only to assign it to someone else. Everybody can end up with nothing once this happens.

Being a bird-dog can be a great means of income for you only if really you know how to be one. It can be a superb way of starting your own real estate business, so do take time learning and knowing the proper techniques. If you want more useful tips on how to start your own real estate investing firm, call us at Homevestorsfranchise.com or visit our website today.

Advertising through Craigslist

Wednesday, July 25th, 2012

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With almost 50 million unique visits every month, Craigslist has become a “hot” marketing tool for many businesses. The simple and no-fuss search experience it provides makes it appealing to both businesses and consumers alike. You won’t see any fancy graphics. You just get in, obtain the information you need – and then leave. If you’re a real estate investor, you’ve probably utilized this platform. The problem is you may not be presenting your ads the right way. Craigslist is like an online version of the classifieds, but just because it’s mostly classified ads doesn’t mean yours has to be boring. Remember, you’re not the only one advertising there. Your ads must standout and prompt those users to call. So, the real question becomes: how do you do it?

Here are a few useful tips:

Use attention-grabbing headlines. Make your ad standout by highlighting what’s unique about your listing. For example, if your listing is a single-family property in Los Angeles, your copy might read, “Move your family to the city of the stars!” Or if your listing is a beach-front property perfect for retirees, your headline can be “Retiring? Get your own paradise beach house!”

Insert an attractive image. Use the best photo of your listing. Choose one that supports what’s in your headline. If your headline boasts of your beach house listing, select the photo that includes the property with the view of the beach.

Make property information short. This part of the ad doesn’t need to be too wordy. Make it concise and straight to the point. You want to place teasers and not present all there is to know in one go. Make your readers go to your website to find out more.

Use everyday English. Write copies as if you’re talking to a friend and not like a commercial where you bombard viewers with hard-selling scripts or spiels. Just go direct to the point but make sure everything’s clear and understandable. Avoid jargons.

End with a powerful call-to-action. The call-to-action (CTA) portion of your ad must be as powerful as the headline. Draw visitors to your website to find out more about your listing. You can also use your CTA to optimize your website by placing an anchor text or hyperlink leading your readers to your website. See the example below:

This is your chance to buy your own beach house and enjoy all the comforts that beach life has to            offer. So call us now or visit us online at PropertiesRUs.com. We’ll make your dream a reality.

Make more than 1 version of the ad. Create 3 different versions of ad for the same listing if possible. This’ll avoid monotony and keep things fresh and interesting. This’ll also help create more leads.

Advertising through Craigslist may be a chore for many businesses, but it’s those who put more effort into it that land the most leads. Take time to create attractive ads to help you market your listings more effectively. If you need more helpful marketing tips for your real estate investments, talk to us at Homevestorsfranchise.com or visit our website today.

More Than Thoughts

Thursday, July 19th, 2012

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Real estate investors for years have been looking for the secret of real estate business success. There have been countless books, workshops, and webinars that address this secret in one shape or another. Even though they may provide a few tips or tricks that will help a business to be successful, they leave out two very important secrets. Real estate investment success depends upon active planning and action.

There are countless articles out there on the importance of planning in a business. This is especially true with real estate investment. Real estate investors must spend time dreaming, planning, researching, and mapping out their way to success with every real estate deal.

Start by dreaming big. In the next five years, figure out where you want your business to go. Using that as a long term goal, break it down into smaller chunks. In four years, three years, two years, one year, six months, where should your business be to achieve your five year goal? Putting this on paper is not committing yourself to these numbers or goals. They are merely guidelines to help keep your business interests focused and on the way to your ultimate goal.

Once these goals and plans are put down on paper, it’s time to get moving. The second part of the secret is the real estate investor has to get off his bum and work! Very seldom will the perfect property or the ultimate real estate deal fall into your lap. Therefore, the investor has to set about looking for those sellers, investors, and properties that will help to make his real estate business a success.

Once you have your goals, pick one and write down the activities that have to be done to achieve it. As you complete them, mark them off of your list. It will provide you with a sense of completion as well as help you to envision yourself closer to your goal. Re-evaluate often. Most successful businesses are constantly looking at their progress and their goals. Then, they realign their focus and their tasks to get back on track towards their goal.

Success can be a real estate investor’s friend, if he is willing to work to achieve it. For more information on real estate investing, call or visit us at HomeVestorsfranchise.com. Our company is the nation’s number one home buying franchise with over 15 years in the real estate industry. We have a massive array of real estate investment and real estate franchise opportunities available. Come and see how we can help you grow your real estate business.

Real Estate Investment Contract Clauses

Tuesday, July 17th, 2012

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Offers and contracts are these biggest and stickiest subjects that real estate investors have to deal with. Whether you are purchasing the property yourself or selling it, the offer and contract can make life a little crazy on both sides. If the wording is incorrect or something is left out, it could end up costing the investor multiple thousands of dollars. In some cases, it may cost investors as much as hundreds of thousands of dollars.

The way to avoid this is to work with your professionals. Professional real estate agents, real estate attorneys, and CPAs will tell you if there is a problem with the way the contract is worded. They should also explain the contract to you in its current state and bring up any areas of concern. If you are the one submitting the contract or offer, make sure that your attorney is the one that writes the contract. That way you know that your best interests are being covered in the contract.

Before you sign any contracts, there should be a clause or clauses in there that look out for the best interests of the buyer and the seller. For the seller, the contract is void if within 15 days the buyer does not provide accurate financial information proving he can pay the amount offered. He should also supply a down payment of X amount of dollars. By having this in the contract, the seller is assured that the buyer is truly buying his house and not holding on to it temporarily while trying to find someone else to buy it from him.

For the buyer, there are a few clauses that should be included in the contract. They are slightly different for residential and commercial investments. For residential contracts, it should state that the seller has to provide accurate inspection reports as well as appraisal documents within 15 to 30 days. This prevents the constant dragging out of sales that drive buyers and sellers mad. In addition, sellers have to repair, replace, or be willing to reduce the price of the property to make up for whatever is found in the inspection report. With as is sales, the reduction in the price of property is the key term to be used. If not, the buyer has the right to void the contract.

For commercial properties, the seller must provide within 15 to 30 days accurate financial statements and information. These should include: rent roles, rental contracts, financial spreadsheets of expenses and income for the last few years, and tax returns of the property for the last few years. If not provided or found lacking, the buyer may void the contract.

Your real estate attorney will be able to word these according to the state’s real estate Legal-ease. However, having these in your contracts will save your wallet a lot of money.

For more information on real estate investing, call or visit us at Homevestorsfranchise.com. Our company is the nation’s leading real estate franchise with over 15 years of experience selling and buying as is homes. We have a varied assortment of real estate investment and real estate franchise opportunities available. For more information, call or visit us today.

What’s in a Name?

Monday, July 16th, 2012

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Real estate investors spend hours planning their business. From the first investment property to the letterhead, it all has to be perfect. One item that often gets overlooked is the importance of a name. A name sets up the image of the business and the basis of its reputation.

The name of a real estate investor’s business can be anything. Most people use a spinoff of their name. This is fine for a business name since it allows people to easily associate a person with his business. However, the same rule does not apply to trusts or other similar organizations.

Some people use the same traditional rule for business names and apply it to trust names. For example, the Melton family may call their business the “The Melton Real Estate Investors”. This is fine because it associates the Melton family with their business.

A land trust is designed to allow buyers to purchase land and receive the benefits of it. The land trust protects the owners’/beneficiaries’ identity by listing a trustee on the title. This keeps the identity of the beneficiary hidden. This protects the beneficiaries from fraudulent cases against them.

For example, the Melton family decided they liked the sound of “The Melton Real Estate Investors” that they would play off of it for their land trust. “The Melton Family Land Trust” is what they came up with. It is a pretty name, and people can use it. However, it defeats the purpose of using a land trust. This type of name still identifies the people that are the beneficiaries of the land.

Before you name your real estate business or your land trust, think about why you are forming them. If it is to protect your own identity and assets, placing your name on the title in some form is not a good idea. If it is to build a reputation and brand for your business, naming the business after yourself is a fine idea. Real estate investors should carefully reconsider before using a piece of their family name in their land trust name.

For more information on real estate investing, call or visit us at Homevestorsfranchise.com. We are the nation’s number one home buying franchise with over 15 years of experience buying and selling as is homes. Our company has a vast assortment of real estate investments and real estate franchise opportunities. Come see how we can help you grow your real estate business.