Archive for October, 2012

HomeVestors Knows How Professional Investors Negotiate Closing Costs

Monday, October 22nd, 2012

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Investors need to understand closing costs and raise concerns when costs appear to be out of line.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years. The company knows that investors who have gone through the entire process of purchasing real estate may admit that it can be an exhausting feat.  There are quite a number of players involved in the sale of just one house and they all have to be paid. An investor mindful of this should be willing to negotiate their way through closing costs and save themselves a buck or two.

Closing costs are an array of fees that pay for services associated with the sale of a property but are separate from the selling price itself. Some of the items making up the closing costs are fees charged by the lender for various services, such as mortgage application fees, underwriting fees, settlement costs, and many others.

Other fees go to appraisers, title officers, attorneys, and insurance agents. While other fees go towards credit report fees, inspection fees, brokerage commissions and government taxes.  The list could easily get overwhelming.  A buyer shouldn’t feel bashful about inquiring about what each one of these fees represents and asking for a waiver if one can be granted for any of them.  Usually those that fall within the lender’s fees category, can be negotiated.

Buyers should get a closing cost analysis from several different lenders to get a fair idea about how much the industry charges on average for each item. If certain items on the lender’s closing list appear way out of range, it is the investor’s duty to raise questions about them.  There is nothing in the books that really prevents lenders from artificially jacking up fees, to gain an edge over naive investors.

Perhaps, the greatest weapon an investor has in their arsenal of negotiating closing costs is the fact that they are under no obligation to go through with the deal.  The investor should be ready to walk away at anytime should the lender prove to be too inflexible about adjusting unreasonable fees.

It is the investor’s right by law to get a good faith estimate (GFE) of closing costs, shortly after applying for a loan.  The investor should always request this figure in case it is not given to them, for it can be a good guide to negotiating closing costs.  Sometimes the actual closing costs turn out to significantly exceed the GFE and this could serve as a red flag.  The investor should inspect closing costs line by line and be ready to raise concerns about any possibly overpriced item.  The key to cutting closing costs ultimately comes down to the investor’s ability to be pro active, assertive, and to stay on top of things.

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 Knows How Beneficial Finding And Purchasing Short Sales Can Be To An Investor

Monday, October 22nd, 2012

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Short sales are becoming increasingly popular with investors because they can be purchased below market value.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.   The company knows that the turbulence that presided over America’s real estate market these last few years characterized by foreclosures and swiftly declining prices, has presented real estate buyers with numerous opportunities.  Short sales, for example, are sales involving homes that are close to being under water that lenders have agreed to have sold at a loss, while relieving the mortgage holder of their debt, have become common place.

The whole idea is to avoid the mortgage holder from becoming another foreclosure case.  Purchasing short sales is a great way for investors purchase real estate because the lender is more interested in getting the property off their balance sheet than making money from it.  The investor’s job is to get the best possible deal they can.

The process of purchasing short sales is similar to a normal home purchase.  The principal difference lies in the fact that the lender is the main player in the transaction.  They must approve the sale contract because they technically own the property.  How to go about locating and purchasing short sales is perhaps best accomplished through an experienced agent who understands the short sale market.

Perhaps the most difficult part for the investor looking to purchase short sales is how some lenders can take too long to respond to an offer.  In the event that a lender is slow to respond, the investors should do themselves a favor by making multiple offers and eventually going with those that respond in a timelier manner.  Also, in spite of an impending foreclosure, some lenders may be too obstinate to accept anything below the property’s market value.  Investors should always inquire further to make sure that the price listed is actually what the lending bank is prepared to accept.

For any investors seeking to make maximum gains from purchasing short sales they need to remember that their greatest strength lies in the lender’s collective anxiety to find a buyer.  They should use this high ground to bargain for the best deal possible but bear in mind that a ridiculously low offer could kill the deal.   Short sale investors should keep these points in mind when hunting for the best short sale bargain.  The money that a real estate investor can make when purchasing short sales is too great to ignore.

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 Knows How to Invest In Inexpensive Rehab Properties

Monday, October 22nd, 2012

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Rehab properties can earn investors great dividends on their money if they are willing to put in the time.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.   The company knows that good real estate investors spend a great deal of their time looking out for the best deal because buying inexpensive property is the surest way to earn a profit.  Some of the least expensive properties out there are those that require some fixing up or rehabbing.  These so called rehab properties or retail properties provide excellent money making opportunities for savvy investors who specialize in this kind of business.

Finding rehab properties takes a little more effort than it may appear on the surface.  Simply looking up listings in classified ads won’t be of much help because even if rehab properties were listed on there, they most likely would be among the first to be taken off the list by opportunistic buyers.  An investor’s best chance to find these rehab properties would be to use a Realtor who has lot of experience in finding and negotiating purchases of retail properties.

Before a prospective investor gets too excited and sets out on a quest to find the best rehabs with the hope of turning them into money machines, they need to think it out rather thoroughly.  There are several risks associated with investing in rehab properties that investors need to be aware of.

To begin with, a fairly good number of rehabs are in bad shape and it makes no economic sense pouring money into them.  If the property had been in foreclosure for longer than usual, chances are the bank just didn’t spend much money in its’ upkeep.  As such the property may be in need of very serious repairs, which could easily exceed the market value.  Even if the property can be restored for a price that makes sense, there are several factors that can make it a bad investment, such as speedily declining home values in its immediate vicinity.  Such things need to be taken into consideration before investing in rehab properties.

Another hurdle in the path of an investor who deals in rehab properties is that traditional lending institutions do not extend any credit for their financing.  Since retail properties don’t meet FHA standards, their purchase through bank loan financing is by law, forbidden per FHA regulations.  Many times the only sources of financing are through so called equity-based lenders.  These are privately funded companies that specialize in providing short-term loans to real estate investors.  The investor has to provide a convincing plan as to how they intend to fix up the property and eventually sell it in order to qualify for the loan.

Investing in rehab properties or retail properties shouldn’t be regarded as a get rich quick scheme but they can prove to be a profitable proposition for those investors who are diligent enough to do their homework, and take a few risks.

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 Knows How to Make An Offer After An Appraisal And Inspection

Monday, October 22nd, 2012

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When investing in a property make sure that the property is properly appraised and inspected before making an offer.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.   The company knows that before making a commitment to purchase a property, an investor has a checklist that they must follow.  First of all, there is the process of looking for the ideal property that suits the buyer’s needs.  That may be followed by applying for a loan to finance the purchase and subsequently, presenting the seller an offer.  After finding the perfect property, determine if the value of the property is worth the asking price.  A professional appraisal and professional inspection are necessary to determine this.

The bank financing the loan normally provides a professional appraisal and the cost of their services would be included in the closing costs.  Banks usually require a professional appraisal and professional inspection in most cases because they don’t want to finance a house that is overpriced because it would end up costing them in the event of a foreclosure.

The appraisal process usually comprises a physical tour during which, the appraiser takes notes relevant to the property’s current state, size, property value trends for the neighborhood, and structural problems.   The key figures that go into determine the property’s value come from a Comparative Market Analysis carried out by the appraiser, where they use data from various sources about the selling price of comparable houses in the locality, known as comps.  This method of determining value based on sales data from comps, is called the sales approach.

Another method called the cost approach that is more relevant to newly constructed property focuses more on the cost of putting up the structure plus the land value.  The appraiser’s sources include the county registrar and the Federal Housing Administration.

The lender would also provide a professional inspection and their fees would be paid through closing costs.  A professional inspection would comprise a comprehensive review of the condition of the property as might be of interest to a buyer.  It would include an examination of structural components, wiring, plumbing, appliances, air conditioning systems, heating systems, and ventilation systems, just to name a few.  An inspection would identify all those components that are in need of repair, might pose a hazard, are not in compliance with regulations, and any other concerns, information that the buyer needs in order to make up their mind if it is worth buying after all.

After both a professional inspection and a professional appraisal determine if the property is really worth investing in.

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 Knows How To Make Money In The Rental Industry

Monday, October 22nd, 2012

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With rental property being a great investment, it is advised that investors add it to their portfolio in hopes of long-term gains.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.   The company knows that if real estate historians of the future peered back into the past with the intention of identifying that one era that could be termed the “golden age of real estate investment”, the current times would probably qualify as a prime candidate.  With real estate values having collectively lost over a whopping $3.6 trillion according to msn.com, and with the Fed doing its best to ease the credit crunch by keeping interests rates low, there really couldn’t be a better time for an investor to make a debut in the real estate market.  Investors who focus to rental units may benefit the most because they are looking at long-term future gains.  Investing in rental units is perhaps the most reasonable area of real estate to be involved in because the investor take advantage of both inexpensive houses and rising rents.

Rents have on average, been rising across the nation as more and more previous homeowners move out due to foreclosure.  There are tell tale signs of a recovering real estate market which makes it even more sensible to consider investing in rental units at this time.  If the market has left its worst days behind, then surely the average property bought today, would have some accumulated equity in the long-term.

Investing in rental properties is a big business that involves sinking huge sums of capital into a project that normally takes a while to turn out a profit.  With that in mind, it would be a wise idea for the investor to find a trustworthy Realtor who understands the ins and outs of rental unit investing.  First time investors should seek referrals from colleagues, partners, or other trusted professionals affiliated with the business.

Securing financing may be a hurdle for first time investors, so talk to a credit counselor to figure out the best way to boost one’s credit score.  First time investors may also consider forming a partnership with others who have been in the business a while to take advantage of experience.  With adequate financing secured, the next critical step is picking the right location.  Look for a location with high foreclosure rates.  Areas that make sense for investing in rental units would be high-density urban areas with healthy prospects of population and job growth in the long-term.

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.

Real Estate Investors – Leverage Money and Form Partnerships!!!

Friday, October 19th, 2012

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The process of starting and running a business can be rather daunting.  There are all the legal forms that must be prepared and the government regulations that must be heeded to. Perhaps, the most challenging part of starting a business is getting a lender to finance the operation.   These days, banks are especially reluctant to approve loans for anyone but their top-notch clients.  Real estate investors who can’t secure traditional loans have to think creatively. Intelligent investors opt to form partnerships and leverage money by not having to invest any personal capital or only a small fraction of the principal.  In other words, an investor who forms a partnership can utilize Other People’s Money.

Leveraging is a jargon used in financial circles to describe the process of borrowing capital with the expectation of earning higher interest on an investment.  In principle, this is a highly profitable strategy, as the investor is expected to cash in on the difference between the interest rate paid back to the lender and that which they earn from the investment.

The most common way an investor in real estate can leverage money, is by securing financing with a 20% down payment for a property that is expected to appreciate in value.  For an investor who can afford the down payment, it would be more reasonable to leverage their money and get a more expensive property, which would earn them higher returns than a less expensive one.

Investors may be well served to form partnerships, a move that can earn them more due to their ability to leverage money.  Partnerships are in their very nature advantageous because they spread the risk among partners.  They can also make a loan application more likely to be approved because the partners are considered co-signers and there is likely to be at least one or more qualifying members.  The credit rating boost that the high credit score partners contribute, can even lead to much lower down payments and interest rates, which may significantly lower or eliminate the amount an individual investor is required to pay upfront.

Investors seeking to form partnerships should pay attention to which they partner up with.  The best kinds of partners are well-trusted people who don’t have financial squabbles.  It is recommended that partners hire a real estate attorney to draft the deed of the partnership, which clearly defines the legal obligations and entitlements of each partner.  There are several different kinds of partnerships but the most ideal to consider in this case would probably be a Limited Liability Corporation (LLC), where individual partners are not personally liable to the company’s debts and obligations.

Asking questions with these few tips in mind will help save real estate investors thousands. For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com. We are the nation’s number one home buying franchise with over 15 years of experience. Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business. Come see us for more information.

HomeVestors Knows How to Find Fresh Leads Who Sell For Under Market Value

Friday, October 19th, 2012

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Find a Realtor who specializes in finding fresh leads who are willing to sell their property below market value.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years. The company knows that one way a real estate investor can potentially reap a windfall is to find fresh leads who are willing to sell their property under market value. These individuals are usually behind with their mortgage payments and are willing to do what they have to in order to avoid foreclosure. Many of these individuals don’t mind selling at a loss in order to save their most cherished credit score.

Todays depressed real estate market, is bound to be teaming with such properties as lots of homeowners are falling behind on their payments. Many see no point in paying for a piece of property whose value is at best, holding steady.   Finding these desperate sellers is not as easy at it sounds.  For one thing, the market is already saturated with like-minded investors already on the prowl, looking for under market value deals.  Be willing to put in a great deal of research, and land a deal that claims huge profits.

Looking for fresh leads that are willing to sell for under market value is one of those areas in the real estate business where professional expertise is more than just a luxury.  Due to the competitive nature of the business, not just any Realtor will do.  Find a Realtor who specializes in obtaining fresh leads, to find the right property.   There aren’t any shortages of posers who claim to be experts in the business, be sure to find out their track record of success.

Asking friends, associates, and business partners for recommendations might provide useful leads. Potential candidates should have an extensive business background check carried out on them.  Questions the investor may find worthwhile investigating about his candidate may include ones like, “how many actual deals has he closed?” and “can he provide trustworthy references?”

The next thing worth considering is how much the Realtor’s services would cost.  The fees for such specialized services would doubtless fall within the premium range but the investor must bear in mind not to spend beyond what their budget stipulates.

If the right steps are followed, an investor with a good Realtor can find great deals. A good Realtor will ensure that an investor is blessed with fresh leads that are willing to sell below market value.

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 Knows How to Properly Invest An IRA

Wednesday, October 17th, 2012

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Individuals who are nearing retirement should consider purchasing real estate through an IRA.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years. The company knows that many individuals posses an IRA investment account as their principal means of saving for retirement.  IRAs are particularly popular because the IRS doesn’t touch earnings funded though an IRA.  An investor who invests an IRA in real estate stands to protect their investment from the IRS.

IRA account owners typically let their money go to work for them in the stock market, hiring money managers to invest their earnings in stocks, bonds, mutual funds and other profitable financial assets.  Financial assets have been the only game in town for most of the history of the IRA, but increasingly, investors have been exploring other options due to the turmoils of Wall Street at the turn of the last decade.  Such options include investing one’s IRA in the real estate market.  A piece of real estate that is financed through an IRA is known as an IRA investment property.

The IRS has very strict rules governing how IRAs can be invested.  An IRA investment property is no exception to these rules.  First of all, the property invested in, has to be of the investment property type such as an apartment complex or a retail center. It cannot be the account owner’s primary home or even their summer home.  The investor is however permitted to use the investment property as their retirement home.  In the case of commercial property, the account owner cannot personally rent or lease a unit or permit any company with which he is affiliated, to do so.

An investor who decides to invest their IRA in an IRA investment property must be keenly aware of the rules governing such an investment as a misstep could land them in legal trouble.  One of the most important rules is that the investor or account holder cannot be the manager of the account.  They are obligated to use the services of a third party custodian.

There are several custodian companies that specialize in this kind of business.  The investor should carefully research the market and pick a good manager that best serves their needs at a price they can afford.

In the event that an IRA cannot secure the entire cost of obtaining the desired property, financing options may be available.  However it’s important to realize that most lenders are reluctant to deal with providing loans for IRA investment properties.  An investor who finds himself in need of extra funding would have to do a lot of digging around to find the right lender.

Purchasing an investment property through an IRA account remains a smart investment choice.  As long as the investor takes heed to operate within IRS regulations, an IRA investment property could make for an ideal means of financing their retirement home while potentially earning them some money in the meantime.

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 Knows How to Properly Utilize a 1031 Tax Exchange

Wednesday, October 17th, 2012

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Investors who utilize the power of a 1031 tax exchange don’t have to pay capital gains taxes.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years. The company knows that many beginners in real estate business don’t realize that there are taxes involved with the sale of properties.  These taxes, known as capital gains taxes are levied on investment profits of all types.  They would range anywhere from 0 to 35% of the profits earned depending on the investor’s income tax bracket, and whether the investment is considered Short or Long-Term Capital Gains.

Federal Short-Term Capital gains, which are taxed higher, apply to assets that have been in the investor’s possession for a year or under whereas Long-Term Capital Gains have been held for over a year. Depending on which state the transaction takes place in, an investor may be required to pay state taxes on capital gains as well, which could be as low as 0% in states like Alaska and Nevada, and 9% in the high end states like Oregon and California.  There is a way to legally circumnavigate these taxes, and that involves a 1031 tax exchange.

A 1031 tax exchange also known as a tax-deferred exchange enables the investor to defer payment on their capital gains taxes per IRS guidelines.  The investor is required to spend the entire amount obtained from selling his property, by reinvesting it in the purchase of a different property.  Any unspent portion of money the original property sold for is subject to taxes.  So the larger the amount reinvested, the more the investor gets to keep.

In order to qualify for a 1031 tax exchange, the property in question must be of the investment property type, like rental apartments.  There are a myriad of other rules governing the 1031 tax exchange that the investor should become familiar with.  There are rules concerning the timeframes within which the switch property must be purchased after a sale, the maximum number of individual properties that can be purchased, and whether or not the replacement property could still be under construction at the time of purchase.

Notwithstanding the need for good legal advice, the way to go about getting a 1031 tax exchange is by hiring a qualified intermediary.  Qualified intermediaries are specially designated professionals who are allowed to handle the cash exchange from the sold property to the newly acquired one.  IRS rules do not permit the individual investor, his real estate agent, accountant or attorney to have any access to the funds.  The qualified intermediary can work alongside the investor’s attorney and or accountant, to ensure that all goes well with the transaction.

A 1031 tax exchange makes for a great choice for any investor interested in saving a buck or two while at the same time, expanding his investment opportunities.  What needs to be paid attention to, is the IRS guidelines as any violation may disqualify them from getting the deferred payment.

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 Knows That Investors Should Seek Out Desperate FSBOs

Monday, October 15th, 2012

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Search out FSBOs when looking for a great deal on an investment property.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years. The company knows that real estate investors who are eager to pocket some savings, should consider purchasing a For Sale By Owner (FSBO) property. A common motive for most FSBOs is to save some money by keeping the extra cash that would have gone towards broker’s fees or commissions.  As such, they are more likely to offer the property at a discount. Hunting for FSBOs has become a preferred method by many investors who want to find the right property at the cheapest price possible.

The next logical question is where or how can an interested investor locate a For Sale By Owner investment property.  There are several different options, each of them carrying its own pros and cons.  The investor could start by doing a search for FSBO websites.  There are a ton of them all over the Internet and therein lies the problem with this method.  It may be rather frustrating pinpointing the right site that has the kind of listings and the particular locality desired.  Finding the right site could pay huge dividends as such a site may provide plenty of information about FSBOs.

Craigslist is another good resource but a lot of luck goes along with finding something specific on Craigslist.  Also, as with everything else on Craigslist, the investor should watch out for fakes, scammers, or other individuals with malicious intent.  It mostly takes common sense and good judgment to weed out such bad apples.  I can’t overemphasize the cliché, if it sounds too good to be true, it probably is.

An alternative to the Internet is newspaper classified ads.  Some ad columns are specifically geared towards For Sale By Owner listings.  Investors may also find touring a desired neighborhood in a car can prove to be a fruitful venture.  After finding a FSBO, initiate contact and find out the reason they are selling. Find out if they need to sell quickly and offer them a way out of their property.

If a house has been on the market for a while many FSBOs will take an offer that is below market value. They realize the level of difficulty in selling a house FSBO and realize that selling below market value may be the only option they have. Find these FSBOs and enjoy a profitable career in real estate investing.

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.