Archive for September, 2013

HomeVestors Knows The Options For Financing Real Estate Investments

Monday, September 23rd, 2013

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Real estate investors who don’t have the money to finance real estate investments can borrow it from private parties, hard moneylenders or the bank.

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 there are many different techniques for financing real estate investments.  Investors who have the necessary network contacts can borrow money from private lenders, most notably friends and family.  Others have to use the services of hard moneylenders or banks, assuming that they have the necessary credit score and down payment.

An investor with a plethora of real estate knowledge, but the inability to obtain the capital required to purchase an investment is a theoretician, not an investor.  In order to be a real estate investor, access to capital is an absolute must.  In order to obtain this capital for financing real estate investments, the least expensive and most flexible option is to borrow it from friends or family.  While there are obvious positive aspects to this, there are also serious negative aspects as well.  Those who borrow money from friends or family must be adamant about paying it back in order to remain on good terms with those they are closest to.

When creating a lending contract with friends or family, spell out the terms of the contract clearly.  Be sure that both parties understand what they are getting involved in and honor the terms within.  The beauty of financing real estate investments in this fashion is that the terms can be extremely flexible and the interest rates are usually low.

Those who are unable to loan money from friends or family should consider other options, like hard moneylenders or banks.  Hard moneylenders will generally work with people who have the capital to pay for about 35% of the property upfront and will offer about 65% for financing real estate investments.  These agreements may have many fees and the interest rates are astronomically high.  Those who decide to secure financing from a hard moneylender need to have a quick exit strategy in order to justify the expense.

The most common way to financing real estate investments is to borrow the money from the bank.  Those who have excellent credit and about a 20% down payment can obtain a loan from the bank at a relatively low interest rate.  This can allow an investor to purchase a property under a long-term loan, effectively leveraging their capital.

Those investors who understand the various options when financing real estate investments can choose accordingly and obtain an investment 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 Knows The Techniques Used To Find Inexpensive Properties

Friday, September 20th, 2013

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Investors who are able to find properties that are priced below the market value are able to secure deals and earn money when they decide to sell these properties.

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 are able to find inexpensive properties are able to capitalize on this ability and earn money in the real estate field.  Realize that these types of deals don’t just fall into an investor’s lap.  Investors who create a marketing campaign and actively pursue deals are able to benefit from their efforts.

In order to find inexpensive properties, an investor should develop an all around marketing approach.  They should set up a passive marketing strategy to allow clients to come to them and they should actively pursue the market for these deals, as well.  When creating a passive marketing strategy, understand that it will take a sustained effort and will take time to develop.  Those investors who put in an effort here, will slowly be rewarded, as more and more leads will directly initiate contact.

When creating a passive advertising strategy to find inexpensive properties, consider running a continuous advertisement in the newspaper and certain niche websites.  As these ads become commonplace, consumers will trust them and initiate contact.  Consider using a social marketing advertising program to gain an authority over a localized niche and earn a presence that commands respect.

Investors who also focus on an assertive marketing campaign to find inexpensive properties should canvas the neighborhood and talk to those in the area.  Find out what is going on in these locations and obtain valuable information about the area.  Hand out business cards to everyone and give them incentive to initiate contact.

Another technique to use in order to find inexpensive properties is to contact sellers who haven’t been successful in their selling efforts.  Look through expired real estate listings and cancelled listings in order to find valuable leads.  Talk to those who are selling their property FSBO and find out how badly they want to sell their residence.  Those investors who can find homeowners who are going through economic hardships can offer these individuals a way out of their problems.  Those investors who are able to target desperate sellers should be able to find inexpensive properties.  Investors who focus heavily in this direction are bound to find great deals in the business.

When looking to find inexpensive properties, use this double approach marketing strategy in order to get plenty of business.

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.

 

 

Rental Properties Will Always Be A Popular Investment Vehicle

Wednesday, September 11th, 2013

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Rental properties have long been the key to earning money in the real estate industry and those who put their capital in this investment have the potential to earn a living.  When choosing a rental property, take the time necessary to review numerous properties before making a decision.  Put each property through a rigorous inspection, understand the motivation level of a seller and understand the cash flow before even considering negotiating a price.

Rental properties are the most common way to earn money in the real estate field, as most people think of this investment when they think about real estate.  Those who have a stable personality and the work ethic necessary to succeed in the business should consider what rental property has to offer them.

When deciding on investing in rental properties, consider the area first.  Does the area have a surplus of tenants who are likely to keep the property full?  Only choose areas that have a large number of tenants in order to ensure this.  Pick out the top rental properties in the area that meet this qualification and take a look at them one by one.

Talk to the owner and find out why they want to sell their property.  Take a look at these rental properties and determine their condition.  If a property appears to be in decent condition and has a respectable price, work with a professional inspector who can walk through the property and determine what needs to be done.

The next step to checking out the rental properties in the area is to put each candidate property through a cash flow assessment.  Determine the positive cash flow and negative cash flow of each property.  A good way to determine whether a property is likely to be profitable is to assume that half of the positive cash flow is going to be going to the mortgage.  Does the remaining positive cash flow exceed the negative cash flow?  If so, the property is likely to be profitable.

Although this equation is fairly accurate, investors should take a more detailed look at every aspect of the positive and negative cash flow in order to determine their ROI.  Work with the owner and negotiate a price that is pleasing to both parties.  In the end, make sure that a property is likely to be profitable before committing to it.

Those investors who decide to get involved with rental properties should only do so after they have inspected them and understand their profit potential.

Asking questions with these 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.

Rental Property – Turning A Small House Into A Monthly Income

Tuesday, September 10th, 2013

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The common play for investors as of late is to turn a small house into a rental property due to the profitability of this investment.  This investment allows an investor to choose from multiple different exit strategies, as they can rent it out and sell the property when it becomes profitable to do so.  These investments are generally appropriate for a beginning real estate investor, as the amount of capital that needs to be invested dwarfs other real estate investments.

Those investors who decide to invest in rental property by turning a small house in to a monthly cash flow machine capitalize on what a large number of investors are currently doing.  The key to this technique is to find a property that is being sold by a distressed seller who is willing to sell it below the market value.  While the current market isn’t littered with these sellers, there are still many out there who just want to sell their house fast.  Those investors who can target these individuals can secure a deal and help the former owner out of their problem.

After purchasing a small house for a good price, the next step is to convert this house into a rental property.  Most of these small houses don’t have to be renovated a great deal, as they won’t be split up into duplexes due to their size.  Investors should still put in the work to make the property attractive to renters and make sure that everything is up to code.

Investors can then wait until property values have reached a level where they can sell the property and make a profit.  This double exit strategy has many real estate investors talking and this effectively reduces the risk an investor has to take.  This rental property allows an investor to pay for the mortgage, while collecting equity in the property.  Some investors may consider renting out the property indefinitely, as rental property is a profitable pursuit.

This type of rental property is especially suited for beginning real estate investors who want to enter the field.  There isn’t a great deal of risk and the capital required to purchase these small houses is generally minimal.  Those who have the credit can obtain lender financing and finally enter the real estate field with confidence.

Those investors who take advantage of the current market can still find small houses that can be purchased for below their market value.  Convert these houses into a rental property and sell the house when the market calls for action.

Asking questions with these 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.

Target Markets Where The Commercial Real Estate Sector Is Booming

Tuesday, September 10th, 2013

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Investors who have the ability to invest in the commercial real estate sector are able to cash in on certain markets.  Those investors who have the necessary access to capital should invest in certain regions of the United States where the commercial real estate market is hot.  Those who know what to look for are able to pinpoint these markets and invest accordingly.

The commercial real estate market is tied directly to the housing sector, as both have a profound impact on each other.  Those who are looking to get involved in either market should consider each respective market, before investing in a region.  Consider investing in commercial real estate that is in close vicinity to new developments in the suburbs.  Those who are able to acquire property located on the outskirts of a region that is experiencing a population growth should consider investing in strip malls and other commercial real estate investments.

Those investors who don’t have the capital required to get involved in the commercial real estate sector should consider partnering up with other investors in the area in order to purchase a profitable investment.  A good way to do this is to become active in real estate investor clubs in the area.  Research the market and provide useful information to those at the meetings.  Explain the benefits of forming a partnership that invests in commercial real estate.

Many of the most famous real estate investors invest in commercial real estate exclusively.  While the risk may be higher, the reward is also more prestigious.  The returns on most commercial real estate investments greatly exceed the returns on most residential property.  The companies that are leasing these commercial buildings are willing to pay a premium for the property.  These tenants generally have the money to pay for the rent and aren’t likely to damage the property.

Just like the residential market, real estate investors should research the markets that are experiencing a population boom and look to invest in the commercial real estate sector in that area.  Also, look to invest in commercial real estate in locations that are well diversified and don’t depend on one industry.  Those investors who understand this give themselves many different potential tenants.

Investors who have the capital should perform the necessary research to find the markets that are experiencing a boom in the commercial real estate sector and get involved in the action.  Those investors that don’t have the capital should partner up with others and secure an investment.

Asking questions with these 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.

Making A Real Estate Ad That Draws In Desperate Sellers

Monday, September 9th, 2013

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Making a real estate ad that encourages desperate sellers to initiate contact is likely to be a winner.  Those real estate investors who can answer a need through niche market advertising are likely to remain busy, if they focus heavily on their marketing efforts.  Consider placing these ads in the paper, on flyers and most importantly, on the Internet.

When making a real estate ad that focuses on desperate sellers, the most important aspect to consider is how it grabs their attention.  Those who need to sell their properties fast generally don’t know where to turn and will either search through the newspaper or through the Internet for the answer they are looking for.  Investors who have a well-represented advertising program are likely to find these sellers first.

Use honesty, include a call to action and use excellent keywords when making a real estate ad.  Consider something simple, like, “Want To Sell Your House Fast, Call Us – We Pay Cash!”  This ad is short, to the point, and explains the premise of the business.  Desperate sellers are going to be the majority of callers, as they are attracted to a speedy transaction.

Those who are making a real estate ad for the Internet can consider something as simple as this or something a bit more involved.  Link the ad to a website, giving sellers a way to call and an email address where they can respond for more information.  Those who are making a longer ad should consider using a bullet point format in order to make the ad easy to comprehend.  Consider capitalizing certain keywords in order to make them stand out.

When making a real estate ad that targets desperate sellers, consider ways to target them on an emotional level.  An ad that focuses on the desperation these sellers currently feel and how this desperate feeling can be changed to satisfaction is something that is likely to hit home with them.  Let these desperate sellers know that the service that enables them to sell their house quickly is available, if they need it and let them know exactly how to initiate contact.

Real estate investors who focus on finding desperate sellers should make their presence known so those who need to sell their house fast can easily place a call or write an email.  Those who focus on making a real estate ad that accomplishes such a feat are likely to be endowed with numerous leads and a successful business.

Asking questions with these 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.

Save Money In Order To Purchase The First Investment Property

Monday, September 9th, 2013

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Those who want to get started in the real estate investment field need to prepare for their first investment.  Many people dream about becoming a real estate investor because they believe that they will earn large sums of money.  While this is occasionally the scenario, getting started in the field requires money up front and many investors spend years saving up the necessary capital in order to purchase their first investment property.

When contemplating the first investment property, understand that it is crucial to have the necessary capital and the credit to secure a loan.  Investors should expect that at least 20% of a property’s value would be required as a down payment.  Investors who are investing in rental property have to consider that as much as 35% will be required down.  In other words, investors who are looking at purchasing a $300,000 property will have to pay between $60,000 and $115,000 just to pay for the down payment.

Saving this type of money may end up taking years, but those who are committed to investing in their first investment property will make it happen.  During this period of time, focus on earning a better credit score.  Obtain credit from multiple sources and pay the balances off every single month.  This action will gradually increase a credit score over time, making it easier and less expensive to obtain lender financing.

Understanding the down payment and the amount of interest that a bank is likely to grant allows an investor to narrow down their search with their first investment property.  Those who understand the parameters they are working towards need to budget and save the money they earn in order to pay for the initial down payment and closing costs associated with their investment.

When saving for the first investment property, keep the long-term goal in mind, but give a certain amount of incentive along the way when achieving milestones.  For example, eat at one of the finest restaurants in the area after saving increments of $3000.  Obtaining the entire down payment is likely to take a few years or more, but those who are steadfast to their goals will eventually earn the money to pay for the initial down payment.

The first investment property is the one that is likely to determine the future for an investor.  Those who end up saving enough money to get started are the ones who are able cash in on their decisions.  Investors who go through this hard knock routine are likely to feel even more accomplished when they succeed than those who borrow the money required to begin their first investment.

Asking questions with these 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 Investment Properties

Monday, September 9th, 2013

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Investors who have a knack for finding investment properties don’t have any specialized knowledge, but they know where to search and do so often.

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 need to find investment properties.  The best ways to do that are to find houses that aren’t being shown well, find houses that are priced incorrectly, contact those with expired listings, contact FSBO sellers, and focus on finding desperate sellers throughout the market.

In order to find investment properties, focus initially on houses that aren’t being shown well.  These include houses that don’t have a great deal of market presence and houses that haven’t been staged or cleaned properly.  These sellers generally don’t understand what they are doing wrong, but realize that they aren’t getting any interest on their property.  Those investors who step in and offer to buy the property may end up purchasing it far below the market value.

Houses that are priced wrong are easy to spot for those with a trained eye.  When a house is overpriced in comparison to the comps in that area, most buyers will just stay away from it without even initiating contact.  Those who find investment properties this way should initiate contact with these sellers after they have been on the market for a while.  Then, negotiate with them and find out how desperate they are to sell their property.

When contacting houses with expired listings, expect that it will be well received.  Most of these sellers have given up hope and will be ecstatic that they finally have an interested buyer.  In order to find investment properties in this fashion, simply contact the owner or listing Agent and find out how badly they want to sell the property.

A great place to find investment properties is through the FSBO market.  Many of these sellers haven’t received a great deal of interest on their property and will be excited to work with an investor.  These sellers generally realize that they can’t expect market value and will be willing to negotiate.

Another way to find investment properties is to search through the neighborhood, looking for desperate sellers who need to sell their property.  This can be accomplished through word of mouth or through a cold call approach.  These sellers are the key to earning a profit in the business.

Those investors who have the ability to find investment properties are able to capitalize on their hard work.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction.  For more information, visit www.HomeVestors.com.

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HomeVestors Knows That Investing In Rental Property Has Many Costs

Friday, September 6th, 2013

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Rental property can be a profitable venture, but there are many costs to consider.  Those who are able to manage their money the best, end up with a good investment.

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 investing in a rental property is a popular choice for real estate investors who want to earn money over the long-term.  As such, this investment is suited for those who have an in depth understanding of their goals.  There are many costs to consider and those who have a firm understand of what they are getting into can make an informed decision.

When investing in rental property, most investors have to borrow money from a lending institution.  Go to the various different lenders in town and find out who will offer the best rates.  Expect to pay a higher mortgage interest rate because lending institutions consider rental property to be a risky investment.  An interest rate that is about 1.5% higher than the advertised rate is generally standard.

When investing in a rental property that has more units, expect to have to pay an even bigger down payment.  Rental property that has two to four units usually requires about a 25% down payment.  Rental properties that are bigger than this usually require a 35% down payment with a credit score over 720.

When investing in rental property, be aware of the property taxes, the insurance and the estimated price for the utilities.  These costs can add up rapidly and many choose to push the costs of utilities onto their tenants.

When collecting rent money every month, put aside 15% for maintenance.  When investing in rental property, expect to put in a consistent stream of money on maintenance in order to keep existing tenants happy and attract new ones.  Set money aside in order to cover any long-term vacancies, as this can greatly alter cash flow.

Consider the costs required to search for tenants, as this process is generally time consuming.  Don’t forget about the costs associated with running background checks on potential tenants.  Consider charging a $35 application fee in order to cover for some of these costs.  When investing in a rental property decide whether to hire the services of a property management company and factor in their costs respectively.

Investing in a rental property has a lot of different costs that many investors don’t consider.  When calculating the ROI of an investment, make sure to factor all of these costs 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.

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HomeVestors Knows That Investing In Small Rental Properties Can Be A Profitable Venture

Friday, September 6th, 2013

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Investors who are starting out in the industry should consider investing in small rentals that can be easily managed. 

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 investing in small rental properties can be a good way to get started in the real estate industry.  Investors who do their research and find a profitable property can end up earning a decent return on their investment.  Look to purchase a duplex, triplex or 4-plex to earn even greater cash flow.

Those who are thinking about investing in small rental properties should do so now, while the mortgage interest rates are still low enough to earn a profit.  The current interest rate is at 4.58% and increasing, as each day goes by.  Investors who are purchasing a duplex or larger can expect an even larger interest rate, as these are considered high-risk investments by lending institutions.

When investing in small rental properties, consider the location above all other factors.  Those who purchase a rental in a busy section of town are likely to have all the potential tenants they need.  Look for an area that is likely to draw in working class tenants who will have good records and pay their rent every month.

The nice thing about these small rental properties is that they are easier to manage than a large-scale apartment.  These rentals enable a small time beginning investor to get to know the ropes and decide if investing in small rental properties is right for them.  These properties don’t require a large amount of managing and don’t require an investor to quit their job.

If possible, look for a 4-plex, as these will generate more capital.  Investors who can keep these small rental properties full are likely to see a decent cash flow that should cover all expenses and leave an investor with money in their pocket.  As the property is paid down, an investor will be able to acquire more and more equity in the property.  Investors who enjoy investing in small rental properties can consider purchasing a few more or can consider moving up to bigger apartments.

Investing in small rental properties is a great way to get started in the real estate business.  Investors can spend a few years building up their equity and decide whether the real estate field is right for them.  Those who enjoy the profits that they are making can then move up to bigger investments.

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.

Contact Information