Archive for October, 2013

HomeVestors Knows That Choosing An Investment Property Requires Knowledge

Friday, October 11th, 2013

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Understand all the factors that go into purchasing a profitable property.  Those who are able to rate a property from a professional standpoint are able to pick the best 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 choosing an investment property can be a tricky decision that can leave investors with a great deal of doubt.  Those who can properly analyze a property should be able to pick the best property on the market.  This will allow an investor to make their purchase and continue on with their investment, instead of getting locked into indecision.

The first things to consider when choosing an investment property are the price and the location.  If both of these factors are favorable to an investor they can continue on with their analysis.  In order to find properties that are priced right, consider working with desperate sellers.  These sellers need to sell their properties and are usually willing to negotiate.  When deciding the profitability of the location, look at other properties in the region and perform a CMA.

When performing a CMA make sure that the property is priced far below this, as an investor can’t pay retail prices for properties and think that they can come out ahead.  When choosing an investment property, only work with sellers who are willing to sell the property for a large percentage below the market value.

After determining that the property is likely to be profitable, work with an inspector to make sure that the property is in decent condition.  While most investors may not want to spend the necessary money on an inspector, those who do so end up avoiding problem properties and dropping thousands of dollars on fixing issues.  Only work with a professional who has years of experience and can pinpoint problems with ease.

When choosing an investment property, have a full understanding of the exit strategy before committing to the purchase.  Investors can then see the full picture and don’t end up with a property that they don’t know what to do with.  If a property can be immediately flipped for a profit, this might be the best strategy.  On the other hand, renting out a property on the long-term basis is another good strategy that can earn more throughout this duration.

Those investors who understand what is required when choosing an investment property are likely to pick a property that is bound to be successful.

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 Mortgage Interest Rates Aren’t Going To Remain Low For Long

Friday, October 11th, 2013

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Mortgage interest rates are still favorable to investors, but are going to increase quickly, as soon as the Feds scale back on their stimulus programs.

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 most real estate investors need to leverage capital in order to purchase property.  Those who do so need to take advantage of the low mortgage interest rates.  At this point in time, the mortgage interest rates have recently taken a dip, down to 4.13%.  This brief window of time is the best opportunity to take advantage of lender financing.

Expect that lender financing is bound to get rather pricey in the near future.  Investors who are thinking about purchasing an investment property should do so quickly in order to avoid 5% interest rates or higher.  As the Feds continue to push their Quantitative Easing program forward expect that interest rates will remain low.  As soon as the Feds decide to drop this stimulus program, expect that interest rates will increase substantially.  This will likely put many investors out of the market because they will not be able to profit when paying a 7% mortgage interest rate.

Obviously, at this point, the name of the game is speed.  Investors who already have an investment property lined up in their scopes should close on it and lock in a profitable interest rate.  Those who are still scouring the market for a deal need to act fast, but thoroughly.  Perform the necessary due diligence when searching for the best property and don’t end up purchasing a bad investment, as the low mortgage interest rates won’t be able to save an investor from a bad decision.

When looking for the best mortgage interest rates, it is important to shop around.  Not all the lending institutions are bound to have the same rates.  Just like any other product or service, there is bound to be some fluctuation throughout the market.  Visit at least five different lenders in the area and find out who has the lowest rates.  Also, take a look at the other fees that are assessed when obtaining a loan.  After putting all of this information together, choose to work with the lender that has the best overall offer.

Take advantage of the current mortgage interest rates in order to finance an investment.  These rates aren’t likely to remain below 5% for long and could eventually be over 7%.

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 Home Sales Are Still Low In The Northeast And Midwest

Thursday, October 10th, 2013

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The Northeast and Midwest regions of the United States have potential for investors who are willing to put in the work necessary to find a bargain.

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 home sales are up 17% from a year ago, but this is mainly concentrated in certain regions, like the West and South.  Investors who are looking to target a good deal in these regions aren’t likely to do so, as they will have a great deal of competition.  There are still deals for investors who focus on some regions in the Midwest and the Northeast, but only a few areas are worth considering.

A big reason that home sales are up throughout the country is because the available inventory has been increasing due to an increase in construction and motivated sellers.  While new construction still isn’t in line with what it was a few years back, it has stepped up recently and is filling the gap for a large number of buyers.

Many sellers are finally putting their house on the market and have greatly increased the number of home sales around the United States.  These sellers are taking advantage of their current property values and low interest rates.  Investors shouldn’t target regions that have a large number of buyers and a shortage of sellers like we are seeing in the West and South, instead they need to target regions that have a high inventory, but a low number of buyers.

Investing in these areas will ensure that the amount of competition remains low.  Be warned that not all of these areas are great places to invest in.  When searching through the Northeast and Midwest real estate markets look for certain areas that are developing.  Look at the overall number of employed individuals in the area and find out whether new businesses are moving to the region.  Areas that are up in coming in this vicinity can give investors an advantage if they are able to properly speculate.

A few regions in the Northeast and Midwest are finally starting to see their property values increase, but the number of overall home sales is still below par.  Those investors who are able to determine the profitability of an area and invest in it before a market boom can capitalize on it.

When investing in the Northeast and Midwest, look for areas where home sales are relatively low, but have a large number of houses on the market.  Only invest in areas that are likely to increase in prosperity in the near future.

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 Real Estate Investors Are Pulling Back From The Market

Thursday, October 10th, 2013

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The real estate market isn’t as favorable to real estate investors as it was a few years back.  Those who are still in the market need to work hard to find a deal.

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 most real estate investors are slowing down because they are either sitting on property or because most of the market isn’t slanted in their favor.  The investors who are still on the market need to work extra hard in order to find profitable deals that will net them capital.

In order to find profitable deals in an unprofitable market, real estate investors must push themselves above and beyond.  Consider ways to obtain a market presence that will increase brand recognition.  One way to increase brand recognition is to start an advertising program that can be ran continuously.  This will build up the amount of exposure and implied trust that an investor receives.

Real estate investors who create an online and offline advertising program are likely to find that they are able to reach a large demographic of people.  Consider ways to improve an online presence in order to become the known authority in the area.  Those who obtain an authoritative presence over the market don’t necessarily need a market that favors investors, as they will be out in front of their competition.

Consider hiring professionals in order to create a social media campaign and SEO campaign that will allow an investor to reach their target market.  Investors can also consider purchasing region specific advertising that will target those who are in their local market.

Other ways to find deals require real estate investors to pursue classical tactics, like personally canvassing neighborhoods and talking to the people in the region.  The beauty of this technique is that it allows investors to prospect without spending a great deal of money.

Word of mouth is still the most profitable way to advertise anything and real estate investors need to make sure that they get the most exposure possible by spreading the wealth around.  Investors who offer to pay a finder’s fee to those who are able to find motivated sellers often results in a large number of deals.  The easiest way to do this is to hand out a business card and state that there is a finder’s fee for bringing new business forward.

Real estate investors who are still in the market need to follow these tips if they wish to cash in on profitable 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.

HomeVestors Knows That There Are Many Good Rental Markets In The United States

Wednesday, October 9th, 2013

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Investors who take the time to find profitable rental markets should end up with a good investment on their hands.

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 a few good rental markets out there that big corporations have passed over.  Those investors who take the time to pursue smaller markets around the United States may end up being pleasantly surprised by the amount of profits they can earn.

When searching for good rental markets, look for areas that are prospering financially, as these areas are generally increasing in population and have a larger number of potential tenants.  While there are many markets that make the cut, investors need to personally analyze each market to determine which one is the best for them.

Most of the good rental markets that have been passed over by large investment firms are located in the east and south.  While everyone else is focusing on the action in California, many markets are beginning to bounce back from the recession and are slowly seeing industry return to the area.

Pittsburg, PA is the first good rental market that has been passed over by large investment firms.  Pittsburg is growing in population and its industry sector is expanding, making it a perfect investment for those who are looking to purchase rental property here.

The second city that has a good rental market is New Orleans, LA because it has recovered from the economic turmoil that has affected it for so long.  The city is now springing back to life and is growing in population.  Those who are looking to cash in on this rental market should act fast.

The city of Albany, NY, Gainesville, FL, Nashville, TN, Austin, TX and Oklahoma City, OK are other locations where large corporations are passing up good rental markets.  Small time investors can take advantage and purchase rental properties in these locations in order to capitalize on these growing regions.

These are not the only regions that are experiencing good rental markets and investors can take advantage of markets all across the nation.  Investors should look for tell tale signs that dictate a positive real estate market, such as population increase, increasing property values and an increase in the number of industries in an area.

Investors who do their research and invest in good rental markets are bound to make a good decision when it comes to purchasing rental 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.

Wholesaling Properties – Selling To Rehab Investors

Thursday, October 3rd, 2013

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When wholesaling properties, the goal is to find desperate sellers, get them to agree on a price, close on the deal and immediately sell the property to another party, in this case, a rehab investor.  These properties are generally in rough condition and the owners have either given up on the property or need to sell it immediately.  Wholesale investors spend a great deal of time on research in order to find properties like this.

The rule of thumb when wholesaling properties is to purchase them for 30% of their After Repair Value (ARV).  Then, sell them to an interested party for 50% of their ARV.  An investor can make a decent profit flipping properties this way if they have a full understanding of this niche.  These investors need to have a large number of contacts and have access to a large number of potential investment properties.

When wholesaling properties, a large portion of the workday will be spent looking for the next property.  Search through Craigslist and any other sources in order to find that “diamond in the rough” property.  This is time well spent, as an investor can earn a nice paycheck from a little work.  Another way to find these properties is to talk to people in the area and find out who wants to sell their partially complete property.  While many of these individuals have been considering it, they just haven’t got around to listing their property on the market.  Make it easy for these individuals to sell their properties and capitalize on the investment.

Those who wholesale properties in order to sell them to a rehab investor need to have a good understanding of all the costs associated with the rehab in order to make sure that rehab investors will be able to turn a profit.  In fact, those who have rehabbed properties at one point in their career are the best candidates for this real estate niche, as they will see the property from a rehab standpoint.

Those who wholesale properties also need to have deep pockets in order to purchase properties and flip them.  While many will argue that an investor can simply double close on a property, those days are fading quickly, as regulations have tightened in order to discourage this practice.

Those who are considering wholesaling properties in order to sell them to rehab investors should have a full understanding of the rehab industry.  Calculate the costs, pay less than 30% ARV and find a rehab investor who is willing to pay 50% ARV.

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 – Expect The Best, But Prepare For The Worst

Wednesday, October 2nd, 2013

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Rental property is a great investment, but those who aren’t prepared for the problems that are likely to be encountered may not be able to handle them.  Be aware that problems will happen, while having the knowledge and the necessary capital on hand to deal with them.  Many times these problems will hit an investor all at once so when this happens, take a deep breath and deal with it in a professional manner.

 

The best way to deal with the problems that are likely to be experienced at a rental property is to become knowledgeable regarding the solutions.  Whether vacancies, property damages, evictions or natural disasters strike, be ready to deal with them.  Many times, hiring a contractor to deal with some of these issues is a good idea, but have a written contract drafted in order to avoid any excess fees.

In order to cover these problems, save 5% of the positive cash flow every month and put it towards a relief fund.  This will be a savior when everything that can go wrong, does go wrong.  When dealing with vacancies, it is important to relax and not become desperate.  Desperate rental property owners pick desperate tenants and a whirlwind of problems results.  Maintain standards when dealing with potential tenants and make sure that they can pay their rent on time.

Occasionally, there will be damage to the property, whether it’s caused by tenants or outside forces.  Fix these issues promptly, as the overall character of the rental depends on it.  Consider hiring a contractor to take care of these issues to ensure that the job is done correctly.  When dealing with these individuals, make sure to get an expense analysis in order to avoid excess fees and spending more than necessary.

When dealing with a rental property there will likely be evictions that need to be handled.  Investors need to understand the laws in their area regarding this procedure and do what they can to legally remove bad tenants.

In order to improve tenant relationships, consider ways to communicate with tenants and let them know that they are welcomed to ask questions.  Consider creating a monthly newsletter that gives tenants a heads up on what’s happening at the property.  Place a phone number on this newsletter so tenants can easily communicate their concerns.

When dealing with a rental property there will inevitable be problems.  Investors who are prepared for these issues are the ones who make it through these rough times.  Have the necessary knowledge and capital in order to ensure success.

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.