Archive for May, 2014

HomeVestors Knows How To Find A Profitable Region To Invest In Real Estate

Wednesday, May 28th, 2014

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Investors need to perform due diligence before deciding on which area of the United States to invest in.  Look for growing areas that are desirable when investing in real estate.

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 how to determine if a location is likely to be a profitable region to invest in real estate.  Investors who do their due diligence when searching for an investment property should first analyze the immediate area before following through with a purchase.

The first step when looking for a profitable region to invest in real estate is to analyze every metropolitan area of the United States, looking for certain indicators of strong markets.  Markets that are attracting outside businesses to the area will generally attract individuals from around the United States looking for work.  These areas will generally expand and increase in value as long as this population influx remains positive.

The main factor to look for is the sustainability of the work in the area.  Look to invest in areas that have a number of big employers and a number of growing industries.  Regions that have four or five big industries that all have promising future growth should be able to weather hard times, if they happen to arise.  Regions that have one giant employer will only remain profitable, as long as this employer remains in business.  If this company goes out of business, an area will suffer dramatically and property values will plummet.

The second factor to consider when searching for a profitable region to invest in real estate is the demographics of the area.  Regions that have a number of young professionals moving to the area are likely to be attracted to trendy property.  Since most of these individuals will choose to rent property rather than buy it, investors should consider the advantages of rental property.

When deciding on the best location to invest in rental property within a growing community, look for properties that are centrally located.  These properties should be within walking distance of public transportation and have a number of popular amenities within close proximity.  Properties that are located near the biggest employers within an area are almost certain to be a favorite among potential tenants.

Investors who are able to pinpoint a profitable region to invest in real estate will be able to invest with confidence.

HomeVestors Knows That Detroit Is The Best Rental Market In The US, While NYC Is The Worst

Wednesday, May 28th, 2014

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Investors who are looking to earn the largest cap rates should consider investing in Detroit rental property and avoid New York City, where cap rates are the lowest. 

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 number of rental markets that are profitable for investors and other markets that don’t offer a decent return on one’s investment.  The best rental market in the United States, according to cap rate is Detroit, while the worst is New York City.

Throughout the last couple of years, investing in Detroit real estate was viewed as foolish, as property values dropped to almost zero, with very little hope for the future.  In 2013, property values in some regions of Detroit began to increase and some investors purchased these properties at a deal.  In 2014, property values in Detroit are at a median value of $45,000, while rental rates are at about $1,100, allowing investors to earn cap rates near 30%.  This makes Detroit the best rental market in the United States.

An investor will be able to earn equity in their property at an unprecedented rateand the property values will likely continue to climb even further.  Those who invest in the best rental market have two different options when it comes to their exit strategy.  Investors can either continue to rent out a property, capitalizing on the positive cash flow throughout the course of the investment or sell a property at a profit, as soon as property values increase even further.

Unfortunately, the negative stigma that surrounds the Detroit real estate market is hard for most investors to overcome.  While Detroit is the best rental market according to cap rates, there is a great deal of risk when investing in this shaky economy.  Investors have other options if they are looking to earn respectable cap rates and should look around the United States for the best cap rate to risk ratio.

One market that rental property investors should stay away from is the New York City market.  The cap rates here are hovering around 3% and make it a tough market to earn equity.  The property values are at a median of $887,000 and tenants pay an average of $1,800 a month.

Investors who are looking to take advantage of the best rental market should invest in Detroit rental property or another city with a high cap rate, but avoid low cap rate real estate markets like New York City.

HomeVestors Knows That Multi Unit Rental Properties Make Up 35% Of All New Construction

Tuesday, May 27th, 2014

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Investors who are looking to enter the rental property field should consider purchasing a newly constructed multi unit rental property in a growing section of the country. 

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 number of multi unit rental properties being constructed has increased significantly in 2014.  This growth spurt is in response to the growing number of tenants across the United States.  Investors who are interested in joining the rental property community should consider purchasing one of these newly constructed rental properties.

The number of multi unit rental properties, as defined by a rental with five or more units, being constructed accounts for 35% of all new construction in 2014.  This number is up from 25% of all new construction in 2013.  The level of demand for these multi unit rental properties continues to increase, as more people are moving into rentals.

Investors who want to take advantage of this trend should consider purchasing newly constructed multi unit rental properties in a growing area of the country.  Look for areas that are clearly experiencing a population growth due to a growing economic situation.  Follow big businesses and take note of where they are moving.  Since economic expansion follows big businesses where they go, investing in a rental property in these regions is bound to earn positive cash flow.

Those who invest in multi unit rental properties have the ability to earn a substantial amount of positive cash flow.  Investors who can keep the majority of their units filled with rent paying tenants are able to quickly earn equity in their property.  Remember that these multi unit rental properties are generally expensive and banks generally charge a high interest rate on lender financing.  These properties are known to be risky, but the rewards make them worth it.

Investors who are able to get their hands on multi unit rental properties in a growing section of the country should consider hiring a property management company to keep the property moving in a forward direction.  Since these companies earn their income when a property is full they will be inclined to put forth a strong advertising effort.  These companies offer an investor the freedom to pursue other projects, while capitalizing on continuous cash flow.

Investors who are looking to invest in multi unit rental properties should consider this to be their cue to take action.

HomeVestors Knows The Advantages To Purchasing A Single-Family Home In Growing Areas

Tuesday, May 27th, 2014

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Investors who are looking to purchase a single-family home with the intention of renting it out should look to do so in growing areas of the country. 

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 post market crash strategy of purchasing a single-family home and turning it into a rental property is still very much alive in growing sections of the country.  Investors who want to take advantage of this pursuit should look to markets like Detroit and Cleveland where property values in some areas are just beginning to pick up.

Investors who are considering purchasing a single-family home and turning it into a rental property should realize that there are still regions where this pursuit is likely to be profitable.  One would believe that industrial investors like Blackstone have already purchased all of these single-family homes.  Fortunately, there are a number of areas that industrial investors didn’t touch.  Typical real estate investors can still purchase these properties and turn them into rentals, if they know where to look.

While investors are purchasing single-family homes all over the country, two regions that are hot right now include Detroit and Cleveland.  The real estate market in both areas is beginning to pick up steam and many investors are considering investing in these regions.  Those investors who want to invest in Cleveland should consider purchasing a single-family home and rent it out, while the property increases in value.  These investors can earn equity in these homes and flip them on the market a few years later in hopes of significant property value increases.

Another place where purchasing a single-family home in hopes of renting it out makes sense is in Detroit.  The current cap rate in Detroit is around 30%, while the median property value is around $45,000.  Those who purchase a property with the intention of renting it out can earn a great deal of equity in the property and flip it when the market increases even further.

The biggest factor for investors to consider is the location where they are purchasing a single-family home.  Only invest in regions of Cleveland or Detroit that are clearly being funded by other investors.  Since a large amount of investor influence is taking place near the downtown region, focus on these locations in order to earn a solid profit on the flip.

Investors who are purchasing a single-family home in a growing area should be able to earn a respectable profit on the pursuit.

Starting Out In The Real Estate Field?

Tuesday, May 27th, 2014

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Investors who are just starting out in the real estate field need to establish themselves in the business.  There are a number of different ways to do this and investors should focus on the most pressing issues first.  Investors need to develop relationships with other professionals in the field and focus on developing an Internet presence.

Investors who are starting out in the real estate field need to develop contacts in order to get an idea for how business works in this area.  The first step is to put one’s name out in the world by joining real estate meetings in the area and handing out business cards.  Chances are that an investor will be willing to show a new investor the ropes.

The next step to starting out in the real estate field requires an investor to have a good understanding of the location one is considering investing in.  Investors should only invest in regions that are growing in population and are beginning to see increases in property value.  Investors should know which areas of this region are most profitable and focus on finding a property in this region.

Those who are starting out in the real estate field now need to secure their first real estate deal.  Investors have to decide which niche they want to be a part of and move forward with the pursuit.  Investors who are ready to look for their first investment should first have their finances in order.  Those who are looking to secure lender financing should go to the financial institutions in the area and obtain a preapproval letter in order to have a good understanding of their budget.

Now that everything has been squared away, an investor can begin to analyze properties in the area and ideally pick one that is being sold by a desperate seller.  These sellers are generally willing to sell their property for under the market value in exchange for speedy transaction.  Investors who are able to move forward and close on a property in less than a week are in a position to earn the greatest profits in the industry.

Before sealing the deal on any property, those who are starting out in the real estate field need to perform the necessary due diligence and determine what is wrong with a property.  Investors need to determine the cost to fix such issues and negotiate with a seller on the final price.

Investors who follow this advice when starting out in the real estate field should be able to find deals with ease.

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.

 

Wholesaling Real Estate Can Be Profitable But Requires An Understanding Of The Laws

Tuesday, May 27th, 2014

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Wholesaling real estate has received a bad name over the last couple of years due to unscrupulous investors.  Many now believe that wholesaling real estate is illegal, when in fact it is still a legal way to earn wealth in the real estate field when performed correctly.  Although, investors who are considering wholesaling should consult with a real estate attorney in their area before proceeding, as the laws are always subject to change.

The idea behind wholesaling real estate involves an investor placing a property under contract and then assigning that contract to another investor.  During this exchange an investor includes their fee for negotiating this deal and passes it onto the investor who was assigned the contract.  It is common for wholesale investors to earn $5000 or more through this deal.

Those who are interested in wholesaling real estate need to make sure that the real estate contract is indeed assignable and should even include a clause in the contract that states this to be the case.  Wholesale investors who are out in the open about their business tactics have no intent of defrauding the parties involved in this exchange.

When wholesaling real estate, it is illegal to accept commissions so the wording on any contract must avoid such statements.  On the other hand, those who wholesale real estate may receive an assignment fee, which is precisely the goal of the transaction.  In order to attain this assignment fee, one needs to find a title company that specializes in double closing.  Again, check with the laws in the state where the transaction is taking place in order to assure that this is indeed legal.

Investors who are looking to start in the real estate field can consider wholesaling, especially if they don’t have the necessary funds to actually purchase real estate.  These investors are going to have to make up for their lack of capital with a substantial knowledge base on how to find deals.  Investors can use a combination of different tactics in order to connect with desperate sellers.

Some investors choose to use classified real estate ads in order to target these sellers, while other send out mailings to those who are likely in a position where they need to sell their house.  Homeowners who are behind on their taxes, have received their house through inheritance, or have lost their jobs are likely to be eager to sell their house in a hurry.

Investors who are interested in wholesaling real estate need to make sure that the process is indeed legal in their area and make sure that the paper work isn’t misleading.

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 That Investors Should Invest In the Most Desirable Regions

Friday, May 23rd, 2014

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Investors who invest in regions where people want to live should end up with an investment that turns out to be profitable. 

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 have to consider a number of factors before deciding to invest in a region.  In order to simplify these analytics, invest solely in places where people want to live.  Investors who invest in the most desirable regions are able to capitalize on the vitality of an area.

Those who invest in the most desirable regions are likely to find that the area increases in value over the course of the investment.  If a large number of people are moving to an area, the region has the employment to suit their needs.  If businesses are moving to an area, it is a clear sign that the desirability of an area is increasing.  Investors who focus on only a few economic factors can easily pinpoint desirable locations around the United States.

After deciding to invest in the most desirable regions, it is important to look for the most ideal property.  Since purchasing the best property in a region like this isn’t bound to be profitable, investors should search for a property that needs a little TLC and get the property in similar condition to the others on the market.  Investing in rehabs like this almost always pays off, if investors are willing to put in the work.

Another strategy for real estate investors is to look for a rental property in a growing section of the city that will consistently reel in positive cash flow.  Investors who make sure that the location of a rental property is ideal aren’t going to have a problem keeping their property full.  These investors will often find that they can steadily increase their rental rates and watch their properties increase in value.

Some of the best regions to invest in right now are located in regions where people are gathering in large numbers.  Considering that the Dallas and Fort Worth market have been continuously increasing in population, investors should take a look at property here.  Another option for investors who like what Texas offers is to consider investing in Austin, another growing city where a large number of people are relocating.

Investors who invest in the most desirable regions often find that they earn the most from their investments.

Invest In Properties With A Positive Cash Flow

Friday, May 23rd, 2014

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Investors who are looking to purchase rental property can stick with the areas that are most common in the industry, like San Francisco or New York or they can look for up and coming areas like Detroit or Cleveland.  Either way, investors need to invest in properties with positive cash flow and ideally, a high cap rate.

Investors who make sure that they purchase properties with a positive cash flow should be able to earn a decent income in the business.  The key to finding such a property involves research and due diligence.  First, look at the potential metropolitan areas when considering a rental property investment.  Purchasing an investment in San Francisco makes sense, if one is able to secure a property at a deal.  Unfortunately, the number of deals in a region like San Francisco is declining rapidly and investors should consider other options.

Investors who think outside of the major metropolitan areas should consider investing in regions that are growing and have a strong economic outlook.  Investors who are looking for properties with positive cash flow should consider looking at the major cities in Texas, Florida, Arizona and even Ohio.  In fact, the current growth rates of Cleveland, OH is opening doors for investors who are looking to invest in rental property.

Investors who choose to invest in Detroit should be able to find a property with a positive cash flow if they purchase a rental near downtown.  This area is expanding in economic strength and a number of businesses are moving to the area.  The property values are still way below the national average, but rental rates are right on pace.  This means that an investor can obtain a rental property with an extremely high cap rate.

With that being said, location is the first factor to consider when investing in properties with a positive cash flow.  After this, look at the properties themselves and look to purchase one that doesn’t have any major problems.  This property should be attractive to the potential tenants in the area and shouldn’t require a serious amount of advertising in order to fill.  Properties that are located near major businesses should fill up quickly and remain full over the course of the investment.  Investors who obtain a property like this will be able to achieve the highest cap rate, if they are collecting rent from every available unit.

Investors need to spend their time and do their due diligence in order to make sure that a property has a positive cash flow.

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 Capitalize On The Current Mortgage Interest Rate

Friday, May 23rd, 2014

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Investors who are looking to secure lender financing should act now, as mortgage interest rates are relatively low. 

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 have great credit and are looking to secure property now should take advantage of the current mortgage interest rate, at 4.20%.  Those who have the ability to capitalize on this rate should look to purchase a single family, duplex or 4-plex rental property that can be secured under a typical residential loan.

Investors who are able to take advantage of the current mortgage interest rate should do so by purchasing a small rental property.  The reason for this is because rental properties that have four or fewer units can be secured under a typical residential mortgage.  Investors who have excellent credit can obtain this type of property at a 4.20% interest rate.

Investors who are looking at purchasing a large apartment complex are generally looking at a mortgage interest rate that is at least two percentage points higher than this going rate.  They will also have to place a large down payment on a property and need far more liquid capital up front.  Lending institutions consider these types of investments to be far more risky and need to justify them by charging a higher interest rate.

Investors who want to purchase a small rental property should choose an area of the country that is increasing in value and has a number of interested tenants in the vicinity.  Many investors start out their investment career by purchasing a duplex.  They generally live in one side and rent the other side out to pay the mortgage payment.

Investors who do this can capitalize on the current mortgage interest rate and get an understanding for the business.  Investors who live on site can monitor a property and be able to respond to problems in a timely manner.  These investors will get a taste for the business and can decide if it is right for them.

If so, investors can consider purchasing another duplex or even a 4-plex and expand their presence.  Many real estate investors choose to work like this and slowly move up in the business.  Some investors decide to eventually purchase a large-scale apartment complex and take full advantage of the business, making it a full time career.

Investors who have the credit rating and can capitalize on the current mortgage interest rate of 4.20% should do so.

HomeVestors Knows How To Search For Underwater Homeowners

Friday, May 23rd, 2014

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Investors who are looking to capitalize on underwater houses and make a deal with the bank should understand the field in its entirety. 

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 property values have increased significantly over 2013, but 20% of homeowners are still underwater.  Investors who are able to search for those who are suffering from negative equity can often end up purchasing a property from the bank for below the market value.

In order to target underwater homeowners, an investor should set up an advertising program to target these individuals.  Investors who place an ad that directly targets these homeowners should end up receiving targeted leads.  An ad that states, something to the degree about being underwater will likely draw attention from those who are in this situation.

Many of these homeowners will not advertise the fact that they are in a negative equity situation so investors have to pursue these individuals.  Investors who go out and canvass neighborhoods will likely run into homeowners who want to get out their mortgage, but don’t know how.  Investors should assume that at least 20% of the people they talk to are in this situation and should work with the bank in order to short sell a house.

After receiving responses from underwater homeowners, investors should begin working with the bank in order to come to an agreement regarding moving this property off their books.  Some banks will be more lenient in this regard, while others will demand an investor to pay market value for a house.  Throughout these negotiations, investors will get an idea for which banks are interested in coming to a deal and which aren’t.

Ideally, an investor who is looking to purchase underwater houses needs to develop a long-standing relationship with the banks in the area.  Those investors who have demonstrated their ability to quickly and painlessly help banks reduce their inventory will have a future in the business.

Investors who are looking to purchase underwater houses at a deal need to have cash in order to close the deal.  Banks who work with an investor who is able to quickly remove properties from the books will likely be looking for even more business in the future and be willing to offer an investor deals from the start.

Investors who are looking to purchase underwater homes should have no problem finding individuals who want to sell their house, but need to develop a relationship with the banks in order to do so.