Marketing and Investing in Real Estate

Buying, selling, and managing investment properties are great ways to make money in the housing market. This is why many people are keen on investing in real estate since they can obtain big profits in a considerable amount of time. If done correctly, they can easily recover the money they have spent on their investment properties.

To stay on top of the world of real estate investing, you will need to get access to as many home buyers and sellers as possible. Whether you are a beginner or a seasoned pro, you will always need to find clients for your business to generate income. Therefore, creating good marketing strategies is a vital part of being a successful real estate investor.

In a nutshell, marketing is simply promoting yourself and your business. It is a great way to reach your intended market and let them know what they need to know. So if you are considering investing in real estate, you have to create good marketing methods to attract the attention of home buyers and sellers.

One of the best marketing strategies to use when finding clients is to use the newspaper and other printed materials. Despite the widespread use of the Internet, many people are still reading the local paper to stay informed on what’s happening around them. By running ads on newspapers, you will easily reach your target market, making it easier for you to sell and buy investment properties.

Speaking of the Internet, many real estate investors are using the web to promote their business and such a method has produced overwhelming results. The reason for this is that unlike printed media, the Internet can reach a broader audience in just a blink of an eye. So if you want to make real estate investing much easier for you, you should learn how to take advantage of the power of the Internet.

A good way to generate leads using the Internet is to write blogs and post articles on investing in real estate and other related topics. With many people visiting blogging and article submissions sites, it would be easier for you to reach your prospective clients.

Meanwhile, if you want to learn more marketing strategies when investing in real estate, you should log on to www.Rehab-Real-Estate.com. The website features an extensive collection of articles and videos on real estate investing. By registering with the site, you can easily find the real estate content that you’ve been looking for.

Starting Investing with Hard Money Lenders

Hard money lenders have helped countless investors plant their roots deep in the world of real estate. Many investors today started by using financing provided by these lenders. Nowadays, these investors can already fund multiple deals using their own money. But before they were millionaires, they sought financing from these lenders.

Some people claim that borrowing hard money lenders is done by those who are desperate for funding. You could not exactly blame these people for making such comments. Also known as private money financing, this funding uses interest rates that are often twice as high as those used by banks. Because of these high rates, private lenders have gained the reputation of becoming the “financing of the desperate.”

Unknown to many though, this funding is sometimes preferred by investors not because they have nowhere else to go but because it suits their specific needs. House rehabbers, for example, use this because they find its features fit for their business.

House rehabbers are investors who buy cheap properties in disrepair. They repair and improve these houses and then sell them at much bigger amounts. Those who are just starting in the business often do not have enough capital to buy properties and repair them. They borrow private money because all of their expenses may be shouldered by one loan. This is more convenient for them because they don’t have to apply again and again to different lenders.

Hard money lenders can release loans that can cover all expenses starting rehabbers might have. Study this computation to better understand this concept: A house rehabber wants to buy a distressed property priced $85,000. He thinks it will need $15,000-worth of repairs and improvements to raise its value to around $150,000. The rehabber will probably need another $5,000 for other unexpected expenses. All in all, he needs $105,000 to sell a house at $150,000.

Hard money lenders will not give him $105,000 just because that’s how much he needs. These lenders base the amount they will release on the price of the property in good value. In this case, the property’s maximum value is $150,000. Rates across the country vary but let’s say the lender agreed to release 70% of that value. The rehabber will get $105,000, which incidentally is also his total amount of expenses.

Many investors who are just beginning in the business of rehabbing houses find this set-up useful. After all, this is how they started. Learn more about this financing at REIWired.com today.

The Big Question about Flipping Houses

In the real estate investing business, the process of flipping houses is simply defined as the act of buying real estate properties with the intent to sell them for profit. It is sometimes used interchangeably with wholesaling houses, another method of investing in real estate wherein an investor finds an undervalued property and then sells it to a bargain hunter.

Buying and quickly selling properties is a great way to build wealth in the real estate business. If done correctly, you can make more money than you earn while doing your current office job. In recent years, however, the term “flipping” has gained a negative connotation, leading many people to believe that it is illegal and against the law.

To set the record straight, the act of flipping houses is not against the law. There is nothing wrong with buying an investment property and then selling it after a short period of time to earn money. In fact, flipping real estate can be likened to buying and selling clothes and people don’t go to jail by doing exactly that.

This method of investing in real estate only becomes illegal when it involves fraudulent activities. To give you an idea, here are examples of illegal activities committed by investors when flipping houses:

• Making a false appraisal of the property. Some investors, homeowners, and even mortgage companies collude with appraisers to grossly inflate or underestimate a property’s market value to earn extra profits from themselves.

• Selling ugly houses to buyers who didn’t know better. Some investors try to take advantage of a person’s inexperience with buying properties by claiming that a house is in a nice condition when in reality, it is not. Then, he will sell that questionable property to an unsuspecting buyer just to get a loan closed.

• Falsifying documents. In this type of fraud, an investor submit fake documents such as pay stubs, verification of deposits, tax returns, and income statement just to get a buyer qualified for a loan.

• Making backward applications. To qualify for a loan, an investor or a buyer tampers with his or her income after indentifying a property to buy.

When flipping houses, always perform due diligence. Never resort to illegal activities because you can make huge profits in this business without doing underhanded tactics. Meanwhile, if you want to improve your understanding of buying and selling properties for profit, log on to www.REIWired.com

Your 4-Way Guide To Flipping Houses

Many are interested to get into flipping houses today. This trend has proved to be very profitable despite the shaky financial situation that the global economy faces. In this article, we will share with you four tips on how to succeed with flipping houses. These tips have been tried and tested by experienced real estate investors:

1. Master the numbers. How much will the property sell when it is done? To come up with a safe offer of the house, be sure that you have a clear idea of the ARV. The ARV is the after repair value of your property. Keep in mind that it is not your desire which determines the price but the market. You can seek for tips from experienced individuals. Subtract all possible costs incurred – repair costs, holding costs, buying costs, selling costs and the like – from your ARV. From here, subtract the profit that you want. Once you get the highest price that you should pay, it is now time to make an offer. Your offer should be lower than highest possible price.

2. Make your schedule realistic – When flipping houses, it is very important that you make a realistic schedule. Many projects have gone wrong due to delays. Keep in mind that a single delay can cause a more serious delay on the project. Delays would mean additional costs. Sometimes, you spend big bucks on holding costs for insurance, property taxes, loan payments, utilities and the like. These expenses alone, can eat up all of your profits. To veer away from these problems, it is very important that you come up with a lax and realistic timeline before finalizing the offer.

3. Prioritize. Always start with repairs that are most important. The bathroom and the kitchen should be given high consideration. The exterior part of the property also matters a lot. You cannot show off the interior part of the house if the outside does not seem inviting.

4. Know your market – First of all, know your neighborhood. If it is full of retired couples, selling it to young professionals might not be a good idea. What types of buyers are likely to buy the property? Be sure that you identify the benefits that matter most to your buyers.

Flipping houses can be a very lucrative business. If you are a beginner, take time to learn the different do’s and don’ts before making the big leap. For more tips on flipping houses and on real estate investing, go to www.rehab-real-estate.com.

Advantages of Rehabbing Bank Owned Homes

Are you one of the thousands of real estate investors who are struggling to make money in today’s housing market? If you are, then rehabbing bank owned homes could be the answer to your prayers. Known in the industry as real estate owned properties, bank owned homes can be found virtually everywhere across the country, and rehabbing them could be your ticket to earning huge amounts of money.

So why REO properties? Listed below are three simple reasons why you should shift your career to rehabbing bank owned homes.

1. REOs are cheap

Real estate owned homes are selling for pennies on the dollar, which explains why many investors are targeting such properties in recent months. Lenders that own repossessed properties are under pressure to immediately get them off their books, forcing many banks to sell them at bargain prices. Remember that in any form of real estate investing, the objective is to buy low and sell high. Bank owned homes offer investors the perfect opportunity to purchase houses at very low prices.

2. Bank owned homes have clean titles

Another distinct advantage of real estate owned properties is that they have clean titles. Lenders are required to erase all liens and claims against a property once it becomes an REO. This makes repossessed homes more appealing to buyers, raising your chances of reselling the property faster. Common sense would tell you that buyers prefer houses that don’t have liens and claims against them.

3. REOs need minor repairs

The notion that real estate owned properties are dilapidated houses couldn’t be farther from the truth. The housing crisis forced thousands of homeowners to default on their mortgages, which means that many REO homes are in relatively good shape. Many of these homeowners have lived and maintained these houses for years. The trick here is to find that property that needs little repair, buy it for a low price, fix it, and then resell the house for a nice profit. It’s simply a matter of finding the right REO property, and there are hundreds of thousands across the nation today, with millions more set to be repossessed by lenders in the next few years, according to industry figures.

Rehabbing bank owned homes can bring your real estate investing business to a whole new level. Or if you’re just starting out in the business, then fixing and flipping REO homes could be the best way to jumpstart your career. Read more tips and watch informative videos on how to effectively rehab real estate owned properties by visiting www.REIwired.com.

What Makes Rehabbing A Fun Job?

Rehabbing a home is a very profitable business. Many people have earned a lot of money in this business. Millionaires have been made over time and more individuals – regardless of age, gender or of degree finished – have reaped their rewards financially. However, more than just the financial aspect of this business, the whole rehabbing industry is full of fun and excitement. In this article, we will share with you tips on why rehabbing is a fun job.

You can go on vacation anytime. The downside about having a regular job is that it becomes difficult to plan vacations ahead of time. Generally, you will be asked to file your leave weeks before your planned vacation and more often than not, these leave applications are yet subjected for approval. If it gets approved, good for you. If not, you will have to say goodbye to your getaway plans.

You have more time for your social life. When you go to work regularly, you would rather go home and sleep early on weeknights. You have less time to party with your friends. Rehabbing a home works differently. Social life becomes part of the work itself. Sometimes, you will have to go out and mingle with your business partners and potential market. A drink or two should be enough to build and maintain rapport with your partners.

You meet people from all walks of life. As mentioned, rehabbing properties would require you to meet people from all walks of life – from your fellow real estate investors down to your laborers, you are bound to find new friends with interesting personalities. They will not only help you with your business but also with your personal life in general.

You have more money to spend on any luxurious splurge you want. The financial rewards when rehabbing a home can be very lucrative. In fact, one single deal that you close should be enough to buy a car.

You can can make a lot of money without having to leave your house. If you were always worried about spending too much on gas expenses, there are no transportation expenses to worry about when rehabbing properties. You can work anywhere you want to. You can stay home as long as you want and still make money without having to leave your bed.

Rehabbing a home can give you a fun and exciting environment that no other job can offer. For more tips on rehabbing and on real estate investing in general, go to www.REIWired.com.

A Systematic Approach on Rehabbing a House

Like all things in life, rehabbing a house should be done in order. If you are going to do it in a haphazard way, it would difficult for you to complete the repairs on schedule. In addition, you might even commit mistakes that can cost you a great deal of time and money.

If being organized is not your style, then you better change your mindset if you want to become a successful rehabber of properties. To help you avoid wasting time and money on a fix and flip project, here is a step-by-step guide on refurbishing a fixer upper home from start to finish:

1. Before you start tearing down the walls or hacking away the flooring, make sure that the property is clean inside and out. Remove all the garbage and other broken fixtures from the property. This way, you’ll have more moving space.

2. When rehabbing a house, always start from the interior of the property. The only exception is when the roof is leaking. You must patch up the roof immediately to prevent further damage to the inside of the house.

3. Don’t forget to cover the windows with fabric or old newspapers to prevent unwanted attention from your neighbors. Such a move can also prevent unscheduled inspections from the local authorities that can cause delays.

4. Start with the electrical, plumbing, and HVAC systems. You should never install fixtures or repaint the walls unless you are finished with the mechanical repairs on your fix and flip project.

5. Clean the walls and trims thoroughly. Don’t forget to fill out holes and sand the walls to make them smooth before applying paint. When rehabbing a house, don’t experiment with colors. Just keep the paintjob neutral and simple.

6. After painting the interior, you can now add curb appeal to the property by putting the kitchen cabinets, bathroom fixtures, and other decorative materials. You can now also replace broken light bulbs. You should also lay down the carpeting if you want.

7. Once you have put finishing touches to the interior, you can now spruce up the outside of the property. Replace rotting wooden sidings and apply a fresh coat of paint on the walls. You should also clean the windows and add shutters if you like.

8. The final step to rehabbing a house is to take care of the yard. Make sure that it is free from weeds and that the lawn is a nice shade of green. You should consider planting flowers and other ornamental plants on the yard to give the property a homey and inviting look.

After doing everything in order, you can now sit back and admire your handiwork. It is also time for you to sell the property and start collecting your profit. Meanwhile, if you want to learn more about doing fix and flip projects, visit www.Rehab-Real-Estate.com.