Real estate > Real Estate Investing--Starting Right Is the Key to Profits

Real Estate Investing--Starting Right Is the Key to Profits

by: Lynn Stonebraker

You've heard of the potential payoff from real estate investing. The good news is, it's true! The bad news is, it won't happen for most people. Why? They have unrealistic expectations. Real estate investing isn't a "get rich quick" endeavor, although it sometimes happens. No real business is. So, prepare to make a serious time commitment. Would you expect to become extremely wealthy at anything in just a few months? Know that you'll have to keep learning, keep getting contracts, and keep putting time into it.

Still in? Great, you're a realist! Your first step is to choose an area to focus on.
Do you want to purchase run-down properties and repair them to sell for profit (rehabilitate, or rehab them)? Do you want to buy properties and turn them quickly (flipping)? Maybe you want to buy properties, then lease them to potential buyers with an option for them to purchase them later, while you accumulate equity. There are pros and cons to each of these, depending on your financial position, your location, your available time, and other considerations. We'll be going over them all in future issues of the newsletter. You'll find the possibilities exciting.

Once you know what you're looking at draft your plan IN WRITING. People who do this get three times as much done in the same amount of time. Set long-term goals for 3, 5 and 10 years out for what you want your cash, equity, and cash flow to be. Then, you can work backwards from there to set 1-year, 6-month, and 3-month goals. Without this, you'll be driving without a map, taking or skipping deals without regard to how they fit into your big picture. Leaves lots of room for "Wish I'da's...." Don't do it! You can always adjust your plan as you go along.

Keep your day job for as long as possible. If and when it seems time to go, before you do, get some of those low- to no-interest credit cards that are out there. It could really ease some cash flow worries to be able to tap on a $10,000 line if you're doing a fixer-upper and run into an unforeseen problem with no additional bank draw in sight.

Get an attorney who knows and understands the creative options of real estate. Some banks just don't understand simultaneous closings, for example; you'll want your lawyer to know how to smooth things so that there aren't any snags that cost you time and money. Some even have their own title companies. A good place to ask for a referral is to ask a mid- to large-sized developer. This is one place not to haggle about price; he or she will be worth their weight in gold when they can get your deals done and you know that you can sleep at night because it's been done quickly and right.

As soon as you decide to get into real estate investing, begin building your list of buyers. We'll be covering more on this later; but, when you meet them, learn as much as you can about the kinds of deals they do, how long it takes them to conclude a deal, and so on. Most people love to talk about how they became successful, if you ask respectfully and don't waste their time.

Warning, warning! Think very long and hard before taking on a partner. If you do, it should be somebody who brings something to the party that you don't have, and it should be for one deal only until you see how things go.

Which brings us to how to set up your company. You should

set up a separate corporate entity for each deal. An LLC is cheap and easy to set up. Land trusts are even better, because your name isn't personally in the public records, inviting some chump to sue you. The idea is to keep your personal assets off the table if something goes wrong. Talk with your attorney about it; he has forms that can have you done in a few minutes.

Finally, if you've made your plan, you have to work it to get anywhere. If you're not out there making any offers, you're never going to close any deals. No deals closed, no profits. If you're not making any profits, you're not in business, you're dreaming. Set a number of deals you're going to bid on per week and per month, and then get out there. Make it happen!

About The Author

Lynn Stonebraker has been profiting from real estate since 1987. Get free weekly training in her newsletter, available at www.RealEstateInvestingInformation.com.

FSBO Real Estate

FSBO Real Estate

by: Steve Gillman

Buying FSBO real estate, or houses for sale by owner, has its own particular problems and opportunities. Dealing with an uninformed seller who thought he knew enough to handle everything by himself can be frustrating, but it can also be very profitable if you are prepared. First you need to understand the FSBO seller.

People try to sell a house on their own for one primary reason: To save the sales commission. Unfortunately for them, they usually underestimate the cost and complexity of going it alone. They'll often get frustrated and tired of the process, and be ready to drop the price and be done with it. If you help them solve their problems, your reward can be a good price on a good investment. Just keep the following in mind:

1. A seller isn't an agent. You have to be more careful in what you say and ask. Avoid negative comments about the house. Like it or not, the truth is that it's difficult to...

FSBO Real Estate

Real estate > FSBO Real Estate

Real Estate Investing - - The Key To Successful Closings

Real Estate Investing - - The Key To Successful Closings

by: Lou Castillo

If everyone always did everything they said they?d do, we?d all be a lot richer. Unfortunately, tasks are overlooked, and the ball is often dropped. If you want to have successful closings, you must have strong ?follow-up? skills to catch problems early in the process. Follow-up on everyone and everything.

We can?t begin to tell you the number of closings that almost fell apart, or would have fallen apart had we not kept a watchful eye on the entire process to make sure that everything was completed when it needed to be. Here?s a typical scenario: you?re wholesaling a house and you have just 30 days to get it closed before the contract with the Seller expires. You find a buyer who can get a loan and close before the expiration. Then a few days before closing you find out that the loan isn?t ready and closing must be delayed two weeks, but the Seller already has another...

Real Estate Investing - - The Key To Successful Closings

Real estate > Real Estate Investing - - The Key To Successful Closings

10 Tips for Successful Real Estate Property Investment

10 Tips for Successful Real Estate Property Investment

by: Rhiannon Williamson

Just because real estate prices seem to have hit a temporary ceiling in many countries around the world, that doesn?t mean that profits from property investments are hard to come by.

Even during a real estate market slowdown, stagnation or depression profits can be made locally and overseas.
This article shows you the top ten tips that real estate investors apply to their property portfolio building strategy to ensure success from their investments.

1) Research the curve - the concept of a property market cycle existing is not myth it?s a fact and is generally accepted to be based on a price-income relationship.
Check the recent historical price data for properties in the area of the country you?re considering purchasing in and try to determine the overall feel in the market for prices currently.
Are prices rising, are prices falling...

10 Tips for Successful Real Estate Property Investment

Real estate > 10 Tips for Successful Real Estate Property Investment

Home Style Words in Real Estate Ads ? More Explanations

by: Raynor James

Whether you?re buying or selling, reading real estate ads can be confusing. Here are explanations of more style terms used in real estate ads.

?Split Foyer? style

A home entered by a foyer with a half flight of stairs up to the upper level (where the living spaces and one or more bedrooms are usually located) and a half flight of stairs to the lower level (typically housing the family room and additional bedrooms).

?Tri-Level? style

A home with three levels. It is typically entered on the middle level and has half flights of stairs to the highest and lowest levels. The living room, dining room, and kitchen are usually on the middle level. The bedrooms are usually on the highest level. The lowest level may be unfinished or have family room, laundry, and perhaps a garage located there.

?Contemporary? style

These vary greatly, but none looks as...

Home Style Words in Real Estate Ads ? More Explanations

Real estate > Home Style Words in Real Estate Ads ? More Explanations

Changing Real Estate Market

Changing Real Estate Market

by: Kim Polinsky

Studies in demographics and trends abound in the market of real estate. Every day new reports are speculating about the ups and downs, the insides and out of this industry. In deciphering the material for building real estate business, the consensus shows that niche markets utilizing specialized services, provide the largest profit for the least amount of time investment.

How does the average agent/broker tap into that knowledge?

No longer is the real estate agent/broker set to go upon passing the real estate exams. Further training is needed in the area of marketing for success in today?s business place. Broker Price Opinions, Short Sales, Credit Scores, REO, Staging, Retired Clientele, Investors?. The list goes on and on to divide the real estate market into specialized segments. Real estate exams are for legal proficiency, not marketing success.

Why is the market becoming...

Changing Real Estate Market

Real estate > Changing Real Estate Market

Real Estate Investing Works In Your Area Too!

Real Estate Investing Works In Your Area Too!

by: Josh Brown

I hope you had a spectacular weekend!

Things have been going great here at Investor Wealth Academy, and we are very excited about some major developments coming down the line for us later this summer.

More on that later.

Last Friday I was on the phone with a perspective client of ours. Let?s call him ?Jeff?. Now, I have to be honest with you here, what Jeff had to say during our conversation was very bothersome to me, and by the end of the call I finally had to tell him that before we Could help him succeed, he?d have to change his perception about the Business.

After thinking about his comments all weekend I realized that Jeff's limiting beliefs are probably more common than I?d like to admit. But how can I help people change their perceptions?

Then, I was browsing around in my neighborhood Barnes & Noble yesterday, looking for a good read, when the newest...

Real Estate Investing Works In Your Area Too!

Real estate > Real Estate Investing Works In Your Area Too!

depression

Defining Common Credit Card Terms

by: John Mussi

As important as credit cards are in the modern world, you might be surprised how many people don't know as much about them and how they operate. This isn't necessarily because of any shortcomings of the individuals, but instead because of the ease of using credit cards without having to understand all of their subtleties.

Should you wish to learn more about how credit cards work and the terminology associated...

Defining Common Credit Card Terms Real Estate Investing--Starting Right Is the Key to Profits Real estate

Real estate > Defining Common Credit Card Terms

battery

Real Estate Investing--Starting Right Is the Key to Profits

Rules In A Florida Vacation Villa

by: Chris Neilson

The answer is ?yes? and ?no? ! There are very few, (in fact, I?ve condensed it down to just four) but ultimately it all boils down to common sense and respect for the owners of the vacation property.

Sounds pretty good huh ? And it is? so here are the few simple rules that the villa owner will expect you to obey during your occupancy.

Check In & Check Out Times :

Please adhere to the times...

Real Estate Investing--Starting Right Is the Key to Profits Real estate Rules In A Florida Vacation Villa pool table

Real estate > Rules In A Florida Vacation Villa

Pros And Cons Of Getting VOIP Right Now

by: Ron King

You have a telephone, right? You have a computer, right? You want to save money, right? BAM, you are a VOIP (Voice Over Internet Protocol) candidate.

It is inevitable that VOIP will replace traditional telephone service at some point. The only question is when should you jump in?

VOIP is quickly becoming more reliable and receiving wider acceptance. In fact, phone companies are already taking advantage...

dsl Real Estate Investing--Starting Right Is the Key to Profits

Real estate > Pros And Cons Of Getting VOIP Right Now

Going To Boracay During The Off-Season

by: John Grant

Boracay in the Philippines is among one of the best beaches in the world. It is because of the great sand and clean waters that make Boracay a wonderful beach to relax. There are also lots of establishments there in Boracay that can make their experience better. The nightlife there during peak seasons such as holy weeks and all saints day is great because lots of people go to Boracay to have fun.

But...

Going To Boracay During The Off-Season

Real estate > Going To Boracay During The Off-Season