Archive for fec real estate investing
Get the edge using Probates
Posted by: | CommentsProspect Probates for Huge Profits!
Every competitive edge helps.
Learn about ‘Probate Real Estate Investing’ and no one else will stand a chance. Take all of the business!
‘Probate’ is probably the most misunderstood and over-looked aspect of investing- in terms of uncovering motivated home sellers and as a result undoubtedly Huge profits. It’s possible that you have muttered the following words “forget that house, it’s in probate” or “that one’s a probate and they take too long” and/ or you may have heard another investor say something similar to this.
WRONG!
The general scarcity of awareness within the real estate investor industry makes this another niche strategy to having the ability to perpetually create some profitable deals where there is minimal competition. Education is required as a means to learning the exact system that must be followed to implement this technique but should not be considered an obstacle.
In ‘Probate‘ you can expect to analyze these opportunities from the same due diligence standpoint as you would certainly perform with other deals:
- Might the homeowner be motivated and determined to sell?
- Exactly what does the owner want with respect to price and terms?
- Existing title issues that may produce certain hurdles?
- Have I got the appropriate safeguards in place to pursue this deal?
- Precisely what is my exit strategy on this specific deal?
- What type of profit potential am I striving for?
- How should I proceed with the next step, rinse and repeat?
It’s paramount that a well rounded real estate education is essential in order that you will be able to make money during the course of market changes.
In the event you find yourself experiencing a scarcity of deals, there is always a choice. A choice to learn more and deliver the service that’s in demand at that particular time. Always keep yourself armed with knowledge by continuing to learn something new…you never know when your expertise will be required.
‘Probate’ real estate investing could be a new and logical resource to supply you with countless lucrative deals within today’s real estate conditions.
Let me caution you against over analyzing ‘Probate’ deals by convicting yourself that a law degree is necessary to getting involved with these types of properties, that’s a myth. Engaging in ‘Probate real estate investing’ is within realistic range of your abilities, once you have educated yourself.
Allow me to remind you that by choosing to target these types of deals, you’ll nevertheless be utilizing the various other resourceful real estate techniques such as wholesaling, seller financing, etc that you’ve also learned.
Check this out, the experienced ‘Probate real estate investors’ know that they’ve hit pay dirt with this motivated seller goldmine. They aren’t real happy to have their niche become so accessible and would prefer to have these deals to themselves while watching you scramble around on short sales. As long as you have your game plan in place and understand what you’re doing, maybe have a mentor- there’s an abundance of deals out there- go out and get yours!
Exactly why are probate sellers motivated to sell to an investor?
- Powerfully painful memories of years and relatives gone by creating an overwhelming desire to move on.
- Shortage of funds to keep up the mortgage payments, taxes and insurance.
- Absence of cash to fund needed repairs prior to selling or renting.
- A need for quick lump sum of cash for whatever reason.
- Imminent foreclosure proceedings on the horizon due to circumstances.
The ‘Probate‘ process observes certain state specific guidelines but they all come down to the necessity of satisfying the debtors claims and owners must liquidate these properties quickly, this is where you come in.
Every great real estate deal has to ultimately be structured as a win-win experience for everyone involved. It’s true that most everyone prefers to receive as much as possible for his or her property or home while you being an investor consistently requires a cheaper price or better terms in order for it to make sense.
It’s the exact same scenario in ‘Probate‘- while you will be making a profit by helping someone to liquidate their property, you’ll be charged with the duty of creating win-win circumstances that everyone will be content with.
Finally on the subject of ‘Probate’-by identifying yourself as a probate investor, you have a significant advantage over your local competition and can quite possibly be perceived as the expert in that arena, creating many, many opportunities to deal directly with sellers, to mentor others and to partner in referral arrangements.
Suppose that you are the only investor in your county that has studied and specialized in probate investing, the person that is undoubtedly aware of the deep discounts you can get for these deals and the HUGE profits accessible because of it?
- You would KNOW that these properties can be obtained at 50%-60% of market value.
- You would KNOW that this is a viable and profitable niche worth mastering.
- You would KNOW how to systematically keep your deals flowing in.
- You would KNOW how to stay ahead of your competition by wheeling and dealing in this untapped sector of the market.
- You would KNOW how to market your business and teach homeowners how to find YOU.
Should you choose to absolutely take your real estate investing enterprise to the height of its success, the height of its profit potential – I firmly recommend that you learn and become proficient as a ‘Probate Real Estate Investor.
I know you’ve heard the saying” you make your money when you buy real estate”- Buy at a heavy discount, lock in your profits from day one-
Get that competitive edge by getting involved with Probate Investing, get aggressive and get paid.
Stop Battling Thousands Over Foreclosures . . . Learn the Little Known Probate Strategy For Real Estate Investing
Great Event
Posted by: | CommentsI didn’t get home from the
Financial Enlightenment Club/
Real Estate Investors Club Meeting
tonight-until 10:00pm and it ended at 9!
Listen to this, when I left the Doubletree, there were still 7 people there networking, laughing and getting to know one another.
In case you missed it, tonight’s meeting was a great one. People got there early and the real estate investing buzz and humm began…
I love that feeling.
There were those familiar faces as well as
people I’d never met- everyone was warm, enthusiastic and energized- we learned,
we shared, we had fun tonight…together.
Everyone got a chance to meet Chuck, Kristy and Shanna- what a great team! Chuck gave a mini power point presentation on the 203 (k) loan, Shanna talked about what she’s been seeing out there as an agent and Kristy….? Kristy was a natural at the door and the drawing!- I’m so glad that
she’s a part of our group.
Forrest Jinks was a huge hit at the FEC Club tonight- he rocked it with some good solid opinions and a heck of a lot of bare bones economical common sense about the real estate market in his presentation.
I think it went very well– and there was a
great deal of “audience participation”, whether
itwas questions, comments,laughing etc.
That’s always a good sign of an awesome meeting, don’t you think?
THANK YOU Forrest!
The adventure will continue next meeting!
Remember that the goal is to build up our investor community here in the North Bay and if tonight was any indication…that will most certainly happen.
If you missed it tonight- we got you covered…
I hope you can join us at the next meeting, which will be March 25th with Warren Racine.
Thanks for coming out everyone-
I really enjoyed it very much.
To your success,
Karen
CALL TO ACTION: Seller Financing
Posted by: | Comments**CALL TO ACTION – LAST DAY**
The following information is extremely important!
“HUD Issues Problematic Rules Interpreting SAFE
Mortgage Licensing ACT HUD has proposed to eliminate
ALL seller financing unless the seller lives in the home
or becomes a licensed mortgage originator.”
Seller Financing for Residential and Commercial properties
is a HUGE way for investors to flip properties.
We desperately need for thousands of real estate investors
across the country to go on record with HUD on this issue.
How YOU can help:
1. Call your US Congressman or US Senator…otherwise,
according to one government insider, your emails to them will
be read by a lowly staffer.
To find your local US Congressman and US Senator’s line, go here
For US Congress: use (202) in front of the phone numbers listed
here http://clerk.house.gov/member_info/mcapdir.html
For US Senate: use (202) then the “22″ prefix in front of the phone
numbers listed here
http://www.senate.gov/general/resources/pdf/senators_phone_list.pdf
2. Tell them what you feel about the proposed law and how
that would negatively impact the real estate business their area, and for you.
Your message should include that you would like the definitions
in the proposed rules to be changed so that private individuals
can originate and service loans on properties they personally own.
Opinions must be in by tomorrow.
Which means we have less than one day left to flood this system
with comments.
Please forward this info to those who need to know. Action must be taken quickly.
Here is the link to HUD to read the law:
“http://m1e.net/c?40134443-RN4wgovDS//vo%405038917-wcMDQJ2j1DRlk“>http://m1e.net/c?40134443-RN4wgovDS//vo%405038917-wcMDQJ2j1DRlk</A>
Here is the link to HUD for you to post your public Comments:
“http://m1e.net/c?40134443-Bu7YsRGpcd3rY%405038918-vftzEOO.qaoQU“>http://m1e.net/c?40134443-Bu7YsRGpcd3rY%405038918-vftzEOO.qaoQU</A>
Build a Hard Core RE Power Team of Experts
Posted by: | CommentsTo complete a successful real estate deal, an investor will need the services of experts in various areas, such as – fixing and repairing properties, preparing contracts, assessing properties, marketing and finally selling the subject property.
You can’t look for your team of experts when you already have invested in some properties. Be smart, identify your power team before making any investments. The team will assist and guide you to make the right investment. With the right team, you have a greater chance of succeeding at more deals at any time.
Your power team of experts should include the following:
- an attorney who has a working knowledge of real estate deals
- an experienced escrow company
- an insurance agent
- an accountant
- a great guide and mentor
- bunch of contractors
- good and solid financial partner or lender and
- a solid real estate agent.
So, what are you waiting for. Create your own RE Power Team.
Karen
The Top Two Reasons to Join a REIA Club
Posted by: | Comments1. Networking
Unquestionably, this is the major benefit for joining a real estate investor club. Even if, like in most clubs, not all members are active, you still need to interact during the club’s activities with a good mix of people whose jobs are related to the various sectors of real estate investing that you are involved with.
In short, the real estate club is the best place to find people with whom you can build both professional and personal relationships.
2. Finding / Swapping Deals
The club is like a real estate marketplace where you have a higher probability of finding that great real estate deal you have been looking for as well as passing on or swapping with other members some prospective deals that are not really a fit for your business plan.
You can form long term friendships or alliances by exchanging business information with other members.
Karen
How to Wholesale a Hot Smoking Deal for 5 Figure Profits
Posted by: | Comments5 Figure Assignment Fees may be hard for some people to believe in today’s Real Estate Market. Believe it or not, they are still out there for the active, persistent and methodical real estate investors, even the first-timers!
Wholesaling
Wholesaling is the art of finding and assigning properties. It can be so appealing to new investors because there is very little cash required to support these types of deals and credit is not an issue. A new investor requires only a small amount of cash to cover earnest money deposits, advertising, etc.things like this.
Discover your mission, vision, or purpose in life.
Spend some time envisioning the type of lifestyle that fits your family and personality traits. Then begin to realistically set your goals based upon the vision.
Remember the basics about goals – they should be SMART GOALS.
S-pecific
M-easurable
A-ttainable
R- ealistic
T-imely
Aim for what really matters to you. Discover your mission/vision/purpose. and teach yourself how to set and persist to achieve your goals. To manage time effectively track your tasks consistently, so that you don’t waste time on non income producing activities. Visualize and focus on your goals daily to ensure that your actions reflect that which pertains to your goals.
What tools do you need?
The basic tools that you will need as a new wholesale investor are these:
- Cell phone - (preferably a PDA) with unlimited minutes, you’ll need them! This will help you to organize your tasks, records, phone numbers and synchronize with your computer.
- Computer - researching data comps and for marketing your wholesale deals
- Printer - print out contracts, contracts and any documents
- Camera - this is an absolute must have for creating your e-flyers to mail our to your database to sell your deal
- Contracts / Agreements
- Fax Machine
- Filing Cabinet – you’ll need this too.
As your business evolves, you’ll reach a point where you will find other tools and gadgets that increase your productivity and your profits.
How to find deals:
There are many places to you can locate deals and here is a list a few of them:
- Vacant Houses
- Title Companies
- Home Inspectors
- REIA Clubs
- FSBO’s
- Bankruptcy Attorneys
- Homeowners Associations
- Burned out Landlords
- Bail Bondsmen
- Code Enforcers
- Hard Money Lenders
- Meter Readers
- Waste Management
- Divorce Attorneys
- Probate/Trustees
- Tax Offices
- Garage Sales
- Estate Sales
** Every time you go for a ride, take a different route to get to know your neighborhood, the properties, comps, vacants and utility workers.
Once you’ve made contact with a truly motivated seller- you’ll make them an offer on that property based on the comps, repairs and your desired profit.
Quick Calculation of the Maximum Acceptable Offer: (MAO)
MAO = (ARV x .65) – RC – CC – AF
ARV = After Repair Value
RC = Repair Cost
CC = Carrying Costs
AF = Assignment Fee
Assigning The Contract
The most important thing to do here….in the money step is to be very clear that you’ve contracted to purchase the property as “your name….and/or assigns”: By placing and/or assigns after your name, you’ve ensured your ability to assign the deal to an end buyer. Although a contract is usually assignable unless otherwise stated, I would hate for you to fall down on the money step by leaving it to happenstance. Once you have an executed purchase agreement with the motivated seller that contacted you and you’ve negotiated a hot, smoking deal with your and/or assigns on that top line…you are ready to find your buyer.
Note: In my contracts, “and / or assigns” is a part of the agreement along with the following clause.
Buyer shall receive a key within 48 hours and be granted access to the property to allow partners and contractors to evaluate it as needed. If the seller is still living in the house, I request access on pre-arranged days and times. When they won’t be there and this allows me to get my investors in to see the property.
How to help your buyers see the value in your deal
I try to make it as easy as possible for my buyers to access, evaluate and purchase my wholesale deal by doing the following. By having my contractor to come out and submit an estimate on the needed repairs (on his professional letterhead) can save my buyer/investor a great deal of time and guesswork and I also ask my real estate agent for some accurate comps on the subject property. Even though I encourage every buyer/investor to pull their own comps, perform their own due diligence, I’ve found that by doing these things, they are steps that aid in the process of assigning the deal.
So at this point, you’re so close to that meeting with your bank teller right? …hang on!
At this stage, you have the property under contract, you’ve got your estimate(s) for the repairs, comparables, photos, and you’ve got access to the property and your blank assignment of contact in your hot little hands. You’ve done a lot and you’re close.
How to Find a Buyer for your Deal
During this point, time is certainly of the essence and you’ve got to get your e-flyer made and sent out to your database, your craigslist ads, your for-sale-by-owner posts, directional arrows and a hard copy to bring to your local real estate investor club.
In my experience, they are many, many “wanna-be” investors that read book after book, attend seminars and invest within the confines of their minds. My advice to my students is to weed out the tire kickers from the decision makers, early on before they have a deal. Create a performing database. It doesn’t have to include many, many names…. just the ones that know a hot, smoking deal when they see one and that will perform when the times comes to do so.
What day is it? Now it’s payday!
Your end buyer / investor will be exchanging a signed assignment of contract with you for a fee. They are paying for the right to step into your place and fulfill the obligations that you and the seller have set forth.
Collect a deposit from your buyer as you hand over the purchase agreement and obtain a signed assignment of contract . This will help you to separate the decisive, action taking investors from those that have a case of paralysis of analysis. If your buyer is serious about moving forward, they will have the wherewithal to hand over a deposit in good faith thereof.
Since it’s your deal, you would be using your title company who is most knowledgeable and skilled in the art of wholesaling properties and the manner in which you operate your business. You will provide your title agent with instructions about the remaining funds that will be released to you upon settlement. If your title company is not able to release those funds to you at that time, it’ll be necessary to execute an addendum with your buyer.
An addendum attesting to the fact that you will be both be at the closing and the buyer ( your assignor) must pay you in the lobby immediately following the closing, along with a Notarized Memorandum of Agreement would help to protect your interest.
Assignment fees can be very lucrative in certain markets. On my very first wholesale deal- the assignment fee was $7,000 and I had never done it before….so not bad right? My third wholesale deal allowed for a $40,000 fee because it was a hot, smoking deal. The buyer, a contractor was thrilled to get that property so that he could rehab it and make his profit.
Hot, Smoking deals are out there….if you’re not paying attention, you’ll bump right in to one of them!
So, with that- see your vision, steady yourself, prepare with vigor and head in that direction with renewed energy, confidence and persistence…and remember to enjoy the journey.
Karen Roberts
Tap the Hidden RE Market for Deals – Part 2
Posted by: | CommentsTap the Hidden RE Market for Deals – Part 2
One of the Top 5 Questions at every REIA Club meeting is
“How do I find Deals?”
Here is the answer to this question.
You can consider these resources for locating those unlisted properties that you can make offers on.
FEC Newbie Tips
- Vacant Houses: Abandoned, boarded up, tagged with violations,etc
- Tile Company: Absentee Owners List and use direct mail campaign
- Home Inspectors: another “hands-on” industry professional
- REIA Clubs: property pitches and deal exchanges
- FSBO’s: Craigslist, Ebay, forsalebyowner.com, google, signs posted
- Bankruptcy Attorneys: know who is buying and selling. this could be a power team candidate
- Homeowners Associations: indicator that homeowner is challenged. Sometimes associations have every intention of fore-closing on a property for non-payment of dues.
- Burned out Landlords: Apartment Associations, For Rent Signs/Ads, eviction courts. Often there are indicators that a landlord is burned out and would prefer to sell. You could make their day.
** Every time you go for a ride, take a different route to get to know your neighborhood, the properties, comps, vacants and utility workers.
Stay Tuned for Part 3 of “Tapping the Hidden RE Market for Deals”.
Happy Investing,
Karen
Tap the Hidden RE Market for Deals
Posted by: | CommentsOne of the Top 5 Questions at every REIA Club meeting is
How do I find Deals?
FEC Newbie Tips:
Today, I’m going to list 10 resources for Tapping the Hidden Market to profitable deals ….the absolute best deals!
- Bail Bondsmen: often due to legal reason, these agencies end up with properties that need to be sold.
- Code Enforcers: know the neighborhood violations, etc. Got any in your family?
- Hard Money Lenders: interview one and have this discussion- if you’ll be at the upcoming meeting…ask Michelle Evans.
- Meter Readers: talk this over, they may only be able to accept a gift card but they’ll let you know if they can help.
- Waste Management: know the neighborhood- vacants, REO’s, etc
- Divorce Attorneys: help motivated couples during a major change
- Probate/Trustees: aware of /oversee many files. Interview one.
- Tax Offices: some publish in newspaper, contact them for more info
- Garage Sales: newspaper for locations/dates. sometimes these folks are (underground) motivated sellers as well.
- Estate Sales: do you know anyone that coordinates these? If not, time to meet one or check the newspaper for locations/dates.
I hope these help you out and I’ll post more of them, so STAY TUNED for Part 2 and Part 3. I’m going to let you in on some gems that you’ve probably never even considered!
Happy Investing,
Karen
