Ugly houses can be great investments, but we don’t buy them. We understand that there are lots of valid ways to make money investing in real estate. Buying and rehabbing ugly houses is certainly a good one, but we’ve chosen a different strategy. Our strategy is to buy good homes that are ready, or nearly ready, to move in. It has worked well and generated consistent profit deal after deal.
Can’t imagine getting a good deal on an attractive house? Believe it or not, there are bargains to be found because nice houses do go into foreclosure, people do move, and people still need to sell fast for a lot of different reasons. Sure, not every house we buy is beautiful and has an immaculate lawn. But you would be surprised at how many “ready to sell” houses are available at below market prices.
Like anything else, it takes work and know-how to find good houses. Here are three good reasons to look for clean, attractive houses.
1. Rehab and marketing time is greatly minimized. In many cases, you can show the house even before you buy it. In fact, if a house is clean and ready to show, we insist that we be able to show it during the time between signing the contract and closing on the house.
We are closing on a house in Chattanooga, TN this month that we sold before we even bought it. How did we do that? The seller was motivated because they had already purchased another house. We actually put a contract on it with the contingency that we would have it sold before we bought it! Our system of selling almost all of our houses on lease-to-purchase contracts keeps our average marketing time down to a week or two, so the contract with contingency was still very attractive to the seller.
The house was ready to sell. We only spent about $500 to fix it up. We sold it through a lease-to-purchase contract before we bought it, and our profit is $14,400 on this deal.
2. There are few rehab surprises. In our experience, no matter how carefully you examine a house before you buy it, there are always unexpected expenses in the rehab phase. It’s just hard to foresee some things until you begin remodeling. Of course, we prefer to keep these surprises minimized. Nice houses with little or no rehab are great for minimizing the surprise.
Incidentally, this is a good reason to have a home professionally inspected before you buy it. It’s also a good reason to budget some contingency funds for houses that do require remodeling.
3. Free up your time. You may enjoy the rehab and remodeling, but the path to true wealth in real estate is in finding and making the deals. If you are buying nice clean houses, then your time is spent in the deal making, not in managing the remodel projects.
Because we’ve made the choice to buy attractive homes, our profit margins may not be as extraordinary as some rehab deals might appear. We don’t have any stories of buying a house for $35,000, investing $35,000 in rehab and then selling for $100,000+.
Instead, our path to wealth has been through buying nice homes from motivated sellers at below market prices. We sell these houses through lease-to-purchase, or “rent-to-own” contracts at market or slightly above market prices. Our profit is generally $15,000 to $20,000 per house and our marketing time is usually less than two weeks.
You can do the math and see that buying nice houses can be very profitable for an investor. In our case, we prefer to handle more deals with these consistent profit margins, than work through the added stress of ugly houses.
Blake Watson is an active real estate investor,author and coach with Lucky 7 Seminars, a real estate investment training company headquartered in Chattanooga, TN.
email: blake@lucky7seminars.com website: http://www.lucky7seminars.com
When I was buying houses, my most important asset was my family. I was young and married with three little children. I would buy houses and fix them up. I would play my favorite songs on the stereo while I worked. I would work long hours and did most of the work, but it was my combined family that charmed potential sellers.
We didn't just buy houses and sell them. We would buy houses fix them up some and then rent them out. Selling them would come later. We found other people that had gone before us. They had bought houses and rented them out. These people recognized the effort that it took to own houses, and they appreciated family support.
I don't know that I ever brought my family along with me as I previewed homes, but I always talked about them and what we did. If people like you and see themselves in your actions, then buying their houses has nothing to do with money.
My wife and I were able to buy houses from several different couples with little down as we purchased houses on Real Estate Contracts. When I say little down, I'm talking about anything from ten dollars to one hundred dollars. Sometimes the first payment would even be several months away, which enabled us to take the house and begin repairs and remodeling. Quite often we would be able to collect two months rent before we ever paid out "real" funds.
All of this was possible because the people liked us AND we established a track record of above board transactions. There are many people out there in the world who try to finagle the best deal to the detriment of the home seller. In the long run that is not a positive approach.
Our story of a loving family and hard workers was a selling point to the people who sold us homes. Even house rentals can take on the status of children. People who own houses tend to feel like mother hens. They want their houses to be given a good home.
Present your story to prospective sellers. Let them know who and what you are. Sincerity is key. Be honest with the sellers. They might have more houses and they might know other people who will sell their properties. If they like you, they will help you. If they don't like you, then you better let your money do the talking.
Don Doman is a published author, video producer, and corporate trainer. He owns the business training site Ideas and Training (http://www.ideasandtraining.com), which he says is the home of the no-hassle "free preview" for business training videos. Don and his wife Peg at one time owned 33 single family homes, which they purchased, remodeled, and used as income properties before selling them for profit. You can gain from their experiences at Simple Home Repair (http://www.simplehomerepair.com).
Countless assets owned by private entities are being seized by the government every single day. These assets range from cars to boats and furniture to homes.
Among these things, nothing has more value than government seized houses. Almost all the other items depreciate in value; unlike government seized houses which actually increase in market price over a period of time. It is therefore a good idea to include government seized houses in one's options in buying a home.
Buying government seized houses is advisable not only to people who want to acquire a home, but to people who want to make good money out of reselling houses.
Here are some tips that can help you in finding your ideal home among the numerous government seized houses out there.
1. Consult The Experts
Always consult with an accredited licensed real estate broker when you are planning to buy from the many government seized houses. While you certainly have to incur commission expenses if you make use of their expertise, the good thing is you will have a worry free purchasing transaction.
Besides, the total acquisition cost of government seized houses including the broker's commission is still not that huge when compared to buying a new house.
2. Seeing Is Believing
Check out the government seized houses that are on your list. Remember that government seized houses are sold at bargain-based prices because the government does not normally repair or renovate them before being floated in the market.
The government has no disclosure policy as to the condition of the houses. And so the structural and aesthetic order of the house could be found wanting. So beware!
3. Learn The Ropes
While looking at government seized houses is a good way to find the house of your dreams, it can also be a good source of income.
Many people have raked in a fortune by just buying government seized houses, spending a little on repairs and improvement, and finally, selling the newly renovated house for a hefty profit.
Largely, the government has to contend with rising deficits, hence, its need to immediately dispose of the things it has confiscated or seized. The logical strategy is for the government to drive down the prices particularly of government seized houses.
So if you take advantage of this concept, you can actually earn a lot by reselling sequestered properties you won at auctions.
Truly, a road to take when you are looking for your dream house is to scout for the latest auctions for government seized houses. Good luck on your house shopping!
For listings of government seized houses, please visit http://www.buy-cheap-houses.info/.
Everywhere homeowners are being the victims of fraud through home repair costs. A vast majority of these victims are seniors. The home building industry has joined forces with the police and seniors groups to help identify fraudulent practices and avoid dishonest contractors.
So how do you stop this type of illegal activity? Through consumer education and vigorous action by police and the courts. Unfortunately seniors are the most targeted because of their willingness to trust strangers who sound sincere. Long gone are the trusted "handshake" deals. The old adage still applies, that when it sounds too good to be true, it probably is.
There is a set pattern that most dishonest contractors seem to follow. And it usually goes this way.
A person claiming to represent a home repair contractor will suddenly appear at your door. Because they explain, they are working in the neighborhood and they noticed that your house is in need of repair. It could be anything from worn out shingles, old windows that need replacing, faulty bricks to driveway cracking. You then will be offered a "special discount" or a "seniors discount" because the contractor is in the area or has left over material from another job. But the catch is that in order to get this wonderful price, YOU HAVE TO ACT FAST!!
If you take the bait you will be asked to sign a contract, on the spot. Once signed you may also be asked to make a down payment towards the cost of the work. So what happens next? Well a number of things may happen.
Some people who hand over a substantial deposit find that the contractor "suddenly" disappears, never to be seen again. Or the work does get done but what you ended up paying is considerably higher than the normal market price. Or worse yet, he may start the job but not finish it. Costing you more money in the end to repair what he started.
Many police forces operate crime prevention programs aimed at helping seniors and other people to avoid getting scammed by this type of fraud.
So what type of contractors should you avoid? Well there are few warning signs to watch out for.
1. If they knock on your door offering you a special discount because they are in the neighborhood.
2. Promise you a discount if they can use your house to advertise their work. Everyone else in your neighborhood probably got the same offer.
3. Offer a lifetime warranty
4. Quote a price without seeing the job or do a free inspection of your home, then suggest you need major repairs.
5. Demand a large down payment in order to purchase supplies
6. Suggest that you do not need a written contract outlining what they will do or dissuade you from getting other estimates.`
7. If they object or cannot supply proof of insurance or Workplace Safety Certificates.
Yes it is very important to make sure that whoever you have working on your home that they are checked out carefully. Have a detailed signed contract that will ensure that the contractor is operating his business properly and have the contractor provide you with references.
Elvis_Foote http://www.theshoppboxebookreviews.com
Believe it or not, there may just be an upside to the slow housing market. There is a lot more bad news out there than good news, with record numbers of foreclosures, the largest inventory of homes for sale ever, and a mortgage industry that is increasingly stingy with loans. What could possibly be good when so many things are bad?
As only a pure optimists would, I have come up with a few things that may brighten up the dark void of the housing market. We know that new construction has slowed down considerably, and home prices are dropping due to the foreclosures. Can anyone make money in a market like this? Absolutely. The laws of investment tell us to buy low and sell high. If you have the opportunity and the means, now is the time to invest in property. Prices are at a low, inventory is high, and rates are at their lowest levels in years. If you can afford to sit on property for a little while, then the benefits in the future may far outweigh the cost.
This poses a problem for the middle class citizens though. Gas prices are at an all time high, the dollar is weakening, and expendable income is decreasing with rising fuel and food cost. If we can't invest in a new home, what options do we have?
With interest rates as low as they are, it may be a smart option to try to refinance your existing mortgage. If you have equity, you can try for a cash-out refinance, and take your homes equity and pay off consumer debt such as credit cards, loans, and other monthly payments. You can also use these funds to make additions or improvements on your home to increase its value, such as finishing a basement, adding tile, updating fixtures, or remodeling bathrooms and kitchens. These will prove to be valuable investments when the market turns around, and you may find that you get your money back in equity faster than you think.
The ultimate goal is to find creative ways to make the best of the situation. It's time to reverse the effects of spending more than we make. If the average consumer can use the low points of our economy to find ways to decrease debt, lower interest rates, or make good investments, then the long term results are more usable income for really stimulating the economy and investments in retirement accounts. The most important thing to keep in mind is economic discipline and planning ahead for the future.
Brought to you in part by Hill Street Builders (an Athens GA Construction Company) and Majestic Modifications (the complete car accessories solution, specializing in auto accessories, cold air intakes and performance upgrades).
Most people by now have heard of the benefits of using the professional services of a real estate agent, home inspector or mortgage broker in the real estate transaction process. However some buyers and sellers my not pay as much attention to choosing the real estate lawyer that will be representing them from the time they sign on the dotted line to the closing of the deal itself.
If you are a first time home buyer or seller, it is always a good idea to be safe with the paperwork and transaction. The safest way to make sure everything goes over smooth is to hire a real estate lawyer. They can handle a lot of the details for you and make sure that everything is taken care of properly. But do you know how to hire a real estate lawyer?
It is really a fairly simple process to hire a real estate lawyer. Before you do anything, it is always a good idea to talk with family, friends and neighbors for referrals. If you can get a good referral, you may be able to save yourself the hassle of searching for days for the right lawyer. But even after you get a referral, still make sure to research the lawyer before making any rash decisions.
The next place to look is with local real estate brokers. Real estate brokers are constantly associating with lawyers that deal with real estate. This is one of the many advantages you can get by hiring a real estate broker is the ability to find a quality lawyer. Therefore, talk to local brokers to see who they refer you to.
It is important that you understand you should keep all of your options open. The more referrals you can get the better. Then you can take the time to research and call all of the referrals you got to see who you think would be best for you.
Aside from getting referrals, you may also want to look in the yellow pages under Attorney: Real Estate. This will give you a list of local real estate lawyers you can call and talk with. It can be a bit tedious looking in the yellow pages and calling up random numbers, but it is worth the time to find the right lawyer.
The next step toward how to hire a real estate lawyer is to prepare a list of questions that pertain to your situation. Typically, simple questions lawyers will answer over the phone allowing you to get a general idea of whether or not it is the right lawyer for you.
The last step before hiring a real estate lawyer is to ask how much each charge per hour and request a general time frame of how long it will take to complete the tasks you require. This should include looking over contracts, handling disclosures and helping with the closing. After you have done all of this, choose the lawyer you feel will be best for your situation.
Mary Anne Murphy is a real estate expert with a firm knowledge about real estate listings Whitby and information about the local real estate market for both buyers and sellers.
The demand of Real Estate Bird Dog is always huge and you will always be able to make money whether it is good or bad times without giving up your day job! So, how to become a real estate bird dog?
Below are two important steps that you need to follow in order to become a successful real estate bird dog even if you don't have a college degree and never sell properties before.
1) Locate A Real Estate Investor Mentor
Before getting started as a real estate bird dog, you need to find a real estate investor mentor that you would like to work with in your investment interests. Locate a real estate investor who are interested to invest in your targeted area and who are willing to share with you his investment experience.
Having an experienced real estate investor as your mentor will shorten your learning curve and therefore enhance your success.
2) Learn How To General leads For Your Investors
You must learn how to generate leads for your investor in order to earn your finder's fee or your bird dog fee. There are actually various methods of finding real estate investment deals and it is advisable to get your real estate investment mentor to train you in finding deals. If you want to become a successful real estate bird dog, you must be persistent, be communicative when things get tough in particular during the process of finding profitable and suitable deals for your investors. Besides, being creative helps in finding property leads.
In conclusion, to become a real estate bird dog, you have to first locate a real estate mentor to train you in real estate investments and learn how to find profitable deals for your investors.
Wondering whether Real Estate Bird Dog can make money without giving up their day job? Read
more at http://www.property-profiler.com
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