Real Estate Investing Book

10 Tips to Start Out in Real Estate By Ryan M Moeller

2010-07-08T15:18:00.000-07:00

Starting out in real estate can be very difficult for beginners. There are a lot of unknowns and comfort barriers that must be overcome not to mention the time it takes. Here are 10 tips to jump start your real estate investing career.

1. Learn - Read every book, article and forum you can. Some boot camps, seminars, webinars, etc are very informative but can be costly. Also become active in online forums.

2. Join REI Clubs and Groups - Join your local REI Club, networking groups and online groups. Network like crazy and make contacts with experienced people who Do.

3. Find a Mentor - Always always always have a mentor and other experts in the area look over your deals. They will help you avoid mistakes and if you found a home run deal, you will build a lot of credibility.

4. Pick a strategy to master - Pick one strategy and master it, do not spread yourself too thin on 5-10 different strategies and never put in the effort it takes to find the first great deal using one strategy.

5. Partner - It is never a bad idea to partner with an expert who has experience. You can avoid costly mistakes and learn a ton which you can utilize in future deals.

6. Build Systems and a Team - Find quality experts, align your goals, build efficient and effective systems and duplicate over and over.

7. Slow Down - Greed often gets the best of people and they go too fast and get in over their head. Pace yourself and do not take unnecessary risks.

8. Build reserves - Always keep some reserves on hand for each deal in case of surprises.

9. Generate Private Money Investors - Buying with cash and quick has so many advantages, Private investors allow you to be extremely creative and fund great deals that conventional financing will not allow.

10. Analyze -Critique-Improve - Look at what you know, your strategy, partners, systems, team, financing and reserves. Analyze, critique and come up with solutions to improve every aspect of your business. Continuous Improvement.

Real Return Real Estate™ for years has bought property at extreme discounts, sells and rents with tremendous cash flow. We also provide FREE tips, articles, guides and Educational Webinars. Visit our site http://www.realreturnrealestate.com for all the helpful resources.

http://www.realreturnrealestate.com

Real Estate Investing Book- Hard Money

2010-06-27T15:27:00.000-07:00

Hard money can be a great way to invest in real estate if done properly. In real estate investing hard money lenders can be your best friend. One example of how hard money can work to your advantage for real estate investing is that they look at the value of the deal, not your credit score, or how much you can put down. If you find a house that is worth $200,000 and can purchase it for $130,000 most hard money lenders will loan you up to 70% of what the property is worth. This would leave you $10,000 for repairs, fixing up, or cash in your pocket. You will have to pay points for the loan,usually 1-5, and you can negotiate to defer the points to the end of the loan. A point is one percent of the total loan. So in this example you can borrow $140,000 for a $200,000 house. If your flipping the house for $200,000 you will make $70,000 minus your points, attorney fees, and your rehab costs.

How to Make Money in Real Estate

2010-06-07T18:21:00.000-07:00

Can you imagine a time when you could make a profit from $30,000 to $50,000 or even more for just a few hours of your time? You can do this when you learn all there is to know about flipping Real Estate. Real Estate investing is still one of the best ways to make money and you can do this even if you have never been a Real Estate agent. With these easy guidelines to follow you can become another big time Real Estate investor. It is possible to locate a property, buy it and sell it to someone else within minutes of the original purchase even without doing any rehabbing. Sounds impossible, doesn't it. By going to websites you can find all the information you need to get yourself started. Of course you first have to make an offer on the property, keeping in mind your customer and the rehabber. Before doing this you should be aware of the market value of the property and then factor in things such as closing costs, money for repairs and so on.

You can find many of these rehab properties by searching the newspapers and calling on FSBO's, or for sale by owner. Once you make the offer and it is accepted, give them an earnest money deposit then you should contact the title company of your choice to begin the title search etc. It is very important to qualify the buyer before stepping into the above processes. You want to be sure they have the money available and or a line of credit and ask for proof of this.

Flipping homes is a simple way to kick start your career and move into a higher tax bracket. With little or no cash investment to rehab a property, you can easily make a profit. Remember the old adage, buyer beware. This holds true even in Real Estate. Take control of the situation in a professional manner and line up the qualified persons you need to settle and complete the sale. While all this may sound time consuming, if you have all your people lined up properly, all will go smoothly and you can pick up your FAT fee check.

AC Ramos is a Real Estate expert in Houston, Texas with Citiscape Home Buyers. http://www.CitiscapeRealEstate.com

Article Source: http://EzineArticles.com/?expert=AC_Ramos

What is the most easiest way to get into real estate investing?

2010-05-27T10:58:00.000-07:00

What are some ways to begin in real estate investing with little or no money? Can you start in real estate investing with no money?

Best Answer - Chosen by Asker
Join a real estate investing club if there is one in your area. The education is priceless.

Find a wholesaler...these are mostly the guys that have the "I Buy Houses" ads on the street corners and newspapers.

Find a lender who will lend based on Appraised Value rather than on Purchase price. This is not easy to do, but it is possible. You can also work with Hard Money Lenders...steep rates, but often worth it.

My first deal was a house from a wholesaler. It appraised for $51,500 and he was selling it for $26,200. (He got it from a bank for $10,000 I later found out).

I had a hard money lender loan me all the money and then refinanced one week later (which is not easy but can be done) and cashed out at 80%. The hard money lender arranged everything.

In short, I bought a house for $32,000 ($26,200 plus fees and closing costs) with hard money. Refinanced at $42,000. Left closing with approx. $10,000 (42k-32k) and still had almost $10,000 in equity. Not one dime of my own money.

Dean Graziosi and His New Book - Profit From Real Estate Right Now

2010-04-19T10:26:00.000-07:00

Who is Dean Graziosi you may ask, well I would like to tell you that although Dean is a multi-millionaire today, he was not always that well off. Dean grew up poor as a child. He lived with his single mother who had to work her tail off at two different jobs to earn a mere $90 a week just to make ends meet. Dean's childhood latter proved to be of great motivation for him early on in his life. As a teenager, Dean made his first real estate investment (with no money down I might add) by purchasing and fixing up a run down apartment building in his home town. This story of Dean's first investment can be found in his new book "Profit From Real Estate Right Now."

With today's poor economy and slumping real estate market in mind Dean Graziosi wrote his new book 'Profit From Real Estate Right Now'. A lot of people are under the impression that this would be a bad time to invest in the market. Dean wants to make it very clear to everyone that even in a bad economy and a down market there can be tons of money to be made. When you read this book you can truly see why Dean wrote this book with these hard times in mind.

Anyone who has an interest in investing in the market or possibly just purchasing their first home might want to consider buying Dean Graziosi's new book 'Profit From Real Estate Right Now'. I purchased this hard cover book and it's packed full of valuable information and powerful strategies on how to invest in today's market. Here are some of the informative topics that I found most impressive:

Cash Big Checks By Using Automation
How to Pick Your Own Path for a Quick Start
Profit in a Down Real Estate Market Today
How to Identify Killer Deals
Getting a Ton of Very Motivated Buyers To Find You
Finding That Perfect Real Estate Agent = Huge Profits
Tips On How To Sell Your House In Seven Days

Dean Graziosi can often be found hosting those late night infomercials on television promoting his new book which he claims can teach a person "How to Make the Great Deals Come To You". He also has a section on how to learn to "Find Profitable Deals, The Old Fashioned Way" plus how to "Get Your Deal Finalized And Make Some Money"

Although I only purchased his book because I have an interest in the market and also wanted to do this review on Dean, he also has some other programs available if someone is interested in pursuing this as an investment opportunity. For mere price tag of only $35.95 he has a program called "Think A Little Different In Real Estate", and also for $197.00 you can get the "Automated Foreclosure Finder" program. Dean loves Foreclosures.

In summary I would like to say that Dean Graziosi is not like some of the other so called gurus that are just out to scam everyone. In all my research on Dean I have not found any bad press on him what so ever. In my eyes he's the real deal and prides himself in sharing his deepest secrets on how to make money in real estate. I highly recommend Deans new book to those looking to find expert advice on investing in today's down market. Excellent job Dean!

Dan Oliver would like to offer those of you who would like to purchase Dean's new book- Profit From Real Estate Now, for the same price as Dean offers it for on his infomercials. If you choose to purchase this book you will also get his previous book- Be A Real Estate Millionaire for free. To cash in on this great offer see the link near the bottom of my business review website at http://internationalbizreviews.com/Dean_Graziosi.html

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Article Source: http://EzineArticles.com/?expert=Dan_Oliver

How to get start in Real Estate Investing?

2010-04-14T10:18:00.000-07:00

I have been doing research about real estate investing and have a few questions about the process. Is the first thing I need a broker, banker, or a seller? Do I need to see mortgage company or can I just take a loan out form the bank? What kind of down payment do you need? Does anyone have any information about tax break, cuts, or property taxes regarding real estate. Any additional information would be helpful, I'm still in a learning phase.

Thank You

2 months ago

Best Answer - Chosen by Voters

First thing you need is a plan. You ask a lot of good questions, and as Eddie G said, a real estate book may be your best bet. Once you are done with that, meet with an financial planner and an accountant. This way you have a better idea of what is your strategy and what direction you want to go in.

Are you looking at long term residual income? If so are you looking at Commercial, residential, land opportunities, easement options? Do you want to flip properties for short term capital growth? Do you want to start off on your own home and growth from there? Know the tax advantages of all as well as exit strategies.

You can go to your own bank for a loan, but you probably want to work with a lender that knows what they are doing and can help direct you. You also want to make sure you get the best rate/service for the price. Banks have less options then mortgage lenders.

Down payment depends on what you buy: Land and commercial can be difficult to impossible to get now: the were requiring about 30-50% down. Residential properties that are rental require a larger % down then residential that is owner occupied. Owner occupied can be al low as 3.5% for FHA loans (be prepared for closing costs so up to 5%), or for conventional loans where you don't have to pay for PMI (private mortgage insurance) it is usally 20% but can be 25% is you live in an area that is considered trending down.

As you can see, from the few questions I answered, you have a lot of options. Read some more and make your plan.

Good luck!

Source(s):

Investor and realtor

2 months ago

Real Estate Now, Can You Make Money in Today's Market?

2010-04-14T09:55:00.000-07:00

I get this question often. Understand I have been investing full time in real estate for more than a decade. I've seen up markets and down markets. And, the question is consistent, "Can you make money in this market?"
The answer is always, yes. In today's market there is loads of inventory. There are however a limited number of loan programs, and the ones that are available have stricter guidelines and qualifications. BUT people are still buying.
How Do You Profit?
There are plenty of strategies (or recipes as I call them) to win. One that you can use is "buying, fixing, and re-selling". Remember this is but one-way to win. The first thing to realize about real estate is there is always a current value. Unless we are speculating, the current value is the value. NOT what the home was worth last year, or what it might be worth next year.
If you are buying at a discount on the current value then you have potential to win, period. It's like gas prices; we remember what it once cost. But the reality is we buy gas at today's price. You must treat real estate investment the same way. What is this house worth today?
Using a local agent to establish value - and even an appraiser - will help you understand the values in your investment market, the average time on market, and the median house price.

AVERAGE TIME ON MARKET will tell you how long it takes to sell a house in your market, and even better, for the neighborhood of the house you are buying.
MEDIAN HOUSE PRICE tells you what the average price is for a house in your area. You want to know this number because if you buy a house lower than or near this median you will have a higher number of potential buyers.

In other words, take the statistics of wealth in general; there are many more people with ordinary jobs than there are rich and carefree. You want to follow this statistic. Don't worry we aren't going to get crazy about analytics here, just know we want average houses, not mansions.
Okay so where are we? You are buying average houses, under the current market value. What's next? Here is your punch list:

MONEY - How will you pay for this house?
FIX IT - Who will be doing the rehab work?
SELLING - Who will sell it?
DISCOUNT - How much under value?

Notice I didn't number this list. That was intentional. All the factors here tell you what you can pay for a house...
DISCOUNT - How Much Under Value?
On average we are paying no more than 75 cents for a house. What that means is if the house will sell for $100,000 we will pay no more than $75,000 AND that number must include any repairs. If the house requires $15,000 in work then we can pay no more than $60,000 for the purchase.
Understand, we have been doing this for many years. As a rookie you can quickly eat away a 25% profit. Let's look at an example transaction:
You pay 60 cents for a house, where you budget $15k to fix it. You will have an additional 6% or ($6,000) in agents fees, another 2% in closing costs, and this does not include any holding costs; utilities, cost of money, etc.
Here it is more clearly (same end value of $100,000):
- 60% buy
- 15% in repairs
- 6% in commissions
- 2% holding costs
- 83% total
- 17% potential profit
MONEY - How Will You Pay for This House?
There are many ways to pay. You can get a bank loan on the property, but, in many cases rehabs need more work and the lending guidelines will not allow for rundown houses. You can get a loan on your current house, if you have equity. You can borrow private/hard money. And, you can likely do a combination of several. Lastly, you can use your own cash or partner with someone with cash.
Regardless, there is a cost of money. That cost is the interest rate and any loan fees, plus time. For example, a private lender will charge points - one point, equals 1%. On a loan for $75,000 one point is $750 or for a two point loan - $1500. In most cases this will be added to your loan. Meaning you will pay it when you sell the house.
The common lingo for investors and private money is "two and twelve" which means that the loan costs 2 points and 12% interest. Note: you may pay more, even six and eighteen. Shop around. Assuming you paid 2 and 12 your points are $1500 and you monthly interest is $765 monthly.
If you hold a house for a number of months time is ticking dollars:
- month 1 - $765
- month 2 - $1,530
- month 3 - $2,295
- month 4 - $3,060
- month 5 - $3,825
Which means that over five months you will pay $3,825 plus $1500 (the points) for a total cost of money of $5,325. IF you held your house for 8 months you'd spend $6,120 plus $1500 ($7,620).
Remember you had 17% potential profit ($17,000). The other variable here is unforeseen costs of repair. I just bought a house that had an overage of $2000 for roof repairs - hidden under snow. Which brings us back around to your repair work.
FIX IT - Who Will Be Doing the Rehab Work?
People come and go. Over the years I've had several dream teams. Your contractor is a part of your team, as is your agent, and any other person you find yourself working with again and again. Once you have all the players your job will get easier. Our focus now is on your contractor.
All you have to do is turn on the TV for a primer on how to flip houses. And you see all the clichés; yelling at contractors, contractors who don't do good work, and contractor who charge too much, etc. There are however, a select few who get it.
You want someone fixing your houses that wants to grow with you - I assume you plan on buying more than one investment. You want a team player that not only understands how to fix houses, has a team attitude, and enough of a foundation he can eat some of his mistakes. Why? Because no matter how hard you BOTH try there will be houses like mine with a $2000 roof overage. I made the contractor share the cost. It was an item he over looked.
Your contractor is also there to look at houses before you buy, give you a cost for repair, then to DO the repairs quickly and have the home shining for you tell sell it - in the shortest time possible, tick-tock.
SELLING - Who Will Sell It?
Choosing an agent to work with is much like finding a contractor. There are people that specialize. You want an agent that works with investors when you are buying. But, you also want an agent capable of selling your house when it's ready to go back on the market!
RECAP

MONEY, how will you pay for this house? - You can use private/hard money lenders, bank loans, or cash. Yours or a partners.
FIX IT, who will be doing the rehab work? - Find your team. Shop around. Ask for referrals, there ARE good contractors with great prices.
SELLING, who will sell it? - The agent that helps you buy can also help you sell. Again, shop for an agent who works with investors.
DISCOUNT, how much under value? - Your discount may change based on your cost of money. I would never pay more than 75 cents with repairs.

In closing, this article was not meant to give you every answer about buying real estate for profit, but rather a glimpse at how you can win today. Again this is but one recipe for buying and selling houses. You must find the one that works for you. "Can you make money in this market?" You bet!

About the Author: Robert Wayne is a philanthropist, investor, urban mystic and educator. He has spent the last decade investing in real estate and teaching financial literacy. Robert's musings can be found at his digital highrise on the web http://DigitalHighrise.net.

Article Source: http://EzineArticles.com/?expert=Robert_D_Wayne

Real Estate Investing Book

2010-04-13T16:33:00.000-07:00