-
Click to Connect with me on:
Real Estate Business Tips – The Big Picture to the Real Estate Investing Business
In this week’s edition of Real Estate Business Tips, I would like to share with you the Big Picture when determining your investment strategy.
Pretty Houses vs. Ugly Houses
1. The Pretty House Business:
- These are houses that you want to purchase by having the seller finance (be the bank) for you.
- You may also attempt to purchase the home “Subject To” where the seller stays on the mortgage, deeds you the house and you make their mortgage payment.
- You can also get an “option to purchase” contract on a property for a certain price and then look for a new buyer to purchase from you for more that what your option to purchase is for.
- Pretty houses come in all price ranges and should need less than $5,000 to be considered a pretty house. With these deals you won’t be doing major rehabs.
- Your primary exit strategy here is to get ownership or control of the property and then sell on a lease option or seller financing or cash out to an end user buyer quickly.
2. The Ugly House Business:
- These are houses that will likely require you to raise funds to purchase and fix up, and typically more than $5,000 in repair work.
- The uglier the house the better deal you should be able to get on it.
- Your focus here is to get a lot of equity when buying at a deep discount because the house is ugly.
- Your primary exit strategy here is to “flip” wholesale the property to another investor for a small profit or to manage the rehab yourself and sell to an end user buyer for a bigger payday.
Your overall plan should be to create income as quickly as possible to take care of today’s cash flow needs. Once your business is systemized enough to duplicate every month you should then focus on building wealth for the future.
If you found this information beneficial then let me know by posting your comments below!
To your Real Estate Investing Success,
Brian Evans
Real Estate News - Homes Prices: March 08 vs. March 09
Although prices rose from February to March, the national median existing-home price for all housing types was $175,200, down 12.4% from March 2008, the National Association of Realtors (NAR) reported Thursday.
Sales of distressed homes made up about half of all sales, and about two-thirds of those were foreclosures. Distressed homes also include short sales, in which properties are sold for less than the balance owed on the mortgage.
March sales fell 3% from February to a seasonally adjusted annual rate of 4.57 million properties. The February rate was revised downward to 4.71 million. Last month’s sales were 7% lower than in March 2008.
Sales are largely being driven by first-time home buyers, who now make up more than half of transactions. Meanwhile, sales of higher-priced homes have almost entirely stalled, in part because of the higher interest rates that accompany so-called jumbo mortgage loans.
Real Estate Investor Coach Response:
Get out there and buy, buy, buy!!!
To your Success,
Brian Evans
Private Money - Elevator Speech
Your 10 minute and 7 second audio is below.
If you haven’t yet listened to last Friday’s audio post called “Private Money Jumpstart” then be sure to go back and listen to that audio first so that way you can really benefit from this one.
Last week I talked about my 5 step jump start action plan to getting private money for your deals. Today I am going to talk about having and perfecting your “Elevator Speech.” If you truly want to acquire money from private lenders then this is all you need to say in order to determine if someone is interested or not…
“Do you have an IRA or other investment capital not getting you a high rate of return safely?
That’s it….and to show you that it really works, and that I not only teach this stuff, but I do this stuff as well, take a look at an email that my assistant sent out. In response to this one email I got a verbal commitment for $2M in private money. Not bad right?
Email Requesting Private Money for Real Estate Deals - Get more Business Documents
Also, when you’ve gotten someone to show interest, then ask them to fill out the below Private Lender Application Form for your file. Feel free to steal my copy and use it in your business.
Private Lender Application - Get more Business Documents
Fellow Real Estate Investors, if you enjoyed this audio today then it is really important to me that you please post your comments below and let me know.
To your Real Estate Investing Success,
Brian Evans
11 Reasons why most Real Estate Investors don’t reach their Full Potential
In this week’s edition of Real Estate Business Tips, I would like to share with you the 11 reasons why most real estate investors don’t reach their full potential.
(1) Fear of the unknown
(2) They do the wrong things and get lousy results
(3) Procrastination
(4) Can’t prioritize their time
(5) Don’t know what to do first or thereafter
(6) Still believe it takes money or credit
(7) Listen to dream stealers
(8) Too many past failures to make room for future successes
(9) Afraid that you won’t be able to sell the house
(10) I’ve already spent a lot of money on training but I’m not making any money
(11) Just can’t stay focused long enough to maintain forward progress
I know from personal experience that real estate investing is a tough business and it can seem like a tremendous battle in the very beginning. I also know from personal experience that it is easy to go flat sometimes.
So what now? Well, if you are a victim to any one of the above 11 reasons then just know that you are not alone and that you have found the right place to help you succeed.
Tell me what I can do to help you succeed by posting your comments below this article. I look forward to hearing from you.
To your Real Estate Investing Success,
Brian Evans
Foreclosures Still on the Rise
Real Estate News Overview:
Foreclosures in the US are continuing to rise overall with March posting record highs in foreclosure activity since figures began in 2005.
The latest figures from RealtyTrac show that filings, including default notices, auction sale notices and bank repossessions rose by 9% in the first quarter of 2009. The rate of increase is expected to continue as moratoriums come to an end.
In the last year there has been an increase of 24% in filings overall. California, Florida, Arizona, Nevada and Illinois accounted for 60% of the nation’s total foreclosure activity volume. On a national scale, one in every 159 US housing units received a foreclosure filing during the quarter. Nevada and California boasted the highest foreclosure filing rates. One in every 27 Nevada housing units and one in every 54 California housing units received a foreclosure filing in the quarter, according to the report.
There were plenty of states, however, with rates more than six times lower than the national rate. Vermont boasted the lowest rate of the quarter, with one in every 14,830 properties receiving a foreclosure filing. RealtyTrac designated Vermont one of 10 states with a rate of more than 1,000 homes for every one foreclosure filing.
Of the nine other states including Kentucky, Mississippi, Montana, Nebraska, New Mexico, North and South Dakota and Wyoming, South Dakota boasted the second lowest filing rate, with one foreclosure filing in every 3,721 homes in the quarter.
March alone posted record highs in foreclosure activity, with 341,180 properties receiving foreclosure filings, a 17% increase from February and 46% year-over-year increase from March 2008. These are the highest monthly and quarterly totals recorded since RealtyTrac began reporting in 2005.
One county as postponed all foreclosure hearings because of the demand. Cook County, Illinois, the second most populous county in the US which includes the city of Chicago, has a backlog of tens of thousands of foreclosure cases. New cases have been suspended until September with the only exception any case where a property has been verified as both vacant and abandoned.
Real Estate Investor Coach Response:
It is obviously still a great time to buy foreclosure properties using short sale techniques. If you are still wondering where to begin, and how you can get your share of this Foreclosure Gold Rush then order my complimentary CD and Report “Foreclosure Crisis Into Cash Fortunes” to learn more. http://www.foreclosuregoldrushreport.com
To your Real Estate Investing Success,
Brian Evans
Private Money Jumpstart
Access to Private Money Lenders can offer you a huge advantage in today’s real estate market. Within this audio I discuss with you a 5 step Jump Start Action Plan to getting private money for your deals.
1. Decide today that you will commit yourself to finding Private Lenders
2. Start making a list of people that you know who be a private lender
3. Create a 2 page “tickler” and get people to raise their hand
4. Create a Private Money Summary document
5. Have a commitment Form
If you enjoyed this audio today then please post your comments below and let me know.
To your Real Estate Investing Success,
Brian Evans
Appointment Time Savers
In this week’s edition of Real Estate Business Tips, I would like to discuss some appointment time savers that all Real Estate Investors should consider.
If you are wheeling and dealing out there then you know as well as I do that buyers and sellers don’t always keep the appointments that they make with you. Well first of all, you better get used to it and not take it personal because it comes with the business. Sometimes it can be a real pain in the neck trying to get people to stick to their commitments. And before I go any further, you should personally ask yourself….Am I guilty of not keeping my commitments? If so, then I highly recommend that you work to break this habit because it is bad business.
Anyway, since you can’t change the people that you do business with, you need to protect your time as much as possible. You’ve got places to go and people to see. And you can’t afford to hang around waiting for an appointment to show up. Here’s some tips on avoiding wasting time:
- Always confirm your appointments the morning of the appointment. Let people know you’re conscientious; they’ll likely follow suit.
- Don’t arrive too early. More than 10 minutes early is wasting time.
- Bring something educational to read or listen to. If you must wait, it cuts down the wasted time if you bring something else you can work on in the meantime.
- Set the appointment for an odd time. Instead of 8 or 8:30, try 8:15 or 8:45. People will most likely do their best to make it on the dot.
To your Real Estate Investing Success,
Brian Evans
Real Estate News – 15 Million Vacant Homes
Real Estate News Overview:
In this weeks edition of Real Estate News the top headline that all readers need to know is that 1 out of every 9 homes in the US is sitting vacant, according to the Census Bureau. With approximately 130 Million homes in the United States, approximately 15 Million are sitting vacant. – Ouch! Have we hit bottom yet? Perhaps yes, perhaps no. Only time will tell.
Real Estate Investor Coach Response:
The Bottom Line is this. Inventory is very high all over the country and holding costs for these properties are not getting cheaper. Now the majority of these homes are pre-foreclosures, foreclosures, and REO’s. Therefore, as a real estate investor it is your job to go out and buy, buy, buy. I know that many of you reading this are already buying properties, but I also know that many of you aren’t. So what are you waiting for? It is as simple as this… If you buy low and sell low you will be able to sleep a lot better at night. Don’t misunderstand what I just said. You have to sell for more than what you purchased for, but you don’t have to try and sell to that “perfect” buyer. Simply sell to anyone who will pay more than what you purchased for and quickly move on to the next deal. Become a Transaction Engineer! Once you truly understand this simple concept you’ll discover what an amazing business this real estate investing stuff really is!
To your Real Estate Investing Success,
Brian Evans
Short Sale Investing Tips - What is a Short Sale
From one Real Estate Investor to another, I believe it is very important to always fully understand the basics to what you are doing. With that said, this audio message will discusses the question…What is a short sale?
- Always remember that you are buying a property from the seller, not the lender.
- You are justifying your offer to the lender and trying to get them to take a discount.
- The lenders options are few, so it is your job to make them want to do business with you based on your offer.
- The process can take anywhere from 2-4 months on average, or longer depending on the situation.
- There are never any guarantees that the deal will actually go through, however the better you justify yourself and your offer, the better your chances!
Talk back to me friends and let me know your thoughts on this audio post. I want to know what you like, dislike and everything in between. I’m listening!
To your Real Estate Investing Success,
Brian Evans
Real Estate Business Tips - Understand Your Market
I believe as a Real Estate Investor that it is very important to understand your market. This doesn’t mean that you have to be an expert and know every little detail about your area but it does mean that you should have a strong understanding of it. The more you understand about the market where you invest, the more confident you’ll be in the investment decisions that you make. With a strong general knowledge you’ll be able to best determine whether you want to hold a property or flip a property based on the various area conditions in your market.
I would recommend devoting an hour out of your day once this week in order to develop a strong understanding the market you are investing in. Some of the statistics I would recommend you look at are:
o Population
o Area’s growth rate
o Area’s median income
o Areas education level
o What are the primer industries
o Is the market growing or shrinking
o Where are the high end properties
o Where are the low end properties
o Where are the jobs
o Where are the best shopping and entertainment centers
o Which areas are suffering from high turnover
o Are new transportation corridors in the offing
o What are the absorption rates for commercial and residential areas
o Where is the overall national economy on its gravitational cycle
o What effect is the current global market having on jobs, land and the overall economy
o How does the area compare, statistically to other areas of similar size
Market info is available from the US census bureau, chambers of commerce, real estate professionals, banks and lenders, tax rolls, industry publications, online websites like city-data.com etc.
Real Estate Investing is a phenominal business that requires a good understanding of your market so that you can make timely educated investing decisions.
If you found this article beneficial then post your comments below.
To your real estate investing success,
Brian Evans
-
-
Other Blog Stuff
