REAL ESTATE INVESTING

My Thoughts On Real Easte Investing

Investing in real estate is one of my favorite ways to make money. Just last month I got a $1,000 check just for making a few calls and sending out a few e-mails. Contrary to popular belief, this is an excellent time to invest. Banks are so desperate to recoup some of their bad loans that they will take a low ball offer. Please understand that I'm a Real Estate Investor and not a Real estate Agent. Being an investor is way better. Real Estate agents are not trained to create wealth in the Real Estate market. They are closer to being workers then entrepreneurs. After a few months of investing I spoke to Realtors who have been in the field for over 20 years and still didn't have the knowledge that I gained after a few investor courses.

Shortsales

Currently this is the best strategy to make money with Real Estate. Shortsales are when you offer the bank less then what is owed on the house and they accept it. A lot of people are oblivious to this technique. Banks are in the business of making money! If a home owner owes more then what the house is worth (upside down mortgage) and the resident is not making payments or facing foreclosure, then you are in a perfect position to make an offer. The bank would rather cut their losses and get some money then not get anything. If the homeowner is not paying them every month the bank is losing out. They rather take a low offer and get that bad loan off the books. Let's say the home is worth $200,000 and the home owner owes $220,000 because the market has dropped in that area. You as the investor can offer let's say $100,000 to buy that home. The bank might agree and then you have just created $100,000 worth of equity for yourself once you buy the home. That's how you get rich! Now you can fix the house up and resale it and make up to $100,000 minus renovation cost.

Wholesaling

Wholesaling is the best technique you can take advantage of starting off. This strategy is perfect if you have no capital. The only money you will need is money for advertising and putting up signs. Have you ever seen a sign posted up in the streets that say "WE BUY HOUSES CASH". Those most likely are wholesalers. Wholesaling is when you put a house under contract as if you were going to buy it and then sale that contract to a real buyer who can purchase the house in cash or very quickly. Basically you are the middle man between the buyer and seller. The seller is someone who is in distress and needs to sell their home ASAP because of foreclosure, death of a spouse, moving out of state, job loss etc. The seller must be HIGHLY MOTIVATED TO SELL! The seller also must be willing to sale the house at a significant discount. For example, if the house is worth $200,000 then they must sell at around $130,000 which is 35% below FMV. You must also factor in cost such as renovations. There must be equity in the deal or you walk away! Investors do not get emotionally attached to a deal. Either it will make you money or not. Simple as that. Once the motivated seller agrees to your offer then you turn around and contact your buyers who can purchase the home with cash. They will give you a finders fee of around $2,000 - $5,000 for negotiating with the seller and giving them the deal. The best part about wholesaling is you don't have to actually buy the home!