Quality buyers are vital to your real estate business. It’s very important that you put as much effort into building your buyers list that you can because basically the buyer is your BANK. The buyer is the key to your success in real estate. So how do you screen for a “quality buyer?” Here are a few great questions to screen your buyer. The more qualified your buyers list, the quicker you will close deals with the least amount of hassle so these questions are very important to ask:
1. Are you able to pay with Cash? In real estate Cash is KING. The more cash buyers you have on your buyers list, the more money you will make. This should be question number one. Of course many buyers will tell you they have a line of credit or that they will be borrowing the money but nothing comes close to the ease of working with a cash buyer.
2. Can you afford an earnest money deposit? Rather than just allowing any old buyer on your list you want to make sure they are willing to put their money where their mouth is. If they are willing to offer up some of their own money to secure a deal you can be confident they will help in any way they can to make sure things go smoothly. Losing deals due to a broken promise is not fun.
3. Do you work within specific profit margins? You don’t want a greedy buyer. As an investor your success is all about being able to profit on the deal and at the same time leave some for the buyer. If you have a good idea as to how much profit they are willing to let go of, you can safely negotiate and make sure you will walk away with a decent check for your time.
4. What kind of properties do you like to buy? If you deal in lower-end properties then having a buyers list of luxury home buyers seems pretty silly doesn’t it? If you know the types of houses your buyer prefers to work with this will further save you time and certainly close more deals. You can segment the list and really save yourself time and headache. These four questions alone will help you begin to have a list of hot prospects who will eagerly snatch up your deals when you have them available and give you the least amount of unforeseen issues.
Michael Kimble’s daily blog at Wholesale Real Estate blog has more daily tactics and news, as well as real estate investing videos. He also has 4 free marketing systems that you can download, at : Wholesale Real Estate tips.
Michael Kimble, December 31st 2009 |
Tags: Real Estate, Wholesale Real Estate, wholesale real estate investing, Wholesaling Real Estate
Posted in Real Estate
Fort Worth Wholesale Property
Wholesaling Revealed
In this Lesson you learn the following:
Definition of wholesaling
The history of wholesaling
Why it is legal
How to do it with no cash or credit.
Definition
Wholesaling is a term that has been around for years. It is most commonly used when goods are traded such as groceries and other products sold at retail outlets. There are 3 parts to this. The original owner or producer of the goods would sell to the wholesaler, the wholesaler would find retail outlets to sell goods to at wholesale prices and retail stores then charge retail prices to their customers.
History
It has only been until the last few years that this term has been associated with real estate. The way that it works in real estate is that a wholesaler will market to find properties at a substantial discount. They would then turn to their buyers (an investor list they have created) and sell them the property for more than they paid. The wholesaler could make a few thousand to several thousand dollars. It is like being a broker that makes more money on the transaction and does not need a license.
Legal
“Is this legal you say? This sounds like flipping.” Call it what you want to it is completely legal. The only way it becomes and has become illegal is if you falsify information. Never overstate value or pay someone to overstate value, lie or advise for a buyer to lie on a mortgage application or hide details that could affect the value of the property. As long as you disclose everything and stay legal you will be fine.
Wholesaling with no Cash or Credit
This is the fun part. How do you get paid, especially if you do not have any money or credit? That is the easy part. You can do this a few ways.
The easiest and cleanest way is to assign the contract. You get a property under contract and sell the contract to another investor. If the property is worth $50,000 in as is condition and you have it under contract for $40,000 then ask for a $10,000 fee. It is illegal to get compensation if you are not licensed in a transaction unless your name is on the contract or you have a certain interest in the property. If your name is on the contract then you have an interest and you can do what you want with your interest.
The second way to do this is to become a bird dog. That means that you locate properties for other investors but they put the contract together. You just get a fee for introducing the buyer and seller. You can only receive a fee from the Buyer and not the Seller. Receiving it from the Seller is practicing Real Estate Sales without a license.
The way that I typically wholesale properties is to do a double closing. With this technique you put a property under contract. You then find a buyer that will write a contract with you as the seller. You then buy the property and sell the property on the same day typically 30 days after you contract with the original seller. The difference between your purchase and your sale less any expenses is your profit. There are tax advantages to doing it this way that you should consult with your accountant.
There is one other way to wholesale properties that is a little more risky and takes some money. The only reason that I like this method is that you can take your time a little more and maximize the value of the property. With this technique you actually close on the property, clean it up, maybe spend a thousand or two and resell it. I have done some of my best deals that way. I am making $30,000 next week on a deal that all I did was cleanup, some minor foundation work and had layers of wallpaper taken of the walls and painted. By spending a couple thousand dollars I was able to get at least $10,000 more for the property than if I had not done the minor cleanup and repairs. More risk equals more reward. I used this technique to do my best wholesale deal of $39,000 in just a few days of cleanup.
This article was written by Tony Javier. Tony has a very successful Real Estate Investing business. You can get his FREE 90 Minute Telesminar on how to Wholesale Real Estate at
http://www.TotalRealEstateInvesting.com along with many other bonuses.
Dallas Wholesale Properties
Admin, September 27th 2009 |
Tags: Foreclosures, Real Estate, Real Estate Investing, Wholesaling Real Estate
Posted in Fort Worth Wholesale Property
Fort Worth Wholesale Property
Read a newspaper or watch the news, the economy looks pretty bleak doesn’t it? The Dow is bouncing around like an old basketball. The credit market is drying up. Make no mistake though, every time someone loses money someone else is making it. Since prices are down right now this might be the perfect time to invest in real estate.
So what exactly is real estate wholesaling? Real estate wholesaling is the process of buying and selling real estate very quickly. As a wholesaler, you’re not trying to buy property to fix and resell instead you’re trying to buy property that can be sold “as is” for a quick profit. The typical wholesale transaction lasts less than a month and requires under $100 from the investor.
As a wholesaler it’s your job to find properties that don’t need a lot of work, properties that can be quickly marketed to the right buyers. Your job than is not a contractor, not even a real estate agent, your job is simply aligning buyers with properties that you control. The ones that learn to do this in the quickest, most efficient manner are the ones who make the most money.
What are the steps for success? First, investing in real estate is a business and it needs to be treated as such. It doesn’t matter if you do it full time, or just a few hours per month. Treating it as a real business means continually learning the latest techniques; it also means using systems wherever possible to accelerate your success. Further, you always need to be searching for ways to automate existing processes. This constant refining of systems is what leads to productivity gains in even established businesses.
You will also want to take an accurate inventory of your strengths and weaknesses. You need to do what you are best at and what will bring you the money and outsource the rest. You can’t do it all, if you try you will not only fail, you’ll probably drop from exhaustion as well. Remember, Bill Gates long ago stopped writing computer code. In fact, if you pressed him, he would probably be unable to tell you how half of his software products work. Yet this lack of control certainly didn’t hinder his success
Once you control a property you need to get it out to as many prospective buyers as possible. One of the most efficient ways of doing this is to take advantage of the internet to find qualified leads. There are dozens of ways to market your property to the masses for little (and in many cases) no money. Leveraging the internet just makes good business sense and is much easier then most people think. Once again, this is an area that can be outsourced to an assistant.
In conclusion wholesaling real estate can be an extremely lucrative business. The trick is to run your business intelligently and to take advantage of the latest training and technology. Remember, fortunes are made in any economy. You just have to learn how.
Dallas Wholesale Properties
Admin, September 13th 2009 |
Tags: Real Estate, Wholesale Real Estate, Wholesaling Real Estate
Posted in Fort Worth Wholesale Property
Fort Worth Wholesale Property
Real Estate Wholesaling Overview What is a Property Locator? Determining After Repair Value (ARV) Real Estate Wholesaling Overview The Wholesale Real Estate business has been around as long as people have bought and sold real estate. In good times and in bad, there is always money to be made buying real estate at a discount and selling it for more than what it’s paid for. A true Real Estate Wholesaler purchases real estate as low as possible and resells it at a higher price to other investors. Typically, the investors that purchase from a wholesaler are in either the retail or rental business. This means that once the investor purchases the property from the wholesaler, they will make necessary improvements to the property and then either rent it out, or sell to those who wish to live in it. Most Wholesale Investment companies hire what’s known as a Property Locator to identify, locate, evaluate, and secure discounted real estate. Once the Property Locator secures a deal that meets the investors buying criteria, the investor quickly purchases and resells the property for more than what he/she paid. Commissions are generally paid in one of two ways. The Property Locator is paid a flat commission when the wholesale investor purchases the property, or the Property Locator gets paid a percentage of profit based on the resell of the property. Whether you’re a Property Locator or a Real Estate Wholesaler, there’s a lot of money to be made in the real estate investment industry. What Is A Property Locator? A Property Locator identifies, locates, evaluates, negotiates and secures discounted real estate for an investor to purchase. Property Locators use the following three factors to evaluate a piece of property. After Repair Value (ARV) Cost of Repairs Wholesale Property Price All properties are evaluated and offers made based on the above factors. A property is only a “good deal” if it can be bought for the “right price.” Successful property locators know how to arrive at the right price for a property by determining its After Repair Value, estimating the Cost of Repairs, and using these two figures in a simple formula to derive the Wholesale Property Price. Determining After Repair Value (ARV) The method commonly used by real estate agents and appraisers to determine the market value of a property is called Comparable Market Analysis, or CMA, the appraisal being more complicated and detailed. We use here the simpler method preferred by agents. Comparable Market Analysis is based on the assumption that houses in the same area of similar size, number of rooms and other features will have similar market values. When the comparable properties are all the same size, finding the ARV is easy. The more alike the comparable properties are the better. When the “comps” are not identical to those of the subject property, there is a method for determining the approximate After Repair Value based upon the average price per square foot of the comparables. To calculate the average price per square foot of your comparables, divide the selling price of each comparable property by its square footage to derive the price per square foot. Add the prices per square foot of all your comparables together and divide by six (the number of comparables) to get the average square footage of your comparables Although the average price per square foot method of estimating the ARV is not as accurate as a good appraisal, it is reliable enough for our purposes. Note: The approximate square footage can be calculated by measuring the length of the outside of the house by its width. Tax records can also be checked to find out the square footage, although they must be verified to be correct, since tax records do not always reflect remodeling and additions that have take place over the years. Do not count unheated spaces such as attics and porches. Best regards, Peter Vekselman P.S. To get started as a Property Locator with The Real Estate Arena, follow the link below:
Peter Vekselman has been involved in over 700 successful real estate deals in his 10 year career in real estate. He now teaches hundreds of individuals throughout the US on how to put real estate deals together www.CoachingByPeter .
Dallas Wholesale Properties
Admin, August 30th 2009 |
Tags: Fixer Uppers, Investment Real Estate, Real Estate, Realtor, Ugly Houses, Wholesaling Real Estate
Posted in Fort Worth Wholesale Property
Fort Worth Wholesale Property
Wholesaling Revealed
In this Lesson you learn the following:
Definition of wholesaling
The history of wholesaling
Why it is legal
How to do it with no cash or credit.
Definition
Wholesaling is a term that has been around for years. It is most commonly used when goods are traded such as groceries and other products sold at retail outlets. There are 3 parts to this. The original owner or producer of the goods would sell to the wholesaler, the wholesaler would find retail outlets to sell goods to at wholesale prices and retail stores then charge retail prices to their customers.
History
It has only been until the last few years that this term has been associated with real estate. The way that it works in real estate is that a wholesaler will market to find properties at a substantial discount. They would then turn to their buyers (an investor list they have created) and sell them the property for more than they paid. The wholesaler could make a few thousand to several thousand dollars. It is like being a broker that makes more money on the transaction and does not need a license.
Legal
“Is this legal you say? This sounds like flipping.” Call it what you want to it is completely legal. The only way it becomes and has become illegal is if you falsify information. Never overstate value or pay someone to overstate value, lie or advise for a buyer to lie on a mortgage application or hide details that could affect the value of the property. As long as you disclose everything and stay legal you will be fine.
Wholesaling with no Cash or Credit
This is the fun part. How do you get paid, especially if you do not have any money or credit? That is the easy part. You can do this a few ways.
The easiest and cleanest way is to assign the contract. You get a property under contract and sell the contract to another investor. If the property is worth $50,000 in as is condition and you have it under contract for $40,000 then ask for a $10,000 fee. It is illegal to get compensation if you are not licensed in a transaction unless your name is on the contract or you have a certain interest in the property. If your name is on the contract then you have an interest and you can do what you want with your interest.
The second way to do this is to become a bird dog. That means that you locate properties for other investors but they put the contract together. You just get a fee for introducing the buyer and seller. You can only receive a fee from the Buyer and not the Seller. Receiving it from the Seller is practicing Real Estate Sales without a license.
The way that I typically wholesale properties is to do a double closing. With this technique you put a property under contract. You then find a buyer that will write a contract with you as the seller. You then buy the property and sell the property on the same day typically 30 days after you contract with the original seller. The difference between your purchase and your sale less any expenses is your profit. There are tax advantages to doing it this way that you should consult with your accountant.
There is one other way to wholesale properties that is a little more risky and takes some money. The only reason that I like this method is that you can take your time a little more and maximize the value of the property. With this technique you actually close on the property, clean it up, maybe spend a thousand or two and resell it. I have done some of my best deals that way. I am making $30,000 next week on a deal that all I did was cleanup, some minor foundation work and had layers of wallpaper taken of the walls and painted. By spending a couple thousand dollars I was able to get at least $10,000 more for the property than if I had not done the minor cleanup and repairs. More risk equals more reward. I used this technique to do my best wholesale deal of $39,000 in just a few days of cleanup.
This article was written by Tony Javier. Tony has a very successful Real Estate Investing business. You can get his 90 Minute Telesminar on how to Wholesale Real Estate for free, go to
http://www.TotalRealEstateInvesting.com along with many other bonuses.
Dallas Wholesale Properties
Admin, August 26th 2009 |
Tags: Foreclosures, Invest, No Money Down, Real Estate, Real Estate Investing, Wholesaling Real Estate
Posted in Fort Worth Wholesale Property
