Prepare Upfront for a Profitable and Wise Real Estate Investment

Making a real estate investment involves research, negotiations, lots of paperwork and, most importantly, money. Whether you are looking to buy a home or commercial building, take the time to plan and prepare for your transaction so that you can maximize the value of your time and money. Following are some tips to help guide you toward executing a successful transaction.

1. Make it a priority to locate realtors or agents that are highly trustworthy. Always choose your own, never rely on a seller to give you their agent or realtor contacts. It is critical that your agent stands 100 percent behind you, acting as your advocate, and has no connection whatsoever to the seller. Some agents would rather help a seller that they know will refer them future business, which will come at your expense.

2. Have your property carefully inspected. This is another area where you want to hire an inspector that is motivated to help you, rather than the seller. Make sure you find your own inspector through reliable sources, and that they have no connection to the property’s current owner.

3. Keep tabs on local events and developments as they pertain to real estate. Some unlucky investors have purchased buildings or raw land, only to find out that their new purchase was then re-zoned, to be used as a park or something else unprofitable and unsellable. Additionally, look at trends in the going prices per square foot for commercial space or residential homes, depending upon your targeted investment. If prices have been trending strongly in one direction or the other, factor this into your negotiations and the price you offer.

4. Find people willing to help you out with a down payment. If you have the monthly income to afford a property purchase but not a lump sum to put down, consider asking family or close friends if they are interested in investing with you in a property. You can either re-pay the down payment over time with a mutually agreed-upon interest rate, or return the money with an agreed profit percentage once you sell the property.

5. Network with investors and lenders that have the means to help you fund your real estate purchase. If you choose to buy a commercial building, for example, your cash needs could easily exceed the amount any friends or family is willing to invest. In this case, you may be able to find a private investor that will provide capital or a lender that can provide creative financing that will allow you to get your investment deal accomplished.

As you probably know, buying investment property is not as simple as letting your agent do all the work for you, unless you do not care about the quality of the transaction and your ultimate profit potential. You need to take an active role in every decision during your real estate transaction, to make sure that each step goes according to your plan and not someone else’s. Keep the above tips in mind, and hopefully you will soon be well on your way to a very profitable real estate investment.

7 Tips To Help Real Estate Investors Use The Internet Effectively

Nowadays it seems as though there is too much information available for anyone in any particular field, at any given moment. Right now you can Google the words “real estate investing”, or “Chicago real estate investing”, and you will turn up millions of pages that vary in their effectiveness. How can an investor keep up with so much information? From navigating the internet, using websites and blogs, and social media, these tips will help many investors narrow their time online to be effective and efficient while they’re online.

1. Read local blogs when it comes to investing in real estate. When we want information, we find blogs from local Chicago agents, brokers, and wholesalers because it is a great way to get introduced to other professionals, learn the latest trends, and get a beat on the investing pulse of Chicago. Also, the Tribune and Sun-Times have many articles a week regarding Chicago and Chicagoland real estate. Since most newspapers are blogs, you can start reading and commenting on all the real estate articles that your paper posts, giving you much greater communication with others who are also involved in your area.

Extra TIP: To find blogs about real estate in Illinois or your own state, go to: real-estate-blogs(dot)com, pick our state and start looking at what blogs are listed. Only read the blogs who have posted most recently and are active.

2. Join the conversation online. Facebook is your key to getting in touch with people directly without really meeting. Do not join groups who have very generic names like, “Real estate investing”. Join groups with your city’s name in it. This narrows down the number of people in a group, but increases the quality per person within it. Sidenote: If your city does not have a group, create one! This will probably get you plugged in at a faster rate

3. Pick one real estate guru and stick with them! There are too many real estate guys who just want to get your email in order to sell you something. Many of these guys run in the same circles and do affiliate marketing for the same products. So if you sign up to receive one persons free ebook, they will sell you the same thing as the next. I suggest sticking with someone like Than Merrill from the Fortune Builders Group. He sells, but always offers great incentives and content. His company is still doing real estate deals on 2 sides of the country as well. If you are going to buy, buy from a credible company with great rapport like the FortuneBuilders Group.

4. Use Google Alerts to help you receive information regarding one real estate investing subject. Real Estate investing blogs can talk about financing, wholesaling, rehabbing, land lording, etc… In order to cut the clutter down, you can set up an alert so you only get notifications regarding whatever keywords you pick. Setting up the alerts is easy, and it can do all the local research for you. It is not complicated to set it up either.

5. FREE property sites are not reliable. Using sites like Zillow(dot)com and Trulia(dot)com to find comparables works when you are starting out, but it’s not enough. You must find a way to get MLS access, Whether you become an agent or just have an agent work with you does not matter, but you cannot get away with free all the time. The best FREE source in Chicago, for example, is Redfin(dot)com. However, it still falls short. MUST KNOW: Zillow is a bust. Never trust numbers from there.

6. If you are setting up a blog/website, do not worry about SEO right away. SEO is a very complicated and long subject that wont give you an immediate ROI. We suggest just setting up a blog and start writing about your niche and what you do. Content will drive people to your site over time. As an investor your priority should be getting deals done. If you are a seasoned pro, pay a specialist to set your site up! Your site should have up to date content and be posting frequently. However, if you do not have properties yet, don’t worry! Deals make money, not rookie blogs.

7. Twitter: Do you tweet? You should, but its OK if you don’t. I cannot say much about twitter since we don’t really focus on it much, other than just to have it and link back to your site. I would not get too spread out unless I can manage all my accounts and have actual value to offer to others. Investors, agents, and brokers have ruined twitter for business purposes because they all got spammy, In our opinion, having Facebook works just fine.

5 Vital Mistakes and Tips For Real Estate Investors

Real estate investing is a very exciting business. The success stories can get beginners so pumped that they would do just about anything to do a deal. Unfortunately anything is often a slew of mistakes which end with brutal results. Here are some vital mistakes to avoid and tips for real estate investors.

1. Buy Right – Stick to your criteria. Sending 10 offers is not enough. It is a numbers game and often takes 100-500 offers just to land one deal. You should be doing only the best deals. It is recommended to implement a solid plan to get a ton of prospects into your pipeline, filter out the duds and write a ton of offers of the worthy prospects.

2. Focus on one strategy – Become a master in one strategy and focus 100% of your time in this strategy. Let everyone else try 5 or more strategies and put 20% of the needed focus to become successful in a strategy.

3. Have multiple exits – One exit strategy is not enough. Always have backup plans and multiple exit strategies. It is recommended to never go over 70% LTV and also have positive cash flow. Having both significantly mitigates risk and you have many exits that will result in a strong return.

4. Have good teams and systems – Don’t try to do everything yourself. The most successful real estate investors are entrepreneurs and delegate as much as they can. Create win-win situations with your team members, create automated systems and delegate. You will then have time to do the things that will significantly improve your profits which are the entrepreneurial tasks.

5. Make informed business decisions – 95% of people are followers. They believe all media and everything they hear. Is this information accurate? Not always, so be careful and do you due diligence. You wake up, put on pants and make decisions every day. Make sure to gather accurate information, justify sources and their information and you will be able mitigate a lot of risk and avoid unpleasant surprises by making informed business decisions.

Things You Need to Know About Investing in Real Estate

Investing in real estate can be a very lucrative business. That is, if you know what you are doing. If you are looking for another investment to add to your portfolio, you might want to consider taking a good look at all these facts before you start putting money on real estate.

– You can choose to start with a specific segment in the real estate market. Some of these are starter homes, foreclosed houses or properties, and condominiums or even small apartment buildings.

– Real estate is an awesome business, but it is also very risky. The prices of the properties and land may differ with the economic times. Market trends can either go up or down depending on the how the economy is doing. However, real estate can also prove to be at a vantage point in terms of long-term investments. You can purchase properties while the prices are down and re-sell them as the prices go up again. That way, it has not only paid for itself, but it also brought in more profit than you can ever imagine.

– Economy is one of the key players in the real estate venture. If you are serious in investing in real estate, then you might want to expect market fluctuations. You have to be prepared of this scenario and make sure you have a landing nest in case you are not able to recover your investments right away.

– You can also consider buying foreclosed properties because they are sold at much lower costs compared to new properties. The idea here is to purchase when the prices are down and wait for the economic upturn when prices will go up again before renting. You would also make a lot of money if you make some home improvements on the property that you bought. This would add to the actual value of the foreclosed real estate property. It is important that you know how to do bid in public auctions and do your research before going there or before making a purchase.

– If you have a history of being emotionally or sentimentally attached to your properties, then perhaps the real estate business is not for you. If you intend to make this into your full-time business, you always have to bear in mind that any property you purchase now may eventually end up in other people’s capable hands. You will always buy a property with the intention of selling it in the future. That is why growing attached or being sentimental about your property is not part of the deal.

It would be best if you know more about the tricks of the trade and how other investors in this industry have succeeded. Read books and watch videos about this. Attend seminars and make sure you expose yourself to people who can teach you success tips to make your investments worthwhile. It is also important that you know about the laws of a particular states where you would like your investments to be in so that you can abide by them and avoid unnecessary hassles.

Truly, investing in real estate can be very challenging. But if you do things the right way, it can also prove to be a very lucrative investment.