The best way to build a decent sized portfolio in the world of realty is both by investing in tax liens and buying up properties through tax sales.
It is important to research each state that you are interested in acquiring property. Some states have monthly auction/sales and some states only a few times per year. Each state depending on the laws favors a different kind of investor. Of the three states presented, Georgia is great for property investors, Illinois is fantastic for redemption investors, and Florida is unique in its own ways as it is the most convoluted of them all. Tax Deed Applications need to be filed on any unredeemed tax liens within a buyers portfolio. The highest bidder is the one that wins the property during the auction conducted by the tax collector.
Nothing is more important than conduct at these public auctions, seeing as how people could go to jail just for telling someone at one of these auctions to buy the current auction and let them buy the next. And good conduct would prevent fist fights and jail time for bid rigging, as has happened in the past. And even beyond conduct, the most important things a buyer can do is leave their emotions at the door, before they end up overbidding and spending more than they wanted to.
Real estate investors don’t always have to fear the tax man. Build your holdings with tax sales.
Key Points:
1. The real estate tax lien industry is competitive but profitable.
2. Sales are done differently by state due to differences in legislation
3 . Florida is unique in that it conducts online sales for both tax lien sales and tax deed sales.
Sales are conducted differently depending on state due to legislation surrounding sales.
Real estate investors don’t always have to fear the tax man. Build your holdings with tax sales.
While for many the allure of real estate investing is passive income, it’s hard to make money without effort. A property portfolio will reward attention and work spent monitoring, and building, it up toward increasing value. Tax sales are an excellent avenue for the savvy investor willing to research and bid on the right holdings to secure that increasing value.
The Basics Of Building A Wholesale Buyers List
Wholesale real estate is the art of matching up of investors with properties. If the right investor is matched with the right property, a sale is made and a commission or profit collected. The faster you can make these matches, the more profitable you will be. Having a reliable list of active investors and entrepreneurs is your ace in the hole when a new property comes onto the market.
Creating a buyers list is more like gardening than making out a shopping list. It is more than a list of names, telephone numbers and email addresses of potential investors or buyers, it is a never ending process of curation: finding investors, rating them, tracking their needs, wants, resources and market activities. It is tracking ongoing and future projects, buying criteria, funding types and budgets.
The most common methods used to build a reliable buyers list include: networking at professional events; email marketing; direct mailing; exchanging business cards; content marketing; maintain a professional website; social media marketing; bandit sign marketing; cold-calling landlords with “For Rent” signs out; marketing on Craigslist; networking with real estate agents.
Regardless of what methods you use, what is important is to begin building a reliable list of investors and buyers that you can turn to when you acquire a property and close a deal on that property as quickly as possible. A mature, detailed and well maintained buyers list is the ticket to success.
Whatever you’re selling, who’s buying is key. When it’s real estate, having a Buyer’s List is key.
Key Points:
1 A buyers list is a conglomeration of the people who are interested in buying and making deals with you.
2 It is important to have these up to date lists to be an effective realtor.
3 There are a variety of great ways to build these lists.
Developing a reliable list of contacts will require some effort, though it will be well worth it in the end.
The fundamental requirement of successfully selling anything is to get a higher price than it cost you. When it’s the kind of money property costs, that’s especially critical. A Buyer’s List is data that can not only save you time, but let you cash in for maximum profit. Finding below market cost property can be tough, but when you can then flip the right location to a hungry buyer for pure profit, it’s worth it.
See the original at: https://www.fortunebuilders.com/wholesale-buyers-list/
In order to be a good landlord you must be really good with people. You must be able to present a good personality when meeting with perspective tenants. A landlord must be kind but also tough when needed. A good landlord will be able to handle multiple things in a hectic work environment. You must have a really good team around to be able to be successful. You must hire really great people to help with the property. The property will need to be taken care of and the landlord must assure that all the items in the properties are running as they should be. A landlord must be able to get the community involved and do things to learn more about their current tenants. A landlord can hold community meetings or even fun meet and greet events. It will help the landlord to become a welcome sight to the resident. A landlord will have many different roles each day and must be ready for whatever happens. Problems will arise with tenants and they will want to feel that they are getting their money’s worth especially. They will expect their landlord to work quick to solve any problems that may occur.
Want to make some extra cash? Learn how to be a good landlord!
Key Points:
1. Character traits of a good landlord include: Comm.unicative, Respectful, Reliable, Organized, Professional and Knowledgeable
2. A landlord’s goal is to get the highest possible rent but also keep the property rented without down time.
3. Organization skills are the key to becoming a good landlord because accurate and detailed property records are critical.
Landlords oversee day to day operations, collect rent, and keep the property running smoothly.
Want to make some extra cash? Learn how to be a good landlord!
If you’ve been interested in passive income options, you may have thought about renting out property and becoming a landlord! I loved this article that answered a lot of questions I had about getting started on a good foot! Do you have any of the traits they listed that would make you successful in this field?
See the original at: https://www.fortunebuilders.com/landlord-tips/
MLS Comps: A Beginner's Guide
The Multiple Listing Service is an information tool real estate agents use to track properties. One of the primary factors in setting price expectations for any property that goes up for sale is what's known as price comps. Using information about surrounding properties, such as from MLS, a property's pricing can be set by how it compares to those nearby locations. Comps help real estate agents begin negotiations or explain the value of a piece of property. Most comps are referenced by not just location, but also time. For example, if a similar property comp recently sold for a certain amount, that carries more weight than for a comp that sold years ago, or has just been sitting as a held property that isn't up for sale. How long a property goes on the market without selling, or even attracting offers, also factors into how comp valuation will be calculated. These data points are key in maintaining realistic and understandable valuation for the real estate market. Every real estate agent, or investor, needs to have a working knowledge of not just what comps are, but also how to pull them out of the MLS data. Without a clear understanding of comps, and access to the numbers, whether you're buying or selling it can leave you underwater no matter how hard you're trying to keep your profit margin high and dry.
Key Points:
1. Using MLS Comps can be a very effective tool to set the price and determine the value of a home.
2. Starting criteria to find comparable listings look for: size, condition, features, age, properties that sold in the last 6 months and in a one-mile radius of the property you are targeting.
3 . Comparing similarites and differences of other homes that have recently sold in the same area is the most effective way to determine a price and value of a property
Because ever-changing property values are relative to a local market, and thus difficult to determine, pulling MLS comps has become a respected method of setting list prices.
See the original at: https://www.fortunebuilders.com/mls-comps/
Don’t get caught unawares by how the market moves. Brush up on real estate comps first.
Having an accurate picture of the true value of a property is key to knowing when to buy or sell, and how to maximize the profit from any transaction. Real estate comps help you know that true value, by looking at other properties in the area which share similarities with it. The Multiple Listing Service can make pulling comps easy, as long as you have access and know the procedure. If you want to make smart investment decisions, stay informed on the value of your portfolio.
One thing that’s obvious when it comes to real estate is it takes money. Property, and the buildings upon them, don’t come cheap. To get into the real estate game, you’ve got to have investment capital. Since most of us aren’t rich, many real estate entrepreneurs focus just as much, sometimes more, on assembling investors and investment capital as they do on the right deals and locations to use that capital on.
The truth of investment is there is no shortage of people who have more capital than they do interest in doing the nuts and bolts work of making an investment work themselves. Venture capitalists, large or small, big business or individual with equity, are entities looking for someone else to provide a return on their investments. For people willing to work, those who have the talent and intelligence and drive to stay plugged in and make a real estate project into a success, venture capital can let you turn your sweat equity into money in your bank account. Aside from actual venture capital firms, you can network and make deals backed by private investors, or even general lenders who agree to sign on the dotted line you offer them. There are also various equity account holders, such as managers of pension and retirement accounts, who might be willing to invest in the right real estate deal. And for those on either side of a deal looking for a quick turn around, real estate wholesaling offers that fast flip as long as the right deal is managed by the right person.
If you’ve the know-how but lack funds, don’t let opportunity pass you by. Get investors and win!
1. It is possible to invest in real estate with only other people’s money (OPM).
2. Selling investors on “you” is just as important as your deal when wooing people to give you their money.
3. You can use your 401K to help fund real estate investments without penalty.
Investors with the ability to raise capital are already ahead of most of the competition.
If you’ve the know-how but lack funds, don’t let opportunity pass you by. Get investors and win!
Investing in real estate takes big money, but usually requires a lot of time and effort to research and manage if it’s going to be a profitable venture. There are more than a few people with the will and the way to succeed in real estate who just lack the funds to start a profitable deal going. Fortunately, there are also a whole host of investors that either can’t or don’t want to manage the deal, but who do have the financial muscle to put behind someone who does.
See the original at: https://www.fortunebuilders.com/how-to-raise-capital-for-real-estate-ventures/
How To Build A Powerful Credit Profile | PREI 150
If you’re in need of a loan, it all begins with your credit report, which is composed of your credit profile as well as the numerical credit score. The report is what banks and other financial lending institutions use to determine the fiscal risk of extending loans to someone. Without good credit, which indicates a person or entity is not likely to default on the loan and cause the lending institution to lose the funds, getting a loan can be difficult or impossible. Often, even if you do receive a loan, if you have poor credit the interest rate will be increased, and the loan will cost you more than it otherwise would. And in today’s economy, credit risk is even considered when looking to become a renter for an apartment or home; it’s not just for credit cards and bank loans anymore.
There is a slight difference between your credit score and your credit profile. While your score is an at-a-glance measure of how risky of a debtor you’re calculated to be, the profile is a more detailed look at whether or not it could be a fiscally sound decision to offer you a loan. Modern consumers are finding just about everything they do, except perhaps pay with cash, can start and end with their credit report.
Don’t let bad credit hold you back; build it up and use it to make life better!
1. Credit score is
-important in financial situations
-good demonstration of character
-crucial for success at life
2. Landlords prefer people with a high credit score because it will reflect a food tenant who will pay their rent on time.
3. Having a good credit score will strengthen the chances for a good loan with good interest rates.
If you don’t take good care of your credit, then your credit won’t take good care of you.
Without good credit, you’re living life stuck in a hole. Everything revolves around credit profiles and credit scores these days. And it’s not just loans and credit cards. Landlords factor credit rating into rental decisions, insurers use them to set policy rates, and more. Don’t stay stuck; learn about credit and how you can manage your score.
See the original at: https://www.passiverealestateinvesting.com/how-to-build-a-powerful-credit-profile/
The city of Indianapolis is a rising star in the housing markets for middle America. While real estate in locations on either of America’s coasts make for splashy pictures, increasingly people are turning inward as they look to settle down. Six different Interstates connect to Indianapolis, truly making it a meeting place for the country. The housing market in Indianapolis is predicted to not just hold steady, but even produce reasonable growth in a number of key housing metrics, including valuation. This means houses bought today are predicted to grow in value in the next few years, and there is a good body of data to support this view. Home owners, whether they’re residential or investors, can expect to see solid profit percentages on the funds they park in a piece of Indianapolis property. In fact, some reputable real estate firms expect to see increases of more than seven percent in housing prices by the end of 2020; which is a solid gain for anyone looking for a short-term real estate holding. Looking out to the three year mark, expectations are quite high for continued growth in housing value. This is despite a foreclosure rate that’s a bit higher than the national average. For housing investors, however, this just offers additional opportunity for the possibility of good properties becoming available at reasonable prices which will then appreciate in short order.
Investments into the Indianapolis housing market look profitable for the next few years.
1 .There is a good cash flow market to be found in Indianapolis.
2. The home prices are expected to go up around 7 percent in Indianapolis by 2020.
3. Six interstate highways converge in Indianapolis, “The Crossroads of America”.
Indianapolis is also known as the crossroads of America with six interstate highways crossing through the town.
Investments into the Indianapolis housing market look profitable for the next few years
The time to invest in Indianapolis real estate is now. Trends and growth indications point to the middle American crossroads city being a solid place to hold real estate that you’re looking to see increase in value over the next few years. Valuations are risings steadily, yet foreclosures are above average which should allow savvy and determined investors to find great deals they can turn around for comfortable margins. Dig into the data, then get your money working for you in Indianapolis.
See the original at: http://www.noradarealestate.com/blog/indianapolis-real-estate-market/
Spring into Real Estate Growth
Spring is traditionally a very competitive and busy market for real estate sales. With lawns and landscaping coming back to life after winter, and before the heat of the summer hits, homes and property is usually at its best curbside appeal for the year. For anyone looking to sell, the best time to try to get a great offer is during spring. And for investors or buyers hoping to find the right property to put their money on, spring will see prices going up rather than down.
Even if you’re an experienced property investor, it can be tough to avoid being swept up into the hunt for the right purchase. When it looks as good as it does, and the bids start coming in, sometimes wanting to close the deal can overwhelm the awareness that in a few months prices will usually be lower. Veteran real estate agents and market watchers like to point out it’s critical to stay aware of what your desires are telling you, especially when they differ from what your knowledge of the market teaches. Keeping the correct goal in mind, knowing when to buy and when to sell, is key to staying away from letting spring fever walk you right into a deal you’ll later regret. And, if nothing else, you can wait, then prepare a portfolio for next spring’s upward price ticks.
Do you know you can be super rich through involving in Real Estate? Learn the STRATEGIES?
1 More retail buyers move during the spring over ever other season
2 More buyers mean more competition for purchasing investment properties.
3 Investors need to look for deals that retail buyers are overlooking.
Most investors will tell you bluntly: the key to success in real estate investing is to not put too much stock in “the rules.”
Time over time we see the same mistakes with investors: Urgency and greed is not a sustainable investing strategy habit. Do you suffer from the Fear Of Missing Out bug like so many? If so, read this article for some maybe life changing advice.
See the original at: https://thinkrealty.com/spring-real-estate-growth/
7 Reasons to Invest in Single-Family Rentals Sooner Rather Than Later
If you are looking to diversify your investment portfolio, a great addition might be a single family home to rent out. There are a number of reasons why getting into renting a house could be very profitable. For one, rentals returns are similar to stocks but without being so volatile. The stock market can fluctuate quite a lot, but rental assets tend to remain pretty steady. Aside from the lack of ups and downs, there is a lot of opportunity in rental properties. Rent has continued to increase since 1985, even during the housing crisis. There are also some new areas to look into renting in, since coastal markets have really become saturated and hard to get a good deal. You can also find a great property within your budget. On top of that, the costs of owning a home are surpassing the costs of renting, so more and more people may rent for the long term and it is estimated that renter households will outpace homeowners by four million. Ultimately, you can’t time the housing market and cycle but the best time to get into renting is now because you’ll quickly start bringing in money, which will turn to profits in no time.
The sooner you get your money working for you, the more you make. Don’t wait to own a rental house.
Key Points:
1. According to John Burns Real Estate Consulting, single-family rental rates have grown steadily since 1985.
2. Single-family rental returns are comparable to stocks, with far less volatility.
3 .The local market dynamics are creating pockets of opportunity for residents.
Today’s rental market represents more than 16 million households, according to Green Street Advisors. With significant demographic shifts either anticipated or under way, new renter households are expected to increase by 13 million by 2030, according to the Urban Institute.
Enjoying a passive income stream has never been more obvious than the increasing heating up housing rental market. Today’s landlords aren’t just offering office space or empty lots for construction anymore. Yesterday’s home owners are today’s home renters; markets are more and more often comprised of people looking to rent their living space rather than own it. Get today’s pennies into houses, and watch it multiply into tomorrow’s dollars.
See the original at: https://thinkrealty.com/seven-reasons-invest-single-family-rentals-sooner-rather-later/
Taking Out A Second Mortgage On Investment Property Assets
Taking out a second mortgage on an investment property can be a great tool to use stagnant equity to make money. However, second mortgages always come with a risk and can be difficult to obtain, particularly when trying to take one out on an investment property. You should first learn about the different kinds of second mortgages.
One choice is a line of credit called a home equity line of credit, which means you use the money as you need it.
The other option is a home equity loan, which is a lump sum of money.
Either option is a good one depending on your situation. You should also consider that a lender will only give you a loan that is worth a percentage of the property and second mortgages carry high interest rates and even higher ones for second mortgages on investment properties, and if you will be able to make these payments each month. A missed payment can be very risky because you could lost the property since that is the asset the loan is weighed against. In order to properly educate yourself and secure your loan, you should do a few things first, like checking your credit score, finding out what your property is worth, do some research, shop around, determine what kind of second mortgage is best for you, and always be sure to read the fine print when signing. Second mortgages can be a great way to pay off debts, buy new properties, and many other things, but do always come with risks that should be considered.
A second mortgage lets you leverage equity, even in a rental property, and use that value now.
Key Points:
1. You can use a second mortgage to fund obtaining additional property.
2. You should be aware of the risks before going for a second mortgage.
3. Getting a second mortgage is great if you are confident that you can make the payments on time.
Tax deductions, to this day, remain one of the single greatest benefits of real estate investing.
A second mortgage lets you leverage equity, even in a rental property, and use that value now.
Mortgages allow you to borrow to obtain property. A second mortgage lets you borrow against the equity you’ve built up in a first mortgage, and use those funds for other purposes. Even a real estate investor can use a second mortgage to access equity. Rental properties, for example, can use a second mortgage to either invest in other properties or renovate that property. Don’t leave value locked up and waiting; make your money work for you!
See the original at: https://www.fortunebuilders.com/second-mortgage-on-investment-property/