- I pay ALL CASH no financing I buy AS-IS and Close in most cases within 7-10 days
- Where do these properties come from? Why are they so cheap? How do i buy them? November 11th, 2008
- Have An Enjoyable Building Experience January 8th, 2009
- 3 Tricks to get more Clicks. Secrets to help you stick out on Craigslist December 13th, 2008
- Multiple Streams of Real Estate Income March 4th, 2009
Where do these properties come from?
These properties are posted by real estate investors who would like to sell their properties at a discount. A home seller can post their house for sale here directly without going through a real estate investor. However, this service is designed for investors to buy and sell discounted properties.
The process goes something like this:
Wholesale investor (”Wholesaler”) locates property from a motivated seller
He puts it under contract
He then takes this contract to the title company to get the title work done
You (investor), buy the house from wholesaler or take over their contract for a fee and close on it yourself, or buy the property from the investor in a double closing (simultaneous closing)
You end up getting the property at a huge discount with very little work.
Why are they so cheap?
Most of these properties come from distressed home owners (motivated sellers), such as home owners facing foreclosure, going through divorce, job loss, job relocation, illness, or simply cannot afford to keep making mortgage payments.
Sometimes they just need to get rid of the house, but cannot afford to do the repairs needed, or simply don’t want to do it. They therefore accept to sell the houses at a discount for a quick and easy closing.
This discount is passed on to you as an investor.
What makes these deals good?
No deal can posted on our network unless it leaves at least 15% equity, AND at least $15,000 in profit after it is fixed up. For example, a house worth $100,000 must leave at least $15,000 after it’s fixed up in order to qualify to be here. We try to make sure that each deal has the potential to make you money.
What makes these deals better than I can get from other web sites?
These properties come directly from other investors. They are not listed in the MLS or the local newspapers.
Therefore, there is less competition, so you can buy them at a truly profitable bargain.
Why would an investor sell their house at wholesale price when they’d just fix and sell for big bucks?
Each investor has their preferred way of making money in real estate. Some are so good at locating great deals that they cannot possibly handle to rehab all those houses!
It’s much easier for them to make quick money by wholesaling and move on to the next deal.
Sometimes a lot of investors fix and sell, but they still wholesale when their schedules cannot allow them to rehab, or when the number of houses they have makes it impossible to do so.
This has created a unique opportunity that will be very profitable for you.
What if the cost of repairs and After Repair Value are not true?
Our local partners look at each deal manually to make sure it meets our guidelines, both by profitability and the numbers given.
In addition, we give you a guide of the value of the house by requiring that the investors provide the county appraisal value as well as the estimated After Repair Value.
A lot of times you will find a link directly the property record at the county. We then provide you with comps from zillow.com on each property. We also provide you with enough analyzed information to quickly decide if it’s a deal or not.
Armed with all this information, you can then make a quick judgment; in any case, we always ask you to run your own comps to assess the true value of these properties.
If you cannot run the comps yourself, we link you up with real estate agents in your local market who can run comps for you.
We present all this information for you on a simple page in an easy to understand manner so you spend as little time as possible agonizing if the deal is good or not.
Of course we also encourage you to physically go see the house yourself to make sure the repairs are not misrepresented.
What information is available to me as I view the properties to help me make up my mind?
We allow the seller to put in as much information about
the house as possible including:
Number of bedrooms, baths, stories, etc. You can also find this information at county records
After Repair Value as estimated by the seller, county appraisal value (and link to county records), estimated comps from zillow.com
Repairs needed and estimated cost of repairs
Video – some investors also prefer to upload video on youtube. These videos are available directly on the house property page
And a lot more…
How do I buy these houses?
You have to contact the seller directly to buy the house. We provide you a way to send them an email as you view the properties, and also provide a phone number for you to contact the seller.
Generally, most of these properties are not listed for owners by real estate agents, but you may find convenient links to recommended real estate agents, service providers and hard money lenders if you need their services. You may find these on our directory of vendors (service providers).
Do I need a real estate license to do these deals?
No, you do not need any license to be a real estate investor, or even a wholesaler. Real Estate Investors do not represent anyone, so you do not need a license to make money investing.
Real estate agents (Realtors) represent clients in real estate transactions (so they need a license).
How does the current market affect me as an investor?
Distressed properties and foreclosures are at an all-time high. Which means the time to buy really discounted properties is now.
You cannot have a better time than now to buy some unbelievably discounted and profitable deals.
How would I buy the deals if I have bad credit?
You can still make money from them even if your credit is bad.
Most of the deals listed here qualify for hard money. We recommend the most reliable hard money lenders who can get you funded in a few days.
They lend money based on the property, not your credit. Most do not even pull your credit. With most hard money lenders, if you can fog it, you can qualify.
Of course, you can bring your own cash, money partner or private lender to fund your deals.
Can I post my own house for sale?
Yes, anyone can sell ther house on our web site as long as it provides a discount for a real estate investor to make a profit.
Click here to post your house to sell it
Posted in Flipping Houses, Wholesaling And Rehabbing | No Comments »
It’s almost the time of year when we in the upper mid west become afflicted with “cabin fever”. The holidays are over. Football is almost over. Winter is nowhere’s near over. This is the time of year when people start to think about spring and building a new home. Here are a few tips to make building a new home fun.
The first step is to take your time when picking a plan. This is usually the hardest yet the most enjoyable part of the building process. Spend some time thinking about how you use your existing space. You want to design your new home to fit your lifestyle. If you spend a significant amount of time in your kitchen, then focus on that area very carefully. If it’s important to you to have a large master suite, then focus on that area,etc.
It can also be beneficial to visit open houses to get ideas and to talk to Realtors. A Realtor can be very helpful in providing you with names of reputable builders. They may also have listings of completed new construction that you may find attractive.
If you plan on building a large and/or unique home, you may have to have plans drawn. The draftman usually charges per sq. ft. to draw your plans.
Some builders are able to include the cost of the drafting plans in their quotes. If you are building a relatively simple home, try to find an existing plan that comes close to what you want and make the necessary changes to that plan. This will help save you money by reducing drafting charges which may allow you to add amenities to your new home. Most builders have books of their plans that you can borrow.
To keep the building process enjoyable, keep in mind that no house is perfect. Go into the process with the attitude that a house is a man made product and will probably have a few minor issues. To help avoid issues, try to visit your job site every day. No one knows your new house better than you and you can point out mistakes to your builder when they occur.
Take pictures or video of the building process at various stages. In the future, you will enjoy having a record of your new home as it progresses.
Communicate with your builder. When you discuss changes to the plan and chances are you will make changes, make sure the changes are documented. Just because the builder says he can change something doesn’t mean he is willing to do it for free. Don’t be afraid to ask the builder how much the changes will cost.
Once the cost of the changes is agreed upon, have the builder write up a change order and have it signed. If the builder says he will make the changes for no charge, have him put that in writing also. No one likes to be surprised with upcharges at closing.
Building is not for everyone. It can be very time consuming and a lot of decisions need to be made in a timely fashion. Those who choose to build and go into the process prepared, however, find it can be a very enjoyable experience.
Posted in General Real Estate Investing | No Comments »
One of the greatest tools for real estate investors is Craigslist. This online classifieds tool is super popular, FREE, and easy to use. Start using it and watch your business GROW!
The two major parts of a craigslist ad are the body and the headline. The body of your ad is where you put the description, pictures, address, and price of the house or apartment. The headline is what the reader clicks to see the body. Below are 3 useful tricks to getting your next buyer to click on your ad instead of the other 300 that were posted the same day.
1) More Space = More Attention
The Great Ron LeGrand always taught us to pay for an extra “blank” line at the top of your classified ads so it catches the viewer’s eye. With craigslist the ads run more left to right instead of top to bottom so I like to put the space to the left. I believe if you try to use the actual space bar in the beginning of your headline the craigslist software will “Trim” it off. What you will want to do is use the Underscore “_” key. I like to add about 4 or 5 underscores before I start my headline. This will indent it and make it more “eye catching” compared to the other ads around it.
2) Don’t be Afraid to be Weird… but don’t overdo it
I had a house that I rehabbed and was trying to sell. Every other day I would post the same old boring ad “3BR / 1BA, Great Neighborhood, Big Yard, Perfect Starter Home”. This type of ad gets me a few “good” responses each time I post, but one day I decided to try something different. In my headline I put “Is Brittney Nuts?”. Nothing about the house in the headline. When they would click on the ad I would put “She seems like it. I have a 3 BR Ranch…..”. I got about 4 times more responses about people interested in looking at the house. You dont want to do this too much because viewers will eventually catch on, but catching the eye and sparking interest so that they are forced to click and see what is inside is what it’s all about.
3) End BIG!
At the end of my headlines I like to put some more blank space and then end it with something big like “HURRY!” or “CA$H”. You dont want all capital letters in your headline because it is tough to read plus it is against craigslist rules.
You want to get more people into your shop. Think of the body of your ad as your shop where you are selling homes. When writing your headline, ask yourself “What would make a buyer click on my ad?”
Stand Out! Dont Blend In!
Posted in Marketing Real Estate, Web Sites For Real Estate Investors | No Comments »
There are many great benefits from investing in real estate. Not the least of which is the opportunity to develop a number of streams of income from your real estate business. Having money coming to you from many different sources will not only give stability to your real estate business but is also a great way to generate cash flow which is the life blood of your business.
Other than the normal income from sales of homes and monthly rental income, there are many other streams of income that can be generated by owning and managing properties. Here is a list of just a few possibilities for income from real estate.
• Late Fees
• Rent Increases
• Additional Rent
• Loans Against Equity
• Deposits and Maintenance Fees
• Mineral Rights Sales and Leases
• Finder’s Fees
• Consignment Fees
• Consultation Fees
• Coaching Fees
• Tax Rebates and Certificates
Let’s take a closer look at some of these. Notes are a great way to set up additional income streams. When you sell a property you can usually get a much higher price if you are willing to finance part of the sale. By simply taking a note secured by the property you have your first small stream. Well it may seem more like a drop but for now we can call it a stream. Adding interest to the note will increase the income and give you a fair return on the money you are owed. Each note you add is another small income source.
Another great way to increase your income is by selling options to purchase your properties that include lease or rental payments. Option money is usually non-refundable and if you do lots of options you have another stream of money coming in.
It is unfortunate but when you manage renters—they are often late with their rent payments. Some landlords just let late fees slide and do not attempt to collect them. This is a big mistake. By being strong and charging what the contract spells out you win in many ways. The renter will either start paying on time or have to pay the late fees. Of course they just may decide to leave altogether and you also win because then you can get a better tenant. In any event if you stick to your guns and charge late fees like a real business you will find that you have created yet another stream of income.
At the end of every lease period you have the opportunity to generate more income by simply making small increases in the amount of rent due each month. This may seem trivial but if you have just ten single-family homes and increase the rent on each of them by just fifteen dollars per month you have an additional $1,800.00 a year coming in each and every year. If you continue to do this for five years that $1,800.00 will have grown to a whopping $9,000.00 and that is a nice stream.
If you have a big lot or even two lots, many times there are opportunities to rent out some of that space to be used for other things. An example might be parking or a storage building. Use your imagination and create another stream of income.
One of my favorite income streams comes from borrowing money from the equity from my existing properties. This income is tax free and can be a life saver at tax time or when your spouse wants that trip to Europe for your anniversary.
Deposits on rented property belong to the renter but when a renter leaves a property in poor condition the money to bring the property back up to good condition must come from somewhere. I prefer to use the renter’s money to do this fix up so I collect a substantial security deposit. Often renters will just leave the property without notice or without completing their lease agreement. When this happens, if your agreement is written well, you get to keep the deposit. It is not unusual for this scenario to take place several times a year and yet another stream is introduced.
With the price of petroleum products at an all time high—the mineral rights you have in you property might be worth a great deal. These rights are very marketable and petroleum companies are becoming very aggressive. These companies have a lot of money and might be willing to pay you some of it to lease or purchase your mineral rights. Leasing your mineral rights can create a healthy stream of income for you especially if oil or gas is discovered on your property.
The real estate investing business offers quite a few possibilities for income streams by charging fees. These fees could be for consignment of a contract or for consultation on a real estate project. You could charge fees for coaching new investors in how to get started or even for helping them find their first deal.
Finally there are a great number of tax advantages for the real estate investor and if you play your cards right you could be able to have the government provide you with an additional stream or two of income. By purchasing tax certificates you should be able to realize some exceptional returns from your investments and if you are lucky you could end up owning one or more additional properties.
I hope this article will help you in your quest to build wealth through real estate investing. For more articles on real estate investor training, visit my real estate training site. Also on that site, you may sign up for free reports, articles, and e-books and find free forms, documents, MP3 Downloads and much more. Also visit turbo-bidder for great real estate investor tools.
Posted in General Real Estate Investing | No Comments »
This is our new Real Estate Investing Blog.
We will keep you updated about information in real estate investing, buying and selling houses, and how we can help you with your house needs.
We will also keep you up-to-date with the real estate market as it continues to change.