Monday, August 11, 2008
Real Estate Investing Information for Investors
From the Desk of Bryan Bailey:
Hello My Fellow Real Estate Investor Friends,
The biggest need that most of Investors have RIGHT NOW is cash flow. They need money now, they need it fast and they need as much as they can get.That is why I thought I'd cover this topic today...
Immediate Cash Flow... Make Thousands Of Dollars In A Few Short Weeks With This Technique.
Sound too good to be true? Read on for the details....
In this article, you will learn…
1. How to obtain the right to sell properties without actually paying for them.
2. How to sell this real estate for a profit and walk away from closing with cash in your pocket!
You can use this technique over and over again and never spend a dime of your own money!
I am going to teach you two ways to do this. The first is by finding real estate that is available for sale at less than 85% of market value.
The second way to make short-term chunks of cash is by finding homes at full market value, but negotiating 100% financing with the Seller.
This is easier to do that it sounds.
You do it by buying a property "subject to the existing loans."
The most likely Seller you'll find who will do this is someone who can no longer afford to make his or her payments. There can be many reasons for this…
DivorceSerious, Illness, Death in the family, Loss of job, Simple irresponsibility.
For every emotional problem, there is a house for sale.
I will show you how to be a hero to these people.
You're goal should be to make a minimum of $3,000 per deal.
This may not sound like much, but if you do two or three of these per month, it starts looking very attractive... especially since you will have no money and very little time into each deal.
To make this work, you need to know five things…
1. How to find the real estate.
2. How to inspect it.
3. How to write an offer and negotiate the best deal.
4. How to find investors to purchase the properties you find.
5. How to turn it all into a well oiled machine that makes you money over and over again.
Right now, let me explain how the deals on the two types of investment properties are structured.
Let's start with real estate that you find for substantially under market value. I am going to get down to basics here, so if you already have a little experience with this stuff, stick with me... the advanced stuff will come.
If you have a home worth $100,000, you want to be able to buy it for no more than $70,000. This is 70% of its market value (.70 X 100,000 = 70,000) also known as 70% Loan To Value (LTV).
The lower the LTV, the more money you and your investor will make, but finding properties less than 60% to 70% LTV is not always easy for a beginner in a stable real estate market.
Let's be conservative and assume you will only be able to purchase properties at 70% LTV. Using the above example, let's say you find a property worth $100,000 and you are able to purchase it for $70,000.
Let’s also say that the only way the Seller will agree to this price is if you pay him all cash.
You are going to negotiate a purchase agreement with the Seller.
It will be very similar to a standard real estate purchase agreement, except for the fact that you as the Buyer will write into the purchase agreement that you have the right to assign your interest to another Buyer.
Then, you will bring in an investor who will take over your contract on the property and pay $3,000 to you for signing over your interest. The investor will then purchase the property any way he or she chooses and you will go on to the next deal.
If you can consistently find undervalued properties, finding investors is easy.
Remember, there's no such thing as a textbook deal.
Every deal you make in real estate will be different than the previous one.
You need to understand these concepts and the structure of the deal, so you can replicate it in your hometown.
Prices are different all over the country. Some areas will be higher, some lower, but every deal will work using these principles.
Investors, including "wanna-be" investors, don't know how to find undervalued real estate. They will be happy to pay you an assignment fee for helping them.
I know it works because they answer my ads every day.
The second type of property you will buy will be "at market value."
The unique thing about these properties is you will purchase these homes "subject to" the existing mortgage or trust deed.
What this means is... suppose a home has a mortgage of $100,000.
It has mortgage payments of $865 per month.
The market rent for the area is $1100 per month.
The Seller has to move. The reason doesn't really matter. It may be a job transfer, a divorce, a death in the family, whatever... it ultimately has no impact on you.
They can't sell the home without coming up with $6,000 or $7,000 to pay a real estate agent and they don't have $6,000-$7,000.
This means they must rent out the property and become a landlord (which most people don't want to do) or they can sell it to you.
If they choose to sell, you will take it off their hands and begin to make payments on their mortgage.
Before you make your first payment, you will either sell the property to an investor or find someone to lease option the home.
Either way, you put $3,000 in your pocket, immediately!
The most common type of Seller for this type of deal is someone who has purchased a new home in the past two or three years.
Because homebuyers typically pay a premium for new construction, they may have to wait up to five years before they can sell their home and break even (after they pay their real estate agent).
The value of the home has to go up about 9% for them to break even. What this means for you is...
...you will be able to purchase homes that are almost new.
This cuts way down on maintenance and repair costs. It also makes it easy to find renters or investors to buy from you.
Have I get your attention yet?
Solving distressed seller's problems
is what we do...
...and we get paid very well to do it. You just need to know how to structure the deals so that you solve the Seller's problem and the Buyer's problem. If you do those two things, they will both love you for it and be happy to see you get wealthy in the process.
It doesn't take long to get going and start making cash money, if you follow through with the step-by-step system.
QUESTION: What is the best way to get started?
go to my website and feel free to click around....
Posted by Ask Bee at 2:35:00 PM