This question reminds me of the genie who grants 3 wishes. What would your wishes be?
Hopefully, one of your wishes... would be to wish for more wishes! ;-)
There are courses available online about "How To Raise Private Money" which cost anywhere from $500 dollars to $2,000 dollars. Basically, you can learn how to get other people to lend you money to buy steeply discounted real estate, and it is a great time to buy in this market!
There is no limit to the amount of private money you can raise. You can raise millions of dollars, if you'd like. Then, you can buy great deals on real estate that are 50% or less value. If the house doesn't sell, you can offer owner financing or lease option as an exit strategy and partner with people who have money to invest.
There is a reason why the bank won't lend you money to speculate on the stock market, yet they will lend you money all day long to buy real estate.
There is also a reason why real estate is insured, but stocks, bonds and mutual funds are NOT secured by the FDIC.
Banks and insurance companies are the two most powerful institutions in America. Part of being a great leader is being a great follower!
Why invest your own money into something that is not secure?
With real estate, the loans are collateralized by the real estate itself. Which is why it is so easy for you to get backing on good real estate deals, because even if you fail to sell it - your investors have a steeply discounted piece of real estate to show for it.
If you fail in the stock market, you may as well flush it down the toilet.
Also, you can't rent stocks and make a monthly, residual income off of them.
If my property doesn't sell, I always have the option to offer owner financing or rent it out.
Let's say I find a house worth $100,000 for $60,000 because the owner is motivated to sell.
I have a private investor back me on the purchase for $60,000 and pay them 12% interest on the loan. They want to lend me the money, because they know it is a great deal, based on the appraisal.
My payment is $600 per month. And let's say that during the 6 month period, I can't find a pre-qualified buyer. Well, I have several options:
1. I can offer owner financing, and get 10% down from a buyer. This is in very high demand, because banks aren't lending money right now.
2. I can lease out the property, and cover my mortgage payment.
If I rent the property for $850 per month, I make $250 per month cash flow, plus I have $40,000 equity in the property. But best of all, I never used a dime of my own money.
If I want to go to the bank and refinance it (if you have good credit) you can pull out between $10,000 to $20,000 cash and refinance your investor out of the loan. Or, your investor will be as happy as ever to get a 12% return while your new buyer or tenant keeps on making the monthly payment.
Also, in certain areas you can expect the property to appreciate in value, especially in the midwest. So, that same property that appraises for $100,000 now may be worth $105,000 to $110,000 in the next two or three years.
Showing posts with label investing. Show all posts
Showing posts with label investing. Show all posts
Tuesday, February 23, 2010
Wednesday, January 13, 2010
Don't WAIT For Opportunities - CREATE Them!
Are you a Waiter or a Creator?
As a self employed Realtor in Oklahoma City, do you get the maximum value out of every minute of your business day for all of the hard earned dollars you spend paying for advertising, gas money and all of those killer membership dues?
I am a local real estate investor here in Oklahoma City, and I hope this tip explodes your business for the New Year.
When driving around showing (hopefully pre-qualified) buyers houses, do you ever stop and take a look around?
Sure, you are showing your client houses and you are doing a great job narrowing down their search and making sure it fits their criteria and it's in the right price range - but are you maximizing the value of your time?
How many potential opportunities do you DRIVE BY without ever even REALIZING it?
It's time to take the blinders off, and get the most bang for your buck this year.
Next time you are out and about showing houses or going to potential listing appointments, take a notebook and a pen with you. When you are driving through the neighborhood, keep your eyes open for houses that look like this:
Broken windows
Tall Grass
Sagging Roof
Burn damage
Mail overflowing from mailbox
Graffitti
Abandoned cars in front yard
Well, you get the picture!
You know, the houses you find that you hope the owner NEVER CALLS YOU ABOUT.
They can't go FHA and obviously the owner can't afford to fix them up. But just because a retail buyer wouldn't touch it with a ten foot pole doesn't mean an investor wouldn't buy it, give you a big, fat hug, fix it, and list it with you at full commission!
There are investors in Oklahoma City who love, love, LOVE to buy distressed properties to rehab and put back on the market for FHA buyers. And if you bring enough deals to these investors, it will earn you a feather in your cap to where you can get them to list ANYTHING with you, because you bring them so many deals.
Remember - an investor only makes money when they BUY, not when they SELL. So, a gem to a real estate investor is a piece of trash to a retail buyer.
As an investor, we like those diamonds in the rough. We love to buy them, fix them and make them a desirable property.
Every Realtor wants to list the desirable property in the desirable area of town. How many of you call off my ad or send me emails on Craigslist once I fix up my houses and put them on the market?
And how many of you call me when you find a distressed property that nobody wants to list?
If you were an investor - who would you list your property with?
The Realtor who found you the gem to begin with, or the Realtor who is asking for business because it's a fixed up DOLL HOUSE that everyone wants to buy?
Make an agreement with your investors beforehand that you find the deals and make the tiny commissions on the buy (because it has to be a cheap property if it needs a lot of work) and that your payoff will come when the property is fixed up and ready to put on the market.
If the investor is greedy and doesn't want to pay you 6% after you did the leg work and brought the deal to them, never do business with them again. That's why I suggest negotiating the deal to list them BEFOREHAND.
Pretty soon you will find that you have a pipeline of remodeled, rennovated listings heading your way that every FHA buyer can qualify for just by opening your eyes and making yourself aware of all the opportunities that abound.
So, don't wait for a listing, create a listing!
If you bring deals to a real estate investor, you will be worth your weight in gold to them. We buy them cheap (50 cents or less on the dollar) but we buy them quick and don't poke around like a retail buyer, which saves you some time.
Also, the run down houses you find that are NOT on the MLS are usually the best deals, because none of the other investors know about them yet. When you put it on the MLS, the whole world knows if it is a deal or not. If it doesn't sell in the first day it's on the market, chances are it isn't a deal anyway - or else it would have sold.
So, finding a deal when you are driving around town showing buyers or going on a listing appointment is like LEGAL insider trading. You know about the deal before anybody else knows about it, and put it on the MLS as "pending" when you enter it for the first time.
If you ever run across anything, don't hesitate to call or text Rose Wilkinson @ 405-881-5958
As a self employed Realtor in Oklahoma City, do you get the maximum value out of every minute of your business day for all of the hard earned dollars you spend paying for advertising, gas money and all of those killer membership dues?
I am a local real estate investor here in Oklahoma City, and I hope this tip explodes your business for the New Year.
When driving around showing (hopefully pre-qualified) buyers houses, do you ever stop and take a look around?
Sure, you are showing your client houses and you are doing a great job narrowing down their search and making sure it fits their criteria and it's in the right price range - but are you maximizing the value of your time?
How many potential opportunities do you DRIVE BY without ever even REALIZING it?
It's time to take the blinders off, and get the most bang for your buck this year.
Next time you are out and about showing houses or going to potential listing appointments, take a notebook and a pen with you. When you are driving through the neighborhood, keep your eyes open for houses that look like this:
Broken windows
Tall Grass
Sagging Roof
Burn damage
Mail overflowing from mailbox
Graffitti
Abandoned cars in front yard
Well, you get the picture!
You know, the houses you find that you hope the owner NEVER CALLS YOU ABOUT.
They can't go FHA and obviously the owner can't afford to fix them up. But just because a retail buyer wouldn't touch it with a ten foot pole doesn't mean an investor wouldn't buy it, give you a big, fat hug, fix it, and list it with you at full commission!
There are investors in Oklahoma City who love, love, LOVE to buy distressed properties to rehab and put back on the market for FHA buyers. And if you bring enough deals to these investors, it will earn you a feather in your cap to where you can get them to list ANYTHING with you, because you bring them so many deals.
Remember - an investor only makes money when they BUY, not when they SELL. So, a gem to a real estate investor is a piece of trash to a retail buyer.
As an investor, we like those diamonds in the rough. We love to buy them, fix them and make them a desirable property.
Every Realtor wants to list the desirable property in the desirable area of town. How many of you call off my ad or send me emails on Craigslist once I fix up my houses and put them on the market?
And how many of you call me when you find a distressed property that nobody wants to list?
If you were an investor - who would you list your property with?
The Realtor who found you the gem to begin with, or the Realtor who is asking for business because it's a fixed up DOLL HOUSE that everyone wants to buy?
Make an agreement with your investors beforehand that you find the deals and make the tiny commissions on the buy (because it has to be a cheap property if it needs a lot of work) and that your payoff will come when the property is fixed up and ready to put on the market.
If the investor is greedy and doesn't want to pay you 6% after you did the leg work and brought the deal to them, never do business with them again. That's why I suggest negotiating the deal to list them BEFOREHAND.
Pretty soon you will find that you have a pipeline of remodeled, rennovated listings heading your way that every FHA buyer can qualify for just by opening your eyes and making yourself aware of all the opportunities that abound.
So, don't wait for a listing, create a listing!
If you bring deals to a real estate investor, you will be worth your weight in gold to them. We buy them cheap (50 cents or less on the dollar) but we buy them quick and don't poke around like a retail buyer, which saves you some time.
Also, the run down houses you find that are NOT on the MLS are usually the best deals, because none of the other investors know about them yet. When you put it on the MLS, the whole world knows if it is a deal or not. If it doesn't sell in the first day it's on the market, chances are it isn't a deal anyway - or else it would have sold.
So, finding a deal when you are driving around town showing buyers or going on a listing appointment is like LEGAL insider trading. You know about the deal before anybody else knows about it, and put it on the MLS as "pending" when you enter it for the first time.
If you ever run across anything, don't hesitate to call or text Rose Wilkinson @ 405-881-5958
Considering The State Of The American Economy, Is It Wise To Invest In Real Estate Outside Of The Country?
Real estate is only a lucrative investment, because it is extremely localized. Real estate investors generally target a specific area because they know the rental rates, tax rates, the rate of appreciation and what direction the city / state / country is heading in before they invest their dollars.
But here is the thing that most people don't realize...
Now is the time to buy in America, not invest in a different country.
Now is the time to buy, because the prices of real estate have deflated almost down to rock bottom, in some cases.
What most people fail to realize is that economies aren't based on doom and gloom forever. The economy goes in cycles filled with booms and busts. The true investors who are in it to win it buy when the economy is bust and sell when the economy hits another boom.
The true players in the game are buying up properties like CRAZY, and either renting them out or offering owner financing to those who can't qualify for a mortgage.
Even in a city as distressed as Detriot, Michigan - you can pick up properties over there for just a few hundred dollars. Most people don't know this, but because of the high inflation and cost of living in California, Warner Brothers is relocating their studios to Detriot because real estate is extremely cheap over there right now, and it would be cheaper to house their cast and crew.
So now, while everyone is running away from Detroit, smart business people are trying to figure out a way to relocate over there, because the cost of living is so low, due to the demand of living there being low. Yet, as soon as a company like Warner Brothers relocates to Detroit, EVERYONE will want to buy there then - and that will make property values soar.
The time to get into real estate is when everyone is running away. Even if you can't sell it right away, you can always rent it out or finance a buyer with a wrap around mortgage. The demand is high for owners who are willing to owner finance their properties, due to the credit freeze.
I would love to partner up with you, and tell you what I do and what's going on in my business.
Call or text Rose @ 405-881-5958
But here is the thing that most people don't realize...
Now is the time to buy in America, not invest in a different country.
Now is the time to buy, because the prices of real estate have deflated almost down to rock bottom, in some cases.
What most people fail to realize is that economies aren't based on doom and gloom forever. The economy goes in cycles filled with booms and busts. The true investors who are in it to win it buy when the economy is bust and sell when the economy hits another boom.
The true players in the game are buying up properties like CRAZY, and either renting them out or offering owner financing to those who can't qualify for a mortgage.
Even in a city as distressed as Detriot, Michigan - you can pick up properties over there for just a few hundred dollars. Most people don't know this, but because of the high inflation and cost of living in California, Warner Brothers is relocating their studios to Detriot because real estate is extremely cheap over there right now, and it would be cheaper to house their cast and crew.
So now, while everyone is running away from Detroit, smart business people are trying to figure out a way to relocate over there, because the cost of living is so low, due to the demand of living there being low. Yet, as soon as a company like Warner Brothers relocates to Detroit, EVERYONE will want to buy there then - and that will make property values soar.
The time to get into real estate is when everyone is running away. Even if you can't sell it right away, you can always rent it out or finance a buyer with a wrap around mortgage. The demand is high for owners who are willing to owner finance their properties, due to the credit freeze.
I would love to partner up with you, and tell you what I do and what's going on in my business.
Call or text Rose @ 405-881-5958
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