How Real Estate Investors Wholesale Houses For Cash

Flipping houses usually refers to buying and selling houses. It really means wholesaling houses even though most people take it to mean buying, fixing and selling houses. Wholesaling houses involves buying houses below market value, rehabbing them if they need repairs, then selling them for a profit.

This is the definition we will stick to in this article.

Wholesaling houses is the quickest method to create cash in real estate investing. It also needs the least amount of cash invested in the deal. Occasionally you can wholesale houses without using your own cash.

So how do you do it?

1)Identify cheap houses
The best source of cheap houses is motivated sellers. People with legal issues and who own houses form the best source of cheap houses. These are people with inherited property, bad tenants, liens on their properties, divorcing and so on.

The easiest way is to send them letters or post cards. In my business, they get 2 mail pieces a month apart. Each letter or post card prominently displays my website URL as the main call to action. My phone number is less obvious. This way, I drive them to my real estate investor website which pre-sells for me.

Chances are the transactions I get are fully pre-screened and pre-negotiated so I need just a few minutes to tell whether it is a deal or not – then make an offer or move on.

Some people wholesale properties that have been foreclosed, but this is not the subject of this article.

2)Sign a contract to buy
As soon as you have identified a good deal whose figures look desirable, you must put it into contract. In each state, there are contracts regularly used by real estate agents, or you can get contracts that can be used countrywide. I prefer to use contracts mandated by our state real estate commission because they are more popular and most people, including title companies and sellers are more comfortable with them.

3)Begin title work.
The first thing I do is fax my contracts to my title company for title work to begin. You must ensure you buy and sell the house free of any liens. This is the job of the title company. As an investor, you do not need to get too concerned about the technicalities involved. I prefer to let professionals do their work.

4)Identify buyer with cash
Buyers with real cash in the bank are preferable. With cash transactions, you have few limitations in the transaction. Most real estate investors buying houses may have sold a house or have a line of credit for cash purchases.

Alternatively they have private money investors or get cash from hard money lenders.

Avoid buyers looking for traditional financing. Most loan companies will not lend on houses that need restoration and you could have seasoning issues, meaning you must hold the property for 6 months to 1 year before you can sell it.

5)Sign a contract to sell
The type of contract you sign depends on the amount of money in the deal. First, you must leave enough money in the deal for the real estate investor buyer. After all they will do rehab work.

I prefer to do a contract assignment if my potential profit is less than $10,000.

In contract assignment, you simply assign your contract to your real estate investor buyer. You assign the contract; you do not sell or assign the house. This is perfectly legal all over the country and you do not need a license for it. This contract is usually as little as 2 to 3 paragraphs.

In this case, the real estate investor buyer you wholesale the deal to closes the transaction, not you. You collect an assignment fee once the deal is closed.

If I am making more than $10,00 or my profits are near or the same as the real estate investor I sell to, then I prefer to do a simultaneous closing, also called double closing. This involves buying the house from my motivated seller, then selling it to my real estate investor buyer.

In a double closing, you buy and sell on the same table, so it involves 2 transactions. In this case, you own the property for a few minutes before you sell it. Of course, you have to incur closing costs that you do not incur in contract assignment.

He contract for simultaneous closing id just like the one to buy with a higher selling price and more favorable terms for you.

Whichever contract you sign, make sure to collect earnest money. I always make sure the earnest money is non-refundable if they do not buy the house. You must make sure the contract expires before your contract to buy and the property reverts back to you.

6)Collect your cash
You must make ensure follow the transaction process until the deal is closed. You collect your check from the title company when the transaction is completed. It is therefore in your best interest to make sure you close any loose ends and make sure the deal does not fall between your fingers.

How must cash must you have to flip houses?
When you sign your contract with the buyer, you may have to put up earnest money, usually between $100 to $500. There is no contract without earnest money. When I sign the contract to sell, I collect an earnest money check which is deposited with the title company.

In simultaneous closing, you can use the cash from your investor buyer to close the first transaction so you may not need to use your own money. If your buyer source of funds does not allow you to use his money to close the first transaction, then you might need to get transactional funding to a few points to close the first transaction before you can sell.

When all is said and done, the checks you collect from flipping houses will be easy and fast. You can buy and sell a few houses a month.

Good Looking Marketing Flyers Are A Key Tool For Today’s Real Estate Agent

With many types of word and photo processing programs available to busy real estate agents, what are the qualities that make some better than others? Today’s agents need the ability to produce high quality, picture incorporated marketing flyers to keep up with what is a rapidly changing housing environment. In an industry dominated by desperate sellers, home builders with surplus inventory, and banks which have a growing number of foreclosures, real estate agents who have the ability to sell and are equipped with the proper tools to sell are in very high demand. The housing market we all know is very challenged with a record number of over-built single-family homes covering the U.S.

The opportunity for sales agents to earn big commissions is as good as it’s been in a long while. You may say that there’s too much competition in the industry, and while perhaps true, the better agents not only have a wide variety of inventory selections to market, but they also have a large array of potential clients to represent. Today’s real estate agent has the luxury to pick and choose from quite a number of potential listings. They can take as many or as few listings based on how many hours that they want to commit to. Good tools are a necessity in maximizing the efficiency of time allotted to an agent’s busy schedule.

The most basic of tools, aside from a “for sale” sign in the front yard, is a well-written, quality produced marketing flyer displaying the best photography and copy layout. While anyone can put a generic 18″ x 24″ for sale sign in a front yard, the next requirement for collateral material is a great looking sales flyer. An agent can use a traditional word and photo processing program or a specifically, industry-designed program written by a real estate agent, for a real estate agent. A program offering good templates which are user-friendly and have the flexibility to quickly update the format is just what the doctor ordered for a rapidly changing home sales market. For the constantly on-the-go professional, software that allows the user to burn-to-disc and use multiple computers is also a necessity.

After all, a well thought-out and produced marketing flyer can be the difference between making a sale or not making a sale and selling a home at 75% of asking price versus 105% percent of asking price. Arm yourself with the best possible tools to make you efficient and successful.

Real Estate Agents and the Internet – How to Buy and Sell Real Estate Today

Then and Now

Ten years ago, a search for real estate
would have started in the office of a local real estate agent or by
just driving around town. At the agent’s office, you would spend an
afternoon flipping through pages of active property listings from the
local Multiple Listing Service (MLS). After choosing properties of
interest, you would spend many weeks touring each property until you
found the right one. Finding market data to enable you to assess the
asking price would take more time and a lot more driving, and you still
might not be able to find all of the information you needed to get
really comfortable with a fair market value.

Today, most property
searches start on the Internet. A quick keyword search on Google by
location will likely get you thousands of results. If you spot a
property of interest on a real estate web site, you can typically view
photos online and maybe even take a virtual tour. You can then check
other Web sites, such as the local county assessor, to get an idea of
the property’s value, see what the current owner paid for the property,
check the real estate taxes, get census data, school information, and
even check out what shops are within walking distance-all without
leaving your house!

While the resources on the Internet are
convenient and helpful, using them properly can be a challenge because
of the volume of information and the difficulty in verifying its
accuracy. At the time of writing, a search of “Denver real estate”
returned 2,670,000 Web sites. Even a neighborhood specific search for
real estate can easily return thousands of Web sites. With so many
resources online how does an investor effectively use them without
getting bogged down or winding up with incomplete or bad information?
Believe it or not, understanding how the business of real estate works
offline makes it easier to understand online real estate information and
strategies.

The Business of Real Estate

Real estate
is typically bought and sold either through a licensed real estate agent
or directly by the owner. The vast majority is bought and sold through
real estate brokers. (We use “agent” and “broker” to refer to the same
professional.) This is due to their real estate knowledge and experience
and, at least historically, their exclusive access to a database of
active properties for sale. Access to this database of property listings
provided the most efficient way to search for properties.

The MLS (and CIE)

The
database of residential, land, and smaller income producing properties
(including some commercial properties) is commonly referred to as a
multiple listing service (MLS). In most cases, only properties listed by
member real estate agents can be added to an MLS. The primary purpose
of an MLS is to enable the member real estate agents to make offers of
compensation to other member agents if they find a buyer for a property.

This
purposes did not include enabling the direct publishing of the MLS
information to the public; times change. Today, most MLS information is
directly accessible to the public over the Internet in many different
forms.

Commercial property listings are also displayed online but
aggregated commercial property information is more elusive. Larger MLSs
often operate a commercial information exchange (CIE). A CIE is similar
to an MLS but the agents adding the listings to the database are not
required to offer any specific type of compensation to the other
members. Compensation is negotiated outside the CIE.

In most
cases, for-sale-by-owner properties cannot be directly added to an MLS
and CIE, which are typically maintained by REALTOR associations. The
lack of a managed centralized database can make these properties more
difficult to locate. Traditionally, these properties are found by
driving around or looking for ads in the local newspaper’s real estate
listings. A more efficient way to locate for-sale-by-owner properties is
to search for a for-sale-by-owner Web site in the geographic area.

What
is a REALTOR? Sometimes the terms real estate agent and REALTOR are
used interchangeably; however, they are not the same. A REALTOR is a
licensed real estate agent who is also a member of the NATIONAL
ASSOCIATION OF REALTORS. REALTORS are required to comply with a strict
code of ethics and conduct.

MLS and CIE property listing
information was historically only available in hard copy, and as we
mentioned, only directly available to real estate agents members of an
MLS or CIE. About ten years ago, this valuable property information
started to trickle out to the Internet. This trickle is now a flood!

One
reason is that most of the 1 million or so REALTORS have Web sites, and
most of those Web sites have varying amounts of the local MLS or CIE
property information displayed on them. Another reason is that there are
many non-real estate agent Web sites that also offer real estate
information, including, for-sale-by-owner sites, foreclosure sites,
regional and international listing sites, County assessor sites, and
valuation and market information sites. The flood of real estate
information to the Internet definitely makes the information more
accessible but also more confusing and subject to misunderstanding and
misuse.

Real Estate Agents

Despite the flood of real
estate information on the Internet, most properties are still sold
directly through real estate agents listing properties in the local MLS
or CIE. However, those property listings do not stay local anymore. By
its nature, the Internet is a global marketplace and local MLS and CIE
listings are normally disseminated for display on many different Web
sites. For example, many go to the NATIONAL ASSOCIATION OF REALTORS Web
site, http://www.realtor.com,
and to the local real estate agent’s Web site. In addition, the listing
may be displayed on the Web site of a local newspaper. In essence, the
Internet is just another form of marketing offered by today’s real
estate agent, but it has a much broader reach than the old print
advertising.

In addition to Internet marketing, listing agents may
also help the seller establish a price, hold open houses, keep the
seller informed of interested buyers and offers, negotiate the contract
and help with closing. When an agent provides all of these services it
is referred to as being a full service listing arrangement. While full
service listing arrangements are the most common type of listing
arrangement, they are not the only option anymore.

Changes in the
technology behind the real estate business have caused many agents to
change the way they do business. In large part, this is due to the
instant access most consumers now have to property listings and other
real estate information. In addition, the Internet and other
technologies have automated much of the marketing and initial searching
process for real estate. For example, consumers can view properties
online and make inquires via email. Brokers can use automated programs
to send listings to consumers that match their property criteria. So,
some agents now limit the services they offer and change their fees
accordingly. An agent may offer to advertise the property in the MLS but
only provide limited additional services. In the future, some real
estate agents may offer services in more of an ala carte fashion.

Because
of the volume of real estate information on the Internet, when people
hire a real estate agent today they should look at the particular
services offered by the agent and the depth of their experience and
knowledge in the relevant property sector. It is no longer just about
access to property listing information. Buyers and sellers historically
found agents by referrals from friends and family. The Internet now
provides ways to directly find qualified agents or to research the
biography of an agent referred to you offline. One such site,
AgentWorld.com, is quickly becoming the LinkedIn or Facebook for real
estate agents. On this site an agent can personalize their profile,
start a blog, post photos and videos and even create a link to their web
site for free. Once unique content is added to their profile page the
search engines notice!

Some have argued that the Internet makes
REALTORS and the MLS less relevant. We believe this will be false in the
long run. It may change the role of the agent but will make
knowledgeable, qualified, and professional REALTORS more relevant than
ever. In fact, the number of real estate agents has risen significantly
in recent years. No wonder, the Internet has made local real estate a
global business. Besides, Internet or not, the simple fact remains that
the purchase of real property is the largest single purchase most people
make in their life (or, for many investors, the largest multiple
purchases over a lifetime) and they want expert help. As for the MLS, it
remains the most reliable source of real estate listing and sold
information available and continues to enable efficient marketing of
properties. So, what is the function of all the online real estate
information?

Online real estate information is a great research
tool for buyers and sellers and a marketing tool for sellers. When used
properly, buyers can save time by quickly researching properties and,
ultimately, make better investment decisions. Sellers can efficiently
research the market and make informed decisions about hiring an agent
and marketing their properties online. The next step is to know where to
look online for some of the best resources.

Internet Strategies

In the sections that follow, we provide
strategies and tips on how to use the Internet to locate properties for
sale and research information relevant to your decision to purchase the
property. There are many real estate Web sites from which to choose and
although we do not mean to endorse any particular Web site, we have
found the ones listed here to be good resources in most cases or to be
so popular that they need mention. One way to test a Web site’s accuracy
is to search for information about a property you already own.

Finding Real Estate for Sale

Despite the
widely available access to real estate listings, many believe that MLS
databases continue to offer the most complete and accurate source of
real estate information. Most MLSs now distribute content to other Web
sites (primarily operated by real estate agents). An excellent starting
point for MLS originated content is the national NAR Web site,
realtor.com, which is also the most popular web site for searching real
estate listings. Virtually all local and regional MLSs have an agreement
with realtor.com to display much of their active listing inventory.

Some
local and regional MLS systems also have a publicly accessible Web
site. However, to get complete information you will most likely still
need to find a qualified local REALTOR. Many local real estate agents
will also provide their customers (via email) new listings that are
input into the MLS that match their predefined criteria. This can be
very helpful to a busy buyer.

There are also many Web sites that
display both real estate agent listed and for-sale-by-owner properties.
Some of the more popular Web sites include zillow.com and trulia.com.
These sites offer other services too. For example, zillow.com is best
known for its instantaneous property valuation function and trulia.com
for providing historical information. Another source of properties for
sale is the state, regional, and local Web sites associated with
brokerage companies; for example, remax.com or prudential.com. Search
engines like yahoo.com and classified advertising sites like
craigslist.com also have a large number of active real estate listings.

One
key difference between these sites is how much information you can
access anonymously. For example, at trulia.com you can shop anonymously
up to a point but then you will need to click through to the agent’s Web
site for more information. Many new real estate search engines allow
you to sift through listings without having to fill out a form. The best
strategy is to browse a few of the sites listed above to find
geographic areas or price ranges that are interesting. Once you get
serious about a property, then that is the time to find a qualified
REALTOR of your choice to conduct a complete search in the local MLS.

It
also never hurts to search the old-fashioned way by driving through the
neighborhoods that interest you. There is no substitute for physically,
not virtually, walking the block when you are making a serious
investment decision. In this sense, real estate is still a very local
business and standing in front of the property can lead to a much
different decision than viewing a Web page printout.

Valuing Real Estate

As
we mentioned, one of the most popular real estate tools is zillow.com’s
instant property valuation. Just type in an address and in and you get a
property value. It even charts the price ups and downs, and shows the
last date sold (including price) and the property taxes. There are other
sites that provide similar tools such as housevalues.com and
homegain.com. Unfortunately, many people use these estimated values
alone to justify sales prices, offers and counteroffers. However, these
are only rough estimates based on a formula that incorporates the local
county sales information. These estimates can swing wildly over a short
period of time and do not appear to always track actual market changes,
which are normally more gradual. In addition, these estimates do not
automatically take into account property remodels or renovations or
other property specific or local changes. This is not to say these sites
are not useful. In fact, they are great starting points and can provide
a good ball-park value in many cases.

When it comes to getting a
more accurate value for a particular property, there are other
strategies that are more trustworthy. One is to go directly to your
county’s Web site. More often than not the county assessor’s area of the
Web site provides sales and tax information for all properties in the
county. If you want to research a particular property or compare sales
prices of comparable properties, the local assessor’s sites are really
helpful. When you visit a county’s Web site you are getting information
straight from the source. Most counties today publish property
information on their Web sites. Many times you cannot only see the price
a previous owner paid, but the assessed value, property taxes, and
maps. Some county assessors are now adding a market and property
valuation tools too.

Given the importance of valuation to
investing, we are also going to remind you of the two most important
(non-Internet) valuation methods: real estate agents and appraisers.
Working with a local REALTOR is an accurate and efficient way to get
value information for a property. While one of the primary purposes of
the MLS is to market the active property listings of its members, the
system also collects sales information for those listings. REALTOR
members can pull this sales information and produce comparable market
analyses (sometimes called CMAs) that provide an excellent snapshot of a
particular property’s value for the market in a particular area.

Finally,
the most accurate way to value a property is by having a certified
appraiser produce an appraisal. An appraiser will typically review both
the sold information in the MLS system as well as county information and
then analyze the information to produce a valuation for the property
based on one or more approved methods of valuation. These methods of
valuation can include a comparison of similar properties adjusted for
differences between the properties, determine the cost to replace the
property, or, with an income producing property, determine a value based
on the income generated from the property.

The Neighborhood

There
are many ways the Internet can help you get the scoop on a particular
neighborhood. For example, census data can be found at census.gov. You
can also check out the neighborhood scoop at sites like outside.in or
review local blogs. A blog is a Web site where people discuss topics by
posting and responding to messages. Start by looking at placeblogger.com
and kcnn.org/citymediasites.com for a directory of blogs. Trulia.com
has a “Heat Map” that shows how hot or cold each neighborhood is based
on prices, sales, or popularity among the sites users.

Schools

When
it comes to selling residential property or rental properties that
cater to families, the quality of the area school district makes a huge
difference. There are many Web sites devoted to school information.
Check out greatschools.net or schoolmatters.com. Most local school
districts also have their own Web site. These sites contain a variety of
information about the public schools and the school district, including
its district demographics, test scores, and parent reviews.

Finding the Right Real Estate Agent

A
recent addition to the Internet boom in real estate information is Web
sites that let real estate agents market their expertise and local
knowledge by displaying their professional profiles and socially
networking with blogs. You can search to find an agent with a particular
expertise, geographic area of specialization, or an agent offering
specific services. The web site AgentWorld.com lets users quickly and
easily find an agent with the right expertise using keyword searches and
clean and simple agent profiles. AgentWorld.com also enables agents to
post personalized blogs, photos and videos to help consumers find the
best agent for their needs. Plus, many agent profiles include a direct
link to the agent’s web site where you will likely find the local MLS
listings.

Maps and Other Tools

The Internet has made
mapping and locating properties much easier. To get an aerial view or
satellite image of a property or neighborhood, go to maps.live.com or
maps.google.com or visit walkscore.com to see how walk-able a particular
property is. These sites can give you an idea of the neighborhood
characteristics and the types of entertainment, restaurants, and other
facilities that are within walking distance of the property.
Maps.Live.com provides a view at an angle so you can see the sides of
houses and Maps.Google even gives you a 360 degree street-level view for
certain neighborhoods. If you have not tried one of these satellite map
Web sites, you really should if only for amusement.

Final Thoughts on Internet Strategies

The
Internet is a very effective research and marketing tool for real
estate investors but is not a replacement for a knowledgeable
experienced real estate professional. The Internet can save you time and
money by enabling quick and easy property research and marketing
options. Sites like AgentWorld.com also help you efficiently find a
REALTOR who fits your buying or selling needs.

Always remember,
when it comes to Internet strategies for real estate: More knowledge is
better. You need to use the Internet to build your knowledge base on a
target property or to find a real estate agent with expertise you need.
However, the big caution here is that the Internet should not replace
human judgment and perspective, expert advice or physical due
diligence-keys to successful investing.

Indian Real Estate Market Problems And Prospects

India is a very large country of South Asia, the second most populous country in the world and the seventh largest by extension. The Indian continent from many centuries has been well known for its rich culture and commerce. To make your real estate investment more and more beneficial for you in this country, you need to rely on a network with a lot of real estate experience. Through an operating platform of a realtor investment becomes easier and safer for you as the firm helps to find the property in India.

The real estate market in India is undoubtedly growing local demand for housing space and office incredibly intense, but the market has to be regarded as emerging market for investors because the laws concerning foreign direct investment in the real estate market in India are so restrictive that the benefit of the real estate sector of India is far from straightforward.

This article is an attempt to combine some of the facts and figures which we hope will help anyone who joined the business of Indian real estate. There were changes made to the public good laws concerning foreign direct investment in the back of the real estate sector in February 2005 now mean that the Indians passersby (most commonly designated NRIs) and companies Overseas (CBOs for short) can invest up to 100% in the housing sector.

The government of India also has some rules in place that allow foreign investors to buy commercial property in India. if these properties are to be used by the company for business purposes. Most of the projects where FDI is allowed in a loop period of the investment of a minimum of 3 years to prevent speculative investment, but the good news for companies or NRIs who want to achieve in the real estate market of investment in India is that investment in smaller projects is now a real possibility. Before the IDF is allowed only in projects on sites larger than 100 acres, this was reduced to 25 acres. For individuals who wish to incorporate the real estate market in India is the easiest way to buy into an investment fund.

Changes to laws relating to FDI and the real estate industry in general that were announced back in 2005 rules of the investment fund of the Sierra relaxed to the point where many experts believe a sector of the investment company of real estate (REIT) could now emerge.

Meanwhile there are a number of attractive and transparent funds available from reputable investment houses that do not prohibit individuals hassle free entry into the real estate market in India. In terms of state of the real estate market in India in general and Mumbai property in particular care must be taken when acquiring any land or real estate because the fact of registration of title is not updated and independent legal advice should be taken at each stage of the process that buying property in India.

If anyone has a definitive guide to the process to purchase real estate in Mumbai, he/ she can maximize the benefits to the maximum. But a proper professional guideline is necessary before any investment.

Las Vegas Nevada Real Estate

Here’s a list of the most pricey communities in the state with apartments for lease.

Enterprise, NV – ordinary apartment lease: $1,356em>

This southwestern suburb of Las Vegas with a population of 93,969 tops the list with the highest rent prices in the State. The local community has veteran wonderful expansion over the very last decade — there were fewer than 15,000 residents in 2000. The community is actually upscale with great browsing and straightforward access to Las Vegas which is only 10 miles away. There is a new 80-acre “mountain park” here that has an exciting western-themed village for youngsters to examine and trails top to the summit.

Henderson, NV – typical apartment rent: $one,206

A southeastern suburb of Vegas situated about fifteen miles from the strip, Henderson is extra established than Enterprise, offering extra in the way of buying and mature developments. A terrific put for energetic individuals, Henderson has a well-liked aquatic complex, a 140-acre bird viewing preserve with nine ponds, a recreation middle with a 40,000-square-foot gymnasium, and the Ethel M. Folks that are not from Las Vegas look to believe that we all reside on “The Strip.” Practically nothing is even more from fact. The most well-liked areas to live, such as Green Valley, Southern Highlands, Anthem, and Summerlin are suburbs nowhere near The Strip. Southwest and Northwest Las Vegas are escalating at astronomical rates and, literally, housing can not be built swiftly enough to handle our growth.

Housing

About 34% of the households in Las Vegas are rentals. You will locate an abundance of rental options through Las Vegas, ranging from apartments and condominiums to unique corporate housing to single-family properties. The typical apartment rent (for all apartments) is $738 with a vacancy charge of much less than 5%. Apartments provide some of the most effective lifestyles to Nevada residents. Apartments in Nevada are distinctive than most states. They are new, bigger than most and give all of the facilities that newer housing communities offer you. Several of the more recent communities provide 1, 2 and 3 bedroom units, with or with out garages.

Las Vegas authentic estate is nevertheless fair. It has enhanced significantly in excess of the past year, but continues to offer you some of the most economical housing in the region. Our diversity in housing selections make it easy for you to decide on from city houses to condominiums, gated residing to planned communities, superior rises to manufactured residences.The good quality of lifestyle in Las Vegas is typically far better than in most regions. Las Vegas provides top-notch physical exercise services, outstanding restaurants, the positive aspects of any other town, plus a lot additional. The common property owner is 22 a long time previous, so there is lots of option to advance in your occupation.

Wages

Nevada ranks in the upper 25 percentile of wages presented all the way through the United States. This coupled with our lower expense of living may make Nevada quite attractable to all pros. Some media outlets have talked about the lower degree of education in Las Vegas, but our common median income continues to topple most main markets.

Functioning in Las Vegas

Casinos are no lengthier just gaming they are enjoyment, dining, retail and hospitality. It also is residence to quite a few fiscal institutions these as Citibank, Family Credit Services and Initial Bank of Marin.