Archive for April, 2010

How to be a successful wholesale real estate investor

Wednesday, April 21st, 2010

Flipping houses (also known as wholesaling houses) is the quickest method to make cash in real estate investing. It is also the business model that needs little to no money invested.

You can make your money in just two to three weeks. - The profits may not be as big as other real estate investing business models, but you can generate a healthy income just by wholesaling houses. - On average, I take home $5000 to $10000 per deal, with very little effort and work.  You can do 3 to 5 wholesale deals a month part time.

Mainly you must identify good deals below market value and a real estate investor with cash.

I do not rehab anything when wholesaling houses; this is the work of the real estate investor that I flip the deal to.

To be successful as a real estate investor flipping houses, here are a few tips you must follow.

1) Buy at a price range comfortable to you
Most rehab real estate deals fall in the middle price range. - Where I live, this is generally below $150,000. - Some lenders only lend if you buy with defined price ranges.  By going too low, you could be targeting un-attractive neighborhoods.  Going too high can limit the number of buyers you have. It is necessary to have high speed for successful wholesale real estate investing.

2) Avoid wrong neighborhoods
Fairly-priced neighborhoods are most popular with most real estate investors. Notwithstanding the fact that lower prices are always better, most real estate investors would rather buy where they can rent them out easily. Wholesale real estate investing therefore requires you target good neighborhoods.

3) Estimate market value and rehab costs quickly and accurately
Repair estimate is a must when wholesaling houses.  Most are need of fixing up, so repair estimates must be included in the offer you make.  When buying wholesale houses, I buy below 65% of fair market value minus rehab costs. The lower my offer, the more my potential profits when I flip to other real estate investors.

4) Make good offers and buy right
 The most important part of real estate investing is making an offer. When flipping houses, you must make a profit and still leave a profit for the real estate investor buyer.

Obviously, as long as you know the estimated restoration costs and the after repair value after it is fixed up, you will be able to make an offer that both gets accepted and leaves enough cash on the table for both you and the wholesale real estate investor you flip the house to.

5) Get real estate investors who buy wholesale deals with cash
Once you have a contract to buy, you must get a wholesale buyer with cash who will fix it and sell, or hold it.  You must verify where the money is coming from before flipping your houses.  Money in the bank or credit line is always the best source of cash.  This way, you will sell your houses fast with few lending conditions.

 Most importantly, they must produce a sizable non-refundable earnest money before I can sign a contract.

6) Sell quickly
Once you have verified cash, you can close your deals with 2 to 3 weeks including time for title work.  The faster to can sell, the faster you make your money and move on to other deals.

Of course, i always run my business from my real estate investor web site that automates mosts tasks and generally cuts my workload to a bare minimum.

How To Attract Unlimited Real Estate Investing Cash From Private Money Investors

Wednesday, April 7th, 2010

Ability to attract private money from investors and lenders is a critical factor in the success of a real estate investing business.  With a ready supply of cheap money available even on short notice, you can close any deals necessary for the success of any real estate investing business. With private money the deals you like are funded, even with time constraints.  Here is how to attract unlimited cash for your real estate investing business.

By providing a website explicitly designed to attract and persuade private money lenders and potential investors that your business is the best to invest their money in is therefore mandatory.

But you must have the correct private money investor website in order to achieve this goal a website that is uncomplicated, professionally designed and laid out, and most importantly, one that leaves no doubt in potential private money investors’ minds that you are the best person they can invest their money with.

Identifying such a website is therefore vital. First, why should you have private money??

1) Does it make sense to you? It is funded!

Can you utilize standard funding for a deal with creative financing (such as taking over payments)? Even deals that can net you $100,000? Very fanciful!

No lender will lend you money unless it is a straight standard purchase; at least I do not know even one.

With a ready source of private money you can turn to in at a moment’s notice, you may transact all the real estate deals you can get; if you like it, you got it.

2) Close more transactions

With private money, you call the shots. Therefore you can do deals that other real estate investors would never carry out simply because you have money waiting from your private money lenders.

With private money  you can close on real estate deals any time, even with time limitations. Regular financial institutions generally take at least 30 days to fund a deal, and come with tons of under-writing conditions.

Hard money lenders lend only on real estate transactions under certain conditions (like 70% minus repairs) . Not one of the above conditions will appear in private money real estate loans.

3) Private money is less costly

Hard money loans normally cost about 16% interest or even more, often with points added. Ordinary lenders may not transact with you on deals that are not  traditional.

4) You need not risk your personal funds

Hard money sources demand  the first month  interest as well as additional points before. Hard money lenders will not advance rehab funds, so you need a good bank balance even for a small real estate deal.

Conservative lenders will ask for counterpart funds from you, most times about 10%-20% . Private money does not have those preconditions.

Real estate investor websites for attracting  private money

With a professional real estate investing private money lender website presenting you as a successful real estate investor, private money investors can trust you with their money. As a result, you can tap private money resources to finance your real estate deals others can only wish for.

With a professionally designed private money lender website purposely made to appeal to private money sources, you can interest them to fund your deals. You would, as a matter of course, will not desire to look careless especially to your prospective investors who will back up your business.

The private money lender web site should project you as an accomplished investor who is a leader in the real estate investing business. Your projected image should not leave any reservation in the private money sources’ minds that you can be trusted with their funds.

The content of the private money investor website should be professionally written to persuade private money lenders that you are the best real estate investor for their investment. It should also be fully optimized for search engines.

Choosing the appropriate private money lender  website to achieve this goal is thus a critical component of your real estate investing business.