News and Information For Buyers And Sellers Finding Motivated Sellers
Motivated sellers? My wife and I were trying
to keep the renters happy, the rent coming in and the house repaired
- while living 2100 miles away. You bet I was motivated. We just
sold our house last month, and even got a good price, but I'll
tell you a secret. We would have sold the place for... well I
don't want to stress out the buyer if he reads this. Let's just
say we would have sold it for much less.
There's your first clue on... (more) Buying Real Estate When It's Not
Buying real estate can start with a look
in the newspaper, a visit to a broker, or a search online. These
are all good ways to find your next investment property. You're
looking at the same properties as every other investor, of course,
so it's not always easy to beat the competition to a great buy.
A better way to find good real estate investments
is to look for properties that aren't yet for sale, and make
an offer. I bought my first home... (more) Rental Property Investment
Finding The Properties
Rental property investment starts with
finding the best deals. To do this, you can increase your odds
by finding more deals. Who's more likely to get a cheap apartment
building, an investor that looks through the MLS listings and
calls it a day, or the one that uses ten resources? Here are
1. Look in old papers to find "For
Rent" ads. Call if they are a few weeks old. The landlord
may be ready to sell, especially if he... (more) Offer Seller Financing To Make
An example of seller financing: Years ago
I bought a rental property, and nine months later sold it for
15% more, without fixing or improving a thing. The easy terms
are what sold it. I took $1000 down, and I still get a payment
every month, with 9% interest.
Four Reasons To Offer Seller Financing
1. To get a higher price. As you can see
from the example above, buyers pay for easy terms. From the buyers
perspective, he gets a place for almost... (more) How To Sell On Lease Option
When you sell on a lease option basis,
you generally get to collect higher rent, and sell at a higher
price. Then, if the buyer doesn't exercise the option you may
be able to keep the deposit and sell the home for even more.
The downside? Bookkeeping can tricky, and many tenants don't
complete the purchase (this can be an advantage actually, but
it does mean more work for you).
There are many potential buyers out there
who can't buy at... (more) Ten Creative Financing Techniques
Do all the creative financing techniques
you hear about really work? Yes, actually. They probably have
all worked somewhere for someone at least once. The point isn't
if they will all work for you. The point is to know what is possible,
so you can find your own creative ways to invest in real estate.
Here are ten methods to get you thinking.
1. Hard money lenders. You can ask around
or find these online. They specialize in short-term loans at
... (more) Rental Management - Do Your Own?
Rental management fees vary around the
country, and according to the property type. They can be as low
as 4% of the gross rents for large properties, to as high as
12% for single family homes. Managing your rental properties
yourself can theoretically save you a lot of money, especially
if you own a collection of single family rental homes.
Should you do it yourself, then? That depends
on the property, and on your own long term goals. Let's look
... (more) Get A Higher Price For Your Income
Selling income property isn't like selling
a house. You can paint a house, and get a little more because
it looks nice. Rental property is different, because it's bought
by investors, who look at income more than new paint. Raise income,
and you increase value.
Let's assume investors in your area expect
a capitalization rate of .08. That means that they want a net
return (before loan payments and taxes) of 8% on the purchase
price. If... (more)