Making Real Estate Money-Brief Assessment of Pre-Foreclosure Real Estate Buying Strategies

In this current economic condition, the demand for a creative real estate investor who knows and understands the different strategies and options available to distressed homeowners is at an all-time high. While this next decade will bring more economic hardship to more Americans than any other time in our nation's history, it will also provide more millionaire opportunities for those investors who are able to invest in the knowledge and take action.

Here is a brief summary of the myriad purchase strategies most successful real estate investors employ to distinguish our purchase process from that of realtors.

Wholesale (30%+ Equity)

A wholesale purchase is loosely defined as a property that can be purchased at greater than 30% discount to after-repaired value (ARV). Properties in this category generally require extensive rehabilitation in order to present them to retail buyers via the Multiple Listing Service (MLS). The typical seller does not have the time, money, or inclination to take on an extensive rehabilitation project. Consequently, investors add a significant amount of value by purchasing the property at wholesale cost and engaging the services of a contractor to present the property for sale at a later date. Television programs like, "Flip This House" glamorize this process and make it seem rather easy. The truth of the matter is that transaction and carrying costs need to be carefully accounted for. Care should also be taken to engage competent contractors that have a vested interest in pleasing their clients because they will earn return business if they do so. A wholesale purchase allows investors to engage competent professionals and relieves homeowners of the financial and time burden of having to keep property that is a burden on them.

Fix and Flip

Buying a property well below market value, making repairs, and selling conventionally to an end buyer is generally known as a fix and flip strategy and is one of the most common ways real estate investors begin their career. The goal of a general fix and flip is to put as little time and capital investment as possible into the property and resell as quickly as possible at the low end of the market. For many handymen and tradesman, this strategy is the next logical progression of their careers.

However, this transition is not quite as simple and glamorous as TV shows may indicate, and a good portion of reason for the success and failure of a fix and flip is not shown on TV. Therefore, the purpose of the fix and flip chapter will not be to provide advice on how to purchase the lowest priced lumber or negotiate paint gallon prices, rather the goal will be to identify your team and skill sets and determine how to find and analyze successful fix and flip opportunities, and the financial aspects of running a fix and flip company.

Short Sale (-10 - Equity)

A short sale is a purchase strategy where a professional investor engages the seller's lender to discount their lien on the property in order to get it to sell. There is generally some form of financial hardship that accompanies a successful short sale, like medical problems, death of a family member without life insurance, job loss, etc. Whatever the underlying cause, a homeowner generally needs to be able to demonstrate a hardship to the lender in order for them to agree to a short sale.

In order for lenders to justify discounting their notes a property generally needs to be "upside down," or have a negative equity position. Short sales are particularly successful when there is a 2nd mortgage on the property that is likely to be wiped off the books entirely via a foreclosure sale.

The main benefits to a short sale versus a foreclosure to a homeowner is less long term damage to credit score and opportunity to negotiate for the satisfaction of the loan (no deficiency judgment). Also inform sellers of their rights under The Debt Forgiveness Act of 2007, so that they are not sent a 1099 by the government for debt that is forgiven.

Subject-to (0% - 30% Equity)

Subject-to purchases generally involve a considerable amount of paperwork and are often misunderstood by sellers and many investors. The simplest way to think of a subject-to purchase is to recall the time when notes were fully assumable. Legislation was later passed to discourage or virtually eliminate assumptions so the modern day assumption analog is to purchase properties subject-to. The deed for a property and the financing for a property are two completely separate documents. Purchasing a property subject-to simply means that you take ownership by taking the deed subject-to the existing financing remaining in place. The distinction between a formal assumption and a subject-to purchase is that the lender for the property does not have to "sign off" on the transaction.

Selling a property subject-to generally benefits sellers financially. Transaction and holding costs eat through any notional equity that sellers will be left with when they sell. Realtors conveniently avoid discussing this with sellers when they arrive at their house to get a listing agreement signed. Our goal as investors is to give you the same amount of money you would get if you marketed, listed, and sold the house with a realtor. The primary value that we add is giving you this same amount of equity and completing the transaction in 5-7 days instead of the months of work and worry that are created using the traditional sales process.

A subject-to purchase is typically used when there is good financing on a property relative to the current market interest rates or the possibility of executing a load modification to make the financing favorable. Properties are typically purchased at less than a 20% discount to after-repair value (ARV), which equates to around the same net sale proceeds using the traditional realtor process. If loans are delinquent or small repairs are needed the investor will pick up the tab along with the minor transaction costs for title insurance and escrow fees.

Contract Assignment (-5% - 10% Equity)

A Contract Assignment (CA) purchase strategy is generally used for properties where the debt is relatively high as compared with the market value of the property. Properties that have between 10% and -10% equity generally fit into this category. This purchase strategy is similar to subject-to described above in many respects. The distinction is that the original seller agrees to take the financial burden of making mortgage payments going forward instead of the investor agreeing to do so. Financial gains from the transaction are also borne by the seller. The investor shows the seller how to execute this type of transaction and assigns the contract to a new buyer.

The primary source of value for the seller in this type of transaction is that it opens the buyer pool up significantly. Instead of having to market the property to a cash buyer that has a sufficient down payment and credit rating to purchase with third party financing the seller can finance the transaction with the help of an investor professional. Sellers are also relieved of having to bring cash to closings to fund transaction and holding costs implicit to the traditional sales process

The more you learn about creative ways to buy and sell properties, the more opportunities you will have for wealth. As Sophocles once said, "Wisdom outweighs any wealth." There has never been, nor will there ever be, a better time in America to take action in real estate!

Tom Bukacek is a real estate investor specializing in pre NODs in Austin, TX, and Phoenix, AZ, and is working on his first book, tentatively titled 'The Real Estate Millionaire Blueprint', due out later this summer. Tom is also the Marketing Director for the Entrepreneurs Incubator, a company dedicated to providing real estate investors with turn key marketing solutions and processes. Visithttp://www.entrepreneurs-incubator.com for more information. Article Source: http://EzineArticles.com/?expert=Tom_Bukacek

Making Real Estate Money-How Investors Can Benefit from a Real Estate License

If you could easily and cheaply acquire a tool to turbo blast your real estate investing career, wouldn't you do it? 

I started investing in real estate about 10 years ago. I found an agent who was willing to comb the MLS listings everyday, set up showings for me to view properties, and work for very little commissions from my low-ball offers. And I thought that worked out all right. 

But I soon came to realize that I was depending on someone else to be on the look out to scoop up the good deals as soon as they hit the market. Now my agent was good, but why was I depending on someone else in my quest for real estate wealth? 

Good question. And besides, a smart agent would probably keep the best deals to herself--I would! So, I decided to get a license myself. It is fairly easy, relatively cheap, and requires very little time. I did four weekends a month, while I was still working my full-time job, or "trading my precious hours for dollars" as I call it. 

Doctors need at least 10 or 12 years of education and training and usually start their practices owing hundreds of thousands in student loans. Lawyers must go to school at least 7 years. 

But you, a real estate investor, can get a real estate license in a little more than a month with about a $1,000 investment. Now you may not make what a doctor or lawyers makes. Then again, maybe you can. But the initial investment is a whole lot more enticing! 

With a real estate license, I was able to unearth some very goodcreative financing deals that netted me at least $500 per month in cash flow. I also got a property management contract from an investor in California. 

I had made an offer to lease option their apartment complex. They did not accept, but in the course of the conversation they expressed that they were very dissatisfied with their local property manager. Ding, ding, ding, I am a property manager. 

I had never managed anyone else's property, but I had managed my own, and that qualified me as a property manager. I told her, "Hey, I do that, too." So we got a lucrative contract managing their properties. 

We also made money rehabbing their properties, and we made more money (real estate commission) when I sold them another property, which of course, I will make more money at managing their new property. See how it all fits so beautifully together. But the license was the key, that started the whole thing. 

What does a real estate license do for you? Most importantly, it gives you access to the MLS. Not only can you find out what is currently available, you can find out information about properties listed in the past, the expireds, the withdrawns, and the solds. This gives you the permanent parcel number, important when you are doing research on potential deals. 

The active listings are really the easiest way to find investment deals and the most prolific. You may think that the MLS lists only the "nice" and "pretty" properties. Not so. The repos, fixer-uppers, estate sales, short sales, and the plain, old junkers are almost always listed on the MLS. 

And part of the property information contained in the MLS listing is the method of purchase, such as cash, conventional, FHA, and VA. 

However, now more than ever, due to the crisis in the housing industry, (always the best time to buy investments) many listings are being offered on land contract, lease option, or some other form of creative financing. Made to order for the serious investor. Is that you? 

OK, now you have access to the MLS. What else can a license do for you? Well how about legitimizing yourself? You have put yourself out there as an expert. The premise of Real Estate Investing 101 is the market value of a property--the "comps." Hey, you have access to the "comps." Kind of gives you an advantage doesn't it? 

As a real estate agent, you are out there moving around in the circles that will naturally spawn more opportunities for the smart investor. You are a "Player." 

You will be surprised at all the paths of opportunity that open up for you when you have that valuable tool, a real estate license. That license will take you places you never even thought of. It will change your future, it changed mine. Please email me atdianeleeprice@msn.com. I will be glad to answer any questions. 

Making Real Estate Money-No Money Down

Why You MUST Learn to Buy with No Money Down by David Finkel

It surprises many beginning real estate investors when I recommend  they get started investing without using their own money. They  find it hard to believe that sometimes having money can be  detrimental to learning to be the best real estate investor you can  be. It's just that I've seen money used as a crutch to make marginal  deals go through. I know I've been guilty of getting lazy and  throwing money into a deal where a little more imagination and  prudent negotiation would have served me better. With an open  mind and the right education, no money can be a force to push  you to be a faster, more creative, and more skilled investor. You'd be surprised how fast you can pour your liquid cash reserves  into real estate. I've watched traditional investors pour over  $1 million into several deals in a matter of months, then have  to wait until those properties sold before they could free up  enough of their money to go out and buy more properties. You'll never regret learning to buy with no money. It will make  you a much more savvy investor for those times you do decide  to use your own money or conventional financing. Money is never the issue when buying a property Many investors think that money (or lack of money) is what stops them from closing a deal. This MYTH is one of the most  limiting things that holds some investors back. Understand that money is NEVER an issue—IF the deal is right. Say the following words to yourself over and over: "If the deal is right, I will find the money!" If there is a deal there you can and will find the funding. The key is that the deal MUST be right. That means for a cash deal  (usually the kind where investors think they haven't got the  cash to do the deal) that you need the right price. This means a price at MOST 70% of the conservative "as is" value  LESS any needed repairs. This means you have to go in at 29.95% to leave yourself room to negotiate if you need to. This kills many  deals. That's okay. The ones you want will work out. And you will find a way to fund them. How do I get the money to fund the deals? Okay, so you've got yourself a signed contract on a great cash deal.  Now you need to find the funding. Again, the key is that the deal is  conservatively very profitable and will make you money even if you  made a few mistakes. Here are several sources you can use to make that deal a go: Use the seller's existing financing for part of the purchase price. Buying "subject to" you only have to fund the money for the  seller's equity! Get a cash buyer at 90% of value and do a simultaneous close  or flip your deal to the buyer for a cash assignment fee Sell your contract to another investor, again for a cash assign- ment fee. Borrow the money from a private party lender at an interest rate  3% to 5% higher than a bank CD and secured by a first mortgage Borrow the money from a hard money lender Tap into a home equity or other line of credit Refinance another property to get your down payment and borrow  the balance from a lender Bring in money partners to fund the deal. (They get depreciation and you control deal. They secure themselves with a first mortgage for the amount they have in, or if they finance it, they can lock in a second mortgage to protect themselves. You agree they get their entire principal back PLUS 15% before you split any profits from the resale of the property. You split profit 25% to 50% to them, the rest you.) I think you get the idea here… The key is that if the deal is right, you WILL find the money. Never lose sight of that. The only two reasons why this wouldn't be the case are fear and ignorance. About the author... David Finkel is an ex-Olympic level athlete turned real estate millionaire and one of the leading investing experts in the nation. He is a Wall Street Journal and Business Week best-selling author of over 40 business and investing books and courses, including the wildly successful, Real Estate Fast-Track and The Maui Millionaires. His website,  www.MauiMillionaires.com, is a popular site for investors and entrepreneurs on the web and has dozens of free wealth tools and ebooks.

Making Real Estate Money-California Real Estate Investments

Planting California real estate investments today is a wise idea for those who want to quickly reap the harvest of what they sowed. California is not only good for Sunkist oranges, it’s also home to a very lucrative real estate market. It is up to you if you will scatter “seeds” in this farm. Here are two of “fast harvest” investing methods in California today.

The first is wholesaling houses. This is much like plant and harvest. That’s because California real estate investments are wholesaled fast and fast can be a few days. Reading this maybe contrary to the popular method of buying and holding real estate properties, but it is true. You can make money even just be quickly reselling properties, which is the basic premise of wholesaling and short-term real estate investing in general.

In this business, you will need to look for two things: sellers and buyers. You will serve as the bridge between the two parties. As a wholesaler, it is your duty to ensure that a seller is able to sell his property and a buyer is able to buy it. But if you think you need huge money to start in this business, you’re wrong. All you’ll need is enough money to convince sellers to place their property under contract. They will need a small deposit from you. Sometimes it could be as little as $10. Then, you will assign that contract to the buyer. The holder of the contract will have the right to buy the property. Since the buyer will need the contract, he will pay you a small amount for it. A small assignment fee in a state like California is probably at least $5,000.

The other method of planting California real estate investments fast is called rehabbing. This method is similar to plan-water-harvest. You will need to “grow” the house a bit before reselling it. By watering, it means improving the condition of the property. So to rehab houses, you will need to buy rundown properties at bargain prices. Then, you will spend some money to improve their condition. You will then resell them and cash you pay check. This method can last from a few weeks to a few months, depending on how fast you work.

To learn more about these “planting” methods, go to REIWired.com right now. The website has informational content about real estate investing in California and other parts of the country.

Making Real Estate Money-Flipping Houses

It’s hοnеѕtƖу common tο hear аbουt people whο mаԁе thеіr fortune аt thе stock market. Bυt, уου аƖѕο hear аbουt people whο fіnіѕhеԁ up losing everything, fiddling іn stocks. One hardly hears аbουt real-estate agent investors whο wеnt bankrupt, thеrе’s a simple reason fοr іt аnԁ thаt іѕ іt doesn’t happen. Those whο invested іn real estate many years ago аrе leading a comfortable lifestyle. Real estate іѕ аn diligence whісh саn bе guaranteed tο garner pretty ехсеƖƖеnt returns.

Things tο consider: Thеrе аrе a few vital lessons whісh уου need tο keep іn mind, number one іѕ tο ɡеt a ехсеƖƖеnt insurance. Mаkе sure уουr asset іѕ fully insured, including thе extras Ɩіkе tenant hυrt аnԁ loss οf rental income. Bе warned though, don’t under insure thе house, іn case уουr house burns down, аnԁ thеrе іѕ a suspicion οf arson, thе company wіƖƖ conduct thеіr οwn investigation аnԁ wіƖƖ really charge уου fοr thе privilege! Sο read thе fine print carefully previous tο deciding οn уουr agency.

Flipping: “Flipping Houses” investment іѕ thе latest fad іn real estate investment, flipping homes іѕ nοt exactly аbουt passive income аѕ many people assume іt tο bе. It’s аbουt qυісk, wholesale flips аt minimal risk аnԁ cash outlay. Flipping houses іѕ a relatively low risk proposition аnԁ wіƖƖ boost уουr income qυісkеr thаn anything еƖѕе. Bυt, thеу hаνе come under scrutiny wіth many agents being jailed fοr flipping houses. Real estate flipping іѕ реrfесtƖу legal, free exchange οf goods аnԁ services fοr valuable considerations. It’s whеn loan flipping іѕ mixed wіth mortgage fraud thаt іt becomes illegal, thе media іn аƖƖ іtѕ glorious ignorance hаѕ sort οf latched onto thе term “flipping” аѕ thе key word іn describing thеѕе scams.

Controlling cash flow: Thе best way tο determine thе market value οf a property іѕ bу investigating thе sale prices οf nearby properties. Tax laws mау change ѕο don’t try tο foot уουr tax investments based οnƖу οn current tax laws. Real estate іѕ a varied field; try tο сhοοѕе thе area іn whісh уου feel comfortable. Yου саn еіthеr focus οn low down payment, fixer-uppers, condominiums, smaller apartments οr foreclosures. If уου аrе renting out, gather information regarding уουr tenants аnԁ thе mοѕt vital thing іѕ tο collect thе security deposit whіƖе closing. Bе wary οn unenthusiastic cash flow, properties whісh eats іntο уουr cash аnԁ whісh саn wreck уου financially аnԁ emotionally. Always scrutinize thе property previous tο investing, іf looked-fοr hire professional inspectors tο examine thе property. Dο уουr οwn research , thе agent mіɡht ѕhοw уου thе akin rates thus mаkіnɡ thе property look valuable, search MLS listings tο ɡеt a better thουɡht.

Mοѕt importantly, a real estate investor mυѕt learn tο emotionally detach himself frοm money. Thе attachment tο money brings οn a level οf ԁrеаԁ whісh restrains thеm frοm taking risks. Lіkе аnу business, іt іѕ possible thаt уου mау lose money along thе way, іn thе real estate business. An emotional attachment tο money сουƖԁ cloud уουr perspective аnԁ ultimately уουr сhοісе mаkіnɡ ability.

Brad Wozny іѕ a real estate investing expert. Lеt Brad ѕhοw уου hοw tο connect wіth kееn real estate investor buyers & sellers οf INVESTMENT properties. Access private money & creative lending resources. Claim уουr FREE Strategic Investment Manifesto аnԁ Download уουr 2 FREE real estate investing mp3 case studies аt http://www.instantrealestatesolutions.com .

Making Real Estate Money-Innovation

Innovative Real Estate Investing


In order to buy and sell Real Estate most states require that an applicant take a minimum number of classes before taking the state licensing exam.

Real estate brokers and their agents typically do not provide title service such as title search or title insurance and do not conduct surveys or formal appraisals of the property such as those required by lenders. Further, they do not act as lawyers for the parties, although they may “coordinate” these activities with the appropriate specialists.

The good news is that there is a way for you to buy and sell Real Estate without becoming a licensed real estate agent or Broker. This would include but would not be limited to Real Estate Foreclosures.

Real Estate Foreclosures is one of the HOTTEST INCOME producing streams of all time using LITTLE or NO MONEY of your own. One market in particular is tax sales. Real Estate agents won’t tell you about tax sales because they earn no commissions on these properties. Real Estate Tax Sales are a little known but potentially lucrative way to expand your portfolio.

John Beck’s proven Amazing Profits tax deed and tax lien education teaches people how to buy properties for just pennies on the dollar. The Free and Clear Program Course is a must have for anyone looking to get ahead in real estate investing. John Beck is a guaranteed name for real estate business consultancy.

His program is primarily advertised via infomercials and primarily runs on late night and cable channels in the United States and Canada. You have no doubt seen his late night infomercials!

On his infomercials he repeatedly holds up color photos of houses and states the price at which they sold via delinquent-property-tax procedures. He is well known for his expertise in the real estate business.

He has also been a real estate broker, syndicator and real estate consultant who has been listed in Who’s Who in Creative Real Estate. He is a much sought after speaker who regularly conducts real estate investment seminars in both Northern and Southern California and who has spoken extensively throughout the United States and has appeared on numerous radio and television shows as a guest expert on foreclosures.

John Beck is constantly sifting through the tax lien and foreclosure information on the Internet to find the most valuable and profitable research available which he puts on his site as a benefit to his students.

John Beck’s unique system of researching tax lien and tax foreclosure properties and his long history of studying the foreclosure market gives him insights into properties that others simply do not have and cannot provide.

His proven tax lien and tax deed system teaches you exactly how to get your share of the profits this section of the real estate market represents and again, you don’t even need to get a real estate license.

The course has a lot to offer to those who come with the pure intentions of growing their business community. John Beck’s, Buy Real Estate Free and Clear for Pennies on the Dollar is a popular website and TV campaign that basically advocates purchasing taxed out properties. He shows you how real estate investors can profit from his free and clear real estate system.

John Beck has personally attended thousands of tax auctions around the country and has personally invested in nearly every state. His current experience and his vast knowledge of the tax foreclosure and tax lien market has been developed into an easy-to-read format to make it easy for you to learn John Beck’s incredible method of finding, buying and profiting from tax auctioned properties you buy for just pennies on the dollar.

He has been working with real estate for over 20 years and has helped many people just like you accumulate wealth through real estate investment.

John Beck’s Property Vault tool has been designed to make finding deals like this easy because you can download the information in Excel format making it a snap to screen for the best deals matching your investment criteria.

John Beck’s Amazing Profits Tax Deed and Tax Lien Real Estate Investment System has been created to make it easy to understand what to do in real estate to make big money now. He continues to make unbelievable tools available to his students that makes it even easier to find profits in your investing today.order to buy and sell Real Estate most states require that an applicant take a minimum number of classes before taking the state licensing exam.

Real estate brokers and their agents typically do not provide title service such as title search or title insurance and do not conduct surveys or formal appraisals of the property such as those required by lenders. Further, they do not act as lawyers for the parties, although they may “coordinate” these activities with the appropriate specialists.

The good news is that there is a way for you to buy and sell Real Estate without becoming a licensed real estate agent or Broker. This would include but would not be limited to Real Estate Foreclosures.

Real Estate Foreclosures is one of the HOTTEST INCOME producing streams of all time using LITTLE or NO MONEY of your own. One market in particular is tax sales. Real Estate agents won’t tell you about tax sales because they earn no commissions on these properties. Real Estate Tax Sales are a little known but potentially lucrative way to expand your portfolio.

John Beck’s proven Amazing Profits tax deed and tax lien education teaches people how to buy properties for just pennies on the dollar. The Free and Clear Program Course is a must have for anyone looking to get ahead in real estate investing. John Beck is a guaranteed name for real estate business consultancy.

His program is primarily advertised via infomercials and primarily runs on late night and cable channels in the United States and Canada. You have no doubt seen his late night infomercials!

On his infomercials he repeatedly holds up color photos of houses and states the price at which they sold via delinquent-property-tax procedures. He is well known for his expertise in the real estate business.

He has also been a real estate broker, syndicator and real estate consultant who has been listed in Who’s Who in Creative Real Estate. He is a much sought after speaker who regularly conducts real estate investment seminars in both Northern and Southern California and who has spoken extensively throughout the United States and has appeared on numerous radio and television shows as a guest expert on foreclosures.

John Beck is constantly sifting through the tax lien and foreclosure information on the Internet to find the most valuable and profitable research available which he puts on his site as a benefit to his students.

John Beck’s unique system of researching tax lien and tax foreclosure properties and his long history of studying the foreclosure market gives him insights into properties that others simply do not have and cannot provide.

His proven tax lien and tax deed system teaches you exactly how to get your share of the profits this section of the real estate market represents and again, you don’t even need to get a real estate license.

The course has a lot to offer to those who come with the pure intentions of growing their business community. John Beck’s, Buy Real Estate Free and Clear for Pennies on the Dollar is a popular website and TV campaign that basically advocates purchasing taxed out properties. He shows you how real estate investors can profit from his free and clear real estate system.

John Beck has personally attended thousands of tax auctions around the country and has personally invested in nearly every state. His current experience and his vast knowledge of the tax foreclosure and tax lien market has been developed into an easy-to-read format to make it easy for you to learn John Beck’s incredible method of finding, buying and profiting from tax auctioned properties you buy for just pennies on the dollar.

He has been working with real estate for over 20 years and has helped many people just like you accumulate wealth through real estate investment.

John Beck’s Property Vault tool has been designed to make finding deals like this easy because you can download the information in Excel format making it a snap to screen for the best deals matching your investment criteria.

John Beck’s Amazing Profits Tax Deed and Tax Lien Real Estate Investment System has been created to make it easy to understand what to do in real estate to make big money now. He continues to make unbelievable tools available to his students that makes it even easier to find profits in your investing today.