Archive for July, 2008
Wednesday, July 30th, 2008
When considering which websites to trust, look for real estate websites that specialize in the type of investment you are interested in, are written by experts, and are recently updated. Understand where a website’s money comes from and evaluate its usefulness and accuracy with a critical eye.
There is certainly more than just one website for real estate investors, and in fact the many thousands of websites related to real estate investing can make it hard to determine which ones offer valuable information and which ones are worth bookmarking — and which ones are worth running away from. Here’s an easy checklist that can help you determine which sites merit your attention:
1) What’s the pitch? When you look at a real estate investment web site, consider what the main goal of the site is. Is it to sell you something? Is it to offer you lots of information? Is it to promote a specific service or product? There’s nothing wrong with web sites that are designed mainly for marketing purposes, but make sure that somewhere in the pitch there is some sort of benefit for you.
2) Where’s the money coming from? Most web sites aren’t charitable entities, but are meant to make someone some money. This is not a problem, but make sure that you understand where the money is coming from. Are ads being sold through the web site? Are you being pressured to buy something? Knowing where the money is coming from can help you determine the quality of the information. For example, if a web site exists mainly to garner traffic for adds, take a look at the articles and information being offered. If it is written mainly for search engines, it may not be as useful as you thought. On the other hand, if the web site exists to promote a service or product, a web site author might be giving away valuable chapters or pages of their book in order to get you to buy more.
3) What’s the specialty? A website for real estate investors is usually focused on one specialty. Even those web sites that address several types of investment generally focus on flipping, renting, or on another type of investment. Most of your time should be spent looking at and learning from web sites that address the particular type of investments you’re interested in making.
4) Who’s the author? If there is an author to the web site, check them out. Are they legitimate? Are they a person or company? Do they actually sell and invest in real estate themselves, or are they mainly peddling real estate related products, such as books and seminars? Ideally, get your information from people who actually know the field and who have years of experience in investing.
5) When was the site last updated? Recently updated sites are most useful, since they contain information that is relevant today. The real estate industry does change, and you want web sites that give you useful information in today’s market, not in the market that existed four years ago.
6) Is it a site other investors find useful? Talk to other investors to find out which web sites they use to find information. Chances are, these are the quality web sites that you want to visit yourself.
7) How accurate is the information? If you notice obvious errors or real estate misinformation on a website for real estate investors, run the other way. How can you trust any other information that you find in the same web site?
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Monday, July 28th, 2008
Residential real estate deals just aren’t bargains if you’re buying a property that is hard to rent. If you want to hold onto a property and find a tenant for it, finding a property that easily rents itself is essential. Even if you plan to flip the property, though, a highly rentable property is likely to sell quickly and is likely to appeal to a broader base of home buyers. In other words, if a homebuyer couldn’t rent a property, it’s unlikely they would actually buy it, either.
There are many ways to find out which residential real estate deals would make a great rentals, and therefore high-value properties all around:
1) Read classified ads – the rental section — to decide which types of properties and rentals are most available, and how much they are renting for throughout the year. Also, look for which types of features are highlighted in the ads. Do many of the classified ads mention “views,†for example, or a home office? These are likely to be the amenities that local renters are looking for. Look for properties that allow you to offer the same amenities or features to your own tenants.
2) Talk to property management companies and rental agents. These professionals can tell you what renters are looking for — and what sorts of rental properties go fastest.
3) Take a look at the neighborhood. Are there many students? Inexpensive accommodations may be most attractive. Are there many senior citizens? Floor level accommodations that don’t require long treks up flights of stairs are probably much appreciated. Take a look at your market for renters, and then figure out what type of rental property would most appeal to your market.
4) Look for properties that are close to amenities. No matter where you are renting, easy access to amenities such as shopping malls, health care, clinics, area attractions, schools, and other necessities is always in demand.
5) Look for properties that you can fix out or that already in good condition. No one wants to rent a poorly maintained home or a home with serious problems. Plus, if you do rent out a home that isn’t in shipshape, you could end up getting complaints from your tenants, or you could even end up in legal trouble, since many municipalities have laws about quality of living.
6) Look for zoning laws that allow you to rent. New developments often have restrictive rules, for example, that don’t allow for absentee landlords. Some historic properties also can’t be rented out. Make sure that you can rent if that’s what you want to do.
7) Find out how much particular residential real estate deals will cost in terms of homeowners insurance if you plan to rent. Then, talk with an accountant to make sure that the amount of money you can receive in rent will cover all your maintenance fees, management fees, taxes, and insurance while also leaving you with a healthy profit margin.
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Saturday, July 26th, 2008
Avoid making the common mistakes investors fall prey to when house flipping. Avoid buying the wrong house, not getting the right permits, and under-budgeting. Do not be caught unprepared and do not work with the wrong professionals or the wrong tools – unless you want to pay more for repairs.
Many investors who lose their shirts when flipping houses do so for entirely preventable reasons. In most cases, investors who run amuck do so because they make one of these mistakes:
1) They buy the wrong house. No matter what you do to a property on the inside or the outside, all the rehabbing in the world won’t help if the property is essentially not very attractive because of its location. Similarly, you won’t get the profit you deserve if you overpay for a property. Select carefully before you ever start thinking about the renovations you need to make.
2) They don’t get a permit for work. This can lead to expensive problems down the line, such as the city realizing you’ve had work done without a permit, and asking you to tear out the work completed.
3) Not creating a plan. If you don’t create a plan, you may realize only after the fact that the new titles you’ve laid have to be ripped up again in order to fix a faulty plumbing system. Figure out all the renovations you need to have done, and then figure out what needs to be done first. Then, work with a calendar to determine how long each repair will take.
4) Not having a realistic idea of costs. When flipping houses, you want to keep your renovation costs down, but the way to do that is not to underestimate your budget. Figure out how much your renovations will cost, and then triple that figure. That should live leave you with plenty of wiggle room.
5) Using the wrong schools or the wrong people. If you don’t know how to hang drywall, install a roof, or install a phone jack, hire someone else to do it. It sure beats shoddy workmanship or injury. Similarly, even if when you are working on a do-it-yourself project that you know how to tackle, don’t use a screwdriver when a hammer is required. Do things right or get out of the investment game.
6) Not planning for surprises. Once you’ve purchased a property, you may discover that you suddenly have a pest infestation, moisture problems, or bad wiring. Your contractor may be late or your supplier may take extra time getting materials to you. Pad your schedule and your budget so that when surprises happen they don’t cut into profits too deep.
7) Not getting a home inspection. Even if you think that you are a real estate expert, hire a licensed and accredited home inspector to take a look at the property. It could save you tens of thousands of dollars when you are flipping houses.
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and investment financing to accelerate your wealth.
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Thursday, July 24th, 2008
Learn from online marketers to create a stir about your real estate blog. Use headlines and titles that make reader look twice and use noticeable fonts and videos discriminately for emphasis. Market your blog by interacting with other bloggers and use special offers, charts and images to make your everyday real estate blog sparkle.
If you have a real estate blog, odds are you’re using that blog to make announcements about your business. For example, you could be using your online space to advertise your services, or to market a new property that you are selling or renting. Blogs are great way to generate a buzz, but only a few know how to use blog marketing correctly. Marketing experts suggest that you:
1) Use contrasting or startling headlines. Many people never read past the headline on a web site or blog, so make yours memorable. Rather than headlines or titles that read “house for sale,†for example, look for a way to describe your house in a way that is very eye-catching. You might have to play around with this for a bit, but it is well worth it. Consider using a strange fact, startling assertion, or a strange opinion – whatever it takes to get an Internet user to look twice.
2) Avoid making it just about your blog. Writing posts is just not enough. You also need to market your blog. You can do this by participating on forums and leaving comments on other blogs. You can also offer your articles as guest posts on other blogs. For example when visiting other blogs and real estate forums, stop and answer questions that you address in your blog. Give a quick opinion about the question being asked, and then just write “I actually wrote something about this on my blog recently. Here’s the URL…†It’s a simple but effective way to drive more traffic to your blog. Leaving comments on other blogs is also good strategy, because few bloggers can resist clicking over to see who left a comment. If you find bloggers writing about similar topics, ask whether they need a guest bloggers. It’s a simple way to post your article on a new webspace with new readers.
3) Use fonts and videos – carefully. Larger, brighter, and more colorful fonts capture the eye, but use them too often and they fade away. If you have something truly important to share — such as the new investment property to sell — then by all means use a larger than usual font and make it a bright color (just make sure that that color is dark and contrasts well with the background color of your blog). Similarly, feel free to upload a video of your virtual book property tour. The change in design will alert readers that you have something important to share. Just don’t overuse these design elements.
4) Use images and charts on your real estate blog. People often scan blogs, looking for interesting or relevant information. Images that capture the imagination — such as an attractive picture of a property — often causes viewers to stop and allows readers to catch a least a glimpse of your blog posts. Unlike fonts and videos, images and charts can be used liberally, just make sure that they are scaled down so they don’t affect download times.
5) Make offers on your blog. Every once in awhile, give away something to someone who makes the most comments on your real estate blog, or just to someone who’s randomly chosen from among your commenters. It’s an easy way to ensure that more people comment on your blog, return to your blog often, and generally interact more. This in turn drives up your traffic and ensures that more people are looking at what you have to offer.
“Want To Generate $5,000 or MORE in the next 7 Days Flipping Houses Online?â€
Click Here Now to Watch How Investors are Finding, Funding, and Flipping
Real Estate Deals Online at North Americas’ ONLY source connecting you to
residential real estate deals, private real estate investor partners,
and investment financing to accelerate your wealth.
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Tuesday, July 22nd, 2008
If you are interested in flipping houses, focus on low-cost changes in the bathrooms, kitchen, and living rooms. Make over your flooring with some low-cost tricks and you will find your low-cost renos can mean big profits.
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If you interested in house flipping, there are many things that you can learn from contractors. One of the things that you can best learn is how to create interiors that will make your house sell itself. Contractors often advise investors to:
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1) Focus on the kitchen. Homeowners spend most of their time in the kitchen, and it is one of first things in a house that homebuyers look for. Any appliances that are not white, black, ivory, or stainless steel should be replaced. Any appliances that look dated also have to go. It’s hard to create an attractive kitchen with these sorts of appliances in it. Luckily, you can often buy floor model appliances at big box stores and at factory outlets that are up to 60% or even 75% off the retail price. Almost every homebuyer will remember what the appliances in a house looked like, especially if those appliances make a bad impression. Spend time looking for used appliances if you have to, but make sure that they create a good memorable impression. If there are any sort of dated faucets or fixtures, replace them. It’s often something you can do yourself for well under $100. Cabinets are often a big stumbling block for investors, because many investors want to replace them entirely. Generally, if cabinets are in good condition and you are on a small budget, painting them white first is a good idea. A coat of paint can make a big difference, and once you see what the cabinets look like with a fresh coat of color, you may change your mind about having to replace the entire cabinet system.
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2) Make smart changes in the bathrooms. When house flipping, make sure that any bathrooms in an investment property are bright and clean. Get in there with a strong cleanser and a toothbrush if you have to. If the bathtub is in poor shape, you can often get it refinished or fitted with a kit rather than replaced entirely. Replacing the toilet seats, vanity, and shower curtain or door is often very expensive, can often be done in an afternoon, and makes a big difference in the bathroom.
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3) Take another look at the living room. Replacing door handles, doors, light fixtures, and electrical face plates are all low-cost but high value rehabilitations you can do to make over a room. Painting a room is the single best thing you can do completely renovate the living area. A ceiling fan in both the master bedroom and living room is a nice touch, and you can often find one for well under $100.
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4) Peek under the old carpets. If there is hardwood floor under there, remove all the carpets and restore the floors. Yes, it is a pain and it can cost some money, but being able to advertise hardwood floors is a big selling point when you are house flipping. In many cases, older hardwood floors are quite thick, so you can easily scrape off the top layer of paint and dirt, refinish the floors, and call it a day. In the bathrooms, linoleum or vinyl flooring is easy to clean and looks attractive. For bedrooms that don’t have hardwood flooring, look to factory outlets to find good deals on carpets.
“FREE Video Shows How Investors Are Flipping Houses Online for Profit Without Ownershipâ€
Click Here Now to Watch How Investors are Finding, Funding, and Flipping
Real Estate Deals Online at North Americas’ ONLY source connecting you to
residential real estate deals, private real estate investor partners,
and investment financing to accelerate your wealth.
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