I too was once a beginner real estate investor. When I got started in real estate it was in Houston, Texas in the mid 1980′s. That town was experiencing what our country is experiencing today. Over one third of the houses were foreclosed on … at one time or another … property values had dropped. FHA and VA had large volumes of houses that were for sale. After those foreclosures the FHA and VA needed to get rid of them. They would list them in the paper for all to see and to go bid on them. They sold them using closed bids. They would open out of the bid offerings on a certain day and award sale to the highest bidder.It was a time when REO’s [REO stands for Real Estate Owned] were everywhere. It was the first time I understood short sale. When times are like they are now, it’s a good time to get out and make money. The real estate is there and the prices are good.Plus, in this business, you don’t always have to use your money. There is someone else out there who will partner with you. Sometimes they are Dentists, or Professionals who have take their money and have decided they want real good returns. They will partner with you for part of the profit. This is not a bad way to go because the money flows in. And the good news is no one is looking at your credit report. No one is looking at you. And no one is putting out a large loan on your credit to bring your scores down. That’s worth something in itself, not having to spend time filing papers for the bank or the mortgage company. There is no waiting for the money, it’s already available.There are plenty of people right now who understand a good deal when they see one. Everybody concentrates in the news about people being foreclosed on. They never talk about the fact that those same people need a place to live and are typically eager to rent a house that is in nice shape.And unless you are in Texas where Lease Options are against the law, you could probably do a Lease Option and structure it in such a way that when the market comes back up they could purchase the house that they are renting from you at a later date.I’ve found in the past that always makes for a better tenant that takes better care of my property. As a result my properties are more liquid when I need them to be. All in all, for us real estate investors, since we didn’t create this mess, and we are not responsible for the situation. So we feel real estate investors shouldn’t feel guilty when taking advantage of the mess that is in front of us.There are ways for us to help out. I know, in the news they are talking daily about how the Government intends to fix things and how the mortgage companies intend to fix things and help people out, but there are still going to be way to many people who need help. It is our job to get out and see what we can do to help them.
You had heard numerous times about a broker making hefty profit through a sale of just one property, and since then you had been considering those real estate opportunities.You just had to believe in yourself before you set out to try your hand in the volatile real estate market. Though, you may come across media reports, which says that real estate properties are crashing low, or they may perhaps, be a risky deal. But the fact remains that media reports shroud the truth.Foreclosure deals are best when prices run low; you have every chance to stash enough from buying low and selling high. The truth remains that real estate dealings need a hand of caution. You can’t buy any property lying out there and expect to make profits. You need to understand the facts that made investors profit, even in times of recession.Here are few tips you need to remember before you buy any property:
Never splash too much, if you look to purchase a property. Understand the market, you may sell or rent the property, and that would mean, you look to buy the existing property with a view to make investments. Calculate the repair costs and add them to the existing value of the property. Remember; never pay more that 65% of the final value, if you look to stash profits. You would also have to pay blanket costs of property’s holding and closing fee.
Never use your personal savings to invest in any real estate property. Find a lender who would lend you some cash. It’s not wise to block your own savings, as you may need the money to take care of any hidden buying costs.
Finally, hire a skilled team of workers to renovate your purchased property, rather than using your own amateurish brain to try a hand at renovating your house.