Real Estate Investing: “It’s a Man’s World?”

Time and time again, we have all heard it before, the old saying, “It’s a man’s world.”  But these days, you have to ask yourself the question, “Is it really still only a man’s world?”  As the economy is evolving and technology is improving, so are the roles of women in the work force and the in business arena.  Women are increasingly taking a more active role both on their careers and their finances.  The number of women CEOs is consistently growing.  Thirty percent of the CEOs in non-profit organizations are female and there is an increasing number of women CEOs in other fields including health care, legal services, finance, and real estate.

Strong females are taking a more dominant role in business, politics, and finances.  The old cliché of it being a man’s world that we live in will be just a memory sooner than later.  It is a common misconception and also an overused excuse that females are not as good with finances and/or investing as their male counterparts.  For these reasons, women are often less confident with their skills in making investments and achieving financial freedom.

Fear is also a factor when considering making an investment or purchasing property.  This fear factor often deters women from wrestling with the investment animal.  Women seem to shy away from the “risk” of investing because they fear they will lose their money or become financially unstable.

In more recent years there has been a general progression of empowerment in regards to women.   The roles of women in society are changing and so are their levels of confidence and fear.  A heightened level of confidence and lower level of fear combined with other key ingredients such the major advances in technology, internet opportunities, and greater knowledge of the business and real estate industries is an inevitable recipe for success for the women who are willing to delve into these arenas.

More and more people are turning to real estate due to the instability of corporate America or just because they want a piece of the action.  Real estate investing, as with any business venture always involves risk.  This risk should not dishearten anyone looking to invest.  Getting started is probably the most difficult task of all.  Anyone hungry enough to jump into the real estate market should form a personal real estate strategy, which is based on how much time and money he/she is really willing to spend.

Doing your homework is key for any savvy investor.  As mentioned before, the internet is an excellent resource for gaining knowledge on the real estate market.  There are much more opportunities for women in real estate than there have ever been before.  Real estate investment clubs are available that offer women the education, networking opportunities, and contacts that are essential to achieving success.  For example, the National Real Estate Investment Association (NREIA) has over forty thousand members and two hundred REIA chapters nationwide. These clubs offer women the ability to put their finger on the pulse of the market and allows them to receive up to date information on not only the real estate market but also the law.

Other organizations that offer insight via the information super highway include MeetUp.com, where women share information with other women and Wisewomeninvestor.com which offers free financial information on a variety of topics and also hosts a blog talk radio show.  Also, the National Association of Women Business Owners (NAWBO), which offers a general business perspective is a good resource.   Learning and working with other women provides a great benefit and advantage to females in the market.

In addition to acquiring knowledge through the internet, women can also learn do-it-yourself basics from local hardware stores that offer such courses.  Knowing these basics can only be beneficial when seeking to purchase a home or property.  Knowledge is power, and the more you know about housing essentials such as plumbing, construction, flooring, and electrical wiring, the better.  Not to mention, that it would be more cost effective and could save you money in the long run.

Once a strategy is in place and knowledge and research about the market has been done, taking action is the next step.

Women are naturally the more relationship oriented of the sexes.  As nurturers, they have a tendency to establish relationships more easily than men.  This can be used to their advantage, as building and maintaining relationships is critical whether it be personal or in business.

In order to move forward with taking action, you must begin by deciding what type of financing will be incorporated in the investment.  There are a variety of methods available to the investor.  The traditional method of financing involves getting financed through banks, credit unions, or home mortgage companies.  It also usually requires about ten percent of the purchase price as a down payment and a credit score of about six hundred eighty.

Jeff Adams Real Estate Investing: Why Wholesaling?

The business of wholesaling is not just a trend in the real estate market. It is progressively gaining momentum and popularity with both new and old investors in the market. Investing is foreclosures offers quick deals for quick profits. The basic idea is get in, get out, and get paid.

Because it offers many advantages to the wholesaler, this type of investment is very attractive. No license is needed so just about anyone can do it, it involves a quick turn around time, and it gives the investor more personal time. Investing in properties that have been foreclosed upon also has unique criteria. It is much targeted and works in every market. It also has the built in problems of the homeowner losing the house and the bank wanting to get rid of it which gives an investor an advantage.

By definition, real estate wholesaling is the entering of a contractual agreement with another party for the purpose of purchasing property, and then assigning your interest in that contract to another investor for compensation.

The actual process of foreclosure varies depending whether a state is judicial or non judicial. The former requiring legal action and the latter not deeming it necessary. In non judicial states, the borrower can grant the power of sale directly to the lender. After a borrower fails to make several payments on a loan, a lender files a Notice of Default (NOD) and the foreclosure process is put into effect. After about three months, the lender files a Notice of Sale (NOS). The house is now in control of the bank or Real Estate Owned (REO) for twenty one days until the actual foreclosure sale.

As with any investment or business venture there are pros and cons when investing in a foreclosure. When buying foreclosure properties, a real estate investor can either approach the homeowner directly, purchase the house at a public auction, or buy it from the bank. Approaching the homeowner gives you the ability to negotiate terms and offers huge margins for profit, but there are title, liability, and legal issues involved.

Public auctions give an investor huge margins for profit but an investor has needs to make the purchase with all cash and usually there has not been an inspection and at times an eviction prior to the auction. Buying from the bank may not offer as much of a profit margin and or terms to negotiate, but it does offer the investor a sense of relief because the house has been subject to a full inspection and there is no title issues assignment.

Often times, foreclosed houses never make it to the public auction. This partly because homeowners have a variety of options they can use save their homes before they are sold publically. An investor could have made them an offer, any bank could refinance their loan, they could sell it with a realtor, or they could take out a second mortgage.

Once you have made an offer on a house and it has been accepted, you can proceed to write the offer with you as the Trustee, with the exact vesting to be determined. The terms and conditions of the purchase and sales agreements are understood and agreed upon by both parties and signed, and ownership of the property belongs to you. The next plan of action is finding a buyer to purchase your vested interest in the contract.

Banks usually have a “No Assignment” clause but there are ways of getting around it, so that you technically never receive title of the house. Using a land trust is one such way. A land trust is a contractual agreement between two consenting parties. The agreement is between the party that creates the trust and the party that agrees to hold title to the trust. The grantor of the trust can also be the beneficiary, which gets full rights and benefits of the property. The trustee on the other hand is just the name on the trust agreement and therefore does not have title to the property.

After this has been established, it is time to refer to your buyers list to find an aggressive real estate investor that is eager to purchase your interest in the contract. When you find an interested buyer you can make an agreement between the two of you, as trustee and buyer where you give one hundred percent assignment to your buyer. If there is an HOA, it needs to be made aware of the assignment to the buyer.

Your buyer can then wire the money and the deal closes with you as the trustee and since your buyer owns the trust, he/she is protected. When this transaction is completed, you can proceed to deed the property from the trust to your buyer. This in turn terminates the trust agreement and you are free and clear. The deal is complete and you can advance to the next deal that is just waiting for you to be found.

Overcoming Obstacles and Looking Towards a Brighter Tomorrow

Chances are that you have heard the phrase, “What doesn’t kill you, makes you stronger.” This statement holds values in all areas of life including business. Each and every an opportunity that may present itself, especially in areas that possess a high level of risk such as investing in real estate, has both the good and negative elements within it. It is very rare to find a situation that just so smoothly, without a hitch, completely one hundred percent.

As long as an individual views the whole situation as an opportunity, it will without a doubt prove to be a priceless. Whether it ends up being a trial and error learning experience or a successful venture, the one that grasps the opportunity is always the winner in the end. Adapting to and overcoming obstacles is what makes us stronger and wiser both in our personal lives and in business. How you choose to deal with your particular situation will ultimately dictate your particular outcome.

Have you ever asked yourself the question, “What if I had just only…?” Chances are you have. At times you may believe that your life, financial situation included, would be completely different…and you are probably right. But since we do not have a crystal ball or the ability to see our future, no one can truly say that his/her life would be better or worse had a different route been taken.

But, with the real estate market as it is today, even if you did have a way of for seeing the future, there is a high probability that you would tell yourself that now is the best time to make a commitment and invest in a home or property.

Dwelling on the past can only hinder your growth in the future. The old cliché, “When one door closes, another opens,” offers a lot of insight. As far as real estate is concerned, as is much the case with most businesses, an aggressive investor would not wait for the next door to open; they would take the initiative and go through a window if they had to.

It is all about your perspective. First and foremost, you need to figure out exactly what you want before you can proceed to go after it. Establishing a timelines and setting realistic goals for your self will help to guide you in the right direction. Also, getting acquainted with someone who you look up to and admire because they are already doing what you wish to do, can a great source of knowledge. There is nothing wrong in taking advantage of learning from someone else’ mistakes and mishaps.

The real estate market offers investors a plethora of ways to make a profit. Whether you choose to buy, fix, and sell a home or property or you decide to take the landlord route, the possibilities are endless. But in any case, you should always make sure that you have a good working knowledge of the most recent rules and legislation regulations of the state in which your real estate investing interest lies. Laws and rules are always changing, and being up to speed on the most current ones, gives a good foundation to build on.

After you have initially educated yourself, you can begin to set up a strategic plan of attack and take the real estate market by storm. Your success is in your hands. The question is are you ready and willing to take the chance. How much time and effort do you have and are you willing to invest in making a future for yourself in the real estate industry. If you expect abundance, you will attract it, and ultimately receive it.

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Real Estate Investing: Buy It, Fix It, Sell It

More and more people are giving up the daily grind and aspiring to venture into the lucrative real estate market.  It seems that even in a struggling economy, there is money to be made in the housing industry.  Investing in real estate rehab or fixer-upper projects offers pretty much anyone the opportunity to make a substantial profit within a relatively short term.

By definition, a fixer-upper is a real estate property that requires some maintenance, redecoration, reconstruction, or redesign. Doing so raises the property’s potential value and ensures a return on the initial investment.

Before tackling such a business venture, there are several elements to consider.  First and foremost, a real estate investor needs to decide on the best strategy for locating bargains with the most potential for profit.  Real estate owned properties (REOs), foreclosures, auctions, or for sale by owners (FSBOs) are all options to consider.  Also, working with a local area real estate agent offers much insight into the current market.

The type of financing that will be incorporated will also be a key component within this overall strategy.  There are several ways to acquire financing for an investment.  The sellers of the property, banks, government programs, investors, or private mortgage companies can provide funding.  Also, one has to decide if partners will be involved in the transaction, who will actually be doing the rehabilitation work on the property, and whether or not the property will be listed with real estate agents.

Creating a business plan is the next course of action.  This allows an investor to choose the proper alternatives that cater to each individual situation.  It outlines specific objectives and also highlights both the risks and rewards of the real estate investment.  A business plan also offers a perspective and pinpoints the strengths and weaknesses of the potential purchase.

Once the business plan is in place, an investor can begin his/her journey to investment by finding target properties.  A target property would generally be a single-family home in need of repair that is located in a decent neighborhood.  Lower to mid-priced homes in areas which first time home buyers wish to live in are great target properties.

Looks do matter.  The best looking homes are not necessarily the best options for profit.  Houses that require only cosmetic repair are typically marketed nearer to their maximum retail value. Comparatively, houses that are structurally sound but need some work are ideal.  They are priced cheaper and when coupled with value added rehabilitation, they become assets, which in turn offer a profit.
Houses that offer causes for concern such as severe foundation settling, soil instability, plumbing problems, electrical system overhauls, extensive roof damage, or obsolete floor plans are not desirable investments.

Determining a purchase price is the next step in process.  Having a realistic idea of what you are getting into is key.  This price is contingent on a variety of factors. The maximum retail value of the property after repairs and renovation have been completed, comparable purchases in the neighborhood, real estate appraisers or agents familiar with the local markets all play a role.

A property’s purchase price can be determined by assessing the maximum retail value of the property and subtracting purchase costs (loans, brokerage fees, closing costs), rehab costs (repairs and improvements), holding costs (interest expenses for loans, utilities, taxes accrued between the purchase and the sale of the property), sales costs, the contingency factor (any unforeseen or unanticipated expenses), and profit (the amount netted after expenses).  This formula decides the maximum purchase price for the property.

After the purchase price has been established, a funding plan needs to be implemented.  One can either work with private mortgage lenders or receive financing from the seller or a combination of both.  A real estate investor needs to identify potential sources of income and decide if he/she will supplement what is needed through personal savings, with other investors, or joint venture partners.

One popular choice is a renovation loan through a home equity line of credit or a mortgage.  This type of loan can generally be borrowed against ninety percent of the equity the homeowner will have when the house is completed.  The interest rate on a home equity loan is about the same as a mortgage but only about one hundred thousand dollars of this is tax deductible.   An even better way to procure financing is with a renovation loan paired with a first mortgage.

Loans can be borrowed against the house’s value after the rehabilitation and renovation work has been completed and the interest is tax deductible up to one million dollars.  Almost all lenders, the Fannie Mae’s HomeStyle program, and Freddie Mac’s Home Work! product offer this type of financing.

When financing has been established, it is time to find a real estate agent in order to proceed.  The expertise they offer is invaluable and they are knowledgeable of properties that are or soon will be available, price ranges, financing options, neighborhood characteristics, title issues, seller negotiations, and purchase offer submittals.  In addition, they have access to multiple listing systems (MLS).  These Local Association of Realtor databases are useful tools to have in the market.

Considering that only about fifteen percent of the properties in the market are for sale by owner and REOs can only be accessed through an agent, working with a real estate agent is crucial. After the initial investment has been made and the property has been purchased, a rehabilitation strategy is implemented.  The ultimate goal is to enhance the marketability of the property.  All structural, mechanical, and electrical systems need to be repaired in compliance with the Federal Housing Association (FHA) construction standards.

High quality work by professionals is necessary to ensure the best possible renovation.   Curb appeal, kitchens, and bathrooms should be paid particular attention.   Monitoring the project, tracking expenditures and maintaining records, and also photo documentation of progression are essential.

Over improving a property does not necessarily offer a greater profit, but rather hinders the sale of the house. Renovations should be comparable to other homes in the area.  To receive the maximum resale value of the property, rehabilitation and remodeling investments should not increase the retail value of the house by more than ten to fifteen percent above the median sale price of other homes in the local area.

When it is time to sell, a powerful marketing strategy is necessary.   Finding a top selling real estate agent is imperative for maximum market exposure.  The listing agreement should include monetary incentives that stress the urgency factor of the sale and protections that define liabilities for all parties involved.  Keeping in close contact with the agent enables the seller to monitor the progress of the marketing plan.  Buyers can also be attracted with seller financing options.

Buying, fixing, and selling a house is a huge undertaking that offers a real estate investor a potential for a good profit within a relatively short amount of time.  It involves a lot of hard work and a large time commitment.  For those willing to put forth the effort and often times the elbow grease required, it is definitely an investment worth making.
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The Different IN and OUTs of Real Estate Market Appraisals

Any individual who has acquired or sold a home or real estate property comprehends the basics of what real estate appraisals are utilized for. In spite of what the appraisal procedure involves, it is a totally diverse story in itself. For those motivated in buying or putting resources into real estate, with the status of today's “purchaser's sector” economy, knowing the ins and outs of real estate appraisals can be significant.


How long shall an appraisal take?

After exploration was done and reported among a variety of appraisers in the United States, the normal time reported for a standard residential appraisal, was roughly twenty five to thirty hours. According to the USPAP regulations, "in adding to real estate market appraisal, an appraiser must gather, check and analyze all data essential for credible task results."

The actual check of data gathered can take anyplace between three to nine hours. To confirm validity in the real estate world of appraisals means, to build up accuracy for all discoveries. This likewise implies the investigator must weave through the property, if it is not possible to make in-depth analysis at it totally. All other data is discovered online by means of state and city records, and different documentations.

After that, an appraiser must take this information, investigate it and accumulate it into the brief packets we know as 'archived appraisals. The procedure of analysis incorporates doing business sector comparisons and statistical surveying also. The data needs to be a legitimate record, mirroring the present norms and the present real estate investing environment.

An appraiser concentrates on making the data simple to read for both the purchaser and the vendor. This complete procedure of analyzing and gathering can take eight to fifteen hours. In additionally considering the conveyance of the packet to both purchaser and merchant, there is one more hour necessary into this time allotment.


What does an appraiser search for?

According to Jeff Adams real estate guru, an appraiser is particularly searching for alterations that correct the past valuation of the home. These alterations may incorporate things like: upgraded wiring, the expansion of a restroom or bedroom, and so forth.

With this, the appraiser can evaluate past data on the house, and make the necessary updates. It is inside the appraiser's documentation that it is documented if anything in the house is unfinished. This may incorporate different things, for example, uncapped wiring, cellar water releases, unfinished external dividers, and so forth.

Obviously, if you are among the real estate investors who are considering the buy of another property, or setting out on new development, these last couple of things are not a major issue. It is essential to know the time span a genuine analysis takes, and also what you will be getting for your cash.

Whether you are considering any real estate property, being very much informed about the procedure of purchasing or offering another home will definitely be in your support.

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