Real Estate Tips – For Ordinary Buyers Property Investors and Millennials

On this page we have Real Estate Tips for both buyers and investors. We have curated 3 articles on this page for our readers. All of these have been some of the highest trending on social media in the last 6 moths. The first is, 5 Real Tips Estate Investors Need to Know to Find Good Deals for all buyers. The second is for the highly ambitious high flying real estate tycoon, but is well written and should interest everyone interested in property buying. Finally, SCROLL TO THE BOTTOM and we have our “Tips for Millennials Who Want to Invest in Real Estate”. Enjoy your browsing!

5 Real Estate Tips Investors Need to Know to Find Good Deals

With real estate prices reaching ever-higher highs in large swaths of the country, the availability of deeply discounted properties is drying up. And that means it’s getting tougher for real estate investors and home flippers to find great deals worthy of their time and cash.

“There are fewer foreclosures to buy, but there’s more interest in buying foreclosures,” says Daren Blomquist, senior vice president at ATTOM Data Solutions, a real estate data firm. “Competition, even at the foreclosure auction, is pushing prices up.”

Bank-owned property sales, foreclosure auctions, and short sales still made up 16.9% of single-family home and condo sales in the first quarter of 2017, according to ATTOM. But that’s down from 20.3% of sales a year ago.

“Back in 2007, you were getting 20% off the actual value” on bank-owned property sales, Leland DiMeco, owner and principal broker at Boston Green Realty, told ATTOM’s Housing News Report. “Now you have them selling for 5% off, if that.”

Real Estate Tip No. 1: Be proactive and look for off-market properties

Some landlords prefer to quietly shop around their properties to investors instead of listing them publicly. This way, the owners don’t upset any tenants currently living there.

“There is quite a bit of the pie that does get moved around, legitimately, but just off-market,” DiMeco told ATTOM.

So would-be investors shouldn’t wait for property owners to find them—they should find these folks themselves.

“If you like a neighborhood, you can go knock on doors,” Blomquist says. There might be “homeowners who may want to sell and don’t even know they want to sell yet.”

Now for the next of our real estate tips.

Real Estate Tip No. 2: Act fast and pay with cash

There are still deals to be had—if you act quickly, says real estate investor Brandon Turner, author of “The Book on Investing in Real Estate With No (and Low) Money Down” and “The Book on Rental Property Investing.” He owns 52 rental units in 18 properties and has flipped about a dozen homes in Grays Harbor County in Washington.

“You have to work faster than everyone else,” he says. “I try to make an offer within 24 hours of a new listing coming on the market—the same day, if possible.”

Paying all cash can also sweeten the deal for sellers who might have multiple offers, he says.

Real Estate Tip No. 3: Don’t ignore potential tear-downs

Real estate investors might not initially see the value of buying an overpriced, small, or run-down home within the city limits. But many of these homes in desirable locations can be sold to a developer to be torn down. Then a multifamily building or larger home can go up if the zoning permits it. And that can translate into some serious moolah.

It requires some vision and a bit of a leap of faith. With a potential tear-down, “it may not be a good deal to buy it as a single-family home. But if you can buy it for what it could be, it can be an excellent way to find value and deals,” Turner says. However, this approach is not without risks and obstacles.

“If you’re going to build a new house, it takes a good while to get all the permits,” he adds. “The danger is if the market begins to decline, you might be unable to sell it.”

Now for “Real Estate Tips’s”, most surprising conclusions:

Tip No. 4: Seek out nasty, smelly homes

Investors shouldn’t shy away from hardcore fixer-uppers and “nasty” homes, says Turner. That’s because there is not as much competition for these potential diamonds in the rough. Many lenders won’t issue loans on these properties if they’re in really bad shape.

“The stinkier the house, the better,” Turner says. “Smells are easy to fix. A good coating of oil-based primer, new carpet, and cleaning will take care of almost any smell.”

He typically looks for the “nastiest house in the nicest neighborhood,” he says. Even homes in need of serious TLC can be profitable if they’re in the right location.

“You can’t fix a neighborhood, but you can fix the house,” he says.

Tip No. 5: Look in another city or state

Many would-be property investors living in pricey parts of the country would love to become landlords—but can’t afford to do so in their own cities. So they can consider buying in lower-priced markets such as the Midwest.

“Look in other geographies that aren’t in your backyard,” Blomquist says. Focus on places that are growing “that still have a lot of lower-priced inventory available.”

But they should make sure to do their homework first to make sure they understand the neighborhood they’re buying in and who their potential tenants or buyers would be. This includes how much they can realistically charge.

Landlords might need to hire property management services if they can’t afford to get there quickly if something breaks. And that eats into profits.

Remember, becoming a real estate investor is still risky

Despite the stinky homes, investing in real estate might seem like a glamorous way to make a little extra cash—just look at all of those home flippers on HGTV! But in reality, it’s not risk-free.

Landlords sometimes have tenants who trash homes or don’t pay the rent on time. Flippers might encounter permitting problems or find costly structural issues in homes that cost quite a bit more than expected.

“We’re in a booming housing market. Everyone’s confident if they buy a piece of real estate it’s going to go up in value,” says Blomquist. “That’s true for the long term.

“This housing boom is on a lot more solid foundation than what we saw 10 years ago,” he says. “But you have to be very cautious because, in the short-term, we have seen … that prices sometimes do go down.”

 
Clare Trapasso is the senior news editor of realtor.com and an adjunct journalism professor. She previously wrote for a Financial Times publication and the New York Daily News. Contact her at clare.trapasso@move.com.

Follow @claretrap

via 5 Tips Real Estate Investors Need to Know to Find Good Deals

6 Amazing Tips on Turning Real Estate Into a Real Fortune

Finding success in real estate requires more than simply buying low and selling high.

At least 30 U.S. billionaires made their money from real estate; some say that it’s the greatest way to create real wealth and financial freedom.These six tycoons and members of The Oraclessuggest how you can invest $100,000 or start with nothing.

Tai Lopez
Image credit: The Oracles

1. Start small.

Although I’m a businessman first, I’ve always been a part-time real-estate investor. You can do both, too. Have a business or career that creates positive cash flow, which you can diversify into part-time real estate investing. I’ve done it for many years.

If you’ve never invested in real estate, start small and don’t use all your money. No one’s ever looked back and said, “My first deal was my best.” You’ve got to learn how to read the contracts, build your network of specialists—for example, lawyers and realtors—and develop a good eye for it. This only comes from experience.

The beauty of real estate is that you can learn the ropes while starting small: find some cheap properties, like single-family homes, renovate-and-flips, multi units, or commercial properties. Try to commit as little as possible while you get some notches under your belt. Joel Salatin, my mentor, always said, “Make your mistakes as small as possible without catastrophic consequences.”

Grant Cardone
Image credit: The Oracles

2. Think big.

It’s easy to give up on the real-estate game because you don’t have any money, but it’s the deal that matters, not how much money you have. Chase the deal, not your budget.

I know a guy who saved $50,000 and started chasing $200,000 deals. First of all, you can’t buy more than four units with that budget. The problem with four units is that each can only produce maybe $1,000 or $2,000 per month. And that’s only after you’ve done thousands of dollars in work around the units to make them rentable in the first place. That math isn’t difficult—there’s just not enough money to make it worthwhile.

That’s why you’ve got to go big from the start—with 16 units, minimum. Don’t buy less. Without 16 units, you can’t have a manager, and if you can’t have a manager, you’re going to either dedicate all your attention to the property or to your full-time job. To get 16 units, you will need to wait and save more money or use other people’s money (but you’ll need to learn how to sell). Grant Cardone, top sales expert who has built a $500-million real estate empire, and NYT-bestselling author of “Be Obsessed or Be Average”; 

Phil Pustejovsky
Image credit: The Oracles

Boomers and millennials want smaller housing, closer to cities. Additionally, real-estate investors commoditizing American suburbs and re-gentrification has pushed lower income families out. Because of this, America’s suburbs have seen a 57 percent increase of people living below the poverty level in the last 15 years. Buy your cities.

Educate yourself, hustle, and create value. Take massive, determined action daily. Talk to brokers, call contractors, view open houses, and go to meetups. Learn! And when you’re ready, door knock! The best deal is the one that isn’t for sale. Find it, then find someone like me and close it down. Mark Bloom, President at NetWorth Realty

 

5. Start today.

 

 

[This is an excerpt only – view the original article to see all the tips the author provided.]

Finally, know the difference between buying, holding, and trading. Buying is a no brainer, but it’s what you do with a property that determines your success. My primary strategy has been holding onto commercial real estate for the long term and trading out residential pretty quickly. Know your market. Roy McDonald, founder and CEO ofOneLife  via 6 Amazing Tips on Turning Real Estate Into a Real Fortune

Tips for Millennials Who Want to Invest in Real Estate

There are a variety of ways that millennials can start investing in real estate and many young people are taking different routes depending on their job situation, financial history, credit score, etc. However, there are several principles that every real estate investor should follow, no matter the route that they take—especially if they are new to investing. Here are a few ways that you can start preparing for your first real estate investment:

1. Work on your credit score

Investing in real estate is not something you can start doing overnight. There are some steps that you should take before you buy your first property such as having a good credit score. Fortunately, when it comes to hard money loans, your credit score isn’t as important as it may be if you were applying for a traditional loan. Hard money lenders generally look at the value of the property and not at the borrower’s finances or credit. However, paying off all of your loans and having a solid credit score will give you an advantage.

2. Save

There are plenty of ways to get financing for your real estate investment, but having proof of consistent saving will help when finding a lender. Successful investors start saving a certain amount from each paycheck that stays tucked away until their first purchase. Doing this will also teach you the value of your money and self-restraint. This can be difficult if you have student loans, but if you focus on paying off high-interest debts first, pay more than the minimum balance due and only spend money on the essentials, you will be able to pay off your loans much more quickly.

3. Don’t doubt yourself

Every investor has to start somewhere and you shouldn’t let your fear of failure get in your way. Failure is a part of life and it is a big part of investments. There are always risks, but if you do your research, you can help to minimize your risk and start making money. You will make mistakes, but you will learn from them. You may hear that voice in the back of your head telling you that you’re going to fail, but that doesn’t mean you have to believe it! The important thing is to just get out there and start investing and you’ll learn the rest along the way.

4. Start Networking

An important aspect of investing is getting to know the right people. Meeting with real estate agents, contractors and other investors will help you learn about the industry and you will make important contacts along the way. When it comes to real estate investing, you will want to have a solid team of people that you work with and you can start building that team before you start investing. There are plenty of real estate investment organizations, events and meet-ups all over the country and you can find them by searching online.

5. Follow your head

It’s easy to base your decisions on your heart instead of your head, especially when it comes to real estate. A property may look perfect on the outside but it may not be all it’s cracked up to be. Getting professional advice is always a smart move when it comes to buying property. An objective inspector will help you determine if the property is worth the money and effort. There are plenty of things beneath the surface of the property that may cost more money than you think. Get an inspector to help determine how much you will need to spend on the maintenance and repairs before you buy the property. After all, investments aren’t about gut feelings, emotions or following your heart—it’s all about doing the math.

6. Study the market

Real Estate Tips - For all, inc. Investors and MillennialsSpeaking of math, that brings us to the last point. Buying, renovating and selling the house is the shortest and most exciting part of the investment. That’s just the tip of the iceberg. Before you even step foot on the property you plan to buy, you need to do your research. You can start by finding your target price range and seeing what homes in that range sell, how long they take to sell and how many times the price was reduced. You can do this by looking at home prices on websites like Redfin.com. When looking at the neighborhoods and real estate markets, here are just a few of the aspects to take into consideration: comps, public transportation, schools, etc. Planning and researching as much as you can will help to minimize risk and that means more money in the long-run.

author and credits to: 

Yanni Raz is CEO of HML Investments and has been a hard money lender for more than 10 years. Raz was a real estate broker for five years before he partnered with a group of investors from California and began assisting real estate investors in financing commercial and residential projects. He writes about real estate financing for magazines, blogs and other online news outlets. Visit hmlinvestments.com and reach Raz at yanni@hmlinvestments.com or (818) 308-4443.

via Tips for Millennials Who Want to Invest in Real Estate – @Redfin

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