Showing posts with label mls. Show all posts
Showing posts with label mls. Show all posts

Wednesday, April 9, 2014

Real Estate Investing

Tricks to make it Big with Real Estate Investing

Real Estate Investing is one of the most attractive ways of making large amount of money in a short amount of time (if done correctly). Moreover, Real Estate Investing can be very stressful but if you make a mistake it can be very forgiving. When you see the rewards of your efforts it can be very satisfying and addicting.

Real Estate Investing is really a skill and, like any skill, it takes time to master. The main objective is to buy low and sell high and make a profit after paying all the costs involved in the transaction.

Generally, people are of the opinion that Real Estate Investing makes sense only when the market is on the rise. However, Real Estate Investing for profits is possible just about any time. You just have to know when and how to apply different investing strategies when the acquired deal parameters are analyzed. This is part of the Due Diligence process that you will acquire through Real Estate Investing experience.

Here is a list of tricks that can make Real Estate Investing profitable for you:

  1. Join a local Real Estate Investment Club. Their name usually end with "REIA" which stands for "Real Estate Investor Association" so MREIA would stand for
    Miami Real Estate Investor Association.
    MREIA Logo
    This will provide many advantages and cut done on the learning curve. I like to use CRE Online web site to find an local investment club near you.
  2. Look for public auctions, divorce settlements, foreclosures (bank REO's/FHA/VA). Since quick settlement is the preference here (and not price), you might get a property at a price that is much lower than the prevailing market rate. You can then make arrangements to sell it at the market rate over a short period of time. However, make sure that the property is worth the price you are paying. Also be Very Careful with auctions! Know what you are buying by doing your homework. You might end up buying an easement that you can’t build on or a second mortgage.
  3. Looking for expired listings. The old listings that are still unsold may provide you with good Real Estate Investing opportunities. Just get hold of an old newspaper, MLS expired listings and call up the sellers. They might have given up hope of selling that property at all and with a bit of negotiation you can get the property for a real low price.
  4. The hidden treasure or Distressed Property. A really old, high grass, mail coming out of the mailbox, dirty, unpainted looking house may scare off retail buyers but this might be your chance for Real Estate Investing that can yield good profits. Explore these properties and check if spending a bit on them (rehabbing them) can make them shine. You can get these at very low prices and make a big profit in a short time. Have a GOOD contractor lined up if you decide to rehab a property. Time is Money!
  5. Team up with attorneys: There are a number of attorneys who handle property sales on behalf of sellers or in special circumstances (like the death of the property owner - Probate). They might sometimes be looking to dispose a property rather quickly for a lower price. Be the first one to grab such Real Estate Investing opportunity and enjoy the profit.
  6. Keep tab on the newspaper announcements! Be prepared to act quickly. This means have CA$H on hand to act quickly! Property sell offs due to deaths, divorce settlements, immediate cash requirements and other reasons are frequently announced in local newspapers or on the internet (Craig’s List). Keep track of such Real Estate Investing avenues.

Education

These are all great tricks and tips but the most important objective is to invest in your education. Take every opportunity to absorb Real Estate Investing techniques by hiring a mentor or coach to learn from the Pain of Others! Look at any profession and you will see an entity, person / coach or a system involved to train individuals to be successful! Real Estate Investing is no exception!

Related Links, Blog Postings, Presentations or Articles:

Written by +Bob Burns.
 
####
 
Bob Burns at MREIA meetingYeah Baby!
Bob Burns Print Signature Photo
+Real Estate Investor
about.me/RobertKBurns
Tel #: 305-586-5280
sec8@planocho.com

Follow US Baby!

Top Blogs

Friday, June 1, 2012

FREE COMP Tool for Real Estate Investors.

Comparable or COMP

Real Estate Investors need property comparables or COMPS to determine the after repair value ARV of an investment property. The ARV number will be used to calculate Maximum Allowable Offer MAO.

Real Estate Agents have a nice tool for getting COMPS or Comparables for properties because they have access to the Multiple Listing Service MLS. Investors need to find comparables using other resources.

FREE COMP Tools

Luckily, the internet has provided FREE COMP Tools for Real Estate Investors. Below are several services that can help investors determine property comparables:

FREE COMP Tool from Miami-Dade County, Florida

I found a "FREE" comparable or COMP tool provided by Miami-Dade County, Florida. It provides all the closed sales recorded by the county within a specified area, time period and radius. It isn't very dynamic but it gives you an idea of what is happening in a particular neighborhood you are thinking of investing in.

The video below specifies how to use the particular tools discussed in this posting. See below:

If you want to access the Miami-Dade's Real Estate Comparables go to: Miami Dade County Closed Sales Database.

Remember! Look for the link "My Neighborhood".

Related Links, Blog Postings, Presentations or Articles:

Written by Bob Burns.
 
####
 
Bob Burns and air filter maskCOMPS Baby, COMPS!
Bob Burns Print Signature Photo
Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: sec8@planocho.com
Our Internet Footprint:Section Eight Icon Face Book Icon LinkedIn Icon Plan Ocho or Sec8 Green Logo Youtube MREIA IconGoogle + Icon RSS Logo  Top Blogs

Tuesday, February 21, 2012

Determining Your Investment Property Value

A good Real Estate Investor is constantly looking for motivated sellers that are offering deals they can make a substantial profit on. Investors have to determine what they are willing to pay for this asset without losing money in the process. There are several problems that can occur with this investment objective :

  • Finding Motivated Sellers. In order to make a substantial profit, investors must offer a purchase price substantially lower than the Seller is willing to accept. If the Seller doesn't negotiate with you on price or terms you are wasting your time. Move On!
  • Determining the Maximum Allowable Offer MAO. This formula allows real estate investors to determine the MAXIMUM price they can offer the seller and still make a profit.
  • Determining the Property's Repairs Costs. Sellers are usually motivated to sell their property because the asset or themselves are in a state of distress. As investors purchase multiple properties they get pretty good at determining the cost to bring the property back online.
  • What is the After Repair Value APR? What will be the property's value be after cleanup and repairs are done? You need comparables to assess the property's value. The Multiple Listing Service MLS is a fantastic source for retrieving sale and property information but:
    • MLS is only available to Realtor Associations.
    • You have to be a Realtor Association Member.
    • Costs money to be a member:
      • Realtor License Fee.
      • Association Membership Fees.
      • Continuing Education Fees.

What if you don't have access to the MLS to determine property comparables or COMPS? How are you going to determine a property's value if you don't have access to information about the neighborhood?

Don't Worry!

There is plenty of information on the internet. Most counties in the United States provide free data concerning all the properties they currently have on their tax rolls. We provide a page on our web site that lists Property Information and Clerk of the Court data for each of Florida's counties.

Once you have determined the following items:

  • Repair Costs.
  • If you are financing the deal, Principle and Interest or P&I and closing costs.
  • Monthly Fees like:
    • Electricity and Water Access.
    • Insurance.
    • Taxes.
  • Determine the After Repair Value APR.
you will need to plug in these numbers into the MAO formula to determine your MAXIMUM Offer Price.

YOU MUST never, never, never, ever go beyond that price or you will lose money and the MAO price is only good for 90 days! It is based on a three month window.

Related Links, Blog Postings, Presentations or Articles:

  • In the very near future we will provided a short video below this blog posting that will help determine a property's After Repair Value APR in Miami-Dade County, Florida.

Written by +Bob Burns.
 
####
 
The caricature of Bob BurnsNever Quit!
Bob Burns Print Signature Photo
Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: sec8@planocho.com
Our Internet Footprint:Section Eight Icon Face Book Icon LinkedIn Icon Twitter Icon Youtube Icon RSS Logo  Top Blogs

Saturday, October 8, 2011

Top 20 Most Common Reasons Why Units Fail
Section 8 Inspections.


One of your hats that you wear as a real estate investor is being a landlord. As a landlord, your job is to maintain the properties and keep them rented.

Keeping your properties fully occupied throughout the year increases your cash flow and provides a better return on your investment ROI but can be a difficult task! The longer a Unit remains unoccupied the less ROI landlords are going to have.

Below are several channels available to landlords to find qualified tenants:

  • Retail Market - Newspapers, Word of Mouth, Church, For Rent Signs on property, internet, etc...
  • Multiple Listing Service MLS - Database Realtors use to find rental properties for their clients
  • Section 8, Plan Ocho, Sec 8, Plan Eight, Plan 8, Section Eight - Government subsidized rental payment plan.


The more channels you have, the greater possibility of finding a qualified tenant for your unit. SPEED is essential for success. Any delay will hurt ROI.

Section 8 will eliminate a lot of the drawbacks of being a landlord but you have to follow HUD's guidelines to be successful.

One part of the guidelines is the unit or property must pass an interior and exterior inspection. If you fail the inspection, more delays and your ROI will be affected. Being prepared for the inspection will help make the rental transaction a smooth process.

From my experience with Section 8, below is a list of items that will fail a HUD inspection:

  1. Smoke alarms missing or not working.
  2. Lack of ventilation in bathroom.
  3. Outlet covers missing or broken.
  4. Infestation by bugs or vermin.
  5. Absence of handrails where 4 or more consecutive steps.
  6. Utilities disconnected (must be connected).
  7. Hazards (i.e. tripping as a result of floor covering or exposed electrical wiring.
  8. One window in each room must open and have a screen.
  9. Chipping paint on the outside of the building – gutters, outside surfaces of building.
  10. Hazardous hole or trash in the yard.
  11. Door not sealed properly (light can be seen coming through).
  12. No hot or cold running water.
  13. All windows must have sash cords or balancers and must stay in the open position without assistance.
  14. All ceilings must be at least 7 feet in height in areas used for living, sleeping, etc….
  15. All steps to landing or basements have handrails.
  16. Baths without windows must have power fan or gravity vents in high rise buildings.
  17. Open electrical distribution box must be covered with appropriate cover.
  18. Windows in bedroom too small and will not qualify as areas for sleeping.
  19. Security bars (rejas) can’t be opened from the interior will not be allowed to remain.
  20. All bedrooms must have a built in closet.
I provided pictures of potential failure points below. Can you identify what would cause a failed inspection item?

Click on each image to view a larger photo!


Section Failure Item Gap between Ground and House

Section Failure Item Chipped Paint

Section Failure Item Ceiling Stain

Section Failure Item Door Jam

Section Failure Item Water Heater Drain Pipe

Section Failure Item Circuit Breaker

Section Failure Item Rejas Door Lock
Have you any experience with Section 8 inspections? Share them with US!

Related Links, Blog Postings, Presentations or Articles:




Written by +Bob Burns.
####
   
The caricature of Bob BurnsYeah Baby!
Bob Burns Print Signature Photo
Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: rkburns@investmentpropertiesmiamiflorida.com
Our Internet Footprint:Section Eight Icon Face Book Icon LinkedIn Icon Twitter Icon Youtube Icon   Top Blogs