Showing posts with label rehabbing. Show all posts
Showing posts with label rehabbing. 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!

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

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Wednesday, December 21, 2011

Secure Your property for before Rehabbing!

After completing several property rehabs in Miami-Dade County, Florida, I wanted to try something out of the county but still in Florida. My parents lived in Sarasota, Florida so I thought this would be a nice place to start. Distance would be an issue but my father was down for the winter and he could check up on the progress being made on the individual properties. Also, my Dad is an electrical contractor which brings many rehab benefits but that is a future REIC posting.

I found a duplex FOR SALE fairly quickly on Debbie Street, Sarasota due to the advantage of attending Sarasota REIA group meetings on Florida's Gulf Coast. Other than the distance, four hour drive, I felt this would be like any other rehab.

I decided to start in February with a two week property visit. Well during that time, several problems arose that I didn't experience before, like:

  • Most of the properties were on well water. Hard on the pipes, fixtures and tasted awful. Our duplex had city water service which was a blessing but caused me a problem I had to resolve.
  • Septic Tanks! No county sewer systems had been installed. The drain field was the front lawn and it was clogged.
  • Clothes Washer waste water line emptied onto the backyard lawn.
  • Pine trees over fifty high. Pine needles build up on the roof and lawn.
  • Gravel driveway that the neighbors thought they could use to park their cars.
  • Drug addicts lived about 50 yards away in an apartment.
  • On and On and On....
But the one problem that cost me the most in time and money was the city water lines.

Apparently it was very expensive to get connected to Sarasota's water system due to high impact fees. Impact fees are the city's way to tax you for hooking up to the water system network. You have to pay for the following:

  • Impact fees
  • Installation fee for digging up the street and installing the water meters.
  • Hire a plumber to run lines from the city's water meters to the duplex's water system.
  • Had to pay twice since it was two separate water meters, one for each unit of the duplex.

Luckily, my duplex already had these meters installed by a previous owner. The problem was the neighbors knew this and thought they could help themselves to the city water from our duplex. They would go to our outside water fixture and fill their 5 gallon water containers.

By the end of the month, I had a very large water bill which I couldn't figure out why? My rehab contractor said he never used too much water. I thought I had a water line leak from the meter to the duplex.

One day in July, my rehab contractor said he saw one of the neighbors filling up their containers and told me about it. I was flabbergasted but realized that this was going to be an ongoing problem!

Below is picture containing the anti-theft water system parts and installation video.....

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Written by +Bob Burns.
 
####
 
The caricature of Bob BurnsLife is a Beach. Go Find Yours!
Bob Burns Print Signature Photo
Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: sec8@planocho.com
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