Posts Tagged ‘Cash Flow’
What are the advantages of refinancing your mortgage or mortgages?
In tough times the easiest way to increase cash flow is to refinance your mortgage. With the advantages of negative gearing property in New Zealand many people have two mortgages. The first being their principle place of Interest and the second be their investment property. Given the local economic difficulties due to the economic crisis [...]
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Build systems for true success in Real Estate
When you decide that you truly want to be successful in real estate investing and get into it full time, or even if you want to be really good at it part time, then you have to build systems. Systems for everything.
Here are some of the systems that you need to have in place: 1. Lead generation (for buying houses and finding buyers for your deals); 2. Lead processing (a system to handle the leads once you get them); 3. Closing system. The system to handle your buyers is the most important of them all.
Set up a system that attracts to you the buyers looking for the kind of deals you have. Among all things, it must be able to whittle them down. Meaning, the system should separate tire kickers from true buyers, so that you don’t have to respond to everyone who shows just a little interest. If you don’t have this system, you will not be selling a lot of properties and you will be wasting a lot of time.
Take the trouble to build these systems. Take the time to do it. Most investors are too busy trying to do deals so they never bother to do it. The problem is they don’t understand that having this kind of systems will help them get to the point they want to be at as an investor.
Take the time to build the system and it will grow your business like no other. The time is worth it! I guarantee it.
Real Estate Marketing is the key!
Is everything working right in your real estate investing? Are you doing the amount of deals that you want to be doing? If not, then I know what your problem is.
Even without talking to you, I know that every problem that you have in your real estate business can be traced back to marketing. If you don’t have enough leads, it is a marketing problem. If you can’t sell your house, it is a marketing problem. If the leads you are getting are not panning out, then it is a marketing problem.
I could go on, but I don’t want to bore you. The bottom line is: Marketing is key to any business. The right marketing can grow your business so fast you will be astonished. So if you are having problems, go back to the basics of your marketing and find out what you have to change.
Eventually, all the time and money you spend on marketing is worth it. Even if the marketing strategy fails, it is still worth it because you found out what doesn’t work. So, keep trying and keep learning, but 50% of your effort in your business needs to be focusing on marketing.
If you are not marketing online, then you are missing out. In my opinion, 99% of your marketing should be online. You will not find a better ROI on your marketing than the marketing on the Internet.
Market or Die! It is essential. Learn from the right source to know what will work the best and do it!
Real Estate business is now done Online
Lets face it. Most business, some exclusively, is done online now. That is just the way the world is going. More houses are sold using the Internet than any other way nowadays, and realtors and investors are keeping up with it.
If you are an investor and have not learned online techniques, then you are missing out on some huge profit.
I know you want to stick with what you know will work, but you have to set aside at least a few hours a week learning online techniques to buy and sell your deals.
If you devote a few hours to this and get the right direction and education, I know that you will grow your business and make more money. It is totally worth all the time that you spend learning and building a presence on line.
To run with the big dawgs in real estate, also making your life easier, make sure to establish your business’s presence online. You won’t regret it.
For true success in Real Estate you have to build a system
If you decide that you want to get into real estate investing full time and be successful in it, or even if you want to be really good at it part time, then you have to build systems, effective systems for everything.
Some of the systems that you need to have are: 1. Lead generation (for buying houses and finding buyers for your deals) 2. Lead processing (a system to handle the leads once you get them) 3. Closing system. Most important of them all is the system to handle your buyers.
You have to have a system set up that attracts buyers to you looking for the kind of deals you have. It must be able to whittle them down. Meaning the system should separate tire kickers from true buyers, so that you don’t have to talk to everyone who shows a little interest. Without this system you will not sell a lot of properties and you will waste a huge amount of time.
Take time to build these systems. I know most investors are too busy trying to do deals. The problem is they never make an effort to build the systems and, as a result, they never seem to get to the point they want to be at as an investor.
Take the time to build the system and it will help expand your business like nothing else. This time is worth it, I guarantee it!
Think twice when you buy real estate courses online
I just finished another course on how to find motivated buyers that I just bought for 97 bucks. Well, I am all about finding buyers for my real estate deals, and I have purchased thousands of dollars worth of courses over the past year or so. Anyway, I went through the whole thing. It was all nice and had a bunch of videos. And after going through it all, I have to say that it was all nice and had a bunch of videos. That’s it. Totally worthless when it comes to really selling houses in today’s market.
Like many other courses, the guys who are selling this information on the Internet are not making money doing Real Estate. They are making big money selling old information on selling houses in an up market. This particular guy did talk about selling houses in a down market, but everything in his course was actually about what used to work when the market was booming.
None of the techniques I have used to sell over 70 properties in the first 7 months of this year was covered in the course. I won’t mention the name of the course, but it had to do with finding all the motivated buyers for your real estate deals. So if you stumble upon a course for 97 bucks with that headline In my opinion, it definitely was not worth it.
Here is my point: be careful what you buy online, especially when it is dealing with real estate education. Most of it is just re-hashed basic concepts with no meat.
Well, when I buy a course I didn’t find useful, I don’t ask for my money back, ever. I just move on and try something else, and always try to get something out of it. What I got out of this course was confidence. Yes, confidence that what I am doing online with my new Web site www.howtofindthebuyers.com is something totally different. What I provide is blunt and straightforward, techniques that can help you in your real estate investing in the market in 2008.
When someone saw the offer on my site and didn’t buy, I used to feel like, maybe, my stuff is not worth it. But having spent a lot of money on a bunch of courses, I know that people who didn’t join my on-line seminar are truly missing out. I am confident that my system and my teaching will help people change their lives.
Don’t get stuck with a deal that you can’t sell!
I talk to many investors who started in Real Estate with the goal of buying and selling houses, but they ended up being landlords – and they hated it. I personally love rental houses and own a lot of them, but these sad stories led me nevertheless to focus on finding buyers.
This same experience happened to me where I ended up having to get a loan to buy a house I put under contract and was not able to sell.
Fortunately, I had a mentor who told me to forget everything I have learned about real estate and who taught me a new way of investing – finding out what investors wanted and not what I thought they should have.
Real Estate investing, if you do it full time, is not a simple fun hobby that you do on the side like you see on TV where people flip houses and make a bunch of money. Yes, it can be done, but in my opinion the TV shows are dramatized crap that does more harm than good. They make people think one can get a junker property, invest a lot of money in it, and sell it really fast making a killing.
Wake up and get real! Most of the time it does not work like that in the real world, and you will find it out really fast. Really know what is going to sell before you put time and money in the deal.
For that you will have to find the buyers and ask them what they want. It can be an easy process if you set up a system that does it automatically. Learn the secret that most the gurus don’t tell you – how to find out what will sell before you buy.
Drop me in a new city and tell me to buy a good real estate deal
If someone dropped me in a new town and told me to buy a good real estate deal in less than 3 hours, here is what I would do.
Unlike all the big experts who will tell you to do a lot of marketing and make lots of offers on houses, if I wanted to find a deal fast the first thing I would do is find the local wholesaler.
Not just any wholesaler, because in a large market there will probably be more than a few and that is where you want to invest. What you should look for is the Big dog wholesaler, the one who is moving more properties than anyone else. Look for somebody who is purchasing and selling 5 to 10 properties per month. That would be a true wholesaler.
A true wholesaler marks up a deal a few thousand and goes to the next deal, nothing like many courses and real estate gurus talking of making 10, 20 or even 50k on a deal. These are not true wholesalers, they are flippers.
Flippers make home runs. They find a property and mark it up a bunch and make a killing one deal. These will be the guys that do one or two deals a month.
The true wholesalers will only make a little on each deal and therefore will have investors buying from them over and over again because they know they are getting the best deals.
In short, devoting a lot of time and money trying to learn how to find real estate deals in my opinion is a waste of time. I am one of the big dog wholesalers in my area and, after thinking about how I do business, I realized that before I became a wholesaler I wasted lots of time and money learning how to find deals. It does pay off if you want to be a wholesaler but if you are just trying to flip a deal or build a rental portfolio it really does not make sense trying to find better deals than me because you will not be able to do it.
If you want to find great deals super fast then use the local wholesaler. It is like having a buyer on your staff that is doing all the legwork for you. The time and money that is saved by using their expertise is more than worth the mark up you will pay.
Where do you go to buy something at lower a price? Wal-Mart, Target, all of the similar stores are large wholesalers. They buy in bulk and then pass the savings on to the consumer. In your real estate investing the local wholesaler does the same for you.
Start real estate wholesaling without any money.
When I was starting out without any money, this is what I did.
Well, if you don’t know anything about wholesaling real estate and have no money to invest, you will need to have a job and get to work to make some cash so you can live, and then work to build into full time real estate.
What I would recommend is to find your real estate clubs and start networking, talking to real estate investors in your area. Be very bold and tell people you are new and eager to learn. Ask each investor you meet: “Is there any way we can do some business together real fast?” Most of them will say yes. Then push the conversation and find out how you can help the investor either buy or sell properties and make a little money.
The key when you first start is to concentrate on the learning process, not on doing your first deal; and the only way to learn is to “jump in amongst it”. If you will ask this question to every investor you meet, sooner or later you are going to find someone whom you will be able to help and to learn from.
Once you start, you will soon find a way to flip your first deal. Either you will meet sellers or you will meet buyers through connections that you make. It is very easy – and cost nothing but time.
This way I met a lot of my mentors in the business. As I was doing that I was developing the skills necessary to get into the business full time.
How to find investment clubs in your area
If you looked for an investment club in your area and could not find one, I have to say I don’t think you were looking hard enough.
Recently somebody told me that they couldn’t find any investment clubs in Charleston, South Carolina. So I ran a search on Google and got several results. On the list of contacts there were two clubs in Charleston, some links to Web sites with several phone numbers. If I tried to call so many numbers, I would certainly find someone who would point me the right direction.
By the way, I went to high school in Dillon, SC, so I know about Charleston. I will bet you any amount of money that there is an investment club or association there; in the city the size of Charleston there is inevitably at least one.
Always start with using Internet; you will find out that a problem you are facing is simple. What if you are not comfortable around computers? Learn how to use one, especially the Internet; not doing it nowadays is quite a disadvantage. What you really need is to get enthusiastic and more determined to find the answers you need.
What helped me develop the attitude of determination, was telling myself that finding the answers and achieving my goals was the matter of life and death. When you can learn to imagine yourself in this kind of situation, you will be able to do anything. It is hard to imagine, of course, that someone is holding a gun to your head and gave you a time limit to come up with a solution of a problem. But look at the mental side of things – don’t you think that this method of self-motivation could be quite effective?
My advice to you is – be proactive! Start with the Web, get any related information, write down all available numbers and call them. Even if you don’t find exactly what you are looking for, you would still make useful contacts in the area and eventually find what you were looking for.
Private Equity Investing
Boomers Bank In investment finance, private equity real estate is an asset class consisting of equity and debt investments in property. Investments typically involve an active management strategy ranging from moderate reposition or releasing of properties to development or extensive redevelopment. Investments are typically made via private equity real estate fund, a collective investment scheme, which pools capital from investors. These funds typically have ten-year life span consisting of a 2-3 year investment period during which properties are acquired and a holding period during which active asset management will be carried out and the properties will be sold.
History and evolution There is a long history of institutional investment in real estate both through direct ownership of property and through pooled investment funds. Initially institutional real estate investments were in core real estate, however, market conditions in the early 1990s led to the emergence of opportunistic funds which aimed to take advantage of falling property prices to acquire assets at significant discounts.[1] Private equity real estate emerged as an independent asset class in the beginning of the 21st century and has experienced huge growth in recent years. Strategies Private equity real estate funds generally follow core-plus, value added, or opportunistic strategies when making investments.
Core Plus: This is a moderate risk/moderate return strategy. The fund will generally invest in core properties, however some of these properties will require some form of enhancement or value-added element. Value Added: This is a medium-to-high risk/medium-to-high return strategy. It will involve buying a property, improving it in some way, and selling it at an opportune time for a gain. Properties are considered value added when they exhibit management or operational problems, require physical improvement, and/or suffer from capital constraints.
Opportunistic: This is a high risk/high return strategy. The properties will require a high degree of enhancement. This strategy may also involve investments in development, raw land, and niche property sectors. Investments are tactical. Features Considerations for investing in private equity real estate funds relative to other forms of investment
Include: Substantial entry costs, with most funds requiring significant initial investment (usually upwards of $1,000,000) plus further investment for the first few years of the fund. Investments in limited partnership interests (which is the dominant legal form of private equity real estate funds) are referred to as “illiquid” investment’s, which should earn a premium over traditional securities, such as stocks and bonds. Once invested, it is very difficult to gain access to your money, as it is locked-up in long-term investments, which can last for as long as twelve years. Distributions are made only as investments are converted to cash; limited partners typically have no right to demand that sales be made. If a private equity real estate firm can’t find suitable investment opportunities, it will not draw on an investor’s commitment. Given the risks associated with private equity real estate investments, an investor can lose all of its investment if the fund performs badly.
For the above-mentioned reasons, private equity fund investment is for those who can afford to have their capital locked in for long periods of time and who are able to risk losing significant amounts of money. This is balanced by the potential benefits of annual returns, which are often above 20% for successful opportunistic funds. Investors in private equity real estate funds tend, therefore, to be institutional investors or high net worth individuals.
Size of Industry
The popularity of private equity real estate funds has grown since 2000 as an increasing number of investors commit more capital to the asset class. In 2000 private equity real estate funds raised $12 billion in equity commitments from investors. By 2005 this had increased to $58 billion and in 2007 private equity real estate funds raised a total of $79 billion. Private Equity Real Estate is a global asset class and in 2007, 46% of capital raised was focused on the US, 26% was focused on Europe and 27% was targeting Asia and the rest of the world. By providing online real time services one on one client attention is always in mind.
There is a requirement for needed experience to switch to self-directed retirement plans; The investment Group can help investors chart a new – and potentially more profitable – course for their retirement years.
The investment Group that finds sound investments for self-directed Individual Retirement Arrangements (IRAs), KEOGHs, and SEPs fund inreal estate trust deeds note opportunities in limited partnerships.
The investment Group who is on top of changes in the fields of IRAs and investing – the principals were among the first to tackle the Roth IRA and the effects it had and is having on IRA -401k investing. Finding Investments for YouThe investment Group, Inc.’s primary service is finding and analyzing real estate-related investments for purchase by our clients.
We are investment real estate brokers and have been in business doing this since 2002. In 2002 we started working with IRA clients to assist them in finding appropriate investments in the real estate arena.
Investment Group’s find these assets by their network of investment real estate brokers throughout the U.S. (a network built through the Real Estate Cyber Space Society). They meet with these investment brokers online daily. These networking arrangements are with 11,000 brokers; take place in Cyber Space in real time. By being an active member of the Real Estate Cyber Space Society we can satisfy their clients’ investment needs no matter how diverse.
The Groups clients give direction on what it is they would like to purchase; when the Group finds it they do a complete analysis of the investment and forward their due diligence to the respective clients. The client can review the information, take it to any other advisors they have and make a decision. If they wish to purchase the product the Group will go forward with the acquisition. If not, the Group finds another investment property for the clients review.
On occasion their clients have requested that they pay their fee’s on real estate acquisitions and then work as a buyer’s broker. As a free service to their IRA clients who use their investment services, the Group assist them in finding the correct custodian to service their account. Not all custodians are the same and it is vitally important to choose the right one the first time. In Today’s world, to make things happen now, we need to be in Real Time Mode for your Clients