Home Selling Tips
Home selling tips are everywhere - some are suggestions you might never have thought of. Others, are general ones you're likely to find everywhere. However,just because they're common doesn't mean they don't work.
Here are some home selling tips of our own:
· When advertising your property, never use the words "asking" or "negotiable" with your selling price. This will only make it seem like you're not sure of the value of your home. Why bother setting the price in the first place if further negotiation is likely to change it?
· When preparing your house, try to see it from the buyer's point of view. Would you want to buy a house like your own?
· Unless you're sure you're up to the challenge, hire a good agent and attorney to do the home selling for you. It may cost more, but it can save you a lot of aggravation in the long run.
· Make sure you have full Multiple Listing Service coverage - this is a powerful tip to remember. Multiple Listing Service (MLS) is the strongest selling tool for your home. Some people would not even advise you to check for any offers before you see you home on MLS!
· Home showings through an open house are a good idea, especially if you live in a small town.
· Getting clutter out of the way will not only improve home showings, but also make it easier to pack once the home has been sold.
· Finish any renovations you've started on the house. No buyer wants to finish a job the seller started!
· When negotiating with the buyer, throw your bad mood away. It's hard to discuss price when you're still upset about the buyer's plans to cut down the tree you love. Maintain an interactive discussion and build up trust. Even if the offer doesn't work out, keep up a good impression.
· Don't let buyers' offers sway you - consult with your attorney about the price offered. Usually there's a period of three days for you to accept or reject an offer. Also be prepared for home inspections, as usually this happens during this stage of the home selling process.
As I mentioned in the beginning of this article: home selling tips are endles. Choose only the tips that would best suit your needs and situation.
To Your Success,
by Dan Giordano
Dan Giordano http://www.FreeRealEstateDeals.com
Wednesday, February 21, 2007
Saturday, February 10, 2007
Buy-Change-Sell: A Real Estate Strategy
Here's a proven real estate strategy: Buy a property, change the use, and sell it for a profit. Big profits are possible if you find its most profitable use. The disadvantages of this strategy? There is a lot of homework required, and many possible dealings with zoning authorities and others.
Years ago there was a row of old homes on a main street in the Northern Michigan town where I used to live. Many of them were rentals. None of them were very well taken care of. Then one day they were gone.
What had happened? That part of the street had been zoned commercial for many years, but there wasn't a reason to tear down perfectly good homes to put up stores. That is, there wasn't a reason until the land could be sold for commercial purposes at a price that exceeded the value of the homes plus the cost of removing them.
As the town grew, at some point an investor realized that he could buy those rental homes, tear them down, and sell the land for a nice profit. This is not uncommon. A particular piece of real estate is not always used for its "highest purpose." When this is the case, it may sell for much less money than it otherwise should. It is just waiting for someone to recognize what its highest purpose is, and then buy it and convert it.
Sometimes an office that had once been a home is converted back into a home, because the property is worth more as a home. Homes sometimes become professional offices for attorneys and doctors. The more common examples of a change of use is when farmland is developed for homes, or when apartment buildings are made into condominiums. Many of these ideas will be covered as their own topics.
The bottom line is that if there is a higher use for a property, there may be a profit opportunity. How can you tell? First you have to identify the highest use, meaning the use that makes the property most valuable. One way to do this is to simply look around and see what is happening with other properties around the one you are looking at.
Once you determine what the property should or could be used for, you have to determine how much it will sell for when it is ready. Then you determine how much it will cost to get it ready, plus the holding costs until it sells, and the costs associated with buying it and selling it. Subtract all of these costs from the projected sale's price.
Then subtract the profit you want for your work from that figure. This gives you the maximum price you can pay to make the deal work. Offer less, of course. That helps with this and any other real estate investing strategy.
by Steve Gillman
Years ago there was a row of old homes on a main street in the Northern Michigan town where I used to live. Many of them were rentals. None of them were very well taken care of. Then one day they were gone.
What had happened? That part of the street had been zoned commercial for many years, but there wasn't a reason to tear down perfectly good homes to put up stores. That is, there wasn't a reason until the land could be sold for commercial purposes at a price that exceeded the value of the homes plus the cost of removing them.
As the town grew, at some point an investor realized that he could buy those rental homes, tear them down, and sell the land for a nice profit. This is not uncommon. A particular piece of real estate is not always used for its "highest purpose." When this is the case, it may sell for much less money than it otherwise should. It is just waiting for someone to recognize what its highest purpose is, and then buy it and convert it.
Sometimes an office that had once been a home is converted back into a home, because the property is worth more as a home. Homes sometimes become professional offices for attorneys and doctors. The more common examples of a change of use is when farmland is developed for homes, or when apartment buildings are made into condominiums. Many of these ideas will be covered as their own topics.
The bottom line is that if there is a higher use for a property, there may be a profit opportunity. How can you tell? First you have to identify the highest use, meaning the use that makes the property most valuable. One way to do this is to simply look around and see what is happening with other properties around the one you are looking at.
Once you determine what the property should or could be used for, you have to determine how much it will sell for when it is ready. Then you determine how much it will cost to get it ready, plus the holding costs until it sells, and the costs associated with buying it and selling it. Subtract all of these costs from the projected sale's price.
Then subtract the profit you want for your work from that figure. This gives you the maximum price you can pay to make the deal work. Offer less, of course. That helps with this and any other real estate investing strategy.
by Steve Gillman
Tuesday, February 6, 2007
Owner Financing Made Easy: Your Solution to Real Estate Success!
Would you like to know a proven method to sell property quickly and for greater than fair market value? Would you like to have a competitive edge over all the other homes on the block? Would you like to have constant cash flow after you sell your property? Owner financing is a lucrative, time-proven method that works in good and bad markets. The market has changed and your marketing must change too! Owner financing is a common strategy that works well in today's market and is how the banks have gotten RICH...and so can YOU! Just learn the rules, regulations, and points that make your investment safe, low risk, and maximum value.
Benefits to owner financing:
- Solve the two biggest problems a buyer has
- Sell your property quickly in both good and bad markets
- Keep a competitive edge regardless of increased foreclosures and new home construction
- Attract more buyers
- Avoid extensive price negotiations
- Have a constant cash flow after you sell your property and create wealth
Owner financing is a huge advantage for acquiring properties and selling properties.
When you sell your property using owner financing, you make a significant transition from being a property owner to a note owner/investor. This means you utilize two strategies: (1) a competitive advantage to sell your property profitability and quickly and, (2) cash flow after you sell your property. You become the bank! This strategy allows you to collect cash flow from the property you sold and continue to profit from the sale afterwards.
By owner financing you can generate more profits than if you just sold the property and collected the cash. Owner financing allows you to set the terms, including interest rate and payment terms. You are helping the buyer while generating steady cash flow; owner financing is creative deal structuring that is a win/win for all parties involved. Get rich with owner financing or get left behind!
by Maria Fee
Benefits to owner financing:
- Solve the two biggest problems a buyer has
- Sell your property quickly in both good and bad markets
- Keep a competitive edge regardless of increased foreclosures and new home construction
- Attract more buyers
- Avoid extensive price negotiations
- Have a constant cash flow after you sell your property and create wealth
Owner financing is a huge advantage for acquiring properties and selling properties.
When you sell your property using owner financing, you make a significant transition from being a property owner to a note owner/investor. This means you utilize two strategies: (1) a competitive advantage to sell your property profitability and quickly and, (2) cash flow after you sell your property. You become the bank! This strategy allows you to collect cash flow from the property you sold and continue to profit from the sale afterwards.
By owner financing you can generate more profits than if you just sold the property and collected the cash. Owner financing allows you to set the terms, including interest rate and payment terms. You are helping the buyer while generating steady cash flow; owner financing is creative deal structuring that is a win/win for all parties involved. Get rich with owner financing or get left behind!
by Maria Fee
Saturday, February 3, 2007
How To Give Yourself A $20,000/Year Raise Without Asking Your Boss
Why without asking your boss?
Two reasons, one, he or she will most likely say no; and second, he or she will probably have you committed for asking.
So what do you do. Give the raise to yourself.
Impossible you say. Chuck and Sue are crazy. Not at all. Here's how.
You know we love the Creative Real Estate niche of Lease Purchasing and you know we believe it to be the perfect home-based business.
But, did you know you can use these same methods in your spare time to give yourself that big raise.
Ask yourself, "What would I be willing to do to earn an extra $20,000 in a year".
The answer may surprise you. And no, you don't have to become a hit man (or woman) to earn this.
You just have to be willing to take a look at Lease Purchasing.
Some background before you think we've completely lost it.
For every 100 calls Sue makes on For Sale By Owner property, she either speaks with or leaves messages for about 60%. That's about 60 people she puts the concept of Lease Purchasing in front of.
Out of that 60, approximately 10 will develop into true prospects. From these 10, 2 or 3 will develop into property we are willing to take on. The others may become consultations or manual sales.
(Please keep in mind, these numbers will vary a bit depending upon your particular area and current market conditions).
Gee, you say, that sounds like a lot of work. Not really. Consider making those calls over a 3 month period. That's the equivalent of a call per day. Why a 3 month period. Because you're only looking to do one deal a quarter.
Next question. How does this translate into a $20,000/yr. raise? Simple.
On a typical single family house, we look for a $5000 assignment fee on average. Well, let's do the math. 4 x $5,000 = $20,000.
Yup, a $20,000 raise on 4 deals per year.
Is this realistic? Absolutely.
In fact, we may be conservative on that raise for you. You may well decide to do five or six or more deals in a year.
All it takes is knowing how to structure your deals, having the proper contracts and a willingness to want to give yourself a raise. You can find all this information at our website at: www.homebusinesssolutions.com/products/products.htm
You're right. Chuck and Sue are crazy. Crazy like a fox.
Copyright 2000, DeFiore Enterprises
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
Two reasons, one, he or she will most likely say no; and second, he or she will probably have you committed for asking.
So what do you do. Give the raise to yourself.
Impossible you say. Chuck and Sue are crazy. Not at all. Here's how.
You know we love the Creative Real Estate niche of Lease Purchasing and you know we believe it to be the perfect home-based business.
But, did you know you can use these same methods in your spare time to give yourself that big raise.
Ask yourself, "What would I be willing to do to earn an extra $20,000 in a year".
The answer may surprise you. And no, you don't have to become a hit man (or woman) to earn this.
You just have to be willing to take a look at Lease Purchasing.
Some background before you think we've completely lost it.
For every 100 calls Sue makes on For Sale By Owner property, she either speaks with or leaves messages for about 60%. That's about 60 people she puts the concept of Lease Purchasing in front of.
Out of that 60, approximately 10 will develop into true prospects. From these 10, 2 or 3 will develop into property we are willing to take on. The others may become consultations or manual sales.
(Please keep in mind, these numbers will vary a bit depending upon your particular area and current market conditions).
Gee, you say, that sounds like a lot of work. Not really. Consider making those calls over a 3 month period. That's the equivalent of a call per day. Why a 3 month period. Because you're only looking to do one deal a quarter.
Next question. How does this translate into a $20,000/yr. raise? Simple.
On a typical single family house, we look for a $5000 assignment fee on average. Well, let's do the math. 4 x $5,000 = $20,000.
Yup, a $20,000 raise on 4 deals per year.
Is this realistic? Absolutely.
In fact, we may be conservative on that raise for you. You may well decide to do five or six or more deals in a year.
All it takes is knowing how to structure your deals, having the proper contracts and a willingness to want to give yourself a raise. You can find all this information at our website at: www.homebusinesssolutions.com/products/products.htm
You're right. Chuck and Sue are crazy. Crazy like a fox.
Copyright 2000, DeFiore Enterprises
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
Saturday, January 27, 2007
A Powerful Suggested Technique for YOUR Home & Property Search
You can be a pro at buying a home: Whether you are buying your first home or you are an experienced home buyer who owns more than one home, there are some things that can help you get faster results and get more professional and pleasant help from your Realtor.
A home or property purchase is one of the most important and exciting events to experience. Owning a home can help you build equity while reducing your income tax.
Land of any size requires minimal maintenance and is one of the best long term investments, even compared to gold or diamonds. However, along with the low maintenance, there is seldom any income to offset the cost. There are exceptions, mobile home parks, parking lots, and land rental under a shopping center are wonderful investments with relatively low maintenance if any.
Those who own land and property, as opposed to those who rent or lease, are historically considered to have a measure of stability, success and personal merit in addition to the obvious personal financial worth. This is so true that our Founding Fathers, who were dedicated students of all recorded human history, decreed that to be eligible to vote in our country a person must be a freeholder -- that is one who owned property mortgage free. They knew that the most responsible citizens would be the most responsible voters. Few of us would meet that criteria today. A person who held his property debt free, that is with a free and clear title, a Freeholder, was considered to have made good decisions, had good self control and managed his affairs well. Therefore, that person was considered to have obtained a level of maturity and responsibility -- that proved an ability to manage personal affairs and money as well as a priority to think of the future. The person who owned property with no debt, thus had obtained a sufficient ability to be allowed to vote on the management of our government and the public trust.
We are a nation of home and property owners more than any other nation on earth. However, most of us have a mortgage these days. If you, like most of us, need a mortgage on your new property, we hope you will find value in this article and that it will help you understand the advantage of planning your mortgage as a prerequisite to your purchase of a home. Having completed the mortgage acquisition step, a Realtor can help you organize your home search, as you begin browsing through the housing market.
Determining what features you want in your ideal or dream house and what payments you can afford are the important first steps. We ask that you consider the entire cost of home ownership, that is a total of the principle and interest payment, taxes, insurance and maintenance. Most folks are aware of the first four P.I.T.I. or Principle, Interest, Taxes and Insurance. There is another cost of home ownership that is not often figured in. It is property maintenance.
Maintenance is usually about 5% of the value of the improvements per year, if the average is taken over a long period of time, such as forty years. Many people think that 5% is too high a figure and prefer to use 2-3% instead. Whichever you use, make sure you figure in the cost of maintenance or you will end up not easily able to afford the upkeep on your property. This is very important to realize whether you are buying a new home or an older one. And, the older home will usually have a lot of deferred maintenance -- that is things that should have been done and haven't been!
If, for example, you purchase a home and lot where the vacant lot would sell for $50,000, and the home could be replaced for $250,000 and the landscaping value is $20,000 -- a rule of thumb is that you should figure $12,000 per year in maintenance of the home and another thousand in the maintenance of the grounds. We see properties all the time where the improvements have what is known as deferred maintenance. That work that should have been done and hasn't been, soon will need to be done. Deferred maintenance, maintenance not done that should have been done, is subtracted from the value of a home by those in the market, even if it is subconsciously done.
Home maintenance includes painting, caulking, re-carpeting, floor sanding refinishing, re-roofing every 15 to 50 years, depending on the composition of the roof and even replacing of windows, trim and siding. Outside there are sidewalks, the driveway, out buildings, decks, mulching, shrubbery maintenance, fertilizing, reseeding and replanting and of course the regular cutting and similar lawn care expenses. The reason we bring all this up about maintenance is that we hope you figure in the cost of it in addition to your home cost. If maintenance is not figured in you will end up with a mortgage plus maintenance cost or have to borrow more money to do the work that is needed, and that makes it more difficult to afford your new home.
It is important to figure in all the appropriate costs, expenses and other pertinent things, and to get a mortgage that you are able and willing to afford. It is important to your Realtor too. Some Realtors, in order to conserve their time and have more available for serious buyers, require that a person or couple be pre-qualified for the price range in which they seek to purchase a property first, before they begin to show properties. This is a good idea for the buyer as well as the Realtor and some sellers even ask us to NOT bring any prospective purchasers, unless they are financially prequalified -- in writing!
Mortgage brokers will gladly pull your credit report and get you a letter of pre-qualification or even a loan commitment letter for the amount you need to purchase a home. If you have a written loan commitment in hand when you first contact a Realtor, you will get considerably more and better attention.
One of the most difficult situations for a Realtor is that some percentage of the prospective purchasers that come to see properties for sale are not able to purchase those properties. Roughly 95% of a Realtor's time is preparation, paper work, promotion, marketing, web site modification and maintenance as well as maintaining contact with our most qualified buyers and sellers. When we spend two or three hours with a prospective purchaser, and it's usually far more, we are taking away from all the other things we are responsible to do for our other buyers and for our sellers. That time has to be made up.
For properties under $200,000 perhaps half of the folks that come to see us for a home are not able to buy the one they want to see. For properties under $100,000 about 75% of the folks who ask us to see properties are not able to purchase those properties. And, for those folks who come into our offices or call us regarding properties under $100,000 the percentage who can't purchase what they want is greater and greater as the price goes down.
Interestingly enough, a fairly high percentage of those who seek a property over a million dollars are qualified to purchase those properties without the help of our mortgage broker. Either they have their own banker, or they are able to obtain the funds on their own from other investments, or perhaps they even have a liquid assets account such as a money market account.
If you wish to be a shining light, and of greatest interest to your chosen Realtor, you are well advised to seek a mortgage broker or mortgage banker first and get a response in writing to bring with you. Your mortgage banker will probably ask for copies of prior years' tax returns. If you have copies of your credit reports, tax returns, lists of assets and all liabilities, and your bank statements are organized, you're ready to start exploring the housing market and shopping for a mortgage.
By the way, as I write this, our in-house Mortgage Broker or another lender of our choice, is able to give you a better rate and better terms than any other mortgage banker or broker in the market. Whether you use us as your Realtor or not, and if you are planning to purchase in our area we hope you will use us; you will get the utmost attention from your Realtor when you show up with a loan commitment!
Now SHOP! And, have fun!
by Jody Hudson
A home or property purchase is one of the most important and exciting events to experience. Owning a home can help you build equity while reducing your income tax.
Land of any size requires minimal maintenance and is one of the best long term investments, even compared to gold or diamonds. However, along with the low maintenance, there is seldom any income to offset the cost. There are exceptions, mobile home parks, parking lots, and land rental under a shopping center are wonderful investments with relatively low maintenance if any.
Those who own land and property, as opposed to those who rent or lease, are historically considered to have a measure of stability, success and personal merit in addition to the obvious personal financial worth. This is so true that our Founding Fathers, who were dedicated students of all recorded human history, decreed that to be eligible to vote in our country a person must be a freeholder -- that is one who owned property mortgage free. They knew that the most responsible citizens would be the most responsible voters. Few of us would meet that criteria today. A person who held his property debt free, that is with a free and clear title, a Freeholder, was considered to have made good decisions, had good self control and managed his affairs well. Therefore, that person was considered to have obtained a level of maturity and responsibility -- that proved an ability to manage personal affairs and money as well as a priority to think of the future. The person who owned property with no debt, thus had obtained a sufficient ability to be allowed to vote on the management of our government and the public trust.
We are a nation of home and property owners more than any other nation on earth. However, most of us have a mortgage these days. If you, like most of us, need a mortgage on your new property, we hope you will find value in this article and that it will help you understand the advantage of planning your mortgage as a prerequisite to your purchase of a home. Having completed the mortgage acquisition step, a Realtor can help you organize your home search, as you begin browsing through the housing market.
Determining what features you want in your ideal or dream house and what payments you can afford are the important first steps. We ask that you consider the entire cost of home ownership, that is a total of the principle and interest payment, taxes, insurance and maintenance. Most folks are aware of the first four P.I.T.I. or Principle, Interest, Taxes and Insurance. There is another cost of home ownership that is not often figured in. It is property maintenance.
Maintenance is usually about 5% of the value of the improvements per year, if the average is taken over a long period of time, such as forty years. Many people think that 5% is too high a figure and prefer to use 2-3% instead. Whichever you use, make sure you figure in the cost of maintenance or you will end up not easily able to afford the upkeep on your property. This is very important to realize whether you are buying a new home or an older one. And, the older home will usually have a lot of deferred maintenance -- that is things that should have been done and haven't been!
If, for example, you purchase a home and lot where the vacant lot would sell for $50,000, and the home could be replaced for $250,000 and the landscaping value is $20,000 -- a rule of thumb is that you should figure $12,000 per year in maintenance of the home and another thousand in the maintenance of the grounds. We see properties all the time where the improvements have what is known as deferred maintenance. That work that should have been done and hasn't been, soon will need to be done. Deferred maintenance, maintenance not done that should have been done, is subtracted from the value of a home by those in the market, even if it is subconsciously done.
Home maintenance includes painting, caulking, re-carpeting, floor sanding refinishing, re-roofing every 15 to 50 years, depending on the composition of the roof and even replacing of windows, trim and siding. Outside there are sidewalks, the driveway, out buildings, decks, mulching, shrubbery maintenance, fertilizing, reseeding and replanting and of course the regular cutting and similar lawn care expenses. The reason we bring all this up about maintenance is that we hope you figure in the cost of it in addition to your home cost. If maintenance is not figured in you will end up with a mortgage plus maintenance cost or have to borrow more money to do the work that is needed, and that makes it more difficult to afford your new home.
It is important to figure in all the appropriate costs, expenses and other pertinent things, and to get a mortgage that you are able and willing to afford. It is important to your Realtor too. Some Realtors, in order to conserve their time and have more available for serious buyers, require that a person or couple be pre-qualified for the price range in which they seek to purchase a property first, before they begin to show properties. This is a good idea for the buyer as well as the Realtor and some sellers even ask us to NOT bring any prospective purchasers, unless they are financially prequalified -- in writing!
Mortgage brokers will gladly pull your credit report and get you a letter of pre-qualification or even a loan commitment letter for the amount you need to purchase a home. If you have a written loan commitment in hand when you first contact a Realtor, you will get considerably more and better attention.
One of the most difficult situations for a Realtor is that some percentage of the prospective purchasers that come to see properties for sale are not able to purchase those properties. Roughly 95% of a Realtor's time is preparation, paper work, promotion, marketing, web site modification and maintenance as well as maintaining contact with our most qualified buyers and sellers. When we spend two or three hours with a prospective purchaser, and it's usually far more, we are taking away from all the other things we are responsible to do for our other buyers and for our sellers. That time has to be made up.
For properties under $200,000 perhaps half of the folks that come to see us for a home are not able to buy the one they want to see. For properties under $100,000 about 75% of the folks who ask us to see properties are not able to purchase those properties. And, for those folks who come into our offices or call us regarding properties under $100,000 the percentage who can't purchase what they want is greater and greater as the price goes down.
Interestingly enough, a fairly high percentage of those who seek a property over a million dollars are qualified to purchase those properties without the help of our mortgage broker. Either they have their own banker, or they are able to obtain the funds on their own from other investments, or perhaps they even have a liquid assets account such as a money market account.
If you wish to be a shining light, and of greatest interest to your chosen Realtor, you are well advised to seek a mortgage broker or mortgage banker first and get a response in writing to bring with you. Your mortgage banker will probably ask for copies of prior years' tax returns. If you have copies of your credit reports, tax returns, lists of assets and all liabilities, and your bank statements are organized, you're ready to start exploring the housing market and shopping for a mortgage.
By the way, as I write this, our in-house Mortgage Broker or another lender of our choice, is able to give you a better rate and better terms than any other mortgage banker or broker in the market. Whether you use us as your Realtor or not, and if you are planning to purchase in our area we hope you will use us; you will get the utmost attention from your Realtor when you show up with a loan commitment!
Now SHOP! And, have fun!
by Jody Hudson
Tuesday, January 23, 2007
How to Make the Real Estate Market Work For You and Get The Most Money
Dad always said that Real estate is a good investment because they don't make it anymore. Because they are so busy these days anyone selling your home may be thinking more of listing more homes than your welfare. If you plan on selling and moving you will need to take some simple steps to get the most money you can.
Most Real Estate companies do a good job but in a sellers market you can probably sell your home yourself. Anyway if you have the time it won't hurt to try. If it doesn't sell then you can always call the pros in latter. The internet has been a blessing to the average person. Not only can you sell many things you don't need anymore, you can even sell your home on the net at sites like PropertytraderUSA.com. Thousands of people visit sites like this looking for a new home. Even if your home is with a Broker you can still speed things along by putting low cost ads on the internet.
First you need to get your home ready to show. Buyers like homes that are clean with as few of your things as possible lying around so it's time to do a spring-cleaning. Some big furniture may cost more to move than its worth so sell these things locally. You may want to buy new things later anyway. Then look around for small stuff you don't want and sell it on eBay. What's left is stuff you can't live without or it's just junk. If you aren't sure then ask your wife guys, she'll point out the junk to you.
If you like most people have collected too much stuff then consider renting storage for a month or two. Clean out the garage and hose it down to get rid of dust and spider webs. Men like garages and want to picture their tools and things there. One of the best home improvements that don't cost a lot of money is pant, especially if you don't mind doing the labor.
Ever notice how guests always end up in the kitchen? Most people like kitchens and this is the first room to remodel or just clean and paint. The next most important room is the bathroom. Repair leaks, rust spots, and replace the little things that seem to get ugly over time. If you have pets make sure you don't have a cat litter box sitting around smelling up the place. Homeowners get used to their own smells and can't smell a thing but your visitors' sure can!
Big dogs scare some people (not me) and maybe it would be best to let Bruno visit Uncle Pete for a few weeks. After you finish with everything invite some friends over for a party and get some feedback on how everything looks. When everything looks good it's time to take some pictures. You need good clear pictures to post on the net and mail to interested buyers. If you're not experienced at photography find someone that is. Good photography takes years to learn and that's what you need now. I've tested photos of my products on eBay and believe me it makes a big difference. Remember, a picture is worth a thousand words.
If you use a Real Estate broker select one with lots of experience. I like the larger companies because they give you lots more exposure through their advertising and intercity referrals. Buyers trust them more also. The small cut-rate company's may be slower to find a buyer and fix problems. When you are ready to move be careful to pick an honest moving company. Many of them �ave been holding truckloads of belongings and demanding more money. Pick one with a good reputation.
When I was selling Real Estate there was no such thing as the internet. What a wonderful thing it is. More and more people are selling everything you can think of on the net. There are plenty of Real Estate listing websites including my own PropertyTraderUSA.com that will advertise your Home for a small fee. PropertytraderUSA.com is free for the first 200 ads. After that its only $25 for six months and includes a photo. Wow, can you imagine selling for $25 and saving all that money! Do it Now!
To your success! Dean Minton
Most Real Estate companies do a good job but in a sellers market you can probably sell your home yourself. Anyway if you have the time it won't hurt to try. If it doesn't sell then you can always call the pros in latter. The internet has been a blessing to the average person. Not only can you sell many things you don't need anymore, you can even sell your home on the net at sites like PropertytraderUSA.com. Thousands of people visit sites like this looking for a new home. Even if your home is with a Broker you can still speed things along by putting low cost ads on the internet.
First you need to get your home ready to show. Buyers like homes that are clean with as few of your things as possible lying around so it's time to do a spring-cleaning. Some big furniture may cost more to move than its worth so sell these things locally. You may want to buy new things later anyway. Then look around for small stuff you don't want and sell it on eBay. What's left is stuff you can't live without or it's just junk. If you aren't sure then ask your wife guys, she'll point out the junk to you.
If you like most people have collected too much stuff then consider renting storage for a month or two. Clean out the garage and hose it down to get rid of dust and spider webs. Men like garages and want to picture their tools and things there. One of the best home improvements that don't cost a lot of money is pant, especially if you don't mind doing the labor.
Ever notice how guests always end up in the kitchen? Most people like kitchens and this is the first room to remodel or just clean and paint. The next most important room is the bathroom. Repair leaks, rust spots, and replace the little things that seem to get ugly over time. If you have pets make sure you don't have a cat litter box sitting around smelling up the place. Homeowners get used to their own smells and can't smell a thing but your visitors' sure can!
Big dogs scare some people (not me) and maybe it would be best to let Bruno visit Uncle Pete for a few weeks. After you finish with everything invite some friends over for a party and get some feedback on how everything looks. When everything looks good it's time to take some pictures. You need good clear pictures to post on the net and mail to interested buyers. If you're not experienced at photography find someone that is. Good photography takes years to learn and that's what you need now. I've tested photos of my products on eBay and believe me it makes a big difference. Remember, a picture is worth a thousand words.
If you use a Real Estate broker select one with lots of experience. I like the larger companies because they give you lots more exposure through their advertising and intercity referrals. Buyers trust them more also. The small cut-rate company's may be slower to find a buyer and fix problems. When you are ready to move be careful to pick an honest moving company. Many of them �ave been holding truckloads of belongings and demanding more money. Pick one with a good reputation.
When I was selling Real Estate there was no such thing as the internet. What a wonderful thing it is. More and more people are selling everything you can think of on the net. There are plenty of Real Estate listing websites including my own PropertyTraderUSA.com that will advertise your Home for a small fee. PropertytraderUSA.com is free for the first 200 ads. After that its only $25 for six months and includes a photo. Wow, can you imagine selling for $25 and saving all that money! Do it Now!
To your success! Dean Minton
Wednesday, January 17, 2007
Purchasing Property With No Money Down: My Personal Experience
Have you ever seen those infomercials about buying houses with "No Money Down?" They are really well done. They have all kinds of people offering great testimonials about how they have gotten rich, buying rental properties, with absolutely no money out of their pocket. You see this guy, standing on a street corner, talking to someone, and he says, "I own that one," pointing to a beautiful colonial. "I also own that one next to it, and the one two doors down, and I'll be closing on the one directly across the street from it, next week." He then assures us that he has purchased 17 homes in the last eight or ten months, with zero money down on the properties. Plus, in many cases he's also paid no closing costs.
And, let's not forget, this same guy is grossing tens of thousands of dollars monthly, and his net worth is nearly one million dollars. So, he says.
Now, all of this looks wonderful, so when the person selling the course that will teach you how to do this, at a nifty price of just $297.00, speaks, you are glued to his every word. "Real estate is the safest and fastest way to make money, today," the expert will tell you.
So, can this really be done? Can you purchase houses with no money down? Can you become a landlord in as little as one month's time and start raking in the cash from those rent payments? The answer is an absolute "Yes." It can be done, and I am proof positive, because I've done it. The question you should be asking yourself is not can I buy real estate with no money down, but should I?
You see, this is a question that the guy selling the No Money Down course, with all of his people and their great testimonials hopes you never ask. His advertising and marketing strategy would collapse, if he gave anyone a chance to ask this question, because he would be forced to lie if he answered it.
Rarely is the whole truth anywhere to be found in infomercials, especially when the advertising is about No Money Down real estate programs. The infomercial makes the idea and the program look so easy that any child could handle it. It makes it seem like every American should be doing it, and we'd all be millionaires. But every American is not doing it, and many of the ones who are doing it not only are not getting rich, they are actually going broke. The infomercial won't tell you this. That's why I'm here.
The Truth
Now, let's get started with the truth about buying real estate with no money down and the truth about being a landlord. The first thing you need to know is that they are both very bad ideas. Let me illustrate by using my own experience in these areas. I started buying rental property nearly 10 years ago. The first property I bought was a deal orchestrated by some real estate con artist, who told me I needed just $2,000 to take ownership of this home and, in the process, help out a woman who was about to be foreclosed upon.
In two years, she would clean up her credit, refinance the loan on the house, and I would make $10,000. Sounded good to someone who was quick to buy into anything that returned big dollars in a short time.
This worked for the first year, as the woman paid on time, and I pocketed an extra $�00 monthly. Later, though, things began to collapse, as the house began to need repairs, all of which the woman couldn't afford, so I had to pay for them. I put nearly $5,000 into the house in a four-year period. When I was finally able to sell it, I didn't quite make back what I had put into it.
Meanwhile, I was eager to overcome this problem by adding many more. A slick mortgage broker got hooked up with an even slicker real estate prospector, and the two of them convinced me that they had a way I could buy houses rapidly, with absolutely no money out of my pocket. Although my experience will probably be enough to enlighten you to the pitfalls of this model and of being a landlord, let me say that I can't emphasize enough how dangerous buying property with no money down is.
In six months time, I had purchased eight houses - many with loans from the same wholesale lender. These lenders should have been concerned with all of the debt I was building, but they kept approving loans, based on my good credit and rents covering the mortgage payments. One of the biggest problems, which I was not experienced enough to detect, was that most of the rents were just $50 to $100 above the mortgage payment.
"Don't worry," the investor/ hustler would say. "You'll make all your money on volume. We'll get you into 30 or 40 houses, and you'll be pocketing $4,000 to $5,000 every month."
As you might imagine, my mind raced. I was making the huge deposits at that very moment. My bank account was fattening up at breakneck speed.
The Illusion
This is what people who buy houses, using the No Money Down plan envision happening. After all, if you can buy one house with no money down, why not five or ten or fifty? For some reason - the vision of the dollar sign, most likely - I failed to seriously consider the maintenance of these houses, the possibility of missed rent payments, and the chance that renters might actually stop paying, altogether, forcing me to evict them - a time-consuming and extremely costly undertaking.
As you may have already guessed, all of these things happened to me, after I had amassed 26 rental properties. In fact, oftentimes, all of these problems happened in the same month. Now, for awhile (when I had about 10 houses), if one person failed to pay rent, I could cover it with the nine other payments. But when two, three and sometimes even five tenants didn't pay in the same month, it was devastating to my business. I had to go to my business account and pay up to $3,000 at a time in mortgage payments, with no income to cover it. Plus, I had to pay a property management company to get my tenants to pay or to evict them.
Soon, this became the norm, not the exception. There were constant problems at my houses. Unhappy tenants led to poor upkeep of the property and even more maintenance problems. About one year, after I had amassed 26 houses, I was having problems with roughly 10-15 houses and/or tenants each week. I was evicting at least two tenants each month, and approximately four to seven tenants were either behind on rent or not paying at all. Promises were made, payment plans arranged and few, if any, ever followed through.
It didn't take long for me to realize that this was no way to make money in real estate. Consequently, I got rid of these houses as fast as I possibly could. There were plenty of buyers, willing to take over my headaches, because they had the ability to make it work, they believed.
In 10 years of being a landlord, I lost thousands of dollars and likely took some years away from my life with all the stress I had endured. So, whatever you do, avoid the No Money Down Trap. There are much better, still inexpensive ways to make money in real estate.
And, let's not forget, this same guy is grossing tens of thousands of dollars monthly, and his net worth is nearly one million dollars. So, he says.
Now, all of this looks wonderful, so when the person selling the course that will teach you how to do this, at a nifty price of just $297.00, speaks, you are glued to his every word. "Real estate is the safest and fastest way to make money, today," the expert will tell you.
So, can this really be done? Can you purchase houses with no money down? Can you become a landlord in as little as one month's time and start raking in the cash from those rent payments? The answer is an absolute "Yes." It can be done, and I am proof positive, because I've done it. The question you should be asking yourself is not can I buy real estate with no money down, but should I?
You see, this is a question that the guy selling the No Money Down course, with all of his people and their great testimonials hopes you never ask. His advertising and marketing strategy would collapse, if he gave anyone a chance to ask this question, because he would be forced to lie if he answered it.
Rarely is the whole truth anywhere to be found in infomercials, especially when the advertising is about No Money Down real estate programs. The infomercial makes the idea and the program look so easy that any child could handle it. It makes it seem like every American should be doing it, and we'd all be millionaires. But every American is not doing it, and many of the ones who are doing it not only are not getting rich, they are actually going broke. The infomercial won't tell you this. That's why I'm here.
The Truth
Now, let's get started with the truth about buying real estate with no money down and the truth about being a landlord. The first thing you need to know is that they are both very bad ideas. Let me illustrate by using my own experience in these areas. I started buying rental property nearly 10 years ago. The first property I bought was a deal orchestrated by some real estate con artist, who told me I needed just $2,000 to take ownership of this home and, in the process, help out a woman who was about to be foreclosed upon.
In two years, she would clean up her credit, refinance the loan on the house, and I would make $10,000. Sounded good to someone who was quick to buy into anything that returned big dollars in a short time.
This worked for the first year, as the woman paid on time, and I pocketed an extra $�00 monthly. Later, though, things began to collapse, as the house began to need repairs, all of which the woman couldn't afford, so I had to pay for them. I put nearly $5,000 into the house in a four-year period. When I was finally able to sell it, I didn't quite make back what I had put into it.
Meanwhile, I was eager to overcome this problem by adding many more. A slick mortgage broker got hooked up with an even slicker real estate prospector, and the two of them convinced me that they had a way I could buy houses rapidly, with absolutely no money out of my pocket. Although my experience will probably be enough to enlighten you to the pitfalls of this model and of being a landlord, let me say that I can't emphasize enough how dangerous buying property with no money down is.
In six months time, I had purchased eight houses - many with loans from the same wholesale lender. These lenders should have been concerned with all of the debt I was building, but they kept approving loans, based on my good credit and rents covering the mortgage payments. One of the biggest problems, which I was not experienced enough to detect, was that most of the rents were just $50 to $100 above the mortgage payment.
"Don't worry," the investor/ hustler would say. "You'll make all your money on volume. We'll get you into 30 or 40 houses, and you'll be pocketing $4,000 to $5,000 every month."
As you might imagine, my mind raced. I was making the huge deposits at that very moment. My bank account was fattening up at breakneck speed.
The Illusion
This is what people who buy houses, using the No Money Down plan envision happening. After all, if you can buy one house with no money down, why not five or ten or fifty? For some reason - the vision of the dollar sign, most likely - I failed to seriously consider the maintenance of these houses, the possibility of missed rent payments, and the chance that renters might actually stop paying, altogether, forcing me to evict them - a time-consuming and extremely costly undertaking.
As you may have already guessed, all of these things happened to me, after I had amassed 26 rental properties. In fact, oftentimes, all of these problems happened in the same month. Now, for awhile (when I had about 10 houses), if one person failed to pay rent, I could cover it with the nine other payments. But when two, three and sometimes even five tenants didn't pay in the same month, it was devastating to my business. I had to go to my business account and pay up to $3,000 at a time in mortgage payments, with no income to cover it. Plus, I had to pay a property management company to get my tenants to pay or to evict them.
Soon, this became the norm, not the exception. There were constant problems at my houses. Unhappy tenants led to poor upkeep of the property and even more maintenance problems. About one year, after I had amassed 26 houses, I was having problems with roughly 10-15 houses and/or tenants each week. I was evicting at least two tenants each month, and approximately four to seven tenants were either behind on rent or not paying at all. Promises were made, payment plans arranged and few, if any, ever followed through.
It didn't take long for me to realize that this was no way to make money in real estate. Consequently, I got rid of these houses as fast as I possibly could. There were plenty of buyers, willing to take over my headaches, because they had the ability to make it work, they believed.
In 10 years of being a landlord, I lost thousands of dollars and likely took some years away from my life with all the stress I had endured. So, whatever you do, avoid the No Money Down Trap. There are much better, still inexpensive ways to make money in real estate.
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