investing in real estate

Cheap Houses Are Cheap – But Are They Really Bargains?

I had to go to the grocery store on Saturday afternoon to pick up some basic items. You know, bread, milk, tomatoes, etc. Our favorite local store is closed on Sundays so on Saturday they normally mark down some perishable items with huge discounts. It’s extremely tempting to snatch up some of these cheap items unless one realizes that there’s a good reason the price is reduced.

That discounted loaf of bread has already reached its “sell by” date. Before we can use the whole loaf it will most likely become moldy and we’ll have to toss half of it. That gallon of milk is also about to expire; by the time we get through half of it, the milk will probably sour. And that shrink-wrapped package of six tomatoes? They’re already getting soft – how fresh will they be in 2 or 3 days? Ugh!

There are times when cheap really is “cheap” (as in cheesy). The property market can be very much like the grocery market – there’s always a reason that a bargain is priced well below the normal market value. Discovering why a cheap property is heavily discounted is critical. Without additional information it is impossible to determine if it is really in your best interest to pursue. Seeking the advice of a well qualified buyer’s agent is a very wise move to make before jumping on a cheap home.

The reasons that homes are listed at bargain prices can generally be classified in just a few categories:

1. The “Fixer-Upper”

Many homes that have fallen into disrepair can be purchased at prices well below the local market price of well maintained properties. If the current property owner is unwilling or unable to make necessary repairs their only option would be to offer it for sale at a bargain price.

If the prospect of investing “sweat equity” (i.e. manual labor) is particularly unappealing, you may want to avoid this type of cheap home. Likewise, if paying someone else to perform the necessary repairs is out of the question – walk away. However, If the prospect of doing the work yourself doesn’t make you uneasy, these fixer uppers can be an excellent choice.

2. A Less Than Desirable Neighborhood

We’ve all heard the saying that the three most important aspects of real estate are location, location, location. Well, it’s really true. The value of a home can vary quite a bit depending upon its neighborhood. This can be fabulous for the homeowner in an upscale location. However, it can be devastating for a homeowner in a neighborhood that has fallen on hard times. Contrary to many people’s beliefs, real estate values do not always increase with time.

In some cities, certain neighborhoods that have been on the decline are gradually being revitalized through the renovation of individual homes. As these renovations spread, the potential value of property in the immediate neighborhood can begin to climb. Your Realtor will be able to give you an idea about the direction that prices are moving so that you can make a well-informed decision about the potential value of inexpensive homes that fit this category.

3. “Priced to Sell Quickly”

Circumstances may arise when a homeowner is under pressure for a speedy sale. The seller may need to liquidate assets for immediate cash in hand. He may be facing a deadline relocate for employment purposes, or he may need to stop paying double mortgage payments if he has already committed to purchase another home.

Inexpensive homes in this category usually provide the best value. However, these bargains do not normally remain on the market very long since a fast sale is the very reason that the property was discounted. The best approach to finding these fleeting opportunities as they arise is to have your buyer’s agent notify you when new property listings hit the market. Most real estate agents have access to automation tools that will automatically notify you via email the same day that a property that meets your requirements is put up for sale. Without that type of competitive edge, it’s likely that you’ll never hear bout these prime opportunities.

4. The Challenge of the Unknown

This is the “catch-all” category for homes that don’t seem to fit any of the three previous categories. They are the riskiest properties and should be approached with extreme caution. There is always a reason for a house being under priced – if it’s not apparent at first glance you may have to do some serious investigating before considering a purchase. Sellers are obligated by law to disclose any information that affects the home’s value. Your buyer’s agent will prove invaluable in these cases by helping you ask the right questions.

Obtaining the advice of a buyer’s agent and investigating the reasons that “bargain” properties are priced so low are the keys to discovering the true value of a “cheap” home. These deals can look very attractive at first but, only after further evaluation, will you have an idea if a property may turn out to be a “money pit” or a fabulous opportunity. You won’t regret performing your due diligence.

Jim Navary has been a researcher and freelance writer for more than thirty-five years covering a wide range of topics. He is also a licensed real estate salesperson in the Commonwealth of Virginia specializing in Fort Lee VA real estate and Colonial Heights VA homes for sale.

categories: cheap property,cheap homes,buying a home,buying property,inexpensive home,inexpensive property,real estate investing,purchasing a home,purchasing property,real estate,investing in real estate,buying a house

investing in real estate

Buying Income Properties: Where To Find Potential Properties

If you are considering buying investment houses there are a few things you should consider. Before you jump into the real estate market, you need to think carefully about what you ultimately hope to get out of the purchases that you make. This can help you narrow down the many different properties that you can choose from and select those that allow you to meet your investment goals.

The kind of investment real estate you look at can be influenced by a number of different things. People who love doing renovations and home improvements may be interested in a flip: a home which is purchased at a low price, renovated and then resold at a higher price. There are also rental properties, and vacant land that can be resold or developed.

You can find flips by using the MLS, an online multiple listings service that realtors use. It lists the properties and their specifications and will also sometimes show you images of the properties as well. It is a good rule of thumb to look for the worst house in the best neighborhood you can afford, and begin working from there. Consider looking at bank foreclosure lists and real estate listings in newspapers. Properties that are for sale by owners can also be a great source of properties to flip. Just remember to budget for the cost of the home and the renovations, as well as real estate commissions on the resale.

Rental properties are also a good investment houses. This is because as soon as you have tenants, you can begin collecting income. This can help cover the cost of the mortgage. You need to decide whether you want commercial or residential tenants. Both of these types of investment properties can be found on the MLS. Another way to find potential rental properties is through befriending a real estate agent and having them do the searching for you. They may find properties that are available before they are put on the MLS and you may be able to scoop a dream real estate for a great price.

Vacant land can be a good investment, but only if it is in an area that people want to develop. You should do your research before you decide to purchase a piece of vacant land. Decide whether you want to build a residence on the houses and resell or rent it. Your other option is to purchase land for commercial development. In that case, you will want to make sure that it is located near where other industrial developments are taking place as this will be more appealing to many company owners. Also check the laws and regulations in the area you are looking at buying. You would hate to find that there has been a by-law passed that prevents you from developing or selling your land back, leaving you with nothing to show for your investment.

One of the best tips is to have good legal advice. Real estate law is complex and you don’t want to find out that there is a clause you have misunderstood that can cause problems down the road. As well, rental and other investment properties will require different financing than what you would be eligible for with a primary residence. You will also need a good accountant to help you with the intricacies of income from investment properties.

You may also want to hire a book keeper or accountant who can give you financial advice. There can be regulations surrounding the income gained from investment properties. A good accountant can also advise you on whether or not a particular investment is going to offer a good return

Buying investment homes can be an excellent way to make cash but it needs to be done carefully so that you do get a return on your investment. Using some common sense and doing your research can help make that goal a reality.

When considering buying investment property, one option to consider is looking around for unusual property for sale that does not fit the usual description.

investing in real estate

Buying A Foreclosed Home

Investing in real estate has made more millionaires than any other industry. More recently, fortunes have been made by investing in foreclosed houses.. Purchasing a house in foreclosure can be a complex process, and to make riches investing in foreclosed homes, you should recognize the process in detail. Jumping into this form of investing lacking a solid foundation can be very risky.

As you start to learn about the foreclosure process, you need to take a look at your local and state laws that govern the buying and selling of foreclosed dwellings. Depending on the state in which you live, there may be restriction on how long you you need to live in the home after purchasing it at auction. Depending on your investment goals, these laws may place major barriers to your investment goals.

If the laws will allow and you feel you could profit from fixing and flipping foreclosures, the next step is simply to uncover a house that is in foreclosure. Your local county posts a list every day, and if you don’t want to go down to the recorder’s office, there are a number of online services that do provide a daily list of public sale foreclosures. Access as many of these tools as possible in order to stay informed on what homes may be coming up for auction that meet your investment profile.

As part of the process of investing in foreclosure, you need to establish the financing for the investment. Buying a foreclosed home from a courthouse auction requires a considerable down payment, or more often, the full cash sum on purchase. As a result, you must have your financing in place before you buy the home.

Finally, after you have established your financing and located a property, the next steps are simply to bid and subsequently buy the foreclosed home. Through the buying process be sure not to overbid for the home; at auction you may be contending with additional investors and it is very easy to bid yourself right out of your income.

After you have closed on the home and it is yours to keep and run or rehab and repair, it is just a matter of getting to work. In conclusion, buying a foreclosed home is an easy procedure; you just need to know what you are doing.

investing in real estate

Why We Fail At Investing in Real Estate

When I talk to real estate investors, some are seasoned pros. Many are “wannabe” real estate investors who are just trying to get their feet wet. I can tell you from experience that there is one and only thing that separates the seasoned pros from the wannabe real estate investors. This one thing will surprise you because it’s not what you think.

It’s not a secret technique. It’s not a special recipe. It’s not a secret phone number. It’s not a list of private money names. It’s something else:

ACTION!

Successful real estate investors take action. They blaze ahead. They plow through. They move forward. They do something. Then they do it again. And again. And again. The wannabe real estate investors who are not successful – and who will never be successful (I’m sorry to say) are those who are waiting for something; perhaps they are still trying to get their paperwork in order or they are trying to figure out their brand or they are waiting for their business cards to be designed and printed. These are excuses! I’m not the only one who says this! I am backed up by experience and by a chorus of other real estate investing experts who believe the same thing.

If you want to be successful as a real estate investor, go work on a deal right now. Don’t just do a bit and then stop. Start working and don’t stop until you have the deal. That’s it. That’s the secret. If you don’t have your paperwork in pristine order, that’s okay. It will come. When you need it, you’ll suddenly discover that you can do it quickly. (And, I’m also willing to wager that you’ll be surprised to discover you don’t need as much as you think you do).

So stop reading this article. And go take action right this instant! Go For It! The market is perfect for investing NOW!

For more information go to www.investingwiththestars.net/season3. Sign up for our FREE Webinar Series with Top Real Estate Experts sharing all their money making secrets!

investing in real estate

Finding Properties Using Creative Financing and Strategies in Real Estate Investing

While the rest of the economy is in shambles, and record numbers of foreclosures make headlines, real estate investors are earning thousands of dollars by buying and selling homes. How is it possible? It seems that real estate investors know a thing or two about systems, strategies, and styles of investing that the average homeowner does not. If you are a budding real estate investor and you’re looking to invest in homes but don’t know how, here are some of the basic strategies that investors are using.

WHOLESALING: This is where you buy a home inexpensively and then sell it to another real estate investor. You might not make as much as if you fixed up the home and sold it to a consumer but you can flip houses quickly this way.

REHABBING: This is the well-known (and well-televised) strategy of buying an inexpensive home and fixing it up to resell it to someone else. There is some time and money involved in the restoration process but you can dramatically increase the value of your investment. For more information go to: www.investingwiththestars.net/robertshemin.htm

LANDLORDING: A well-known strategy to buy property and then rent it out to someone else. Although there are headaches with this strategy, you get an ongoing stream of monthly income as well as the appreciated value of the property over the years. For more information go to www.investingwiththestars.net/mikebutler.htm

There are other types of real estate investing but these are among the most popular and lucrative and investors are making thousands on these methods right now. Be open to using these creative techniques especially with the situation we have with the banks today, these options give us all another way to “keep going” and investing while the market is now the ultimate time to buy at these low, low prices. For more information go to: www.investingwiththestars.net/season3. Nancy Geils is a Coach and Trainer in Real Estate Investing

investing in real estate

Using Creative Techniqes in Real Estate Investing

While the rest of the economy is in shambles, and record numbers of foreclosures make headlines, real estate investors are earning thousands of dollars by buying and selling homes. How is it possible? It seems that real estate investors know a thing or two about systems, strategies, and styles of investing that the average homeowner does not. If you are a budding real estate investor and you’re looking to invest in homes but don’t know how, here are some of the basic strategies that investors are using.

WHOLESALING: This is where you buy a home inexpensively and then sell it to another real estate investor. You might not make as much as if you fixed up the home and sold it to a consumer but you can flip houses quickly this way.

REHABBING: This is the well-known (and well-televised) strategy of buying an inexpensive home and fixing it up to resell it to someone else. There is some time and money involved in the restoration process but you can dramatically increase the value of your investment. For more information go to: www.investingwiththestars.net/robertshemin.htm

LANDLORDING: A well-known strategy to buy property and then rent it out to someone else. Although there are headaches with this strategy, you get an ongoing stream of monthly income as well as the appreciated value of the property over the years. For more information go to www.investingwiththestars.net/mikebutler.htm

There are other types of real estate investing but these are among the most popular and lucrative and investors are making thousands on these methods right now. Be open to using these creative techniques especially with the situation we have with the banks today, these options give us all another way to “keep going” and investing while the market is now the ultimate time to buy at these low, low prices. For more information go to: www.investingwiththestars.net/season3. Nancy Geils is a Coach and Trainer in Real Estate Investing

investing in real estate

Number One Reason For Failure in Real Estate Investing

I talk to real estate investors all the time. Some are seasoned pros. Many are “wannabe” real estate investors who are just trying to get their feet wet. I can tell you from experience that there is one and only thing that separates the seasoned pros from the wannabe real estate investors. This one thing will surprise you because it’s not what you think.

It’s not a secret technique. It’s not a special recipe. It’s not a secret phone number. It’s not a list of private money names. It’s something else:

ACTION!

Successful real estate investors take action. They blaze ahead. They plow through. They move forward. They do something. Then they do it again. And again. And again. The wannabe real estate investors who are not successful – and who will never be successful (I’m sorry to say) are those who are waiting for something; perhaps they are still trying to get their paperwork in order or they are trying to figure out their brand or they are waiting for their business cards to be designed and printed. These are excuses! And believe me, I’m not the only one who says this! I am backed up by experience and by a chorus of other real estate investing experts who believe the same thing.

If you want to be successful as a real estate investor, go work on a deal right now. Don’t just do a bit and then stop. Start working and don’t stop until you have the deal. That’s it. That’s the secret. If you don’t have your paperwork in pristine order, that’s okay. It will come. When you need it, you’ll suddenly discover that you can do it quickly. (And, I’m also willing to wager that you’ll be surprised to discover you don’t need as much as you think you do).

So stop reading this article. And go take action right this instant! Go For It! The market is perfect for investing NOW!

For more information go to www.investingwiththestars.net/season3. Sign up for our FREE Webinar Series with Top Real Estate Experts sharing all their money making secrets!

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