Loss Mitigation Home Business Opportunity Real Estate In Different American States Following A Builder For Profits An Example Towards Property Millionaire Understanding How A Buyer S Agent Can Help You
When real estate investors envision what it means to invest in foreclosures, they usually fall into one of two camps. One camp contains investors who primarily focus on the REO process, and they typically purchase REO properties or HUD homes to build their portfolios or generate profits. The REO camp usually requires access to a little more capital to be consistently active so this may offer limitations to many investors, particularly those new to real estate.
The other camp, and the one that I have built my own real estate business around, focuses on preforeclosure properties and short sales. There is also fantastic money to be made here (if there wasn’t, I wouldn’t personally be doing it) and it offers more opportunities for the novice investor. It is primarily for this camp that I have created my landmark Preforeclosure Cash Flow System.
To get a free Foreclosure investing and short sale course, Go to: Loss Mitigation Training
Working the preforeclosure side of the foreclosure business is a natural draw for many investors interested in foreclosures because there is an abundant source of motivated sellers. That is only the tip of the iceberg, though. No matter how motivated a seller may be, real estate investors need to be well trained to be at their best. At the core of this need for training lies loss mitigation training.
What is loss mitigation? It is a general term that refers to working with a lender, whether you are helping a seller negotiate a payment arrangement or if you are working short sales. Lenders have their procedures they follow when processing foreclosures and so too should you have a process for working with loss mitigation.
Today’s preforeclosure business is more than just looking for free foreclosure listings on the Internet or taking the plunge and investing in foreclosure listings that carry a monthly or annual fee. Anybody can do this and what will set you apart as a foreclosure real estate investor and as a preforeclosure specialist is the type of loss mitigation training you have.
I’ve been in this business of foreclosures for a long time now and I’ve seen a lot of experts come and go whose best approach was simply to tell you about all the money there was to be had in preforeclosure and short sales. Where these others fell short was their inability to effectively train their clients in loss mitigation.
My business approach is a little different. Sure, I’m going to be honest with you and tell you that there is indeed a lot of money to be made in short sales and most any aspect of the preforeclosure business. I also back that up by providing the type of loss mitigation training that I have proven successful with my own business.
Friends, loss mitigation and short sales are incredible opportunities but it can also be a jungle out there if you lack the loss mitigation training you need to be at the top of your game. You owe it to yourself to check out my Preforeclosure Cash Flow System and the detailed, cutting edge approach to loss mitigation that is contained within it. I wish you the greatest success in real estate investing.
To get a free Foreclosure investing and short sale course, Go to: Loss Mitigation Training
Dedicated to Multiplying Your Income,
The Business Building Coach to the Foreclosure Industry
Due to the upcoming expansion of the state of Oklahoma, neighborhoods around the city of Tulsa had forecast the rise of their homes’ value.
In Scranton, Pennsylvania, houses are expected to rise in value due to the efforts of the mayor to improve its neighborhoods and convert vacant homes into much more saleable empty lots.
The exterior of the house also affects its asking price. In Alabama, where people take pride in their southern heritage, lawns are kept well-manicured and the houses are well-maintained. Prices are expected to steadily grow.
In Texas, builders still show their confidence in the market through the steady inventory of new homes, especially in Edinburg where land is quite inexpensive. However, prices are expected to be more or less the same due to the prevalence of low-paying jobs in the area.
Real estate agents in Florida are expressing confidence over the strength of the local economy and are expecting market stability as result of low interest rates.
In Nevada, however, prices are expected to drop due to rising inventory, with exception of houses near amenities like golf and spa.
California real estate is expected to maintain its tight inventory as population continues to grow.
The recent slump in house prices, however, have affected several states in the country. Due to several layoffs especially in the manufacturing industry, houses in the Midwest area are lowered in value and homes with price tags of more than a million may be discounted just to get it off the market.
As the real estate market begins to calm down, many worry about making a profit on their homes. Here’s an example of the “follow the builder” profit strategy.
Follow That Builder
In many areas of the country, there are builders who build hundreds of houses each year within a fifty mile radius of each other. They build entire communities, or are one of three to five builders who build entire communities around big employment centers. This is important. Hang with me and you’ll find out why.
The first couple I met who worked the pattern I’m talking about did it the first time almost by accident. They bought one of the first houses built in a neighborhood that took about two years to build out. Toward the end of the two year period, they were out for a walk and, on impulse, went into a house under construction that represented a bit of a “move up” from their home. The same builder who had built their home was building it.
The couple went to the sales office of the builder and found out that the house they’d walked through was already under contract. They were shocked to find out the price was $150,000 more than they’d paid for their home! The house was a little larger, but not enough to account for the difference. In fact, they found out their home had increased $100,000 in value.
A Repeatable Pattern
Builders usually have bright, attractive, cheerful, enthusiastic people on their sales forces. These people often have a wealth of knowledge. They know (or can usually find out) which communities the builder has built in, is building in, and maybe even where they’re going from there. They know a lot about the pattern of price increases for various models. They have some idea of the speed of build out.
It’s also possible to take walks in a builder’s neighborhoods and ask people how that builder is to work with, if construction and “punch list” completion are done reasonably and well, and if they’d choose that same builder again under similar circumstances.
If all the information you develop is favorable, you can start to “follow that builder.” Builders usually sell the first few houses in a neighborhood for less money than any of the homes subsequently built. They’re contracted for before the streets and amenities are complete, and it takes a lot more imagination to see a charming, pleasant neighborhood where now there’s only mud and bulldozers.
Follow the builder is a strategy that has been used. If you like a particular builder, you can use the strategy to put serious money in your pocket.
One of my strategy to become a millionaire is through properties. I wanted to accumulate a net worth of 1 million in properties. My strategy is to get 5 properties with good rental yield (8% and above). I will be living in one of this property. So if one property is average 200K, 5 property will be 1 million.
I will be able to generate income from the property. So my estimated income generated from rental will be 200K X 4 X 0.08 = 64K per year (X 4 because only 4 property will be rented out). However in the initial stage I will not be able to put the rental income into my pocket because the income will need to be used to offset the installment.
I plan to accumulate all my 5 properties within 5 years time, 1 per year. Right now I own 2 properties. One of the property that I lived in, and another one is rented out. So I have another 3 to go. My strategy is to settle the property that I lived in as fast as possible. I am targeting to settle that in less than 5 years time. For the rented properties I plan not to settle if fast at the moment as I need to focus on the property that I lived in first.
Sounds easy huh. Actually not as easy though. First you need to have enough monthly income for you to eligible to get loan from the bank. The bank will only borrow you money when you don’t need it. Then you may need certain amount of down payment when you buy each properties. You also need to do a lot of research and familiar with the area that you are targeting for before you decide to get the property. Buying a property is a life long serious commitment as it may takes you years to pay back the installment. So don’t act bluntly. Another problem can be, what if you cannot get rental? So hot location is the main concern here. What if your tenants quit rents? You will need certain amount of emergency fund to cater for this.
Although not that simple, but it is definitely a workable way to millionaire. It may seems a little bit slow, but its a surer way. Set the target, plan accordingly, action and work hard, then you will achieve it one day.
When purchasing a home, most people will have an opportunity to interact with one or more real estate sales people (often referred to as real estate agents or “realtors”). It is very important for a home buyer to understand the roles and responsibilities of a real estate sales person, especially who they represent in the real estate transaction. This article provides a brief overview of “typical” representation in a real estate transaction, and describes a buyer’s agent and the valuable contributions that they can make helping a home buyer to purchase a home.
A real estate sales person acts as an “agent” for one or more of the parties (buyer and/or seller) in a real estate transaction. An agent is an individual who works on behalf of another individual. Under the law of agency, which governs client/agent relationships, an individual acting as an agent for another individual must work to protect the “best interests” of their client (the person for whom they are acting as an agent). They are said to have a “fiduciary” responsibility to their client.
Typically in a real estate transaction, a real estate agent will obtain a listing from the seller of a home. The realtor and seller enter into a listing agreement whereby the realtor agrees to act as the agent for the home seller to help them to sell their home (listing their home in a listing service, marketing their home, holding open houses, showing their home etc.). This realtor is often referred to as the listing agent, listing realtor, or listing broker. In the listing agreement the home seller agrees to pay the listing agent for their services, typically a percentage of the selling price of the home. Since the listing agent often is not the individual to actually sell a home, the home seller also typically agrees to pay the agent who actually sells their home (the selling agent) for their services, also typically a percentage of the selling price of the home.
It is important for a home buyer to understand, that in the absence of any disclosure to the contrary, the listing agent acts as an agent of the home seller. The selling agent acts as a sub-agent to the listing agent. This means that both the listing and the selling agent are working for, and looking after the best interests of the home seller. Many buyers mistakenly assume they are being represented by the real estate agent who is showing them homes, when in fact that individual is usually working for the home seller. For this reason, many states require by law that real estate sales people disclose who they are working for to all parties to a real estate transaction at the beginning of any relationship. The National Association of Realtors (NAR) also requires in their “Code of Ethics” that realtors disclose who they are working for at the first meeting between a realtor and a seller or buyer.
Many home purchasers are not happy with the typical “arrangement” whereby real estate agents are representing the seller, and they are left to represent themselves. Many home buyers prefer to have a trained, experienced real estate professional representing them in their real estate transactions. It is for this reason that many home buyers choose to hire a buyer’s agent (also referred to as a buyer’s broker or buyer’s representative). A buyer’s agent is an individual who is hired by a home buyer to represent them in a real estate transaction. Similar to a home seller, a buyer typically enters into a contract with the buyer’s agent. The contract should stipulate what services the buyers agent will provide, and what compensation the home buyer will give to the buyer’s agent if they successfully help them to purchase a home. Buyer’s agent compensation is typically a percentage of a home selling price. Buyer’s agent contracts typically have a term and provisions for how either party (the buyer or the real estate agent) can sever the contract.
A buyer’s agent acts as the agent for the buyer in a real estate transaction. Services that they provide include:
Understanding a buyer’s home buying needs and desires.
Helping buyers to understand what they can comfortably afford.
Researching and helping to locate suitable homes in the appropriate communities that meet their buyer’s needs.
Answering questions about homes, communities, the home buying process, and more.
Helping a buyer to understand if a prospective home is fairly priced and helping them to formulate an offer for a home.
Filling out all of the appropriate purchase offer documents and presenting them to the selling agent and home seller.
Helping the buyer with negotiations or negotiating on behalf of the buyer.
Providing lists of qualified individuals for other services needed such as attorneys, and home inspection services.
Facilitating the flow of contracts between seller and buyer attorneys.
Assisting the buyer in obtaining financing for their home purchase.
A buyer’s agent should not, however, provide advice on matters for which they have no training or expertise. They should not, for example, be providing legal advice. Buyers should work with qualified attorneys for legal advice. Buyer’s brokers can, however, assist a buyer in finding an appropriate attorney.
For their services, a buyer’s agent is compensated by the buyer. What typically happens in practice, however, is that the buyer and buyer’s agent will build into the offer a provision for the seller to provide the compensation to the buyer’s agent. Remember that a typical seller has already agreed to pay a selling agent commission when they entered into a listing contract. That means that there is typically money available to compensate the buyer’s agent for their efforts on behalf of the buyer. If the seller has made available less money than the buyer’s agent is entitled to by contract with the buyer, then one of several things can happen:
The seller can agree as part of the negotiations to pay the discrepancy in order to sell their home.
The buyer pays the additional amount out of their own pocket.
The buyer’s agent agrees to accept less compensation than was originally agreed to to allow the transaction to go through.
Dual Agency, A Special Condition
A special condition can sometimes arise where a real estate agent is contractually obligated to both parties in a real estate transaction, as would be the case of a buyer’s agent showing one of their own listings. In this case “dual agency” is said to exist. The real estate agent is an agent to both parties. When this condition arises, a realtor should disclose the dual agency condition and obtain consent from both buyer and seller that they accept this condition. In many states, failure to disclose dual agency is a violation of the law for which a real estate agent can lose their license, be fined, and potentially receive a jail sentence. In a dual agency condition, the real estate agent acts as a neutral third party, not representing the interests of either party, but simply facilitating the transaction. Many consumer advocates are not happy with such arrangements because nobody is looking after the best interests of the consumers, in this case the buyer and the seller.
Buyer’s agents serve a very useful purpose helping to protect the interests of real estate buyers in real estate transactions. Individuals seeking to purchase a home who do not have a lot of experience with real estate should seriously consider hiring a buyer’s agent to represent them, and help them through the process, negotiations, and real estate transaction.
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