In real estate, there are the usual professionals and there are the highly successful professionals. They work hard, but they also work smart. If you are a real estate professional who wants a career boost or market change, then investment property software can help. In the digital age, why not let technology work for you?
Expanding your work from the single family to the commercial market, or leaving the single family properties altogether, should be both lucrative and hassle free. By incorporating investment property software into your working style, you can invest more effectively on higher yielding deals.
Once you take your real estate investing high-tech, you can expect a turn around in your fortunes. The software makes your paperwork more manageable and easier to access. You can shift to larger properties in the commercial arena, get back a greater income on them and deal with knowledgeable sellers, lenders and brokers to expedite the process. No more depending on sellers that do not understand the process.
Do not be concerned about the complications of managing commercial real estate. There is a variety of software applications available to make it easy to know what you are doing. In a market that is strong and healthy, you can take advantage of those conditions to boost your bottom line.
Any investment property software you choose should include blank PDF forms that you simply fill in as you need to. The forms should include the necessary worksheets for loan comparisons, broker submissions, loan quotes and insurance quotes as well as initial set up and marketing packages. And these are all doable on your computer or laptop.
Most investment property software packages start you off with an agent set up that is an easy to read and smart sales document so you can put your best foot forward. You also get a comparative market analysis that will allow you to hit the ground running. It is an easy way to jumpstart your commercial property investment career.
Remember, with commercial real estate, every second counts. The single family market is in a slump and housing prices are continuing to fall. Making the switch is a sound career move. With the prices of traditional homes threatening to continue their fall, the better, more lucrative market is clearly the commercial property market.
Using technology in your real estate endeavors should enhance the returns on your investments. Ideally, going digital will give you back your missed weekends and evenings, and eliminate the necessity of wading through tons of paperwork and red tape. Investment property software gives you the inside line so you can be a competitive agent or investor.
Preparing yourself for the commercial market is fast and simple. The forms show you all the information you need to create an attractive package that will impress sellers, lenders and brokers. Plus, you can create your own investment scenarios and determine just how lucrative they will be before you decide to invest.
Including investment property software into your real estate process can benefit you enormously. With less paperwork to fill out and fewer low yielding opportunities, you can maximize how you spend your time searching for and acquiring profitable properties.
If you need a calculator, its probably not a deal. If you are running these numbers to tell if its a deal, its not a deal. If somebody says, I have a house and the after repaired value is $100k, it needs 10k in work and you can pick it for $50k. Thats a deal, right?
Remember most deals are made, not found. This means it wasnt a deal until after the negotiation process. You want to hit home runs, especially on your first deals because you need to make sure there is plenty of profit in the deal. The worst thing you can do is get involved in a marginal deal and get discouraged before you get started.
Get used to analyzing and making offers before you get off the first call. The goal is to get your offer to them and start the negotiation process.
Just starting out? I still want you to see the properties before closing on them but eventually youll complete the transaction without looking at them just like we do. Dont worry because I have included specific techniques to do the work for you.
Before I make an offer, I need the answers to 2-3 questions.
After Repaired Value: People tell me the current value is $___. This makes no difference if it needs work. Were not basing it on as is; we are basing the value on after repaired value. The first thing I need to know is whats the after repaired value?
Amount of Repairs: Whats it going to cost to fix up? This is where youre going to catch a little resistance from people and especially with Realtors because they dont want to commit to a figure. One of the phrases that I use alot is just a ball park.
Potential Rent: If this is a rental type property Ill need to know what kind of cashflow its going to have to make sure the numbers work at the total cost. Ill need to know if its a For Sale by Owner, whats their loan balance and are they current on the payments. Youre probably thinking that the seller or realtor doesnt know this information or wont tell you but Ill show you in the section on negotiating exactly how to ask those questions and get your offer to them before you get off the phone. Ill show you how to make low offers and not have them hang up on you.
In my market we have to be able to wholesale houses at 70% of appraised value. (This may be different in your market) This includes purchase, repairs and closing costs, so I have to buy the property at 60% - 65% or less.
When running numbers, you always want to use worse case scenarios. For example, if your seller says that the house is worth $80-$85k, you are going to use the $80k. If they tell you it needs $10- $15k in work, you are going to use the $15k. We always figure in the rehab closing cost, so that is the worst case scenario.
If an Investor is paying cash or has their own money, theyll actually make out better. If they also do some of the repairs themselves, theyll make out better. Because we are basing our rehab cost on hiring someone else to do the work and weve already gotten 2-3 estimates on the repairs, we give those to the buyer.
Both Andrew Stratton & Ben Needles are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.