There are several tried and true methods to uncover sellers who will literally beg you to take their house. They all boil down to finding a seller whose situation has changed.



For various reasons (such as divorce, death or job conditions), they need to get out from under their home fast. You can often buy these homes for pennies on the dollar, then turn around and sell the property at a much higher market value. That translates into BIG real estate investing profits for you.

The ?trick? is in finding these sellers. Be paitent and keep looking - they are out there and the rewards are well worth it!

TIP #2

Changes in gasoline prices add to labor costs, because contractors expect to be compensated for the cost of getting to and from the job site. If you are working on a tight budget, a few cents per gallon at the gas pump could erase your profits when you rehab and "flip" a property.

Take care to calculate into your rehab cost a ?fudge factor? to include funds for such ?emergencies?. A good rule of thumb is to multiply your estimated rehab costs by .2 (20%) and add that to the estimated cost when you are analyzing a potential project.

If this small addition kills the deal for you, it is probably best to move on to another deal.

TIP #3

Storage sheds can be a valuable additional source of income on your rental property. You can rent them to tenants or you could put in a coin-operated washer and dryer. With a larger income property, you could install cold-drink dispensers.

Anything you can do to add value to your tenants adds value to your real estate investing.

TIP #4

In every real estate investing deal A LOT of money is changing hands, so you'll need professional contracts that keep you out of trouble and keep your customers happy. There are standardized contracts you can use that cover all the bases.

You also need to organize and structure your business like any other, and there are very smart ways to do that, while maximizing your profits and minimizing risk using proper asset protection and entity structuring methods.

Not all real estate investors are bestowed with exceptional financial qualities. However, there are several techniques to enable savvy people with less cash to step into the world of real estate investing.

TIP #5

One very creative method of offering a seller more than they are asking is to offer More Price for Better Terms. In this creative real estate investing method, the seller usually asks for more money in exchange for flexing the terms of the agreement. An example would be where a real estate seller agrees to extend the payment schedule by 10 years in return for a higher total sales price.

By taking payments for a longer period of time, the seller can make more money on payments as well as the overall price increase. It is also a good deal for you because you have a longer time to pay off the debt which relates to lower monthly payments.

TIP #6

Trust is vitally important in real estate investing as the seller must trust the buyer regarding the equity payment terms. One of the most traditional ways is to give the seller a substantial amount of cash as a down payment.

However, there are other methods of providing the seller payment for their equity that do not include cash and often offer the seller more value in the transaction. These methods include exchanging higher price for better terms, trading value for value and even paying for whatever it is the seller wants to do with their profits.

Always look for alternative ways to pay the seller more than they are asking!

TIP #7

Should you decide to use one, a real estate agent does do a lot of leg work during a sale, but all of it comes at a cost. Hefty brokerage commissions of 6% or more turn many investors off of the idea of using an agent and onto the idea of selling the property themselves. If this sounds like something you would like to do, follow these steps for selling your real estate investment yourself.

Step 1. Calculate the asking price for the property

Hire a professional appraiser to price the home or check the sales prices of comparable homes in the same area of your real estate investment. You can visit your local court house and compare similar recent real estate sale prices within a few miles of your property. Many court records are now available on the Internet.

Always take into consideration the current real estate market. If the market is a buyer's market, you may have to lower your price. If it is a seller's market, you might be able to ask more than the market value for the property.

Step 2. Market the property

Advertise the property and show it to perspective buyers. Make sure you have the necessary purchase contract forms. The purchase contract will need to be signed by you and the buyer once you have negotiated the deal.

Step 3. Close the deal.

You will need a closing agent to perform the closing, which may be an escrow company, a title company or real estate attorney, depending on your area. There is a lot of paperwork needed here as you need to provide the buyer with disclosure statements and he will need to provide you with a loan commitment letter.

Inspections are also performed during this time and a title search will be completed by your closing agent. To complete the closing, you will need to meet with the closing agent and buyer to sign the paperwork. pay any closing fees, pay off the mortgage and pay or put aside any taxes owed. Your closing agent will help you with all these details.

The closing phase is the busiest (and most exciting) time of selling your first property in real estate investing. The closing table is where all of your hard work pays off and you get to walk away with your real estate investing profits.

TIP #8

Learn to pay by skills, not with cash. Many lawyers, insurance agents, merchants, and painters are skilled enough to provide important services instead of cash in the transaction.

These skills can be traded for a better deal on the down payment.

Utilize these tactics in your real estate investment deals and you will find more flexibility on both the buying and selling side of your real estate investment transactions.

TIP #9

Many real estate investors continually try to purchase investment properties that are not really on the market. What I mean by that is the property owners have the attitude of "Sure, my property is for sale... for a price". Unfortunately, ?for a price? usually means it will make no financial sense for an investor.

Be sure to analyze the real estate investment for its true value and work only with truly motivated sellers that are willing to work within parameters that allow you to make a profit for the time, money and effort you put into it.

TIP #10

Never fall into the trap of thinking that you will get rich quick in real estate investing. Getting rich overnight will not happen regardless of what some of the so called "experts" tell you. Real Estate takes some time, effort and knowledge to do it with minimum financial risk.

Remember that YOU can do it, too! You can join the millions of investors who create sizable incomes through real estate investing, you simply must understand that it is not an overnight process and stick with it!

Above all, don't be afraid to get into real estate investing. Thousands of every day people succeed admirably in this industry every year.

Gather the information you need, then get started making money.