Real Estate Information |
|
Questions Investors Should Ask When Buying and Selling Investment Property
If you're a real estate investor, here are several questions to consider when looking at investment properties. Providing sound answers to these questions will greatly increase your profits: Why do homeowners sell for bargain prices? There are many factors that can prevent owners from being able to maintain their homes. Such factors as job transfer or loss, divorce, illness, addiction to gambling, drugs, or alcohol, or any of a wide variety of other problems may overwhelm a homeowner. When that happens, their home becomes a low priority and necessary repairs are no longer made. The house may even go into foreclosure. The death of a homeowner may leave relatives with a house no one wants, which then becomes a burden. These homes may just be "tired" and only in need of cosmetic upgrades in order to compete with other homes on the market. I recently purchased a "Triple D" house: one that had been involved in a Divorce, was going through Default, and was a Doghouse. But it needed only cosmetic work, so my daughter and I bought it and we're doing it all ourselves, without the help of the men in our lives, and we expect to make nearly $50,000 for one month's work. That's not as much as our husbands generally make on their "doghouses," but we're not going to work nearly as hard. What should you look for? The hardest house for a homeowner to sell is a "doghouse," which is also commonly known as a "dump" or "fixer-upper." These run-down houses scare off most buyers, who lack the up-front funds for the down payment, closing costs, new furniture, and things like new carpeting, roof repair, and other repairs that may be required. With that in mind, looking for key words such as "handyman special," "as is," "fixer," and other tell-tale words in real estate ads or listings can make you money. Tell your realtor to use those types of key words when doing a Multiple Listing Service search in your target area. Once you find a fixer that you can transform from a doghouse to a dollhouse, find out the seller's problem and then offer a solution. Those problems are often money-related, so being ready to close quickly is generally important and can lead to a bargain price from a seller in a financial bind. How do you close quickly? You can close more quickly by having your loan in place before you even begin negotiations with the seller. Motivated sellers will respond favorably if you've been pre-approved for your loan, so getting yourself both "pre-qualified" and "pre-approved" by an experienced lender will let sellers know that you can close quickly. How "bad" is good? When you first start out in the real estate "fixer" business, look for UGLY houses that are in need of only cosmetic work. Entry level "blow 'n go" fixers are houses that just need cleaning up, paint, and carpeting. Know your limitations, and use caution when looking at houses that are in need of structural repairs. Such homes can be very profitable (we've made $75,000 for one month's hard work, for instance), but they're not good candidates for most beginning investors. Since my husband knows how to do construction, we're able to take on houses that other investors might not. He's replaced structural beams, sub-flooring, walls, plumbing, and electrical systems, but he learned those skills over the course of many years. Over time, you may learn how to do much of the structural work yourself, but when you're first starting out, make sure to get estimates from reliable contractors for any structural repairs that might be necessary, and then decide if there will be enough profit left over to make the project worthwhile. What's the easiest house to sell? Selling a "dollhouse" in a desirable family neighborhood is easiest. For instance, we once sold a house we called "Orange Tree Cottage" just three hours after it hit MLS! Buyers first look for a particular neighborhood, and then look for a house within that area with the right number of bedrooms, bathrooms, and other amenities. They'll ultimately buy the house that not only meets their basic requirements, but also supports their emotional needs. What are buyers' emotional needs? We find that the use of Design Psychology and Marketing Psychology makes a huge difference when we sell our investment properties, selling them more quickly and at higher prices. But both concepts go far beyond simple "curb appeal." We first entice buyers onto the porch, through the use of potted plants and flowers near the front door, which we've painted a happy color. Once buyers are inside the house, we use colors that target our prospective buyer's income level and match the selling season. Generally, buyers of higher-priced homes prefer complex colors, and using cool colors during hot weather and warm colors in cold seasons sets the stage for making buyers feel comfortable in our houses. As a real estate investor, asking yourself these questions, choosing your properties carefully, being prepared to act quickly, and using Design Psychology and Marketing Psychology can all work together to greatly improve your bottom line. (c) Copyright 2004, Jeanette J. Fisher. All rights reserved. Professor Jeanette Fisher, author of Doghouse to Dollhouse for Dollars, Joy to the Home, and other books teaches Real Estate Investing and Design Psychology. For more articles, tips, reports, newsletters, and sales flyer template, see http://www.doghousetodollhousefordollars.com/pages/5/index.htm
MORE RESOURCES: Refined Real Estate: Unique Leschi home with lake views lists for $1,395,000 seattlerefined.com Coloradans negotiating lower fees for real estate agents with new law on horizon Colorado Public Radio Real estate mogul cautions about avoidable mistake when buying a home, explains how to avoid 'drowning' Fox Business Massachusetts real estate transactions for Hampden, Hampshire and Franklin counties May 19, 2024 edition MassLive.com Real estate transfers: May 17, 2024 RiverheadLOCAL London Real Estate Is About to Get the ‘Selling Sunset’ Treatment Hollywood Reporter Real Estate Newsletter Articles this Week: Housing Starts Increased to 1.360 million Annual Rate in April Calculated Risk Mid-May Greenwich Real Estate Market Report Greenwich Sentinel Should I Buy a House Now or Wait Until 2025: Expert Forecast Norada Real Estate Investments Dodge County Real Estate Transfers Fremont Tribune The Michael Houck Real Estate Guide for May 19 Oil City News Washington state ahead of the game as lawsuit rewrites real estate commission rules The Business Journals MCB Real Estate Revives Long-Awaited Viva White Oak Mixed-Use Project Source of the Spring STAR resource center Department of Taxation and Finance Yes, there are other coastal Delaware towns besides Rehoboth Washington Blade Dutchess County, NY real estate 2024: What's on the market for $579K Poughkeepsie Journal Revolution in real estate: How the NAR settlement is changing the game Eden Prairie Local News Baltimore real estate: 4 waterfront condos for sale The Baltimore Banner Real Estate Briefs: Lakeside homes, news condos, and more news Rough Draft Atlanta Home Prices Hit Record Highs in April 2024: Trends & Forecast Norada Real Estate Investments REAL ESTATE | UPDATE | Johnson Bus selling lot for new West Bend Fire Department No. 1 washingtoncountyinsider.com Innovative Leaders Vanderstraaten and Rohrman Inducted into North Texas Commercial Real Estate Hall of Fame ... dallasinnovates.com VIDEO | REAL ESTATE | Construction finally underway for Taco John's in West Bend, WI washingtoncountyinsider.com Oceanport's Denholtz recognized by commercial real estate organization themonmouthjournaleastern.com James Quinn's Data Center Advisory Expertise at JLL Drives Innovative Real Estate Solutions for Global Corporations Markets Insider Here are recent property transfers up to $1.28 million St. Albans Messenger Routt County real estate sales at $17.6M for May 9-15 Steamboat Pilot & Today Real Estate Mogul Grant Cardone Closes Largest All-Cash Multifamily Deal In South Florida This Year Yahoo Finance Westmoreland County Real Estate Transfers | Real Estate | latrobebulletinnews.com latrobebulletinnews.com China Says It Will Start Buying Apartments as Housing Slump Worsens The New York Times Robert Willett may be targeting female Realtors in Northeast Ohio Akron Beacon Journal OT Real Estate Spotlight of the Week: 2115 Sheridan Place The Owensboro Times Number of homes for sale in Metro Atlanta increased significantly, real estate brokerage says – WABE WABE 90.1 FM What's real estate wellness? Fortune Connecticut real estate law changed after MV Realty investigation Eyewitness News 3 Billionaire Frank McCourt raises his hand to buy TikTok Business Insider Connecticut real estate law changed after MV Realty investigation Eyewitness News 3 Ellison sues real estate broker Chad Banken over alleged schemes involving contracts for deed Star Tribune My Co-op Neighbor Never Pays His Maintenance on Time. Can We Make Him? The New York Times Navigating Northern Virginia Real Estate: An Insight Into Rhonda Campbell's Bespoke Approach Grit Daily Local couple buys Pat Burrell's former Center City penthouse for 38% under original asking price Philadelphia Business Journal Bienville Realty: Commercial real estate Fox 10 News Letter: Clarifying changes to real estate industry Morgan Hill Times ACRES 2024 showcases innovative real estate projects focused on enhancing environmental sustainability Malaysia Sun Home listings are on the rise in southern Colorado, while other indicators show a slowing real estate market Colorado Public Radio Sean Bloom Investments Announces $2B Real Estate Project in Las Vegas InvestorsObserver Southern fast-food chain Cook Out buys Tampa real estate Tampa Bay Business Journal China’s rush to prop up housing sector comes with eye on third plenum: analysts South China Morning Post Did Fort Worth’s real estate market really ‘bottom out’? | Fort Fort Worth Star-Telegram New Rules for North Texas Real Estate Agents Creates Uncertainty Dallas Observer EG Real Estate: 18 Opens This Weekend – East Greenwich News East Greenwich News Busch relative settles squabble with Clayton investors over real estate trust St. Louis Post-Dispatch LOCAL REAL ESTATE TODAY 5.17.24 – KQEN News Radio kqennewsradio.com Shaping the Future of Real Estate Technology RisMedia.com KKR Real Estate Finance Trust Inc. (NYSE:KREF) Given Average Recommendation of “Moderate Buy” by Analysts Defense World End of war against property speculators marks new phase in China housing South China Morning Post Housing Market 2024 Predictions Bankrate.com Edgefront Real Estate Investment Trust (TSE:NXR) Forecasted to Earn FY2024 Earnings of $0.73 Per Share Defense World Real Estate Transactions for May 18-19 | News, Sports, Jobs Nashua Telegraph Do starter homes still exist? Here's what NJ realtors said NorthJersey.com |
RELATED ARTICLES
New Home Construction - The American Dream or The American Nightmare? Buying a new home is suppose to be the American Dream. Unfortunately, for many buyers of newly constructed homes it becomes the American Nightmare. California Home Seller Disclosure Duties Property Condition - Seller's What to Expect During the Inspection ProcessThe Transfer Disclosure Statement (T.D. Advantages and Disadvantages to Selling a House on Your Own As with any business transaction, there are pros and cons to selling your own home. Many people are intimidated by the whole process, but if you know what you are up against, and if you are aware of what needs to be done, you will be more effective at selling on your own, or you will be better at making sure your agent does what you prefer. 10 Easy but Essential Steps for Home Selling Success They say that the whole process of selling up, buying new and moving on is one of the most stressful series of events any of us goes through in a lifetime: and yet with careful planning, attention to detail and a clear focus, the whole process can be relatively stress free.While there will always be factors outside the control of any home seller, those factors that fall within their control sphere can proceed fluidly and smoothly when they take the time to plan and think one step ahead. Flipping or Fixing Houses for Profit Many real estate investors make $5,000 to $10,000 or more by flipping houses. These investors buy a home from a distressed seller and resell it quickly for a profit. How Come No One Told Us About This When We Were Buying a Home? Development, it's bound to happen.Simply because there is a large open field, or the property you're looking at borders woods, doesn't mean it will or can stay that way in the future. An Estate Planning Primer An estate plan can be designed by clients and their professional advisors to achieve the client's personal and financial objectives. Or, it can be an arrangement imposed upon survivors by state intestate succession laws if someone dies without a valid, up-to-date will. Real Estate Growth: How Long Will It Last? There has been speculation in the media recently about the fact that real estate will begin to fail and implode as it can only handle so much growth. In my humble opinion these theories don't hold a lot of merit and here is why. Finding Structural Problems During Escrow - Small Rural Home Example In rural home purchases, the transaction is often subject to a satisfactory home inspection being done. Any imperfections are usually corrected during escrow. Should You Buy Real Estate Now I have been seeing the market on fire for a long time and have started telling my friends, "don't buy now". No one can accurately determine exactly when it will happen, but it is definately on the way. Green Building Media Fact Sheet - Past, Present & Future PastSpecialized, niche home builders began constructing resource-efficient, environmentally sensitive homes in the early 1970s. The home building industry coined the phrase "green building" in the late 1980s/early 1990s, turning a movement into a quiet revolution. What to Look Out For When Buying Off Plan Buying Off PlanIt can be difficult to decide when every deal seems to be not to be missed!There are some key things I look for when buying off plan, whether it's in the UK or abroad it makes no difference.The property must be good value now ie it compares favourably with similar properties today, and is not based on properties going up in value 10% each of next 2-3 years. Purchasing International Real Estate Interested in investing somewhere other than your back yard?Management companies have made it as easy to have a revenue property across the world as it is to have it across the street. You don't want to be collecting rents and plunging the toilets no matter WHERE it is!Different laws in different countries means some research is definitely in order. Property Investing Secrets 8 Property Investing: A Buyer's Secret Weapon When Purchasing Real EstateMy friend, Roger, does property investing and is a licensed real estate agent. Recently he looked at a property in another state that was probably worth $225,000. Termite and Moisture Damage Not Reported I have done so many appraisals where I saw obvious damage that was not reported by the other inspectors. The first couple of times I thought it was just carelessness. Why Move to the Poconos? Awaken to the sounds of softly rustling trees and tranquil gurgling streams. Stroll along quiet lush wooded mountain trails. How To Negotiate A Higher Price For Your House Negotiation is where many FSBO home sellers really have problems. The wrong attitude or a slip of the tongue could cost you thousands. Why Selling on Lease Options is Glorified Landlording I might upset some folks with this one, but that's okay as I think it's important to get some of my experiences into the light of day. If you fully believe the hype that you won't have any landlording responsibilities by selling on a lease option, go ahead and stop here. 10 Home Purchase Abroad Tips For Success Are you seeking your little corner of sun drenched heaven on earth? If you are you're certainly not alone!Many Northern Europeans, Americans and Canadians are looking overseas for investment real estate or for a holiday bolt hole and if you're considering buying a second home in the sun, a home from home abroad or an investment property overseas and you're in a hurry to get started, these top 10 home purchase abroad tips for success should set you off in the right direction.1) Legal AdviceLegal systems differ from country to country so never assume that you understand how exactly the entire house purchase process is going to work, and never expect things to necessarily go exactly your way! To be assured of the fact that your personal interests are being looked after and that you, your money and your property are 100% secure, legal and legitimate it's essential to seek independent legal representation in the country you're considering buying property in. Flipping Houses for Gold: Three Tips to Help You Find the Perfect Fixer Many real estate investors enjoy "flipping houses," or buying and selling houses quickly for profit. Not all flips are fixers. |
home | site map |
© 2006 TIGER MEDIA |