Misc News

Most of the time success in business is the result of what you know. In every industry there are key elements—secrets—that if known will help to insure success but if not known, will certainly lead to failure. Real Estate investing is no different. Success begins with knowledge. What are some of the critical lessons that every real estate investor should know? Here are ten of them for starters…

In order to become a successful real estate investor there are certain skills that must be mastered. One of these skills is marketing. The following list is a great way to insure your marketing program is successful and make sure that your investment home does not sit empty and drain your bank account while you wait for a buyer.

Make an effort to do several of these action items each day until your investment home sales, rents, leases, or you are forced to move in:

1. Put signs in yard (be sure phone numbers are readable):
•For Sale

•Flexible Seller

•Motivated Seller

•"0" down
2. See that landscaping looks great

3. Check out & fix mail box if needed

4. Clean driveway if needed

5. Plant colorful flowers & add mulch

Of course prying a property from REO inventory does not guarantee that it will be productively reused. That decision is ultimately the purchaser’s. Several types of for-profit investors may acquire property out of REO:
• Rehab investors intending to improve the physical condition of the property in order to sell or lease it.
• Investors intending to subdivide a property (legally or illegally) to rent several units to tenants.
• Short term speculators who acquire properties at rock bottom prices intending to “flip” them after little or no improvement of the property.
• Long term speculators who acquire properties to be leased to tenants until resold.New homebuyers purchasing the properties for their personal residences.

Local governments can foreclose on
property owners who are delinquent in
their property taxes or other government
levies for a minimum period of time
specified in the local tax lien statute.
However, lenders and servicers are unlikely
to allow a mortgaged property to be lost to
tax foreclosure if it has significant value,
and will ensure that property taxes are
paid while a loan is outstanding (either
by requiring tax payments to be escrowed
or by paying them directly themselves).
Similarly, if a property retains significant
value, lenders or servicers will pay taxes
due on the property while a property is
held in REO.17 Accordingly, in most areas,
it is properties that have been sold out of
REO inventories to individual owners or

It takes more than home improvement know-how to make the big bucks in rehab properties. In order to be a successful investor, you need to know what needs to be repaired - in addition to knowing how to do it. You also need to know how to work with others. Even if you fancy yourself the second coming of Bob Vila, you only have two hands and sometimes it pays to have an extra set (or more). This means not only assessing the cost of labor, but also dealing with insurance and tax issues - not to mention city work permits and other legal hassles.

Estimating Repair Costs

This may not be the right forum, but I have a problem.

I live in a hot and humid place. And placing bandit signs is difficult. Beyond using hammers and water to soften the ground, can anyone advise on how to soften the ground thoroughly for my metal stakes.

Please help.

Thanks.

The hard money lending business is a hard asset (real estate) based business. You will need to consider several factors while structuring your company. One factor is whether you will be using your money or seeking investors. A second factor is whether you will be making loans locally, nationally or internationally. Third, you will need to determine what you are investing in -- real estate, start-up companies or early stage businesses. The fourth factor is the type of businesses that you will lend money to, such as technology, real estate development, construction, residential or commercal

Using Your Money

Step 1

Hard money comes from private individuals who want to earn high interest on their cash. Investors use hard-money loans to buy properties that banks won’t normally lend money on, such as fixer-uppers. Small-business owners use hard-money loans when they cannot get conventional bank financing. The loans carry steep interest rates of 12 percent or higher, and the stringent terms can make repaying these loans difficult.

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Hard-Money Loan Structure

Hard money lenders provide capital to businesses and individuals for the purchase of real estate or to finance business development projects. Hard money loans are most commonly used for real estate transactions, such as rehabilitation projects or commercial developments. Lenders finance a sizable portion of these transactions and the loans are subject to strict terms and conditions. These types of lenders are usually available over the Internet rather than through traditional bank branches. Many private investors provide hard money loans as well.

Lending Practices

When buying property for rehabilitation, it is important to do your house clean-up and repairs in the proper order. You don't want to get ahead of yourself or waste time and money on the project. These steps are a good order of process to follow when house rehabbing, with a few extra specifics. Of course you will find small repairs in between these steps but they are very minor.
1
Secure the place by putting new lock sets in at least one entry door, and barricade the other exterior doors and windows that will not lock. From this point forward you need to know that your tools, building materials, and future improvements are safe from vandals.
2