How To Invest In Out Of State Real Estate Without Getting Ripped Off

Writen by Sheri Graber

Investing out of state and in undervalued markets can be very profitable for real estate investors looking for cash flow.

There are many markets that cash flow over 40% per year. At Cash Flow REI we look for, find and research markets with those high returns.

Through our research and acquisition phases we also find some very disturbing things. We have written this report as a public service for real estate investors.

The team at Cash Flow REI are experienced investors. We know what to look for and what to watch out for and are continually amazed at some of the shenanigans and scams that are going on.

Below are some things we have discovered and what investors may need to be cautious of.

Caution #1

Always be aware of where the information is coming. Even if you have a licensed real estate agent representing you as a buyer’s agent ask yourself how objective can the information be? They are still salespersons.

We have experienced this ourselves and have had property misrepresented to us. This has happened using licensed real estate agents working for major

brokerages with us fully disclosing our business model of sourcing property for investors. We have been told that a particular property is in an okay area, recently renovated with new vinyl windows. Upon further research and inspection we found the property to be in a “red light” district and only a few new vinyl windows. Always remember that there are people out there (some even with licenses) that will tell you anything to sell something.

In other cases we have been told that the rehab property we were about to purchase needed about 10k worth of work to get rent ready. Come to find out the property needed over 30K worth of work.

The only way to protect yourself with regards to the condition of the property is to inspect it yourself or have it inspected by a third party.

Caution #2

Another thing to beware of is the city and county inspections and what is required of the property owner. In some areas if upon inspection there is not two years of life left on the roof, or the driveway is in bad repair, or there is any peeling exterior paint they will not issue a certificate of occupancy until the repairs are made. This alone will make what seemed to be a good investment go bad very quickly.

Every city and county jurisdiction has different laws and regulations. For the uninformed real estate investor not knowing what to watch out for can be a financial disaster waiting to happen.

Caution # 3

Beware of sellers or marketers asking for cash. This is a red flag. We have found that some sellers ask for cash because they know the property would not qualify for a mortgage. Sometimes getting a mortgage on a property is a good insurance policy. The lender requires an appraisal, a full report of the property condition, and comparable sales within the area.

In one particular instance we’ve had a property sent to us by a wholesaler in Atlanta, Georgia. The email came with a picture of a trashy and dumpy looking house and the following stats. Price: $48,000 Rehab Cost: $25,000 ARV (after repair value) $148,000. Cash Only.

Upon research we found the property had an assessed value per county records for $14,000! How they arrived at the ARV of $148,000 we have no idea. The house looked like a typical meth house (homes that are used to manufacture methamphetamines). The toxic residue contaminates the entire property. The sad part is that some investor somewhere probably bought that house. The hazardous waste removal costs alone makes it a very bad investment even if the property were free.

Caution # 4

Be careful of purchasing a property that includes utilities in the rent. Get the actual bills from the utility company. Never trust fancy power point presentations or excel spreadsheets. Numbers are easy to manipulate. Watch out for people throwing around cap rates. Those numbers are meaningless. You need real numbers that include everything to determine if it’s a good investment, especially if you are a cash flow investor.

Caution # 5

Watch out for herd investing and the buying frenzy. Following the crowd can be a bad investment for two reasons. In some markets the influx of investors and their investment money is artificially inflating property prices. Many investors are overpaying because of a sense of competition. If someone tells you they have other offers coming in from other investorsmove on. Find another opportunity, another property and even another agent. Don’t fall for it. There’s plenty of property and opportunity for everyone. Be wise. Watch out for herd mentality and hype.

In other cases we have seen new construction developments being marketed to investors. When there are too many rentals in a subdivision this causes investors to compete for tenants. This drives rents down and results in neighborhoods of rental property and few owner occupants. That is never good for the neighborhood property conditions or values.

Watch out for websites and auction sites that market foreclosures and make you feel if you don’t buy right now by clicking the button you’re going to lose out on the last good deal. Leaveit’s hype and a marketing ploy to get you to buy impulsively. It’s never a good investing move to buy under pressure of competition.

Caution # 6

Watch out for property mills. These are people with a business model of churning property. They usually have access to city owned or bank foreclosed property. They buy property for little money, sometimes only $1, make some improvements and turn around and sell it to an investor for an outrageous profit.

We’ve seen public records of $2,000 purchases from city/county government. The property was then rehabbed for $8,000 and sold to an investor for $50,000. Those investors sometimes over extend themselves not having enough reserve and when they experience a vacancy for a few months they can’t afford the carry costs and they lose the home. The mills and churners come back in, get the property and do it all over again at the expense of unsuspecting investors.

We turn up these mills weekly through our research. They are not doing anything against the law. After all it’s a free country and a free market of creative entrepreneurs. It only becomes illegal if it can be proven that the appraisal and the end financing numbers are suspect.

Caution # 7

We work throughout the country creating business contacts and networks. Just recently we talked with one of our attorneys who reviews our contracts and he said that he’s noticing with transactions that the rents are being over stated.

Think about that for a minute. A landlord/investor can tell a listing agent any amount they want. There are plenty of caveats in all the paperwork. I’m sure you’ve seen them”Information deemed reliable but not guaranteed”. One little stretch of the truth can tweak all the numbers. Unless we’re working with a professional property management company (who has documented rent rolls) it’s very difficult to be sure the rent amounts they quote are true.

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Our goal with this report is to educate investors and hopefully help them avoid a bad decision when investing in real estate. Readers may re print and share this report as long as the content is unchanged and the contact information remains in place.

Cash Flow REI locates cash flow investment property for busy investors. http://CashFlowREI.com

Normalization: Code Phrase for Real Estate Slow Down?

Writen by Jeanette Joy Fisher

Real estate people and economists may not like the term “slow down.” They prefer the term “normalization.” However, whatever you choose to call it, the market seems to have slowed considerably from its frenzied pace of the last few years.

Using the Internet to Find and Finance Your Home

Writen by Tracey Anderson

Finding the best home for your situation and budget, and then finding an appropriate lender to finance it, has always been a time consuming process. The process may involve visiting several real estate agents, driving through neighborhoods to scope out availability, and attending multiple auctions. Finding a lender is even more critical since rates and fees vary and if you don’t shop around, you may wind up laying a lot more than is necessary on your mortgage.

Today, a great deal of the search is done online, and those who know how to conduct a successful internet search can save both time and money. In finding the right home, almost every real estate agent in Australia has a web site. The best place to start is with the Real Estate Industry of Australia (http://www.reiaustralia.com.au), which maintains a list of registered agents in every state and territory. Their database makes it easy to pinpoint real estate agents in the area you want to search.

Alternately, an increasing number of sellers are going through fixed fee alternatives, which deliver an online venue for selling homes in exchange for a flat fee. Sites like Vendors Sale (http://www.vendorssale.com.au) do not charge a commission, which saves the seller money and also has the potential to keep the sale price low as a result. This is more of a do it yourself approach however as the buyer and seller will have to take more of an active role in the transaction. Regardless of whether you use a real estate agent or not however, you will still need to arrange for the conveyance. Real estate agents do not prepare the necessary forms, although they may sometimes work with a conveyancer who will do it for you.

In finding a mortgage lender or broker, the Internet also comes in very useful. With virtually every lender and broker in the country maintaining a web site, it’s easier to compare prices than ever before. In addition, there are convenient third party sites that allow you to enter your information into an online form, and receive quotes from the country’s most reputable lenders. Typically, these third party sites do not charge the consumer any fee for this service. And because they often maintain a database of dozens of lenders and brokers, they may have information about a mortgage product or a lender that you were not aware of.

As with in person transactions, one must always be on guard when dealing with mortgage lenders over the Internet. The Australian Securities and Investments Commission (http://www.asic.gov.au) last year took action to protect consumers against fraudulent claims made by mortgage brokers, who must warrant that their claims are factually correct. However overall, it seems that the increased convenience of using the internet to help with your homebuying more than outweighs any drawbacks as many sites offer resources of enormous help to the consumer.

Tracey Anderson is a mortgage broker with 16 years experience in the Australian mortgage industry. She currently works with a number of broker networks including Mortgage Mall both as a broker and an expert industry analyst. For more information and resources on the mortgage industry, visit Mortgage Mall (http://www.mortgagemall.com.au).

Businesses For Sale In Seattle Washington

Writen by Clint Hunter

There are many types of businesses for sale, and there are many ways to find these businesses. You can look on the Internet or search in the newspaper. You can also purchase a franchise. Once you have found and compared businesses, and are ready to make a purchase, there are a few things you should do before signing on the dotted line.

Finding businesses via the Internet: Many web sites act as a go between for people selling and buying businesses. Once you find one of these sites, follow a few easy steps to find a business that is right for you.

1. What type of business are you interested in? Businesses are broken down into many categories, including auto dealerships, grocery stores, social services, museums, printing, and even leather products. Of course there are many more to choose from.
2. What location are you looking in? Web sites break down businesses into states, cities, or regions.
3. After you have selected a type of business and a location, a list of businesses for sale in the area will come up. Here you will be able to see the name of the business, the asking price, and sometimes other information (including the amount the business has been making annually, and the address at which the business is located).
4. Many times you can click on the business for even more information. Sometimes the cost will be broken down into real estate value, product being sold with the business, etc. You may also be able to find out the age of the business, and whether or not the previous owner will provide training.
5. Last of all, you will be given a contact name and information to find out more information and begin the process of purchasing the business.

Finding businesses for sale on the Internet might not be for you. If that is the case, you can look through the newspaper for business buying opportunities.

Finding a business in the newspaper:

The newspaper will often list the businesses that are for sale. If you do not subscribe to the newspaper, you may find the information you want on the newspaper’s web site (if they have one).

While looking on the Internet, or in the newspaper, you may come across franchise opportunities. Owning a franchise is somewhat different from owning your own business.

Franchises: Franchises are another way to purchase businesses for sale. Franchises are national or regional chains that sell you one or more of their businesses. You are buying the business name and system, in essence, but there is more to it than that. You must continue to meet requirements set by the business owner. There are restrictions with franchises that you will not have with your own business.

Once you have found your potential business: Once you found a business you are interested in, make sure you have the land and the building appraised. You should also have the building and the land inspected. Once you have done this, write out a detailed contract in order to avoid future problems.

Inside Seattle Real Estate is a network entirely devoted to real estate information. The entire Inside Real Estate network has more than 100,000 pages of real estate for cities allover the United States. Inside Real Estate covers several topics from the basic “how to’s” of real estate to city specific real estate information.

Staging Your Las Vegas Home For A Sale

Writen by Matthew Keegan

Putting your Las Vegas home on the market is one thing, but adequately preparing it for buyers is a whole different matter. Home staging is the term used by real estate professionals to help prepare your house so that it will look its absolute best. Realtors will tell you that buyers usually make a decision about a home within the first ten seconds of their visit. Therefore, a wonderful first impression is imperative if you are to sell your home quickly. Should you stage your Las Vegas home? If so, what exactly is involved with home staging?

Although your real estate agent or broker is knowledgeable and skilled on how to market your Las Vegas home, they may not be particularly adept at interior design. That is where a home staging professional comes in. If you use one, they will work toward helping you eliminate clutter, rearrange furniture, and improve your home’s curb appeal. This may involve moving a painting from one wall to another, removing a bulky chair out of a crowded room, trimming the front yard shrubbery, etc. In some cases a Las Vegas home staging professional may recommend that you bring in additional furniture, but you must realize that there is an extra cost involved if you choose that option.

Your real estate agent should be able to refer a home staging professional to you. Most Las Vegas home staging professionals will offer a free written estimate of their recommendations and services. Ask for references from the home staging professional and call them to verify their work.

If you choose a professional who truly excels at home staging, you could recoup the costs of this service through a higher selling price.

Copyright 2006 - Matt Keegan is a freelance writer for John Vanhara who is President & Broker of MillionSaverHomes.com a Las Vegas Real Estate company helping to make Las Vegas home ownership a reality for thousands of new home buyers from across the USA.

Why Buyers Should Hire A Realtor?

Writen by Mirza Mohammed Ali Baig

A realtor has become an invaluable component when buying a house in this age. A realtor can provide good escort in ones search for the ideal house one have in mind. Realtor could also broker the deal to make sure that everything is to ones advantage. Realtor would also inform one about the pros and cons of even the minutest aspects of home buying. Real estate professionals who are members of the National Association of Realtors can label themselves Realtors. Talk to friends, acquaintances and business associates about who they would recommend. This will generally give you one of the best indications to a good realtor. www.01realtor.com Watch their suggestions but still pays to check out all of their recommendations. Check local papers for Realtors who are heavily into advertising. One want a Realtor who is going to promote ones property and Heavy advertising is also a good sign of a successful realtor. Look for a realtor who specializes in ones area and within ones submarket. In smaller communities choose someone who specializes primarily in residential property moreover There is no logic in choosing a realtor specializing in commercial property if you want to sell your house.

The process of buying a home or investment generally starts with determining ones buying power means ones financial reserves plus ones borrowing capacity. If one gives a real estate agent some basic information about ones available savings, income and current debt, they can refer one to lenders best qualified to help. Sometime agent can recommend repairs and cosmetic work that will significantly enhance the salability of the property. www.01realtors.com Marketing includes the exposure of ones property to other real estate agents and the public. Ones agent acts as the marketing coordinator, disbursing information about ones property to other real estate agents through a Multiple Listing Service. Advertising is part of marketing. The choice of media and frequency of advertising depends a lot on the property and specific market. Overexposure of a property in any media may give a buyer the impression the property is distraught or may be the seller is frantic ,so real estate agent will know when, where and how to advertise property.

Real estate agents or brokers are generally paid through the sales commission paid by the seller when a transaction closes. Agents have expenses www.01realestate.com and financial obligations just like us so it will be to ones mutual benefit if you choose a real estate agent and stick with that person. The agent will respect ones loyalty and respond with a sincere commitment.

Proposition for finding best Realtor:

Surf the Internet and find information about Realtors and their companies on the Living Network. Click on the Realtor and Real Estate Companies section.

Talk to real estate agents who have experience selling homes in the same price range as yours. One can get direct by reading the real estate ads in your local newspaper.

Choose Realtor with care Friends, neighbors and co workers are often good sources for referrals. Try to find out as much as possible about their home buying or selling experience in regard to service they receive and will they choose this Realtor or real estate company again?

Attend open houses to observe sales associates in action this will let one know about there familiarity with the property and notice there professional manner in showing home

Look for local real estate companies Realtors who work your area are best equipped to answers questions about schools, businesses, places of worship and other services of interest to prospective buyers.

Find out how well the agent knows the areas that one is considering and Inquire about credentials, licensing and areas of expertise.

Learn if the agent and agency belongs to the Multiple Listing Service, Ask about the types of homes the agent typically deals with and there similarity to what one is buying and selling.

Why Buyers Should Hire A REALTOR

A Realtor works for you as your agent and with you throughout the home selling process. Realtor helps you to sell your home with minimum delay and to www.01finance.com help you realize every dollar its worth. A Realtor frees you from the problems associated with showing your home as Realtor handles all phone inquiries, makes appointments, does the actual showing and follows up.

Expect the commitment, integrity and professionalism that this implies Realtor work hard on your behalf. Realtor is a skilled salesperson who knows how to merchandise your home effectively.

Knows the local housing market and can help you set a fair market price. Realtor has knowledgeable of current financing methods that allow prospects to become homeowners.

Realtor sets one free from the time, effort and details involving the sale of ones home. With so many resources available a Realtor is able to help one come out with the same amount of dollars and sometimes more than one could command by selling it own.

Realtor Do lot of homework back at the office in order to sell your home .Realtor will initiate, carry out and follow through on every phase of the important and complex home selling transaction.

A Realtor helps one determine how much home one can actually afford and suggest additional ways to accrue the down payment and explain alternative financing methods. A Realtor can often suggest simple, imaginative changes that could make a home more suitable for one and improve its utility and value. A Realtor has no emotional ties to the homes, can be objective about them and can point out advantages and disadvantages while answering your questions.

A Realtor can help one work out a realistic idea of the home best suited to one needs size, style, features, location, and accessibility to schools, transportation and shopping and other public facilities , as Realtor has access to listings of available homes, can evaluate them in terms of one needs and affordability.

A Realtor can supply information on real estate values, taxes, utility costs, municipal services and facilities and is aware of proposed zoning changes that could affect your decision to buy. Moreover Realtor can usually research your housing needs in advance through a Multiple Listing Service even if you are relocating in another city.

A Realtor can tell you if local law requires an attorney at closing and can provide you with a list to choose from if you don’t have one.

A Realtor usually knows the local money market and can tell you about financing. A Realtor can also tell you what personal and financial data to bring with you when you apply for a loan. Realtor can help familiarize you with the closing process by explaining it all in advance.

A Realtor is part of a network of professional colleagues, such as appraisers, home inspectors, mortgage lenders, contractors and insurance agents through which you may be more completely served.

A Realtor maintains objectivity in responding to possible criticisms by the buyer and in presenting offers and counter offers until an agreement is reached and Realtor can familiarize you with the closing procedures by explaining them all in advance.

I am Mirza Mohammed Ali Baig and I write articles for fun sake. Visit my websites… http://www.article submission.biz, http://www.article submission.org, and http://www.article submission.info for the best quality Articles you ever read.

Sustainable Building Design: The Hybrid Answer to the Gas Guzzling House

Writen by Rick David

Americans are becoming increasingly aware of the environment’s importance to health and quality of life for today and future generations. Issues such as global warming and rising energy costs are rarely escaping the headlines. The need for energy sustainability has becoming paramount especially in light of the emergence of China and India as great industrial powers and global competitors for dwindling resources. The media continually looks to the automobile as one of the leading culprits of energy waste, and certainly hybrid technology is proving that we can make great improvement, but what about “gas guzzling homes”?

There is a new movement in government and amongst eco willing developers called “Sustainable Design” which is creating more resource efficient models of building construction along with healthier living environments by combining the latest energy saving technologies in sort of a “hybrid” home. New home builders who employ such design techniques are finding a very positive response from consumers who would like the option of a more eco friendly home, if only given the choice.

Hybrid Features of Sustainable Design

Energy Star

What To Look For When Buying Home? So Many but They’re Necessary

Writen by B Shelton

A foremost consideration for what to look for when buying home would be your funds. It’s easy to spot what kind of a house you’d like to make your new home no need for education there, just a matter of taste but how much could you afford to buy is another matter altogether that should not be ignored. You cannot go out and make an offer on a mansion that’s in the heart of the city, definitely not when you are working on a budget that’s a pittance. Finance wizards will tell you readily that you should not buy too much of a house when you don’t have the money for it.

Now, when you have considered the limitations of what you could actually afford, the next step to do in your list of what look when buying home would be location. The property you are about to buy should be in a place that’s just “a stone’s throw away,” so to speak, for the sake of convenience. Take into consideration that, since you’d be shelling out a big slice of your liquid assets to pay for the house up front or for down payment (if it’d be on an installment basis), you won’t have too much left for other basic needs like transportation for yourself and your family, for example. Even the time you’d have to spend stuck in traffic would be precious commodity if your house would be located too far from most of those places you frequent, like your place of work, the church you go to on Sundays, the marketplace and malls where you have to do your shopping, and a good school for your children. So consider strategic location seriously.

Last, but not the least, in your list of what to look for when buying ahome would be comfort and beauty. Of course, you’d want to be the proud owner of a home that you would not hesitate to show off to your friends or to your boss or, if you’re single, to your boss’ single daughter you might have been drooling over, too, for some time now. Your house should not be garish. Keep in mind that a house that is “garish” is tasteless and ugly, and does not give a good impression of the owner. Simple and practical are beautiful opt for simplicity and functionality in your house style and in your choice of furniture and fixtures, and you’d earn the admiration of your peers and higher ups. Your home is an extension of yourself. It is a place of your comfort and peace of mind. Do not make it anything less by a display of poor taste.

Brian Shelton makes home buying in the Dallas easy! Visit http://www.StopRentingDFW.com/