Archive for August, 2007

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pricing your home for sale

Friday, August 31st, 2007

Pricing Your Home for Sale

Writen by Roselind Hejl

Professional appraisers sum it up in three words buyers make value. Ultimately, the value of your home is what a reasonable buyer is willing to pay within a reasonable time. Setting an asking price for your home requires that you anticipate what most buyers would be willing to pay. This requires a close look at comparable home sales in your area, as well as making an assessment of the state of the real estate market itself. Pricing correctly is fundamental to the successful outcome in the sale of your home.

Market Analysis

Homes listed for sale and recent closed sales in your area will usually provide relevant comparable data for pricing your home. Closed sales show “market confirmed” prices, while listing prices indicate the current trend in pricing. Later, when your home is appraised for the buyer’s loan, the appraiser will only consider recent closed sales. Asking prices will not be considered. A sales price that is solidly based on recent sales of similar homes will not have a problem when the price is later reviewed by an appraiser. If your home is superior or inferior to most homes in the neighborhood, or if there are few or no nearby sales, then anticipating the responses of potential buyers will be more difficult. In this case, a trial and error strategy may be necessary. This is a sensitive area and requires a realistic assessment of your home and its market. For example, one very nice home was continually rejected because it had the master bedroom upstairs, and it was located in an area where most buyers were over the age of 45, with older children.

Real Estate Market

An important aspect of pricing is an assessment of the state of the real estate market. The market may favor buyers or sellers, or be in balance. An indicator of the quality of the market is the number of months of standing inventory in your market and price range. Consider your market area to be all neighborhoods that offer competing choices for your potential buyer. Here is how to do that:

Count the number of sales in your market area and price range for the past 12 months.

Divide the number of sales by 12, to get the number of sales per month (sales rate).

Count the number of homes on the market now.

Divide the number of homes on the market by the number of sales per month (sales rate).

This will show you the number of months it will take to clear the current inventory.

Seller’s Market

Less than 6 months of standing inventory is considered a seller’s market. In a seller’s market the number of buyers is large in proportion to the number of homes for sale. The demand for homes is greater than the supply. Buyers must compete with each other for the available inventory. There may be multiple offers received shortly after a property goes on the market. Buyers will submit the highest possible price and terms that the market will support. Prices will trend upward. In a climbing market, pricing slightly above recent sales is appropriate.

Buyer’s Market

More than 8 months of inventory is considered a buyer’s market. In a buyer’s market the number of buyers is small in proportion to the number of homes for sale. This situation can be created by high interest rates, employment decline and excessive building. A low number of buyers equals a lower price. Sellers must compete with each other for available buyers. Prices trend downward. In a falling market, prices should be set at the lower end of the range, because time works against you. In six months prices may be lower. This may be difficult to do, especially if your home was purchased at a higher price.

Price Per Square Foot

“Dollars per square foot” is often used as tool for comparing homes of varying sizes to determine a list price. When price per square foot is used, it is important to keep in mind that you must make a sliding scale adjustment from larger to smaller homes. In other words, the larger the house, the lower the price per square foot for comparable homes. This is because the core square footage of a home has a higher value than the peripheral area. For example, the price per sq. ft. on a 1,000 sf home will be much higher than a 5,000 sf home, with other things being equal. We usually graph the neighborhood prices per sq. ft. to get a visual picture of the market in the neighborhood, as well to see how much the price per square foot declines from smaller to mid sized to larger homes.

Should you price “high,” and hope for an offer?

Houses should not be priced over the market. This is not the best way to position your home for several reasons:

Your home will be shown to the wrong group of buyers, from whom you need an aggressive negotiator someone who will make a low offer.

You will inadvertently help to sell the competition. Your high price will convince buyers that another home is a good value.

Your “days on the market” is evident to buyers, and is a subtle but important factor in their decisions. Your best leverage occurs during the early marketing period.

How will you know if the price is correct?

The best affirmation of correct pricing is second looks from buyers. This indicates that your home appeals to buyers in your price range. There may be a few “nibbles” before a buyer comes forward who is ready to act. It helps to get feedback from Realtors and potential buyers. Keep in mind that they will often be reluctant to say “negative” things. The summary of feedback is more important than what they say. Are you getting “nice” rejections or are you getting second looks?

How will you know if the price is incorrect?

You may have steady showings, but lukewarm responses. This indicates that are buyers, but they have other choices with more competitive prices. Or, you may have very few showings. In this case, the buyer pool for your area, or for the style or condition of your home is small. This will require a strategy of more competitive pricing and a longer marketing time. Remember that a small buyer pool, for any reason, is a “buyer’s market” and requires more aggressive pricing.

How long should you market a home at a given price?

There is no uniform time frame for marketing at set price. I think about 8 10 showings is a reasonable number for feedback regarding the price. This usually corresponds to about 2 6 weeks for an average home in a balanced market. About 30 days marketing time for a given price could be good a rule of thumb. However, this may be too short for your home if you have an unusual or very high end home for which there is a small market. Or, 30 days may be too long for your home if you need to move fast.

What happens if your home does not sell in a reasonable time?

If your home has been on the market for months with no offers, you have been given a clear message that the price is set too high. This is particularly true if showings have slowed down and there are few prospects coming to see it. What you do at this point depends on whether you really need to sell. If you’re not really motivated to move soon, you can always wait for the market to catch up to the price you want. It would be best to take your home off the market and wait for better conditions. Buyers become suspicious of a house that’s been for sale for a long time. If you need to sell, consider a schedule for dropping your price until it reaches a level that attracts buyers. There’s no reason to say, “We simply can’t sell our house.” Houses will sell if the price is right.

How can you get top dollar for your home?

Although buyers will not pay more than market value, they will pay a premium for homes that are in excellent condition and well presented. With good condition and presentation, you can reach the high end of the price range achievable for your house. We will work with you to “create value” before your house goes on the market. When it goes on the market, we will make sure that your home is show beautifully to a wide audience.

Roselind Hejl, CRS, is a Realtor with Coldwell Banker United in Austin, Texas. Her website: http://www.weloveaustin.com offers relocation information, homes for sale, search MLS, buyer and seller guides. “Let Roselind help you make your move to Austin.” Top 25 Residential Agents Austin Business Journal

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real estate investing sales and negotiation skills are critical

Friday, August 31st, 2007

Real Estate Investing: Sales and Negotiation Skills are Critical

Writen by Jordan Taylor

Do you want to build wealth through real estate? You need expertise in two critical areas: specific investment strategies and sales and negotiation skills. But if knowing how to identify good deals is what’s really important about investing in real estate, why do investors need to worry about their sales and negotiation skills?

“Knowing how to identify good deals is certainly a critical part of real estate investing, but it’s not the only part,” says Russ Whitney, internationally recognized real estate expert and bestselling author of Millionaire Real Estate Mentor (Dearborn Trade Publishing). “Your investment may be an inanimate object, but in the process of making that investment, you have to deal with people. If you take a look at anyone who has made a lot of moneyregardless of the circumstances or the vehicle they usedyou’ll find they have at least one trait in common: They have top notch selling skills.”

Peter Conti and David Finkel agree. In their book, Making Big Money Investing in Real Estate, they say, “The single most important skill you have as an investor is your ability to connect emotionally with people.” With an emotional connection, you can work through the mechanics of any deal.

The first step in developing strong sales and negotiation skills is to get rid of any preconceived notions you may have about what being a salesperson is all about, says Russ Whitney. “It’s not about making a slick, fast talking presentation or tricking someone into buying something they don’t want, won’t use, and can’t afford,” he says. “Selling is about solving problems. It’s about creating win win situations. It’s about honesty, integrity, knowledge, and building relationships that serve everyone.”

Second, Whitney says, understand that you can use sales skills in just about every aspect of your business and personal life. “Think about it: buying a house for no money down, getting a loan at a bank, convincing your spouse to support your dreams, even persuading your toddler to eat his vegetables it’s all selling,” he says. “Once you realize this and work on developing your sales skills, you’ll find it much easier to reach your financial goals and in fact, you’ll find just about everything in your life is easier.”

Third, commit yourself to win win results. “Too many people think that in any negotiation, you must have a winner and a loser. That’s just not true,” says Whitney. “You want people to come away from a deal with you feeling good, and that’s why you work on reaching a win win resolution. Communicate clearly enough and consider all your options so you can come up with a plan that benefits everyone involved. That’s successful selling.”

Fourth, learn the techniques. “The techniques of positive communications which is what selling basically is are techniques anyone can learn and develop,” says Whitney. “There is no such thing as a ‘born salesperson.’ Learning the techniques may be easier for some than others, but everyone can learn them.”

Fifth, get rid of your self imposed limits and believe you can negotiate profitable deals. In his book Secrets of the Millionaire Mind, T. Harv Eker writes, “One of the principles we teach in our programs is ‘If you shoot for the stars, you’ll at least hit the moon.’ Poor people don’t even shoot for the ceiling in their house, and then they wonder why they’re not successful. Well, they just found out. You get what you truly intend to get.”

Whitney suggests taking courses, reading books, and studying successful people to learn effective sales and negotiation techniques. But, he says, the most important thing for someone to know about developing selling skills is this: “Always operate with truth, honesty, and integrity. Your reputation is the most valuable asset you’ll ever have; guard it well.”

Jordan Taylor is the editor of Millionaire Mentor

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real estate investing bookstv infomercials and seminars

Friday, August 31st, 2007

Real Estate Investing Books,TV Infomercials, and Seminars

Writen by Dr.Phil Speer

Real estate investing has become popularized today because of real estate investing TV infomercials and traveling seminar circuits. But real estate investing has not always been so popular.

In the 1960s, William Nickerson wrote, “How I Turned $1000 into Three Million in Real Estate” and “How to Make a Fortune Today Starting from Scratch.” It was one of the first real estate investing books to get national attention. A little later, Al Lowry authored “How You Can Become Financially Independent by Investing in Real Estate.” Al Lowry might be called “the father of the modern day real estate seminars,” because he was the first to hold seminars as a result of his book sales.

But it was Mark Haroldsen who carried the real estate investing book/seminar thrust to the next level. Haroldsen wrote, “How to Wake Up the Financial Genius Inside You.” If you were tuned in to real estate investing at that time, you remember the newspaper and magazine advertising showing a picture of suave and bald headed Mark leaning against the front hood of his Mercedes. The picture appeared everywhere in full page ads of major publications. And as Mark began selling his books, he began holding real estate investing seminars. I have had lunch with Mark and Al Lowry as they swapped stories of the advertising blitzes that vaulted them into national prominence for their real estate investing prowess. Mark later wrote “The Courage To Be Rich” and “Tax Free.”

But it was Robert Allen who capitalized on the previous groundwork by Lowry and Haroldsen. Robert Allen was reportedly paid $1 million advance royalties for his best selling book, “Nothing Down,” a compilation of 50 techniques for buying property with no money. Robert had learned these techniques from several years experience with a commercial real estate firm. He later wrote “Creating Wealth” and “Getting Started in Real Estate Investing.” The Robert Allen Real Estate Investing Seminars became a phenomenal marketing bonanza. Conventions were held in the major cities across the country, like Orlando, LA, Dallas, Chicago and Atlanta. The authors of various real estate investing techniques spoke at these seminars, but their spiel focused on selling packages of real estate investing materials that they offered for sale. Millions of dollars of real estate investing materials were sold at these 3 day conventions. The convention frenzy ushered in what has since become known as “The Nothing Down Real Estate Movement” of the early to mid 1980s.

I keep all of these books in my personal library, and you can probably still find them in your public library and book stores. There’s a lot of great information in these books that can make you very knowledgeable, even though some of the ideas are out dated.

We are now presented a variety of ways for making money in real estate investing in TV infomercials, books and seminars. Which is best? Who can say? Real estate investing is learned through trial and error. Real estate investing skills and techniques are acquired by practice. I don’t think anyone can dogmatically recommend a technique best for another person. Every real estate investor has unique needs and is in a unique situation. Objectives of real estate investing differs.

However, if you are limited with real estate investing educational dollars and need to generate quick return on investment, I think fixing up cheap houses is an ideal beginning point. Real estate investing in makeover properties generates quick, profitable dollars with low risk.

Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. http://www.CashinHouses.com/. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director.

To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.Real Estate Investing.com/information/flipping.html/ Subscription is free to his Fix up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online “Academy of Advanced Real Estate Investing Techniques” at http://www.AAREIT.com/

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mobile home resale value in ann arbor michigan

Thursday, August 30th, 2007

Mobile Home Resale Value In Ann Arbor Michigan

Writen by Clint Hunter

Many people have mobile homes that they use as a summer home, somewhere near the beach. Others live in their mobile home all year round. If you live in it part time, and are considering selling, or if you are living in a home but want a bigger one, or if you want to move to another area, and want to sell your mobile home, you will need to figure out the mobile home resale value of your mobile home.

Determining the resale value of your mobile home:

Mobile home resale value is dependant on many factors. These factors include the condition of the mobile home (both inside and out) and any land that is included with the home. An appraiser will be able to tell you the value of your mobile home. An appraiser should not charge you over $300 to appraise your home, and the amount could be considerably less than $300; it depends on the area of the country you live in. The appraiser will look at the age, the model, the make, and the size of your mobile home to help determine your mobile home resale value. You can get an idea of how much your mobile home is worth by finding out the price that mobile homes from the same year, of the same or similar make and model have been selling for. You can find out this information by contacting a local real estate agent.

Selling your mobile home:

Once you have determined your mobile home resale value, it’s time to try selling your mobile home. Marketing your mobile home is fairly easy, especially if you have the aid of a realtor. You may want to place ads in the local newspapers. You can also place a fact sheet on community bulletin boards or leave them with people you know. Fact sheets contain information about your home, and your neighborhood. A realtor can help you prepare a fact sheet, and may even take care of all the marketing details for you.

After passing out fact sheets and otherwise advertising your mobile home, you should start to get phone calls. People will want to come and look at your mobile home, and you should have it looking its best before they come by to look at it. Make sure things are cleaned up in both the yard and the home. A mobile home that looks nice will be easier to sell than a messy, cluttered one.

Once people have shown interest in buying your mobile home, you will want to start asking them questions. You will want to know how much of a down payment they are able to make on your home. You will also want to know what size monthly payments they are able to afford. Find out this information before any contracts are signed.

Sometimes people will like the mobile home, but not the neighborhood. You will have to determine if you want to sell the land and home separately or together. You need to decide who will pay for the home to be moved to its new location.

Inside Ann Arbor 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.

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moving to a new home how to make it hassle free well almost

Thursday, August 30th, 2007

Moving To a New Home: How To Make It Hassle Free (Well Almost)

Writen by Bill Wehr

It can be a nerve racking time when we are moving out of our home. We’ve been so comfortable and now it’s time to pack up and go. There is so much detail keeping track of what we have to do to leave, and what we have to do to arrive at the new home. It comes down to giving yourself enough time and paying attention to detail.

If you are renting look at your rental agreement to see what is the required notice. Many landlords want 30 days. If you need more time, perhaps the landlord will prorate the additional days that you request. If you are selling your home, make sure you have a clear understanding of your responsibility is in moving out and handing over the keys to the buyer on a target date. Any repairs required for closing that you agreed to do could detract from other chores that need to be done.

Start shopping early for any rental truck or moving company services that you need. Local moves may not require extended notice, but moving companies may take reservations as long as six weeks out. So start sorting and packing early.

Utility companies including water, electricity, gas, cable, trash and telephone all need to be scheduled for shut off the day after you move. These services should be scheduled for connection at your new residence the day before you arrive. You should start making these calls 30 days before the move.

Notify the post office of your new address. Mail address change notices to persons and companies with which you do business.

Moving is a hectic process. It also can be exciting. By giving yourself enough time to pull all these details together you have more time to enjoy setting up your new home.

Bill Wehr has been in home loan origination for over 25 years. He is the owner of Great Pacific Northwest Mortgage http://www.billwehr.com, a residential mortgage company serving Oregon and Washington.

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used mobile homes be careful

Thursday, August 30th, 2007

Used Mobile Homes Be Careful

Writen by Steven Gillman

Why consider used mobile homes? My own first home was a mobile on a small lot. I bought it for $19,500. With the mortgage payments it was still cheaper than renting, plus I paid it off quickly and later sold it for $45,000. Obviously you can live cheap and build equity with a mobile home. (Buying may be the equivalent of cheap rent, but this article is about mobiles that are on real estate.)

The primary advantages of mobiles over traditional houses are clear for first time home buyers. It may be the only option, for starters. Then there is the lower initial price, the simpler, cheaper maintenance, lower monthly payments, less property tax, lower insurance cost, and perhaps even faster equity build up (I explain this in another article). Mobile homes do have their own unique problems, so be sure to watch for the following.

Problems With Used Mobile Homes

Sometimes the age of a mobile home makes it tough to finance. If it can be financed, it may be at a very high interest rate. Check into this before making an offer, and take the higher payments into account when comparing your options.

The age of is also a big factor when it comes to insurance. Certain older homes may just be uninsurable. See if you can obtain insurance at a reasonable rate before buying.

Some mobile homes built before 1976 have aluminum wiring. This is a fire hazard because the chemical reaction between the aluminum and other metals cause the wiring to break down, eventually leading to sparking inside the walls (not good). Remove any of the electrical outlet or switch covers, and look inside with a flashlight. If the bare ends of the wires are silvery looking, they are probably aluminum, and you may have to rewire the home to get it insured.

Look for stains on the ceilings. Used mobile homes are prone to leaks. If it is raining and the stains are dry, the leaks have probably been repaired, but if there are many dark stains, at least ask for how long the roof leaked. Leaks that were quickly repaired may not have done much, if any, damage to the supporting beams, but if the roof is seriously sagging there may be rotten wood up there.

Look for wavy walls and crooked door frames. If the mobile is irregularly settling, the walls will sometimes show it. It may also show in the door frames, so see if the gap over the doors is straight in relation to the frame.

Check for spongy floors. Many mobiles have particle board for floors. If these floors get wet, they can warp and rot. Step down hard here and there to test, especially in the bathroom. I’ve had to rebuild two bathroom floors in mobile homes. Around the toilet is a common place to find problems, because of the condensation from the toilet running down and soaking the wood around it. Is the toilet level or leaning?

Most of these problems can be resolved, and for much less than in a traditional house, so if there are issues, you may want to see them as an opportunity to make a lower offer. Alternately, you can just avoid the mobiles with problems. In any case, don’t give up on owning your own home due to high prices. Just look for good used mobile homes.

Steve Gillman has invested in real estate for years. To learn more about equity building with mobile homes, and to see a photo of a beautiful house he and his wife bought for $17,500 (not a mobile), visit; http://www.HousesUnderFiftyThousand.com

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successful real estate negotiation tips

Wednesday, August 29th, 2007

Successful Real Estate Negotiation Tips

Writen by Michael McClure

A lot goes into a successful real estate purchase or sale: knowing a given geographic area, analyzing past sales data, using effective and efficient methods of marketing, and, of course, knowing how to negotiate. My partner and I have been involved in nearly $500 million of successful real estate negotiations. Here are the things our experience shows contribute the most to successful real estate negotiations:

1. The Golden Rule We all know this one, right? “Do unto others as you would have them do unto you.” Sadly, in today’s contentious, litigious society, we see many people enter into negotiations with the often misguided belief that negotiations have to be a negative, confrontational experience. Our experience shows that people seem to get more of what they want when they use the exact opposite approach. When you show yourselves to be reasonable and objective, people are often so pleasantly surprised that they bend over backwards to “meet you halfway” and often end up meeting you MORE than halfway!

2. The Other Guy Does Not Have to be Your Enemy - This is similar to the prior item, but a little different. We know that it may sound clich

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commercial real estate investing

Wednesday, August 29th, 2007

Commercial Real Estate Investing

Writen by Adrian Skiles

Investing in commercial property may open a whole new area of financial ventures for the savvy real estate investor. Opportunities abound in multi family units, office buildings, warehouses, retail shops, car washes, laundromats, mobile home parks, hotels, apartments, strip malls and more.

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home buying process 15 tips for first time home buyers

Wednesday, August 29th, 2007

Home Buying Process: 15 Tips for First Time Home Buyers

Writen by Brandon Cornett

As a first time home buyer, you probably need all the advice you can get. That’s why I’ve collected what I feel are the top 15 pieces of advice for first time buyers. These tips will help make your home buying process a smooth one!

1. Get a copy of your credit report.
Obtain a copy of your credit report from all three credit agencies Equifax, Experian and TransUnion. Review them closely for errors / inaccuracies.

2. Correct your credit report.
If you find a discrepancy on any of your credit reports, correct it as quickly as possible. All three credit agencies have instruction on their websites for correcting mistakes. Their web addresses are their company names with “.com” at the end.

3. Make a wish list.
This list should include all of the things you want from a home. Size, location, features, etc. Prioritize the items as either “must have” or “nice to have.” This will save you time later on and help you remember what’s important to you.

4. Research local real estate agents.
Start by asking friends, family or coworkers if they can refer a local agent they were happy with. If that doesn’t pan out, move on to search engines and the websites of well known companies.

5. Hire an agent.
Even with all of the home buying websites available these days, it’s wise to hire a real estate agent. Consider the amount you’ll pay for a home, and the agent’s fees will seem insignificant by comparison. And the peace of mind is priceless.

6. Get pre approved for a home loan.
This will help you in several ways: (1) It will identify credit problems early on in the home buying process. (2) It will reveal how much you can realistically afford. (3) It will show sellers you’re serious about buying and capable of doing so.

7. Set up Google Alerts.
How would you like to have your own robotic research assistant, scouring the Internet for you 24/7 in search of relevant real estate news? That’s what you get with Google Alerts. Set up alerts for key phrases (ex: “Dallas real estate news”), and Google will notify you when it finds new content on the Internet matching your phrase. Visit Google.com/alerts.

8. Learn your mortgages.
You can’t choose the right mortgage unless you know the pros and cons of each type of mortgage. Learn everything you can about fixed rate mortgages, adjustable rate mortgages, balloon loans, and government backed mortgages like FHA and VA. When reading about these mortgage types, pay particular attention to any passage that starts with “This mortgagte might be a good option for you if…”

9. Read up on RESPA.
RESPA stands for the Real Estate Settlement Procedures Act. RESPA gives you rights to certain mortgage information at certain times during the home buying process. You should learn all about RESPA, and you can do so by visiting www.HUD.gov.

10. Get a home inspection.
A home inspection will usually cost you between $300 and $600. This is a small price to pay for peace of mind. A home inspector will check the status of your future home’s foundation, roof, heating / cooling system and more. You can also accompany the home inspector to learn about these parts of the home.

11. Ask plenty of questions.
Ask questions of your agent, the sellers, your mortgage lender … everybody. Don’t ever think you’re annoying somebody by asking too many questions. Get all your questions answered, every step of the way!

12. Take plenty of notes.
When house hunting, bring a notepad along. Also bring a digital camera if you have access to one. Take notes about each house (labeled by address) to help you recall the details later on. This is especially important if you’re looking at a lot of houses.

13. Bring a friend along.
The buddy system is great for house hunting. By bringing a friend along on house visits, you’ll have an objective third part to point out the pros and cons of each property.

14. Find out about schools.
You should know about the quality of local schools regardless of whether or not you have school age children. If you do have children, you’ll surely want them in good schools. If you don’t have children, the quality of schools is still important because it affects your resale value.

15. Visit HomeBuyingInstitute.com
You can learn more about any of the home buying tips on the list (plus a lot more) by visiting HomeBuyingInstitute.com. It’s the Internet’s largest library of home buying tips and advice, and best of all it’s free!

* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author’s note, and also leave the hyperlinks active.

Learn more!
This home buying tip was brought to you by HomeBuyingInstitute.com, the Internet’s largest library of home buying advice. Increase your home buying intelligence by visiting: http://www.homebuyinginstitute.com!

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can you really buy property with no money down

Tuesday, August 28th, 2007

Can You Really Buy Property with No Money Down?

Writen by David Calgarich

If you’ve ever had insomnia and watched late night television you may have seen the infomercials telling you that you can buy real estate no money down. But can you really purchase investment property without having any cash? The answer is, “yes!”.

Anyone can purchase property without having any cash, but it’s not nearly as easy as the gurus proclaim. Can you do it even if you have bad credit?? Yes, but it’s a whole lot easier to do it if you have good credit.

In fact, with good credit it’s easy to get cash when you buy. Here’s how you can get paid when you buy a piece of property.

Example: Property is for sale for $100,000.

1. You ask the owner of the property to give you a note for $30,000 secured by other property you own or even as an unsecured note (you can put a VA clause in the note allowing it to be moved back to the subject after the closing).
2. You get a conventional loan for 75% of the sales price.
3. You ask the seller to pay your closing costs.
4. You ask the seller for a carpeting allowance of $2000.

Here’s how the deal works;

You buy the property for $100,000.
You pay the bank on a $75,000 mortgage.
You pay the owner on a $30,000 mortgage.
The seller pays your closing costs.
The seller pays you $2000 for carpeting.

If the property is rented out for $1000, you collect the rents and security deposits.

In the above example the buyer would walk away from the closing with a $100,000 property, $5000 from the over finance, $2000 for the carpeting, and $2000 for the rent and security deposit. That’s a total of $9000 for buying a piece of investment property. NOT TOO BAD.

Will every seller be willing to do this deal with you? No, maybe only one seller in ten or twenty will be willing to do this deal. But there are sellers who will do this deal. What you have to find is a motivated seller.

What makes a motivated seller?

An owner who is in foreclosure.
An owner who got the property as part of an estate.
An owner who no longer wants to deal with tenants.
An owner who is in divorce.
An owner who has been transferred out of state.

Now that you’ve bought a property and put money in your pocket be prepared to deal with the tenants.

Good Luck!

This article prepared by Real Estate Department of the http://www.AllAboutCalgary.com the biggest portal directory in Calgary, Alberta, Canada. Visit the Real Estate section at http://RealEstate.AllAboutCalgary.com for more information about Calgary Real Estates.

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