Monthly Archives: February 2014

9 Mistakes Every Investor Should Avoid Like The Plague To Ensure Their Success In Today’s Market

In the world of real estate investing their are many ways to make money, do deals, structure financing, etc. that will work in today’s economy, but the real career killer for most real estate investors are the hidden mistakes that, if you’re not careful to avoid, can doom a business before it even gets off the ground.

Today let’s take a look at 9 of the most common and most dangerous mistakes that investors make and how to avoid them.

1.  Taking on the seller’s mortgage yourself

If you take on the mortgage yourself, you are help personally responsible for the property and you’re credit will be affected directly. You do not want that. You do not want to deal with a bank or ‘owe’ them anything because that means you don’t own the property. There are too many rules and regulations you have to follow if you don’t own the property. Find the funding to purchase the property in full so you can own it in full and not have to worry about that.

2. Not bringing in enough leads

By far, the most important piece to a successful real estate business are the deals you do. In order to do deals, you need leads. With that said, the more leads you generate, the more potential deals you have available to you. Not only that, but because you have so many leads at your disposal, you have the ability to pick and choose which leads you want to pursue. Remember this quote, “More leads equals more offers equals more paychecks.”

Don’t let yourself think that a handful of leads all at once are sufficient. You need a consistent flow of leads to maintain your business. If you don’t have […]

Which Real Estate Funding Option is Best for You?

If you’re an experienced real estate investor, then you know there are several different ways to fund a deal. You’ve probably had to consider and/or use several funding sources at one point. However, If you’re just starting out in the real estate business, you may still have be confused as to what types of funding real estate investors need for different types of deals. Regardless of your experience, you need to fully understand the different types of funding available to you in today’s market and when to use them.

Here’s a list of the top six ways most investor’s fund their deals:

Your own cash
Banks
Transactional funding
Hard money
Taking over the seller’s mortgage
Private lenders

The type of funding you choose for your deal depends on the type of deal you are doing.  Make sure you know which type of funding is most suitable for each deal you do.

Funding Your Own Deals

Most investors do not have the resources to pay all cash for a property. Even if you do, you shouldn’t use it unless you are planning to sell quickly or refinance immediately. You don’t want your liquidity tied up for a long period of time for obvious reasons. Be smart before investing your own money. Think of it this way, if you empty your account on one or a few properties, you could miss out on other potential deals while waiting to make back your investment.

Bank Funding

A bank is a great choice if you wish to spend your time getting tormented and answering in depth questions just to find out they won’t lend to you anyway. The interrogation and embarrassment they put you through, especially if you are self-employed, will make you feel almost guilty for some crime you […]

The Significance Of Cash Buyers

By far, the most important piece of real estate investing is your ability to sell the property and cash in your paycheck. One of the most important things you need to accomplish this is buyers! The best type of buyer in the real estate business is by far a cash buyer. Cash buyers do not need to involve banks, they are not going for hard money, and overall they cause much less hassle in the transaction. You won’t have to worry about a buyer backing out of a deal because they can’t get the proper funding if you deal directly with cash buyers either. In this business, losing your buyer is the worst thing that can happen. Cash buyers have the funds on hand, so they aren’t waiting on funding from a different source.

Here’s a breakdown of some of the most important details every investor needs to know about cash buyers before they start using them:

Locating Cash Buyers

Finding cash buyers can be significantly difficult. You might be thinking, “No it isn’t. It’s all public record.” Well, you could search the public record if you want, but the problem with that is that the minute you do find a cash buyer, the data becomes out dated. As an active real estate investor, you need up-to-date data at all times. Some towns have their data computerized, and that makes it a little bit easier. Unfortunately, many towns don’t, and that makes it very tough for the average investor to get their hands on what they need.

Not only can it be tough, but it’s also very time consuming. You have to search through one record at a time and pick investors based on a single transaction. Some […]