Investing in Real Estate has made a lot of people wealthy and it can do the same for you. Most people are not aware that the best time to get into Real Estate Investing is in a down market. In this report, we will discuss some of the secrets that will help you cash in on the POWERFUL Real Estate market.

1. 10
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By: The Renegade Wholesaler
renegadewholesaler@gmail.com
www.renegadewholesaler.com
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As you probably know, recurring income is the best way to live a comfortable
lifestyle these days. Without it, you are left feeling worried and wondering
where your next dollar is coming from.
However, if you have systems that generate “recurring” income, you already
KNOW where your next dollar is coming from. Whether it’s your job, a social
security check, or an unemployment check, knowing that more money is on
the way helps you sleep at night.
But what about all of your bills and expenses...?
Does it seem like your money is spent BEFORE you even get it? Do you
spend every day pinching pennies to make your dollars stretch until that
next paycheck? Do you dream about ways that you can boost your income
and live a better lifestyle?
Unfortunately, just having “recurring income” is not enough these days. Your
incoming cash flow must exceed your outgoing cash flow (expenses) if you
really want to achieve some level of wealth.
So although you may have money coming in every week or every month,
does it exceed the amount of money leaving your bank accounts every week
or month?
In order to afford the lifestyle that most people dream about, you have to
setup “lucrative, residual income streams.”
Residual income is money that comes in month after month, year after year
on auto-pilot after the initial work has been done. For instance, singers
usually get paid royalties every year for their songs without having to sing
them over and over again.
Having a system such as this that will pay you for years to come allows you
to control your own income, create income security, and allow you to live the
life you want to live.
What if you could setup a powerful, profit-producing system that will pay you
over and over again? A system that could make you financially free in a
very short amount of time?
Well, it is very possible with Real Estate Investing.
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Investing in Real Estate has made a lot of people wealthy and it can do the
same for you. However, getting started in the Real Estate Investing business
can be very overwhelming!
There are so many different ways to make money in this niche that people
sometimes get lost on wild promises and dreams that never come to fruition.
This is enough to leave anyone frustrated and confused about the viability of
this business.
You may be asking yourself:
“Invest in Real Estate? In this depressed market?”
The answer is “ABSOLUTELY.”
Most people are not aware that the best time to get into Real Estate
Investing is in a down market. Many people today are losing their homes to
foreclosure, which opens up a lot of doors for Real Estate investors.
While this situation overall is very unfortunate, it has created some great
investment opportunities for Real Estate Investors. The overwhelming
number of foreclosures and distressed mortgages has caused many lenders
to sell of mortgages at very steep discounted rates.
Imagine purchasing a property today for $3,000... and being able to turn
around and sell it for $25,000 or more!
How about purchasing a property with a mortgage payment of $250/mo and
being able to rent that property out to someone for $650/mo?
Are you starting to see the power in Real Estate Investing?
These two examples are just the tip of the iceberg! There are so many other
ways to purchase properties for just pennies on the dollar and generate
hefty cash from them.
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In this report, we will discuss some of the secrets that will help you cash in
on the POWERFUL Real Estate market. There’s no easier way to start making
large sums of money in no time - even if you’re brand new to the Real Estate
Investing business!
1. Purchasing Discounted Mortgages
One way to build residual income in the Real Estate business is purchasing
discounted mortgages. This is one of the safest, quickest, and easiest ways
for you to start generating income in the Real Estate Investing business.
A discounted mortgage is one that is sold or purchased for less than its face
value. For instance, let’s say there’s a mortgage of $100,000 with an
interest rate of 12% and a 30 year fixed payment of $975.
The mortgage holder wants to sell the mortgage to get $30,000 right now.
Once they find an investor, they will negotiate the terms and figure out how
many months of the mortgage they would have to sell to get the $30,000.
If this transaction goes through, the seller will benefit by getting the money
they want or need right now. The buyer will continue to make their monthly
payments of $975 to the investor for the remainder of the note.
The investor benefits by receiving the $975 monthly payments from the
buyer over the remainder of the note, which will end up being much more
than $30,000 - so they receive a nice profit over time.
Here’s where your opportunity comes in...
As you probably already know, there have been an extreme amount of
foreclosures and distressed mortgages in recent years.
Banks are not prepared to deal with the influx and are doing everything they
can to liquidate these assets - including selling them at deep discounts to
investors. Some non-performing loans can be purchased for a little as .50
cents on a dollar!
Many banks will sell large portfolios of distressed mortgages to hedge funds
and large-scale investors, as well as sell smaller portfolios to individual
investors.
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So even as a new investor, you stand to make some very lucrative Real
Estate deals. However, this method does involve some work and takes time
to accomplish.
Some note sellers will take months - and sometimes years - before they will
close a deal with you. If you become impatient and frustrated too soon, you
stand to walk away from thousands of dollars in profits.
Remain diligent and patient and your reward could be larger than you ever
imagined.
2. Purchasing Foreclosures
As mentioned above, there is an extreme surplus of distressed and
foreclosed properties all across the world.
Another way to create residual income in Real Estate is to purchase
foreclosed properties.
A foreclosure is a lenders action to reclaim a property where the owner has
not been paying their mortgage notes. Simply put, if a homeowner does not
pay, they lose their home.
The foreclosure process consists of 3 major stages:
1.Pre-Foreclosure
2.Foreclosure at Auction
3.Post-Foreclosure
Pre-Foreclosure
In order to make real money with foreclosures, you want to get to them
before they actually become public knowledge. In other words, once
someone goes two to three months without paying, the foreclosure process
begins - and this is where you can step in.
In fact, the earlier you can intervene, the greater amount of leverage you
can have over the entire process. Leverage means you can do a lot more
with a lot less. Coming in early in the process allows you to help the owner
and create a win/win situation for everyone involved.
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Attending Foreclosure Auctions
If you prefer, you can go to the actual foreclosure auctions. If you choose to
go this route, here are a few pointers:
* Before you start bidding first go to several auctions so you can become
familiar with the process.
* You need to do your appraisal work properly, because the lender will
probably come in with the first bid at the auction. This will be at least as
much as the foreclosed loan balance plus interest and expenses. If you bid,
you want to make sure you bid over that amount, but substantially less than
market value. Why? Because you don’t want to eat your PROFITS!!!!!!
* Also check for your state’s Rights of Redemption, or the original owner’s
right to satisfy the loan before, and even sometimes after foreclosure
(Statutory Rights of Redemption). Original borrower may delay your plans,
depending on her or his rights.
* Contact local county courthouse or county clerk’s office.
* You can also contact some of the auctioneers themselves to get answers to
questions you may have. Inquire at county clerk’s office as to who the
auctioneer would be, or look them up on the Internet.
* Bidding can be verbal or through sealed written offers.
* Usually you will need a 10% deposit up front, with the remaining 90% due
at closing within 30 days.
* Regular deed or Torrens title? One of them is required to properly convey
the property. If lost by the original owner, replacement of a deed is a fairly
short process. Just go down to the local county clerk and pay for a copy.
However, the Torrens title is a little more complex. This title lists what are
called "memorials", or the listing of all legal instruments ever associated with
the property, such as liens, mortgages, etc.
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Copies of the Torrens title must be ordered by a court and can take months.
Thus, the Torrens may give you, the borrower/investor, more time to arrange
financing. You can find out about the Torrens title by searching the file at the
county clerk’s office, or via the foreclosure search originated by the lending
institution.
You bid on the mortgage balance, not the market value and please don’t
overbid! The difference between the mortgage balance and market value is
your current profit margin.
Post Foreclosure
“Real estate-owned” means that the property is owned by the bank or
government agency, maybe because the property did not sell at foreclosure,
or the bank won the property back at the auction.
You really need to learn how to build a business relationship with bank asset
managers and get to know who the players are at the banks.
Keep a list of whose job it is in the individual banks to handle the REO
division.
REOs are sold in a variety of methods: directly with the bank/government
agency, listing with real estate brokers, auctioneer companies, and even
some on mailing lists and web sites.
Advantages
1. Lower interest rates
2. You may get the lender to offer a discounted price.
3. You have access to the property for inspection.
4. The Lender may have evicted current tenants in advance of the sale.
5. You have more time to set up favorable financing.
6. The Lender can restructure loan with more favorable terms and financing.
Disadvantages
1. The biggest disadvantage is the price will probably be closer to market
value, as opposed to mortgage balance at auction but can be negotiated.
2. If listed the broker or agent can kill the deal.
3. Repairs are sometimes numerous.
4. Lender may not provide financing
5. Lender may not be flexible with terms.
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3. Purchasing Tax Liens
A tax lien happens when you have not paid your taxes to the local
municipality. They will put a lien against your property and this will prevent
the sale of the property until the lien has been satisfied.
When the public authority offers the property for sale to satisfy a tax lien,
the successful bidder buys the right to own the property if the property
owner does not repay him.
There are three types of liens:
1. Judgments or judicial liens, results when a creditor files a lawsuit. In
some states once these judgments are docketed in the Superior Court, they
become liens on real estate.
2. Statutory liens -IRS or county/state tax liens, and property tax liens.
3. Consensual liens, such as mortgages.
You don’t have to be an attorney to understand liens. However, I suggest
you ALWAYS consult with one before purchasing a tax lien. You must decide,
based on your research, whether to do the deal.
* You don’t pay your local taxes.
* The local government puts a lien on the property for the unpaid taxes that
prohibits sale or transfer without payment.
* Government auctions tax lien certificates to compensate for the unpaid
taxes. You bid.
(NOTE: Always physically check out the property and do lien, judgment and
title searches before you buy.)
* Lowest interest bid, or fixed interest to the highest bidder.
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* What if the property owner doesn’t satisfy the lien? In some states, the tax
lien certificate owner just applies for and gets the deed. In others, the
property is auctioned off.
There is 10% cash deposit required, and the remainder will need to be paid
in 30 days. You bid the unpaid taxes plus interest due you. This is a true
scenario.
A tax purchaser purchased a lien on a piece of commercial property for
$12,000. The property was owned by unknown owners, which all the proper
notices were sent out and there was no redemption.
He acquired the property, which was valued to be over $350,000.00. His
return was over 29 times his investment.
Arizona pays certificate holders 16% interest. At the end of 20 years, a
$2,000 would have grown to more than $30,000 with tax-deferred earnings.
4. How to Find Good Investment Properties
Renting out a property is very popular among real estate investors.
Unfortunately, not everyone can make a profit on rental investment
properties. Finding a good piece of property for your real estate investment
portfolio is actually harder than you think.
Fortunately, here is a list of simple steps that will guide you on how to find
great investment properties.
1. First, you have to decide how long you plan to own the property, even
before you take other factors into consideration. If the asking price seems to
be too large for your time period, then look for another piece of real estate
that you may invest in.
2. Next, do the numbers… Find out how much you would have to spend for
maintenance and repairs, given that you rent it out for a certain period of
time.
Since you are merely renting it out and not selling it, it remains your
responsibility to take care of the major repairs that may be needed. Short-
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term investors should stick to those that have smaller maintenance costs.
Make sure that you will be able to gain back what you will be spending.
Before you can find good investment properties you need to first understand
what is considered a good investment property. For example, if you’re
planning on renting your property for cash flow make sure that after all
expenses are paid that you will have an annual rate of return of between 15
to 20%.
So, say for instant your purchase price was $25k. You decided to rent it out
for $750 per month. Your expenses totaled $400 per month so your net
operating income is $350 monthly ($750 monthly rental income - $400
monthly expenses = $350 net operating income). This will give you an
annual net operating income of $4200 divided this amount by the $25k
purchase and this is an annual rate of return of 16.8%.
3. Finally, develop your own network of connections. This will help you to
find the most profitable properties to invest in, and these same connections
can also assist you in finding interested potential tenants to rent them to.
By knowing the right people, you will be able to find the best talents in the
industry and use them to your advantage. You can also check Craigslist real
estate section. There you will find tons of properties being advertised for
sale and for rent.
5. How to Find HOT Markets for Buying Investment Properties
Historically real estate investing has been a very lucrative way to financial
success. This is even more so in the current real estate market. Why?
Because due to the massive foreclosures which currently exist , you can now
buy properties at 30 to 50% below market value.
With that being said buying at such a huge discount you can quickly make a
great deal of money in a relatively short period of time. But you have to be a
forward thinker to make any serious money in the buying and selling of real
estate.
The objective is to buy low and sell high and that means you have to make
an EDUCATED guess as to what is GOING to happen tomorrow, next week,
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next year or ten years from now and not base your decisions on what
happened yesterday, or last week, or last year or ten years ago.
The neighborhood that you grew up in may have been a new subdivision
when your parents first moved there but it’s not new anymore. It’s not on its
way UP. It’s on its way DOWN.
The residents and the buildings are all beginning to show their age. This is
the nature of real estate. As we’ve experienced in the last few years, we
know what goes up will eventually go down. You ALWAYS want to buy when
the area is on the rise and not when it is in decline.
There are, of course, exceptions to this rule but there aren’t many. You need
to find the hot markets when buying investment property and usually the
hot market is where the people are GOING.
The trick is determining where people are going. Buying in an area that is
already popular can be a hot market providing you can make a good deal on
the property but finding out about upcoming changes in the infrastructure
can lead you to where people will be going in the future.
6. Finding an Investment Property Online
A few years ago the most popular way to look for a home to purchase is to
see Realtors or go to the classifieds of the local newspapers. Currently many
of the Real Estate companies have websites that allow you to take virtual
tours of homes (or at a minimum, view pictures and brief descriptions) of
their listings online.
Also, if you further your search online, you can get other vital information
such annual taxes, last sale date and the amount it sold for, etc. You may
also want to investigate some of the other real estate web listings available,
such as:
http://www.realtor.com
http://www.homestore.com
http://www.realestate.com
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http://homeadvisor.msn.com
http://www.housebid.com
http://www.homeseekers.com
http://realestate.yahoo.com
You can also find foreclosure homes online through Craigslist.org.
Go to the real estate section to look for these homes.. There are many
properties listed for sale daily in all states throughout the country and
internationally.
Once you’ve found some potential homes to look at you will need to do your
own due diligence before buying. You’ll need to do a drive by to inspect the
condition of the home. Again, the Internet can come in quite handy. By
creating customized driving directions with a few quick keystrokes, you’ll be
on your way to your potential new home.
7. How to Sell Your Investment Property
Every investor wants to achieve the best possible price in the shortest period
of time for their property when trying to sell. However, most are confused
about the best sale technique to get the best results.
Speaking from experience, there is no absolute right or wrong method in
selling your property. From my ten years of experience in the market, I’ve
discovered the best method of sale will depend on the property type and the
location.
In order to choose an appropriate method depending on your property you
need to first understand to different techniques and there advantages and
disadvantages.
* Seller/Owner Financing - In the current market, seller financing terms
is a very popular technique used by investors to sell their properties. The
property should be free and clear with no mortgage liens.
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Since the market downturn, the banks are not loaning money as in the past
and seller financed notes are very popular as a result. You will ask for a
down payment, and create a note for 10 to 15 years.
The promissory note is created for the balance that’s due after the down
payment. The note is secured by a mortgage and then recorded against the
property as a lien in favor of the seller.
You will attract more buyers to this method. If you’re flexible on the
financing terms of the property, you increase your pool of buyers and
thus the demand for your house.
These seller financed notes can be sold to individuals who are looking for
better investment alternatives. With questionable investments such the
stock market, these seller financed notes are very attractive to individuals
who would rather invest their money in a more tangible assets such as real
estate. Here they can see realistic and stable higher annual rates of returns
on their money, unlike the volatility seemed in the stock in the past few
years.
The disadvantage to using this method is having a higher percentage of
defaults due to the soft terms and screening of buyers. This can be offset by
performing a more comprehensive screening procedure with your potential
buyers. Make sure to get a larger down payment from buyers who have
questionable credit and payment history.
* Auctions - An auction opens at the price the market determines and relies
on a sense of urgency and competition.
In this emotional environment buyers may bid more than they had intended
leading to a fantastic result for the seller. The relatively short campaign
period for auctions, generally four weeks, is seen as an advantage by most
sellers.
Unlike listing with an agent or private seller where the property could sit on
the market for a lengthy time period. Using auctions to sell, you’ll be
working to a short, defined time frame with a quick turnaround. If your
reserve price is realistic, the market is good and you are selling in an area
where buyers are receptive to auctions, you can expect the property to sell
on the day of the auction.
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Auctions do have a disadvantage in that, if it is a non-competitive market or
in an area where most people prefer a fixed price, it could lead to a lower
final price than you had anticipated.
This is dangerous if you have to sell as the price starts low, and could remain
low. Adversely, if you set an unrealistic reserve price or is selling in a down
market the property could be passed and gain a reputation as overpriced.
A Real Estate Agent can help you set a realistic price for the property and
avoid this pitfall.
* Listing Agent - Listing the property with a reputable listing agent is very
popular with both sellers and buyers alike - it is relatively low stress and
everyone knows what they are in for.
Sellers work with their agents to set a price for the property. Buyers may
offer to pay less than the listing price, but it is up to the seller’s discretion
whether to accept this offer.
In a conservative market you will generally achieve better results selling by
listing the property, commonly known as a private sale, compared to an
auction. Areas where auctions are not common, buyers tend to be afraid of
auctions and prefer the fixed price offered by a private sale.
The disadvantage of using this method is there is no chance of selling at a
higher price than the value you set. With no fixed time frame for the
campaign, your property may sit on the market for an extended time and
you’ll need to factor in additional marketing costs for this time into your
budget.
It is very important to work with a reputable listing agent who will help you
set a realistic value for your property. Some buyers are savvy about the
price they should be paying so asking too much for your property could give
it a bad reputation. If this occurs you’ll end up having to lower the price any
way so why not start out with a realistic price in the first place?
Finally, before buying an investment property you need to determine your
best exit strategy first whether it be buy and hold, wholesale flip, or retail.
8. Location, Location, Location... It’s EVERYTHING in Real Estate!
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“The only three things that matter in real estate are location, location and
location” …
This is an old real estate saying that is very true.
A beautiful five bedroom, four bath home with cathedral ceilings and a
swimming pool that is sitting next to a dilapidated structure is nearly
worthless.
However, on the other hand a small one bedroom, one bath shack sitting in
the middle of downtown Dallas would be worth a small fortune. As you can
see, location is tremendously important when you are considering a piece of
real estate to invest in.
What makes the location of a piece of real estate valuable? The answer is
fairly simple. The value is based on nothing more than the desirability factor.
Desirability is a fluctuating intangible that is really hard to nail down.
Property that is totally undesirable to one person might be the next person’s
dream home.
This unique phenomenon is true for real estate investors, residential home
buyers and for renters as well. It is true for all aspects of the real estate
market. The main point for any real estate investor to consider first is what
their exit strategy will be for making a profit on a property.
Buying is only half of the equation and whether the location of the property
is good or bad depends upon that profit strategy.
Here’s an example:
If an investor is going to invest in a property with the intention of waiting for
the market to go up, investing in prime real estate is probably the very best
choice.
Also, locations that are near entertainment centers or developing areas
would be ideal because the likely hood that the property will go up in value
by waiting is a pretty good bet.
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9. Getting Started In Real Estate With Little to No Money
You are probably anxious to get started with real estate investing and have
watched those late-night infomercials with gurus promising you millions in
real estate profits with no money down.
Many of these guys has never made a dime in real estate, but has built
fortunes through selling over-priced information to individuals who want to
invest in real estate and are clueless to the fact this information is worthless
to them.
Most individual should realize that no real estate “system” is foolproof, and if
anything seems too be good to be true, it probably is. However, that doesn’t
mean that you need excellent credit and a surplus of cash to get started in
real estate. Here are some strategies for financially-constrained aspiring
investors to begin generating real estate cash flow.
Do You Need to Own a Property to Make Money From It?.. No
Some real estate investors buy and sell contracts, not properties. They find
bargain properties and sign purchase contracts with their sellers. These
investors then sell these purchase contracts to retailers, making a solid profit
in the process.
This is known as “assignment of contract” or wholesaling. Make sure to
include an assignment clause giving the purchaser rights to sell their rights
and obligations to another buyer with the seller’s consent. Usually, the only
cash required is the earnest money to secure the deal.
A good dealer can then flip the contract for a quick $1,000 to $3,000 without
ever taking possession of the deed.
Use a Double Closing for Greater Profit Potential
A double closing allows a dealer to earn a higher profit margin than an
assignment of contract.
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A double closing begins with the dealer signing a purchase contract with the
property owner. Then the dealer signs a contract with the retailer, in which
the retailer agrees to buy the property from the dealer at a higher price, and
deposits that amount in escrow.
The property owner signs the deed to the dealer, who then signs it to the
retailer and the process is complete – the property owner is paid his asking
price, and the dealer is paid the difference. Note that the dealer came to the
table with no money, and her credit was never an issue.
Be a “Bird Dog” – No Cash or Credit Required
Bird Dogs or Scouts are a third type of real estate “flipper.” Instead of
flipping actual properties or contracts, Bird Dogs flip information.
Scouts face even less risk than dealers, and have no cash or credit concerns.
They simply gather information about distressed properties and sell it to
interested dealers and retailers.
In effect, Scouts do the dirty work for real estate investors, and investors
are willing to pay them handsomely for doing it. Typically Scouts will gather
the following data on a potential deal: The owner’s name and contact
information, the asking price, information about the mortgage and whether
payments are current, outstanding liens on the property, a photograph of the
house, and, etc.
Investors typically pay Scouts between $500 and $1,000 for good
information, but what happens if an investor doesn’t pay? Simple – don’t
take any more deals to them. Successful investors realize the value of good
information, and they are more than willing to pay for it.
Finally, keep in mind real estate success always requires an investment.
However, as I have mentioned above, there are ways to profit from real
estate without a significant financial investment.
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This is not to say that success come easy nor is it free. At the very least, you
will need to make a substantial investment in yourself. You must be willing to
work hard. Be sure to invest in your education on a daily basis.
One way to do this is attend local real estate investment clubs meetings.
These meetings are normally held monthly. There you will find many savvy
investors who are willing to share free information from their own
experiences and the best way to learn is from individuals who are actually
investors themselves.
Learn as much as possible about your local market, real estate law, and
investment strategies.
10. Determining The Value Of A Property
Figuring out the real value of a property can be difficult in the current
market where there are so many foreclosure and bank REO sales. Even in
today’s market, the comparable sales method is still the most accurate
method to determine the value of single family homes, condo’s, and two to
four units and is also the most common one.
Many tax assessor’s offices and county courthouses offer online databases
that allow you to view the prices for properties within a specific area. You
can also in some instances get full details about the properties, including
square footage.
There are free Web sites such as Zillow (www.zillow.com) also offer property
data, but the information is less detailed than for the paid sites. For
example, the seller’s name may be missing, which could be relevant if the
seller was a bank, as in the case of a foreclosure sale. If that’s the case, it
can’t be considered a comparable sale because the property was sold in
distress.
I feel the best computer database for getting information about comparable
properties is the local MLS. The MLS systems are not accessible to the
public so you will need to ask a real estate agent or an appraiser to assist
you in getting this information.
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This database offers detail information such as, the number of days on
market and includes notes that indicate whether the property was updated,
whether the seller offered concessions on the sale and so on.
While many factors come into play when you’re evaluating a residential
property’s value by “comps” (comparable sales), the three main factors are
location, size (square footage) of the home and the number of bedrooms
and bathrooms. You should be able to look at comparable sales involving
properties with these three factors and get a good idea of the value of the
property you’re selling.
Location is extremely important when you’re comparing sold properties. A
professional appraiser typically looks at houses within a one-mile radius or
less. If there’s a wide mix of properties, such as in a subdivision, you may
need to go outside of it to get comparable sales.
Another thing to consider when determining a home’s value, be sure to
evaluate the square footage. Note that appraisers typically look at homes
that are within 20% up or down in square footage as comparables. Generally
(especially within a subdivision), most homes fall within a fairly limited size
range. Therefore, you should be able to develop a good gauge for the selling
price of homes in those particular sizes.
The number of bedrooms and bathrooms is more relevant than just square
footage. For example, a three-bedroom home with 1,500 square feet might
be worth more than a two-bedroom home with 1,550 square feet. It also
matters if the bedrooms and bathrooms are located on the main floor or the
basement.
Bedrooms and bathrooms located in the basement does not add as much
value than if they are located on the main floor. Although finished basements
can add some value, the amount of that value is less than it is for above-
ground living areas.
Additionally, the quality and number of bedrooms and bathrooms needs to
be considered when using comps to determine the value of the home. Three-
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bedroom homes are generally a big plus over two-bedroom homes, but four
or five-bedroom homes don’t add as much over a three-bedroom if they are
roughly the same size in square footage.
When comparing bathrooms, make sure you understand the different types
of bathrooms and compare them correctly. A full bathroom includes a
shower, bath, toilet and sink and adds more value than a three quarter and a
half bath.
There are other factors to consider that affect the value of a home, but
generally these factors have less weight than the location, size and number
of bedrooms and bathrooms. Some houses have one-car or two-car garages,
some have carports and others have neither.
The garage factors in some value, depending on the rest of the
neighborhood. For example, if the neighborhood comps all have two-car
garages, this can affect value as much as 10% on the subject property if it
only has a one-car garage or no garage.
In addition to looking at properties sold in your target area, you need to look
at properties that are for sale as well. This will give you an idea where your
local market is heading up or down.
Also, keep in mind that if your strategy is to flip the property, the properties
for sale are your direct competition and thus the asking prices are very
relevant. For example, if you find properties that have sold for $250,000 but
the current inventory on the market is prices at $240,000, the asking prices
of your competition become just as relevant, if not more, as the sold prices
of other homes.
If you’re investing in the same neighborhood, keep a record of properties
that have sold, are under contract and are for sale within your area. Have
your agent check the MLS every week for new listings and sold properties so
that your information is up to date. The more information you have, the
more accurate your values will be!
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Have more questions about investing in Real Estate, contact me at
renegadewholesaler@gmail.com.
I would love to answer any questions you have and help you get started if
you are brand new to the business.
The Renegade Wholesaler
renegadewholesaler@gmail.com
www.renegadewholesaler.com
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