5 tricks to make it big with real estate investing

Real estate investing is one of the most attractive ways of making good money (that is if you do it correct). Moreover, real estate investing is also a lot of fun. A lot of people practice real estate investing as their core profession and, in fact, make a lot of money that way.

Real estate investing is really an art and, like any art, it takes time to master the art of real estate investing. The key, of course, is to buy at a lower price and sell at higher price and make a profit even after paying all the costs involved in the two (buy/sell) transactions. Generally, people are of the opinion that real estate investing makes sense only when the rates are on the rise. However, real estate investing for profits is possible just about any time (and as I just said, real estate investing is an art). Here is a list of tricks that can make real estate investing profitable for you:

1) Look for public auctions, divorce settlements and foreclosures (bank/FHA/VA): Since quick settlement is the preference here (and not price), you might get a property at a price that is much lower than the prevailing market rate. You can then make arrangements to sell it at the market rate over a short period of time. However, make sure that the property is worth the price you are paying.
2) Looking for old listings: The old listings that are still unsold may provide you with good real estate investing opportunities. Just get hold of an old newspaper and call up the sellers. They might have given up hope of selling that property at all and with a bit of negotiation you can get the property for a real low price.
3) The hidden treasure: A really old (and dirty) looking house may scare off buyers. But this might be your chance for real estate investing that can yield good profits. So, explore such properties and check if spending a bit on them can make them shine. You can get these at very low prices and make a big profit in a short time.
4) Team up with attorneys: There are a number of attorneys who handle property sales on behalf of sellers or in special circumstances (like the death of the property owner). They might sometimes be looking to dispose off the property rather quickly and hence at a low price. Be the first one to grab such real estate investing opportunities and enjoy the profits.
5) Keep tab on the newspaper announcements: Property sell offs due to deaths, divorce settlements, immediate cash requirements and other reason are frequently announced in local papers. Keep track of such real estate investing avenues.

Back in the old days, most deals were sealed with the contractor’s word and a handshake. Back then contractors seemed to be fairly honest and hardworking with the customer’s satisfaction in mind. In today’s world, where there are contractors out there who take advantage of what customers they can, or just simply fraudulent contractors wanting the money up front and then never seeing them again. The significance of having all agreements in writing is so important, the verbal contract has become obsolete. There are too many contractors out there that hear one thing while the customer is explaining something completely different.

All agreements should be drawn up in the form of a contract and signed by both parties, the contractor and the customer. Without a contract, if any defaults are declared, like work unfinished, work done poorly or not at all, nothing can be presented in the court of law besides he said/she said. The contractors words and the customers words mean nothing unless it is all in a written contract.

As the customer, you can visualize exactly what you want your kitchen to look like, but contractors can not read minds and share your visualization. You as the customer must get together with the contractors and list the details in writing of what work should be done. From listing what items will stay and what items will go, to listing who will be responsible to hauling away the debris. Always be as specific as possible in the written contract, listing all the details of how you want the work to be done and what should be the outcome.

Before entering into any contract for home improvements or home repair, there are two steps that should be completed: Scope and Specs. Scope out the work in writing and a write detailed list of specifications. These two should be recorded in detail prior to speaking with a contractor. This will help the customer get a better idea about the amount of work involved in a particular home improvement or home repair project.

As the customer approaches the contractor with these recorded details in hand, it will be easier to show the contractor what they need or expect more quickly. This will also be an easy starting point to discuss the project at hand and so that the project can become more visible to the contractor. For any home improvement or home repair projects that may be complicated, most contractors may have comments or questions as they look over the proposal. Working together, the proposal may have to be edited or re-written as the terms, conditions and procedures may need to be negotiated before the contract is complete and ready for both parties to sign.

Keep in mind that there are no free estimates or any kind of free labor for that matter. Many companies or independent contractors may advertise free estimates or free labor as a way to attract business. There are no freebies, only estimates and labor fees that are not billed directly as such. Most of the so called free estimates and labor have fees worked into the costs of other work that is done. This way the customer is none the wiser.

Each time a home improvement project or a home repair project is under contract, most customers end up paying a portion of the overhead of the company or person doing the work. That overhead involves everything from the time the contractor spends looking at other possible projects in the house to preparing the actual estimate. Most estimates have some additional amount added in to cover any contingencies, if and when they occur. The better organized and knowledgeable the customer is about the project, the less likely it will be for those contingencies to come up.

Customers should refrain from asking the contractor about the hidden fee’s or contingencies that are figured into the total cost of the contract. This isn’t something that a customer can ask the contractor directly and expect an honest response, but the customer may choose to save a fair amount of money while completing any home improvement or home repair project by spending a little time on it first.

People are flocking to the internet to advertise their homes and property for sale, and especially popular are the online auction sites. Even though it is a growing trend to sell and buy homes on the internet, it might not be a very wise decision. Serious consequences can arise which can involve unscrupulous characters promoting out right scams on the uniformed buyer. The impersonal nature and cloaked façade of the internet can quickly get you into financial and legal difficulties. In particular the elderly and young adults are vulnerable. Being aware that you might not get what you paid for is a good rule to follow; because scam artist just know there is an ocean front home in New Mexico waiting just for you. Become aware of the possible complications involving land and property transaction, and the vital information that can be obtained from knowing sensitive and personal information.

As hard as it is to believe there are many individuals that are buying property site unseen on many of the popular, and some not so well known, online auction websites. Bargains are a great thing to lay your hands on, especially when it comes to known expensive real estate, but as ole timers might say, don’t bet on another mans game. Aside from pictures and videos, which can be enhanced or out right lied about, there is not much evidence to go on, unless you make a trip to personally view the property and structures yourself. If you’re seriously considering buying an online piece of real estate, you need to examine a few issues. For example, what about the deed and title to the property, are they clearly deeded and owned by the seller? Are there any other encumbrances on the land and or home, such as inheritance claims, foreclosure actions, or mortgage and bank claims? Also, is the property a land locked area where no building or road frontage is available. How well has the property and any structures associated with it been maintained? Consider too that certain utilities might not be available for lands that are remote. In other words, if you want to build is there enough property to dig for a well, or to install a septic system because of local ordnances governing such activity? These are just a few of the issues that you will encounter when purchasing real estate through an online auction.

Not only do you open yourself up to all kinds of real estate legal issues, but have you seriously considered the very personal information that online sellers might require of you to conduct transactions? Even though most, but not all, internet auction sites will state that transactions on bidding for real estate do not constitute a legally binding transaction, you must read the fine print. Be careful of hidden clauses on property sale at online auction sites. Fortunately, most ads online are really just advertisement and fronts so to speak, to get you to privately contact the seller for further information, with no intention of deceit. However, the danger of contacting anyone that you don’t personally know with your private information can result in unpleasant circumstances for you later. Information such as full name, phone and email addresses are just part of the problem. Many scam artists will ask for your saving, checking and credit card numbers to verify who you are, and lay claim that there are costs to fax paperwork or even copies of deeds as an example.

As a buyer looking to purchase property whether for your own personal use or as an investment consider contacting a realtor or buying from someone in your local area. Often a great deal can be worked out among home town neighbors! At least you will be able to verify facts concerning deeds, titles, and mortgage information by visiting your local courthouse, and there is not the constant threat of identity theft! Even if you end up paying a slightly higher price for you new home or investment, isn’t peace of mind comforting? Seriously consider using a local reliable realtor for all of your transactions. They are professionals trained in the legal issues of property issues and management. After all it will be you that gain substantially over the long run. In the end it can be said that by using common sense against scammers is just using your plain ole common sense.

A new twist exists to selling your home as a FSBO (For Sale by Owner), and it’s no surprise either – the internet. Just as intriguing is your option of the plethora of websites that are now popping up all over the internet, the “we list site”. Devilishly enterprising individuals have created internet websites that offer a FSBO the opportunity to look totally professional when selling their home. The popularity of such sites is in response to the rising costs of housing, and the associated realtors fees and commissions incurred when selling a home. It’s the new wave of home selling without the benefit of a realtor, and there are unexpected costs, and associated risks when attempting to sell your home as a FSBO.

Because of the advent of the internet people that are wanting to sell their homes no longer have to settle for sticking a homemade sign in their front yard, and just running a local ad in a newspaper. For a fee mass marketing gurus provide internet instructions to FSBOs a semi instructional guide for the steps necessary to sell their homes. There are many services that you can garner from using an online website to sell your home, but remember that you as the seller must be aware of the risk of taking advice from any internet website. Often times there are other issues that you might not be aware of when ordering their services too, such as unexpected costs associated with the listing of your home, or even different levels of membership packages. Here is a typical outline that many websites promote for their online services but sellers beware.

Payment For Services – Different types of packages are available, and cost varies. Remember to read the fine print. Payment is usually accepted via a credit card.

Picture Submittal Service – Limitations exist on the amount of pictures that you will be able to submit. Additional fees are required if you feel that more are required to show off your home to its best potential. Also, if your not to handy with a camera, or don’t have the requested type of camera for the picture, a submittal fee is charged if you need them to take the pictures for you.

Yard Sign Service – In many packages a professional looking yard sign is available, but for an extra rental fee. Understand too that any unintentional damage to the sign will cost you for replacement. If ordering more than one sign to place at other areas to advertise your home there is extra cost associated with it too. Sites that advertise their service also state that they are not responsible for any damage to any buried services, such as electrical, gas or telephone lines due to the placement of their signs. It’s your responsibility to find the existing lines and finical liability.

Paper Advertisements of Flyers/Brochures Service – Basic print advertisements in a pre – designed format is an additional cost. You will need to be able to print quality advertisements from home on high grad stock or glossy paper, or incur the cost of having them professionally printed.

Print Purchase and Counter Offer Form Service – These forms are available for you to print with an additional fee.

Disclosure Property Forms – Usually there are no additional fees, but the standard disclosure form, and the federally mandated lead disclosure form are released only when services are paid for in advance. This does not include other attorney’s fees for the review of the forms to ensure complicity to the federal, state and local requirements.

Curb Box Advertisement Holder Service – For an additional fee a separate informational wooden sign may be rented, or a tube attached to your rented for sale sign. Again, any damage to the individual sign or tube will be your finical responsibility.

As you can see a careful evaluation is needed when considering using an internet website as a FSBO. Hidden cost can quickly eat up profits, and expose you to extensive law suits by unhappy buyers. Without the use of a realtor that is a trained professional you loose out on their insight and experience when trying to sell your home. Remember to read the fine print and carefully weigh your options.