In my previous blog post, found here, you learned 10 strategies referred to as Roads that you want to consider in your real estate investing trek.
Next Steps….
Now, in addition to these strategies, you will need to consider the type of properties you want to go after, developing a marketing strategy to find motivated sellers of properties. The following is a short list of types of real estate you can buy…
There are basically three types of investment properties to consider:
Vacant Land – Land that has not yet been developed
Residential – Properties that contain 4 units or less
Commercial – Properties that contain 5 units or more the niche in which to focus your marketing efforts in your search for discounted wholesale properties.
The Big Question …. How do you get properties at a discount or at least at the lowest price?
Answer: Start by becoming educated in one or two niches… and then take the steps to do it!
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According to the dictionary, a niche is a distinct segment of a market. So where do you find this distinct segment of the real estate market we call discounted properties; ie wholesale deals?
The obvious place to obtain a discounted property is to work with a motivated seller. This is the owner who wants to close on the sale of their property quickly and easily. If a seller is motivated they are willing to provide you the discounts needed to provide you a property where you can either sell quickly for a profit (flip) or cash flow at a profit (buy and hold).
So in what type of real estate niches are you most apt to find discounted properties? Over the next few months I am going to be going over a few of the most widely used methods of buying discount real estate.
Now keep in mind, you don’t want to be swayed to change your mind with the introduction of each niche. If you have started on one niche that you know can bring you deals… that’s great! Stick with it. However, good to know all the options and perhaps after you find success with one niche, add a second to it.
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I have found the most successful investors become experts in 1 or 2 niches. Too many “wanna be” investors get pulled from one niche to the next never truly finding success anywhere. I suggest you evaluate these niches and pick the one that will bring the most opportunity in meeting your area market needs, your personal circumstances and your goals. it’s important you stay focused on doing one niche til you find the success you set out to achieve… profits!
Watch for my next blog where I will share with you the first of several of the most profitable real estate niches for you to consider and the steps for how to do them.
Tamera Aragon
Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.
Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
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“Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.” The Bible – Ecclesiastes 11:2
This is good advice as long as you don’t get so spread out that you are doing too many things but nothing with success. It’s important we understand the fine line between focusing on one real estate niche without putting all your eggs in one basket, (so to speak).
To simplify the terms of real estate investing, there are really only three ways for investors to make money in real estate:
Real Estate Appreciation and Equity
Cash flow while you own it
Assignments: Payment when you flip a real estate contract without owning it.
So where do you start? Let’s try to answer this question on every aspiring real estate investors mind. Since real estate investing encompasses so many types of exit strategies or I like to call profit centers, it’s important to study and pick those you are most passionate about. otherwise called exit strategies.
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The following is a summary of Ten of the Most Popular Real Estate Investment Strategies with their advantages and disadvantages.
1. Rentals or Cash flow Investment Property: These types of investment properties are the ones which generate rental income. These are mainly apartment buildings and rental houses.
Advantages:One of the easier ways to get started, and good long term return on investment while also earning monthly income.
Disadvantages: Risk of not renting property leaving you with the mortgage payment and no income. Property management can be a challenge. You typically will wait awhile to sell your property so payoff is slow.
2. Lease Option. This is when you buy a property, then sell to someone else via a rent-to-own arrangement.
Advantages:You get higher rent, and the buyer is usually responsible for maintenance. Cash flow can be good.
Disadvantages: Most rent to own buyers don’t complete the purchase (this can be an advantage too, but it does mean more work for you). Bookkeeping must be done properly and can be complicated.
3. Fixer Upper Investment Property. These types of investment properties are the ones which are in ugly condition and need renovation. These properties can be acquired to flip after fixing-up quickly or held to rent out.
Advantages:You can receive a quick return on your investment (months). You usually get below market value pricing on properties bringing you instant equity.
Disadvantages:Higher risk. (Many unpredictable expenses come up in construction). You get taxed heavily on the gain when you sell in under a year.
4. Vacant Land. Many options including just holding while appreciating. You can also split it and sell it.
Advantages:History has shown that land always appreciates in value (it’s the buildings on the land that go down. It is simpler than most real estate investments, with the possibility of great profits.
Disadvantages: It can take a long time to increase in value. You have expenses, but no cash flow while you wait unless you sell the contract before closing.
5. Commercial Real Estate. These are any building containing 5 units or over and/or buildings sited for commercial use.
Advantages: Long term triple-net leases mean little management and high returns. Lending is usually based on the value of the property vs. personal credit.
Disadvantages:Commercial property valuation requires a more complex method, taking into account the income potential of the property. This is recommended for the more experienced investors as there is a lot more involved to set up and maintenance.
6. Buy property with Forced Appreciation. Buy in the path of growth and holding until values rise. For instance buying a lot in a residential development prior to roads being completed.
Advantages: Can yield large profits, especially if you buy low to start.
Disadvantages:Future price is not predictable – the market can turn, the developer can go out of business. You have expenses with no income while you’re waiting.
7. Preconstruction Investment Property: These types of investment properties are acquired directly from a developer before the construction or renovation is completed.
Advantages: Low money out of pocket to tie up property while being built. If purchased in appreciating markets, you make money in equity at closing and can instantly re-sell at a profit.
Disadvantages: You can’t always predict what a market is going to do. If market depreciates, you have lost money. Also higher tax rates in selling quickly.
8. Pre-Foreclosure Investment Property: These types of investment properties are the ones which you buy from sellers who are behind in their payments and may lose their property to the bank via foreclosure.
Advantages:You have opportunities to buy properties at below value pricing – “Instant equity”.
Disadvantages: Legal liabilities are higher. Finding these properties requires a lot research and footwork to find a deal that works. You can do all the work and still not have a deal with enough equity to profit after expenses to sell, (taxes, realtors, etc).
9. Assignments: This strategy has you get into a property at a discount, preferably with a known buyer in place before you commit to your purchase. After you are in contract to purchase a property, you would sell your contract for a fee to someone else. For example you get into purchase contract to buy a $120K property for $100K. You turn it to an investor for $110K and profit $10K cash without the cost and hassles of ever closing on the deal.
Advantages:This is a great way to make quick cash with low or no upfront investment, low risk and fewer headaches from closing and ownership. This strategy creates a win win win outcome for everyone involved.
Disadvantages:This will only work if the property you are buying has equity so that you may buy it a discount. In declining markets, this type of property is harder to find. Also when dealing with banks on REO’s or Short Sales you will find they will not allow you assign your contract. However, there are ways to get around this if you plan and handle the contract correctly up front. Do you want to know how I have managed to get around not being able to assign a contract? I have purchased properties in the name of an LLC set up exclusively to buy properties. I then sold the LLC to someone, making them the owner of the LLC, therefore making them responsible for closing on the purchase contract and end buyer of the property.
10. Flipping – Wikipedia defines Flipping as is a term used primarily in the United States to describe practice of buying an asset and quickly reselling (or “flipping”) it for profit ..
This description pretty much explains property flipping, with there being a slight difference from that description of flipping assets. In real estate you can get into an agreement to flip a contract you have gotten into before you even buy it. This can be done with ease when you know exactly what your buyers want and with no money out of your pocket utilizing transactional funding. Flipping can also mean closing and quickly reselling your property, sometimes even doing both transactions the same day – this being subcategorized a “double closing”.
Advantages: My favorite strategy. You work the deal backwards. You create relationships with buyers who can close quickly with cash. Then you find a property meeting the needs of your buyers. This strategy allows you to profit literally from no money down, with lower risk and very little of your own time.
Disadvantages:The law requires you to disclose your intent to resell quickly to sellers. When dealing with banks, this can sometimes cause your offer to be rejected. You must buy properties in the name of an LLC in order to utilize transactional funding. Setting up and maintaining an LLC will cost you money. Though the intent of a buyer might be to close on the transaction, sometimes “life happens” and something causes the buyer to be unable to follow through. You may have to walk away from earnest money if you cannot find another buyer quickly
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Now that you that you have learned strategies to consider, you will need to consider the type of properties you want to go after, developing a marketing strategy to find motivated sellers of those deals. Over the next months I will be sharing steps and strategies on how to profit investing in real estate 12 different ways.
Please leave a comment if you have anything you would like add to what I have written here with the heart to support fellow real estate investors. (Any solicitations for business will not be published) I appreciate the feedback!
Tamera Aragon
Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
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An absentee owner is an owner that does not live in/on their property; most absentee owners utilize the services of property management companies to take care of their properties for rent.
These types of owners, can turn out to motivated sellers and are the most obvious. A lot of the time, they are also the most overlooked motivated sellers on the planet.
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Why this is a good niche to consider?
It is an untapped market.
Most investors don’t realize the impact that marketing to this group of prospects can have on your real estate business.
Most investors don’t know how to market effectively to absentee owners, focusing on their hot buttons.
The paperwork is simpler
All you need is a contract.
What are downsides of this niche?
Absentee Owners can sometimes be hard to find
You don’t know how motivated they are when you market to them. You could be marketing to someone who is not motivated to sell at all.
Good market conditions.
When there is a mid to high rental vacancy rates.
When the rental rates are low.
When Interest rates are high.
In a flat or steady market.
Bad market conditions.
When there are low rental vacancy rates.
When the rental rates are high.
Steps to do this Niche.
Get a list of Landlords from recommended sources below
Sort the list taking removing the following: *Duplicates & corporations *Square footage over 900 *Anyone who has owned their property less than 10 years.
Use direct mail postcards to inexpensively contact them.
Sellers will call your 24 hour hotline to listen to a 2-3 minute message.
Only the most interested ones you will call back and run comps
If owner is motivated then set time to see property and meet owner.
Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
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“Real estate is definitely a path to be seriously considered in building your wealth. Where to invest varies depending on the location of the investment as well as market timing. My investment choices change as often as the market does. Being sensitive and aware of changing market trends is helpful to know where to invest and the most profitable strategy to follow”.
What was just quoted was a highlight to part of this real estate investing article series of minimizing risks and maximizing profits for investors. You can review the first 3 rules here: “Top 7 Tips To Minimize Your Risk & Maximize Your Profits P1”.
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Top 7 Tips To Minimize Your Risk & Maximize Your Profits
Rule #4 – Use a Tried and True Strategy
Why make all of the mistakes others have already made if you don’t have to? Find a good investment strategy that works with your goals and stick to it. You will be tempted and pulled in many directions by all the different gurus out there saying their way is best.
Find a mentor and coach with experience in today’s market and then follow where they lead. After all, why would you walk through a mine field alone if there was someone else familiar with the route who could lead you safely through?
Rule #5 – Have Attorney Review Contracts
Hire a professional real estate attorney to review all your processes and paperwork before utilizing it in your market. Because most trainers and coaches are not attorneys, as much as we try, we cannot be experts on laws in every state in the U.S. For this reason, it is vital for you to make sure the contracts and steps you are taking are not going to lead you to the courthouse.
Anyone can sue anyone these days. The way to avoid this is to first of all, always be nice and come from a place of caring in your dealings with others. Don’t avoid dealing with situations personally or you may find a costly summons to court forcing you to deal with things the expensive way. A second way to avoid litigation is to assure your paperwork and procedures are legal to the best of your ability.
I know attorneys can be expensive which is why I signed up to use a service that offers me unlimited consultations and a certain number of document reviews for only $50.00 a month. I recommend this way to be the most cost effective resource to be able to accept advice from a licensed real estate attorney in any state.
Rule #6 – Have Basic Computer Skills
You will want to know how to use email, internet and office products like Microsoft Word and Excel (Google had free versions of these). It is helpful to know how to create graphics but not necessary. You will need high speed internet to enjoy utilizing this wonderful tool and avoid the frustration of being unable to watch videos and waiting for pages to load.
You can do your entire real estate business from a computer. You will absolutely need to type contracts and do research and there is no faster, easier way than this. If you do not know how to use email, the internet and basic word on a computer, find a class you can take to learn the skills you lack. If you have tried to do business without these tools, you will find them to turbo-charge your business once you have them.
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Rule #7 – Diversify Your Investments
Don’t put it all into one area or one type of real estate. So how did I go from having no money to the prosperity I enjoy today? It started with a book called the “One Minute Millionaire” by Mark Victor Hansen and Robert G. Allen. This book showed me I could really have the kind of lifestyle I desired, if I would diversify my income, while at the same time making wise investments.
I studied this philosophy on money found in this book as well as in others like it. Then, I did something many are too afraid to do, “I put what I learned to work in my life”. I currently divide my income into various investment strategies such as real estate, stocks, business ownership, savings, Money Market, IRA’s, and others.
However, since I see that 40% of today’s billionaires made it in real estate, I have chosen to place a large percentage of my time and money into this strategy. What type of real estate do I invest in? This varies about every 6 months depending on the market conditions as I mentioned earlier. I also have relationships with “power team” of experts so we have all the correct data to consider our strategy as the market changes.
In summary, there is no hard fast rule that applies to all investing – except one. That is this. In order to profit from your investments, we have found it important to diversify them. Consider different types, different areas and different strategies that make the most sense, therefore bringing you the highest return on your investment.
Tamera Aragon
Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
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“Without effort, you cannot be prosperous. Though the land be good, you cannot have an abundant crop without cultivation.” – Plato
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Real Estate As a Path To Wealth & Freedom
Forbes magazine lists the top 400 wealthiest people every September. In September 2007, 40 of the 400 people on that list made their billions specifically in real estate. Many of these people started with nothing, some immigrants even, to move up into this category. Real estate is definitely a path to be seriously considered in building your wealth. Did you know that most of those 40 billionaire real estate investors are only doing their real estate part time? And do you realize they can run their real estate investing business from anywhere in the world?
Freedom… Just the sound of that word brings a smile to my face. Real Estate investing offers you the freedom to make your own choices about how and where you spend your time along with who you spend it with. Financial and time freedom is definitely something successful real estate investors enjoy.But what about the risks you say? Of course for every “tit” there is a “tat”, for every high a low, for every good a bad. Yes, unfortunately like any entrepreneurial venture, there are risks. My husband owns a retail store and he risks every day that someone is going to trip and fall and sue him. He risks that he may not sell enough to pay his bills, etc. I think you get the point. However there are steps you can take to minimize your risks and maximize your profits.
Top 7 Tips To Minimize Your Risk & Maximize Your Profits
Rule #1 – You Do Not Need To Re-Invent “The REI Wheel”
You will need to get training and have a mentor or coach, (or maybe several), in order to succeed. Even the best athletes in the world have a coach. Why? Because a coach will keep you on track. Don’t try to do it on your own. That school of hard knocks is going to cost you way more than good training and an experienced coach. I believe this to be the first step in minimizing your risks and maximizing your profits.
Rule #2 – Do Your Due Diligence (or as I say, “Do the Due”)
Would you buy a car without checking the engine, tires, brakes, or interior? Would you marry someone without learning all you can about them and knowing their flaws and good things before you take the plunge? I hope not!! Then why do so many real estate “investors” buy a property without doing the proper due diligence before they get into a contract?Answer: Many simply lack the knowledge of what to look for in a property when considering it for investment purposes. In other words, you don’t know… what you don’t know, right? So here’s what you need to know. Before you ever buy a piece of real estate you should check it out from top to bottom so you know exactly what you are getting into. A little bit of work upfront will save you huge headaches and money down the road.
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People often ask me, “What should I look for before committing to buy a property?” There are two ways to make money in real estate. If the property is going to supply these profits for you, you would want to consider it.
When the property brings you cash flow from monthly rents while also appreciating.
When you make a profit re-selling the property through appreciation.
Now keep in mind, you can profit from appreciation two ways.
Market appreciation – the economy is causing properties to increase in value.
Forced appreciation – when you either buy property cheaper than what you can resell it for or you can do some improvements to increase the value more than what you spend.
Here are Three Most Important Questions I ask myself before I consider a property for investing?
Would we buy it for ourselves?
Would we want to tell our friends and family?
Is this a good deal for other real estate investors?
The most important outcome to consider is if the answer to this question is yes, “Will my money put into this property make me more money?”I call what I do real estate “investing”, not real estate “divesting”. You will always want to do the same. How do you know if it is going to make money? You do your due diligence before you commit to buy any property. Of course, as you know, there are never any guarantees in life.
However, if you have certain criteria every property needs to meet in order to profit and how to evaluate a property for those qualities, the likelihood that you will succeed are much greater. It’s very easy to get caught up in wanting to help people if they need to sell their house. Or you may just personally think a property is good looking. But those are not the only reasons you would want to buy. To avoid getting emotionally involved in a property purchase, I have created a due diligence checklist. I have provided a tool that has saved many people from both passing on deals they should take as well as taking deals they should pass.
I took from my own trials and errors & created a checklist – The Real Estate Investing “Before You Commit” Due Diligence Checklist. Keep in mind every one of mine or your personal due diligence items on that “checklist” do not need to be followed on every deal you consider. However, it’s a great list to follow and assure you have remembered to consider all that can affect the outcome of your purchase. Your due diligence makes all the difference on whether your purchase of property brings you a profit or a loss.
Rule #3 – Invest Using the Strategies that Make Sense and the Location That Makes Sense for the Current Market Conditions
I always say invest where it makes sense and dollars. You don’t need to invest in your home town, because you live there…nor do you need to go all over the country investing everywhere else. Do your homework and invest in locations that align with the real estate investing niche you chose using the strategy that is a fit.
For example, three years ago I was investing nationally in pre-construction in most strong appreciating markets. That strategy made sense at the time. It would not make sense in a depreciating market.
Today I live in a town that has been on the top 5 most foreclosures list for over 2 years. Why would I need to invest nationally when there are more than enough leads right in my own backyard? Where to invest varies depending on the location of the investment as well as market timing.
My investment choices change as often as the market does. Being sensitive and aware of changing market trends is helpful to know where to invest and the most profitable strategy to follow. The last four rules of the “Top 7 Tips To Minimize Your Risk & Maximize Your Profits” will be concluded in Part 2.
Tamera Aragon
Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
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So here is a quick recap of Part 1 – Tax Deeds & Tax Lien Sales Investing: When homeowners fail to pay real estate (property) taxes, the government has the right to sell their property in a state “tax sale”. In a Tax Lien state, homeowners have an opportunity to pay back the amount owed within a specific time frame even after their property has been “sold” with interest to a real estate investor. Should homeowners miss the payment deadline, the investor becomes owner of the property at a great discount. In a Tax Deed state, investors bid for immediate ownership of a property or are eligible for the deed and ownership of the property after a redemption period passes. In Part 1 – Tax Deeds & Tax Lien Sales Investing I covered the descriptions of the different investing strategies as well as the rewards and the risks investing in tax liens vs. tax deeds.
Tax Deed Investing Process For Real Estate Investors
Now I am going to cover some of the steps you will need to go through as you go through the entire tax deed process and come out a winner with your real estate investment.
Obtain and Review a List
Obtaining a list of the properties that a county is going to auction at the next tax deed sale is the first thing you need to do. You should first of all find a website for the county and see if they have or will publish a list of their tax deed sales on their website.
Sometimes the county will send you a list two weeks prior to the auction for a minimal fee. You will also want to know how often they update the list prior to the auction. If it is possible to obtain this information in person and meet the people at the county office, it is better than by phone. The more people you personally know and the more questions you ask the better off you will be when you really may need help.
Once you obtain a list, they are usually fairly limited on the information they give about the property. Usually it lists Parcel number, name of owner, address of owner or property sometime both, amount of taxes owing.
You will also want to find out:
Date of next auction?
When and how do they publish the list and how you may obtain a copy? (Often they are required by state law to publish the list in a local newspaper by a certain date. Usually newspaper will have a copy or it is available online.)
What is the actual auction and bidding format?
Do they require bidders to register before the auction?
What is the registration process for bidders?
How your tax deed will be paid for at the end of the auction?
How the auction is conducted and rules about bidding?
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Initial List Screening
Most lists will have more properties than you can possibly research. You need to screen the list for the types of properties that you are interested in. Usually there is a code number, the county staff can explain to you, that indicates if a property is a single family home, a developed lot, commercial, residential, duplex, apartment, etc. This is the first step in screening the kind of properties that you have decided you are interested in.
Second is to find the properties that are in the part of the town you may have determined you are interested in.
Third you can screen by the value of the property and the amount you are willing to bid.
Most of this initial screening can be done from a basic list.
Additional information that you want to obtain about the property include what type of improvements are on the property i.e. building, utilities, landscaping, curb and gutters, etc. or is it just land. Also find out the assessor value for both the land and improvements. Take note of the taxes due and when they were last paid. If there is a house or any type of building on the property find out the size, year built, number and type or rooms and if possible find about any other special features the structure may have. Learn additional information about the neighborhood by looking at the houses next door or across the street and maybe even talking to neighbors.
With all of the above information you can narrow your list down to the few properties that you need to drive buy and check out.
Visit the Property
If at all possible, a personal visit to the property is essential. If you can’t do that, a visit via the internet, through different search sites is the next best thing. However nothing tells the whole truth better than visiting the property. What seems like a very nice house could turn out to be next to a crack house or a busy grocery store or on a very busy street. What sounds like a normal building lot may have a beautiful view. You need to screen your list down to a number of properties that you can take the time to go see, especially with tax deed sales.
To save time and money you need to organize on a map your drive-bys so that you can find and record information about the properties in a timely manner. There are many mapping programs available on the internet that you can put the address in, and they will automatically give you a route. When you drive by, the number one thing is to take a picture of the property for your files. You want to write down identifying features found in the picture in case you get them mixed up. You want to rate the house, note any problems and repairs that are needed and rate the neighborhood. Usually unless the property is vacant you should not approach the house or talk to anyone about it.
Some quick things to take note of are as follows:
Paint and roof condition
Broken windows, doors, cement
Underground or overhead utilities
Trees, shrubs, general landscaping
Condition of adjacent properties
Property accessibility
Discolored soil or dead vegetation
Traffic on the street
House vacant, lived in, for sale sign
Make sure to drive around the area looking for any industry or business that would distract from the desirability of the property. Also look for similar properties in the neighborhood that may be for sale and call the owner or real estate agent to find out the price and condition as a comparison for properties value. You can print out this checklist on a spreadsheet that you can fill out while you are in the neighborhood and attach the picture of the property too.
Once you have accomplished all of this research, you are now ready to narrow your list, to the final properties that you will bid for at the tax deed auction.
Check for Recorded Problems
Now is the time to return to the county offices. Go to the county clerk’s office to check if there are any liens on the few properties you now have on your list. Some counties make this process very easy by having the information available online once you have the parcel numbers and address of the property. If there are liens on the property make sure you get the name and contact information on the business of person placing the liens. You need to also check for mandatory deed restrictions on the property. In other words, find out what you can or can’t do or build on the property. You should also check for any government assessment that may be filed against the property.
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The last thing you need to check, as close to the actual auction as possible, is to see if there were any last-minute redemptions by homeowners that would have removed the property from the auction table. One of the most frustrating things about tax deed auctions is the fact that many people don’t want to lose their property and will somehow pay their taxes at the very last moment.
It is not uncommon for a tax deed sale to have 40 to 50 percent of the properties redeem at the last minute. We therefore recommend that you research twice as many properties as you think you can afford to buy because half of them may be redeemed the last day or hour before the auction takes place.
Attend the Auction
The basic work is now over the fun and hopefully reward begins. Go to the auction with a very specific plan and stick to your plan.
Usually, you should arrive about 30 minutes before the auction begins, so that you can register, check the final list that will be there for any last-minute redemptions of your properties, find a good seat where you can see what is happening and review the written or oral instructions that will be given. You may be surprised that there will probably be many people at the auction. Only half of them will actually bid while the rest of the people just come to watch.
There are many types of people at the auction who you will be able to quickly identify. The professional investors who have deep pockets and usually win whatever bid they participate in. The local investors who know the area and the properties around their home or offices and understand value, they are important to watch. The beginners who have no idea what is going on and of course YOU. At this point just smile, stick to your plan and bid amounts. Do not get emotionally involved with the bidding.
Purchasing and Maintaining Your Deed
If you are a successful bidder on a deed, you will need to be prepared to pay the full bid amount plus any fees and outstanding taxes. In some state or counties, you will only be required to pay a deposit of perhaps 10% with the balance due in 30 days. You need to make sure that you have talked with the county official before the sale and know what the payment policy and procedures are if you are successful in obtaining a deed.
In some counties, the owner can still redeem the property within a year after the deed sale. Most states and counties, of course, recommend that no major expenditure and improvement be done during this waiting period in case the sale is over turned. However, this does not prevent you from using the property, renting the property, leasing the property with an option to buy, or using the property for financing purposes.
It is always best to consult with a local real estate attorney about any legal strategies you may have prior to final settlement. Whatever you do make sure that you place liability and fire insurance on the property as soon as the auction is complete. If something happens you will be liable and no one will overturn the sale at that time.
Selling the Property
Now it is up to you, your family, and your real estate agent as to how you profit from this real estate investment adventure once you have the finalized deed. The bottom line is profits no matter what strategy you follow. This concludes my article on Investing in Tax Deeds and Tax Lien Sales from a real estate investor’s prospective.
Tamera Aragon
Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
When homeowners fail to pay real estate (property) taxes, the government has the right to sell their property in a state “tax sale”. In a Tax Lien state, homeowners have an opportunity to pay back the amount owed within a specific time frame even after their property has been “sold” to an investor. The investor may be paid back with interest. Should homeowners miss the pay deadline, the investor becomes owner of the property at great savings. In a Tax Deed state, investors bid for immediate ownership of a property or are eligible for the deed and ownership of the property after a redemption period passes.
By law, Tax Deed sales must be announced to the public, and are usually sold to the highest bidder. The winning bidder purchases the deed to a piece of property, becoming the new owner and obtaining all rights to the property – clear of any mortgages, liens, deeds of trust, etc.
One interesting thing to note is very few people know much about Tax Deed sales. So, competition may not be as fierce in this niche as it is in others.
Why Is Tax Lien & Deeds a Good Investing Niche to Consider?
Tax Deeds are sold in almost every state throughout the United States. 50 states are governed by state-mandated laws to protect & reward investors.
You can pick Your Price. Research the list and pick ones out that are in your price range.
You can obtain properties which allow for all types of exit strategies (flip, rent, or live).
Investors & Banks have been using this strategy for over 150 years.
The rules vary from state to state. In certain circumstances you can obtain an entire property for only the taxes and penalties owed. Generally, you will pay between 50 to 90 percent below market price.
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General Downsides of Investing in Tax Lien & Deeds Niche?
Lacking Liquidity of Funds: In a Tax Deed transaction, you can have your money tied up for several years before you can sell the property, because title companies may not issue title insurance on the property until all liens are cleared, and it is obvious that clear title can be granted. This process will sometimes take more than a year. Fixing up and or remodeling properties to maximize your eventually sale can also take considerable time.
Time and Complexity: Tax Deed laws vary from state to state and sometimes from county to county within a state. This requires a time commitment to learn the rules of a state and its counties, research properties and attend auctions. In addition title companies sometimes will not issue title insurance for at least the first year on any property bought at a Tax Deed sale. This means it could be hard to get a loan until it is clear.
Investing Risk: Purchasing property at a Tax Deed sale definitely has risks if you have not done extensive due diligence. You must do your homework, title searches, drive buy inspections, history reports etc. Once you buy a Tax Deed, you will own the property including all of it potential problems. The major thing to keep in mind is that at a Tax Deed sale, unlike a Tax Lien sale, you are buying the real estate and we believe that the required level of due diligence becomes extremely high. The other thing you want to know at a Tax Deed sale is if the property is being purchased free of all other liens and encumbrances. There are a number of states where this is true and a few where it is not true. You need to make sure that you get what you paid for. This requires knowledge of what the values are and what the potential hazard could be.
In summary, Real Estate tax sale laws vary from state to state, as do the redemption periods, and there are risks investors should be aware of in addition to the potential rewards of buying tax sale properties.
Pros and Cons of Tax Lien & Tax Deed Sales
TAX LIENS: A lien is a financial claim made against a property. A Tax Lien is a claim for unpaid property taxes issued by the local taxing authority. Failure to pay real estate taxes is one of the leading causes of distressed properties leading to home loss. Investors typically buy Tax Lien properties through an auction after a homeowner fails to heed warnings by the tax authority to pay property taxes. Most states allow homeowners to reclaim their property by paying off the debt in full by a certain date. This is called the “Redemption Period”. The redemption period offered varies from state to state. However, in some locations, investors may have to wait two full years before being paid back or gaining the deed for the property.
Tax Lien Pros
Possibility of good returns in interest (up to 24 percent in some states) paid by homeowners.
Possibility of owning property at a fraction of its true value.
Option to sell, rent or hold the property for additional profit once title is held.
Lower Investment Risk: If the homeowner doesn’t pay up, the tax purchaser is first in line to own the property. No tenants, banks or brokers to deal with.
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Tax Lien Cons
May Not Make Any Money: There is no guarantee the homeowner will pay off taxes and interest on the lien. The process of getting the deed at the end of the redemption period isn’t simple and may require a lawyer.
Required Capital: You must pay what is typically a large amount of cash for your bid at the tax sale. You definitely will need more capital to buy properties at Tax Deed sales. Although it varies from property to property, from county to county, and even from state to state, you will likely need a minimum of $5,000 to $10,000 to get started in Tax Deed investing. A good credit rating may also be necessary to sign finance contracts. Check local rules and regulation as well as the history of Tax Deed auctions in an area to get a feel for the capital you may need.
Uncertainty of property condition: With no prior home inspection, there is no guarantee of the property’s condition or value.
Property Owner may Be Foreclosed on: If you foreclose, you are stuck with the hassle of selling the property from which you may profit but on the other hand you may not recoup your initial investment.
TAX DEEDS: A Tax Deed is a legal document indicating ownership of property, also referred to as “title.”When the government intervenes to put properties delinquent in real estate tax payments up for auction, investors can pay the back taxes and own the property for well below market value. To locate and invest in Tax Deed sales, check local newspapers, local tax collectors or the Internet, where many websites post relevant information.
Tax Deed Pros
Quick and easier way to become a property owner.
Opportunity to acquire existing equity.
Opportunity to purchase property directly from the property owner at bargain-basement prices prior to a Tax Deed sale.
Fortunately, investors who sow the seeds of diligent research can reap the rich rewards of tax property sales. DUE DILIGENCE is required for Tax Lien and Tax Deed investing deals. This concludes my article on Investing in Tax Deeds and Tax Lien Sales – PART 1.
Please watch for my next investing article that will wrap up all you need to know to start investing in Tax Deeds and Tax Lien Sales – PART 2. I’ll be going over the steps real estate investors should take for Tax Lien and Tax Deed Investing deals.
Tamera Aragon
Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
One of the longest proven successful ways to get good leads as a real estate investor is calling on For Sale by Owner (FSBO’s) listed properties. In my experience, I have found great success in helping FSBO’s with their situation while at the same time buying discounted real estate. If you are on a budget and just getting started then you can do this yourself, or if you can at all afford it, I highly recommend you hire someone like a virtual assistant to do it for you.
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Why Are FSBO’s Good Leads?
Often times homeowners who place their house on the market without a realtor ( FSBO’s), are in a position where they need to sell a home quickly. When this happens, you are able to help them by closing quickly with cash, while at the same time, you receive a great discount. There are many reasons a homeowner might need to sell quickly. Some are trying to avoid getting behind on payments, some are already behind on payments, others need to immediately move to new location for job, some received a property gifted through probate, may be experiencing illness or maybe the landlord doesn’t want to own a property for rent any more, etc. Whatever the specific reason a person doesn’t utilize a realtor and place their property for sale on the MLS, Craigslist, Kijiji or even EBay, it is likely there is an opportunity for you to get a great wholesale deal.
Where Do You Get FSBO Leads?
The first step is to locate the properties not listed on MLS, however for sale by the owner direct. How do you do this?
1. Classified Ads Online: There are several online classifieds such as Craigslist.org or Kijiji.ca or backpage.com and many others. It’s so easy to search the internet for this stuff just type “your city” properties for sale by owner; see what comes up in the Google and Bing search engines!
2. Newspaper classifieds: Checkout newspapers in the areas you would like to buy. (also often available online)
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What Do You Do Once You Have The Locations For Leads?
A. Grab a copy of the FSBO magazines offered for FREE in grocery stores. These could be great leads as someone is paying a lot of money to put their house in a magazine. I view this as sign that the owner could be a motivated seller.
B. Go the websites of newspapers and look at their classified section online. You can put these links in your favorites.
C. Visit FSBO online websites. Here are a few sites I like:
Owners.com
ForSaleByOwner.com
FSBO.com
HomesByOwner.com
Trulia.com
You will want to check the FSBO sections in these resources daily. If there is a good real estate deal for sale, it will be sold quickly to the person who acts quickly – You!
What Do I Look For In A FSBO Deal?
All ads listed could be potential investments. To save time however , you want to be looking for keywords or phrases that indicate the seller has a motivation to sell or is showing signs of flexibility. Here are a few examples of keywords to watch out for:
“Must sell” “Just reduced” “For Sale Or Lease” “Seller Financing” “Fixer Upper” “Handyman Special”
Create Your Motivated Seller “Hit” List
This is a list of those you will want to contact to find out more about the property and the seller’s situation. If using paper (like a newspaper in hand), you will want to mark the ads with your sharpie or highlighter as you are scanning the paper for those “motivated” words listed above. Mark as many ads as you can! It is better to have too many leads than too few. If online- – -copy and paste the ads found on newspaper, classifieds and FSBO sites to a word or excel doc, then print it out. Remember having too many leads is a good thing as it keeps your options open.
Tamera Aragon
Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
https://www.realestateinvestormagazines.com/wp-content/uploads/2024/01/fsbo.jpg4001000dulcehttps://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2024-01-30 04:45:112024-01-30 04:45:13Targeting Properties – For Sale By Owner (FSBO)
I have been buying and selling residential real estate as a real estate investor for almost 7 years now. I have invested in just about every avenue of real estate investing from Pre-construction, Assignments, Tax liens, Rehabbing, Probate, Bankruptcies, Pre-foreclosures, Short Sales, Foreclosures and REOs, Buy & Hold, and FSBO’s. I have profited from literally all of these strategies and showed others how to as well.
However, lately I have learned about a twist to an old strategy, one that I had heard about, but never done. Buying land and re-selling it via owner financing for a monthly profit, is the new real estate investing strategy. It goes even further, after you buy it and sell it with owner financing you can then eventually flip this property to another buyer. I picked this up from Jack Bosch, who has closed over 5400 land deals himself and I think he is on to something!
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I have found the biggest stopping points for many of my new real estate investing students are usually:
#1 – The risk of getting into something they cannot find funding for and letting people down #2 – Getting into a deal and finding out later something was missed, causing financial loss.
Many new real estate investors are frozen stiff because of these fears. It is for this reason I’ve listed some of the reasons a real estate investor might want to add land flipping to their portfolio of investments.
Why Land Flipping Might Be Better
There is virtually no competition for land, especially rural land. This area of investing is over flowing with a lot of opportunity – there is an abundance of forgotten land out there that sells for cheap! You can purchase land for literally pennies on the dollar.
With land you do not have to know as much about real estate like construction, termites, mold and all the other things of that nature that you must know when investing in houses.Here are some compelling reasons to add land flipping to your real estate investing portfolio:
Very low, (or sometimes none), acquisition costs
Lower risk – limited money down to lose
Lower inspection requirements
Quicker closings
Less initial capital output
Buyers are usually more savvy investors
Good Potential for monthly residual income with your owner financing
Usually no upkeep required
Usually low holding costs (no fire insurance, fix up, utilities involved)
Higher number of buyers are repeat buyers (compared to home end buyers)
Why Houses Flipping might be Better
For some real estate investors flipping houses might have been the first investing niche that they started in. Let’s list the major reasons why house flipping is a good investing strategy:
More potential to generate income while you hold it – owner financing or renting
Everyone needs a house since shelter is a basic necessity of life. Not everyone needs vacant land
Potential to profit big doing just one good deal
Potential for higher monthly residual income per property
A lot more home owners in desperate situations than there are landowners.
Compared to the land flipping, house flipping might seem better, but the acquisition and maintenance cost are much higher for house flipping. Another thing to note is that land flipping profits on average, are lower than house flipping, and you must do more deals to profit higher dollars.
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Research the Region
Look for these market positives when investing in both land and housing deals:
Unemployment rate in the area of purchase is low compared to the national unemployment rate
Be sure to keep your ears open for news of major business expansions
General area & its population is growing and expanding. If it is, best if the area is expanding in the direction of the property you are interested in buying
Talk to the city and county planning and zoning agencies where the property is located; they will be able to give you valuable information about area growth and building projections.
6 Ways to Minimize Investing Risks
Here is a list on how to lower your risks for investing in houses or land before closing on any deal:
Run necessary tests and inspections depending on specific area and property
Check with county records to verify no complaints or notices for required repairs are filed
Make sure you work with contract escape clauses to assure you can walk away for any reason.
Avoid giving check or cash money down until you are positive you are going to close.
Make sure that your purchase contract is worded in such a way that it allows you to only transfer cash at the time of closing.
Make sure the title is not “cloudy” and property is marketable. Remember IRS liens have to be paid! If you buy a property with those liens, that bill becomes yours. Do your due diligence in running a title report before closing.
Land and House Flipping Similarities
In summary, you can follow a lot of the same strategies marketing to land owners as I’ve always done buying & selling to home owners. The best type of deal, whether land or houses, is when the seller, for one reason or another, wants a quick & easy way out of the obligation of owning their house or land – leaving you the opportunity to buy at a discount and profit in the short and/or long term depending on your goals!
Real estate investing, just like most things in life, has benefits and risks no matter how you look at it. There are always those unknown and unexpected circumstances. In the scheme of things, you need to decide…are you able to live a peaceful, joyful life as you are building your wealth through real estate investing in land and/or houses. Your personal risk tolerance is what only you can decide. I am doing both wholesale land and house flipping and holding, looking at each deal individually. Because most importantly, it is all about profitability and the bottom line!
Most Important!
Universally, success is about having a system, a RE power team and a mentor to help you down the path of real estate investing. Those are the keys to your success. Surround yourself with experienced people who are doing real estate investing successfully – they already have figured out the “code”. You can learn from them so – “Why re-invent the wheel?”, as they say.
Knowing you have experience at your side alleviates those fears of the unknowns, increasing the chances for a faster, easier and happier ride to the peak of real estate investing success. I would like to leave you with a quote:
“Perhaps the very best question that you can memorize and repeat, over and over, is, ‘what is the most valuable use of my time right now?’” – Brian Tracy: Professional Development Author & Speaker
Tamera Aragon
Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.
Learn live and in real-time with Realty411. Be sure to
register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
https://www.realestateinvestormagazines.com/wp-content/uploads/2023/10/land-flipping-vs-house-flipping.jpg5001000dulcehttps://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2023-10-11 03:09:022023-10-11 03:09:06Land Flipping & House Flipping – Are They Different?
“It isn’t just what you know, and it isn’t just who you know. It’s actually who you know, who knows you, and what you do for a living.” Bob Burg
Networking is such an important part of your business. You must let everyone know what you are doing. Everyone can be a “bird dog” for you – And you for them. Throughout the 30 years of owning several businesses, I can honestly say this type of marketing has been the most effective and the most fun!
A great book to read if you are uncomfortable with the idea of attending and speaking at events to network yourself and your business is “How To Win Friends and Influence People” by Dale Carnegie. It’s a great book that helps you to understand why you need to network with others as well as knowing what to say when you meet with new contacts.
Of course my belief in the benefits of networking is reflected as I founded a networking group called Women’s Success Group, (a nonprofit networking group since 1998) and now starting an Investors Network in my own town.
For the sake of this quick how-to article, I am going to focus and share all of my marketing strategies exclusively to those involved in real estate investing.
Networking Your Real Estate Investing Business
I would like to start with suggestions for some places to Network your real estate investing business.
Search Real Estate Investor Clubs in Your Area
Check meetings and trainings for local Real Estate Associations
Check meetings and trainings at local Title Companies
Check on handyman, builders and contractor associations in your area
Ask everyone you talk to for referrals for networking events that have worked for them.
Of course chamber events and networking clubs that meet at breakfast and lunch are a general source to get to know the general public.
I know the biggest fear and reason many people don’t attend networking events is they don’t know how to approach or what to say to others when first meeting them. So here is an idea – for every person you come in contact with at any type of networking meeting, your conversation might go something like this:
—–> “Hi there, my name’s __________. What’s your name?” —–> “[Say their name] – What is it that you do?” —–> “How long have you been doing this?” (Don’t be surprised most investors are part timers)
If they ask what you do for a living or about yourself, be prepared!
1) Hand them your card. 2) Summarize your business in 30 seconds or less.
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Real Estate Business 30 Second Commercial
This is where spending time writing down how you want to market you and your business is important. You want to be concise and clear in describing what you do and what types of referrals would be most helpful. Try to incorporate something that differentiates you from the rest. Here is an example of a 30 Second Commercial:
“Hi my name is _________________. I consider myself the real estate investor with a heart. My passion is to work with home owners in jeopardy of losing their homes to foreclosure. If the home owner wants to keep living in their property I give them direction on how to do that or if they just want out – maybe they lost their job and can’t afford to keep it any longer, then I offer to buy their property. My goal is to create a win-win-win. Win for the home owner/seller, win for me the buyer/ investor and win for the bank when I take the house off their hands. If you know anyone that can use my help I pay a $1000 referral fee to you when I buy their property.”
Here is my personal 30 second commercial to everyone:
“I enjoy buying and selling real estate having closed on over 500 properties in the past 5 years. Some people call me the Flipping Queen because as you know, flipping is another term for contracting to buy and then selling real estate quickly for a profit. Or as I say Flipping it. I look to invest in residential real estate at a discount through Pre-Foreclosures, Short Sales, REO’s, Bankruptcies, Probate, as these are the usual reasons a seller is motivated to sell a property at a discount. After I am in contract to buy, I will often “flip” or turn the contract or property to an end buyer at a discount too. Are you interested in buying and/or selling discounted residential real estate?”
Real Estate Investing Networking Questions
Now What? Listen – Listen -Listen to their response or their own commercial. The important thing is that you are interested in what they do for a living. Don’t talk about yourself or again until asked. Ask them questions about their occupation and how you can be of support to them in their line of work. If this person is a potential power team member for you, ask if you could contact them in the future. (You would be able to follow your list of questions for power team members and take notes when you called them back)
However, if this person is an investor, you might want to ask some of these questions:
“Do you buy, fix and sell or do you buy and hold?”
“How many properties do you own and/or have you sold?”
“What part of town do you invest in?”
“Really, why that area?”
“What do properties cost in that area?”
“Do you pay cash for them or what banks do you use that are investor friendly?”
“What title company do you enjoy using the most?”
“Do you know any of the other people here?”
“Who are the big investors in this area?”
“If you ever come across some good deals and you don’t want them let me know.”
“By the way, do you have any property you want to sell?”
“We sometimes have properties for sale as well, if you’re looking to increase your inventory.”
“Well, Mr. /Ms. Investor based on what you told me and where you prefer to buy; if anything comes along I’ll make sure to call you first.”
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What To Do “After” a Networking Event
Make sure to collect everyone’s card, email address, fax, cell, and correct spelling of first and last name. Write a note or 2 on the back of their business card helping you remember the next steps you will want to take with this contact in the future. Just a “nice meeting you” card in the mail or email is often a memorable gesture encouraging future communication regarding each other’s business needs.
Networking should be a part of everyone’s marketing plan. Attend, join, participate – whatever you want to call it – your local REIA or REI clubs and real estate networking events. The important thing is to get in front of people!
Tamera Aragon
Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.
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https://www.realestateinvestormagazines.com/wp-content/uploads/2023/05/digital-networking.jpg4001000dulcehttps://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2023-05-18 03:39:242023-05-18 03:39:28Attending REI Clubs And Other Networking Events
