Great property in Cincinnati for this low price of k. The are rebuilding all around this home and building new townhomes and condos.The home needs alot of work, but would make a great rental.Mkae offer!!!!!
Video Rating: 0 / 5
How To Make Money With Investment Property
Owning investment property can be a profitable endeavor, even for the neophytes in the field of real estate. The crux of the business lies in finding affordable investment property that is likely to be lucrative. Although there are scads of books, guides and other online sources of information, loads of advice at the outset can often leave a newbie investor perplexed as to what’s the right road to follow. It’s best to know the basics first, and then move on to the avant-garde tips and tricks of the profession.
While searching for investment property keep several options open, including the Internet, paper ads, and even other realtors. However, by purchasing investment property directly from the owner, you can save some hard earned money – since there is no intermediary realtor, no commissions need be mete out. Therefore, it’s better to seek houses listed For Sale By Owner (FSBO). But if getting hold of an FSBO property seems like a cumbersome chore, you may look for hard-to-sell investment property that is listed with realtors. Such properties often need refurbishing and, therefore, can be bagged at a lower commission.
It is recommended that you visit in person the investment property that you wish to purchase. Pictures render a glossy, almost perfect look to everything – the obscured glitches are often revealed on a closer, personal inspection. In addition, you may also survey the neighborhood to get a fair knowledge about the living conditions and the kind of people that inhabit the locality. This information would prove invaluable in a typical remodel and sell scenario – you must know what type of clientele is likely to buy the house, prior to remodeling it.
A thorough inspection can make the difference between a lucrative deal and a money sapping investment. It is best to take a property inspector along with you, when you go for an investment property inspection. The inspector would analyze the house and ensure that it boasts of a solid foundation, is free from any leaks in the water system or any glitches in the heating system, and the floor and walls are in good condition. Whatever the anomalies, you must assess the repair costs and further discern if the deal is profitable or not.
Some repairs, such as mending or replacing heating ducts or air conditioning conduits, can be costly and typically require the services of an expert. On the other hand, some trivial flaws, such as a dripping shower head or bathroom faucet, might well be rectified by you, in order to keep the repair costs to a minimum.
Bearing in mind the advice given here, you could very well excel in real estate, and bag a few money-spinning investment property deals.
Copyright © 2006 Joel Teo. All rights reserved.
Joel Teo writes on Ahwatukee Real Estate Investment. Learn more about Property Investment by signing up for his free Real Estate Investing Ezine
FOR SALE BY OWNER! (Realtors welcome, paid 3% on HUD-1). This is a video of a home I have for sale, with host Lowla. This is a 2 Bedroom, 1 Bath home. This is NOT a Fixxer-Upper, all the time/effort and expense to remodel has already been done! To the best of my knowledge, this home should pass all FHA and VA inspections, as it previously passed the Section 8 inspections. I also understand this home to qualify for the Tax Credit if it closes by April, 2010!!! This is the nicest home you will find in Springfield for under k! This has been a great investment property over the years for me, yielding a high return. Almost no maintenance over the 6 years I have owned it! I may consider partial financing.
Video Rating: 5 / 5
How to Negotiate Without Losing Your FSBO Cool
No buyer wants an uncomfortable confrontation with the owner of a house for sale. Therefore, when a buyer asks to negotiate on aspects of the fsbo sale, it is important for the house owner to project a calm, relaxed mood and respond to negotiation requests politely. This reduces the risk of blowing a potential sale.
The goal of a good salesperson is to handle the sale in such a way both seller and buyer walk away from the sale feeling they got something they wanted. The sales floor, then, is no place to let egos get the upper hand. Be willing to compromise on minor issues.
Elements of a Successful Negotiation
By asking a fair price for your home you greatly reduce the risk of negotiations turning nasty. Other elements that make for successful negotiations are as follows:
1.) Plan ahead. Decide before hand what aspects of the sale are negotiable, and which are not. This will reduce frustration during negotiations.
2.) When setting your house for sale by owner asking price, set it higher than your rock bottom price. Expect that buyers will ask for you to negotiate on price.
3.) Foster a calm relaxed tone and make good eye contact. Listen carefully to the buyer, and avoid the temptation to interrupt them.
4.) Keep in mind how much of the equity is saved by not going through a real estate agent when asked to reduce the price. Reducing the asking price by 2 or 3% still puts you way ahead of the game.
5.) Avoid the word “NO” when negotiating. Be willing to compromise on minor issues. Even when a point is not negotiable, take the time to explain “why.” This sends a better message to the buyer.
6.) Get everything in writing. Don’t rely on trust. Document what terms and conditions are discussed and agreed upon, and what still needs to be worked out.
Prepare a Negotiation Worksheet
By preparing a negotiation worksheet, you help the house for sale by owner negotiations go more smoothly, and the atmosphere to remain calm. You also reduce the risk of frustrations resulting from misunderstandings that could arise later.
The worksheet is not meant to be a legal, binding document. It is only to serve as a visual aid to keep track of what aspects of the sale process are agreed upon by both parties, and what aspects still need to be worked out. The worksheet will also serve as the foundation for the purchase and sales contract that should be drawn up with the help of an attorney.
The Negotiation Worksheet should include the following:
1.) The seller’s name
2.) The buyer’s name, address, and phone number
3.) A description of the property fsbo, including address
4.) The purchase price
5.) The amount of the deposit
6.) Who holds the deposit
7.) Financing information
8.) Pre-Qualification letter due date
9.) Date of final loan approval
10.) Whether or not the seller is financing
11.) Who pays for what (inspections, appraisals, repairs, attorney fees, etc.)
12.) What is included in the sale (personal property such as appliances, curtains, etc.)
13.) Other conditions of the sale (buyers must first sell their current home, maximum mortgage note %, property inspections, etc.)
14.) Anticipated closing date
15.) Rental fees if seller continues to occupy the home after the closing
16.) Notation that the worksheet is not a binding document
17.) Any other aspects agreed upon, relevant to the sale of the property
For a MS Word formatted Negotiation Worksheet template, email the editor of Virtual Real Estate Listings at editor@vrel.org. Type “Negotiation Worksheet” on the subject line of the e-mail; include your name and email address when making your request.
By both parties being willing to negotiate and documenting what has been agreed upon, fsbo dealings will go more smoothly, with irritations kept to a minimum. And the house for sale by owner process will be a win/win situation for both the buyer and the seller.
© 2006 Lori S. Anton, for Virtual Real Estate Listings
Long time published writer Lori S. Anton of Writers Write Now writes for a number of online websites, including VIRTUAL REAL ESTATE LISTINGS, a new website that assists home owners in selling their own property. Providing 7-day a week, 24-hours a day FSBO online advertising, informative articles, and helpful selling tips. Visit the article section of Virtual Real Estate Listings.
Selling Your Home Strategies Investor and Wealth Building Video Series Let Us Show You How In This Video You Will Learn •A system used by a veteran Real Estate Broker •Methods for improving your home’s sale •The five factors in selling your home •Issues which may arise from a home inspection •Common red flags during a home sales •What buyers may be concerned about •Home Inspection preparedness •Items that could affect the house’s value •Environmental concerns to be aware of •Tips and Strategies That Could Save Thousands of Dollars in the Sale of Your Home! Your Host: Learn invaluable listing techniques used to help you sell you home. Charles Kraus a veteran Real Estate Agent and Broker shares his knowledge and experience with you in this video. Charles will discuss basic selling strategies used by individual looking to take a proactive look at selling their home. Mr. Kraus a has over 14 years of extensive experience and credentials in the industry including manager as well as several achievement awards for sales. This is an ideal how to video for the FSBO, for sale by owner, the investor or Realtor looking for industry proven property mehtods to help with sale of your house. For the complete video visit www.showmehowvideo.com
Buying a Fsbo: What to Expect, What to Watch for
A FSBO, or “for sale by owner” home can be a great deal, but as with any other real estate transaction, there are specific issues that you have to watch for. While many FSBO properties can be bought at a very fair price, make sure that you’re aware of the issues involved. Dealing with an owner who does not have a professional representing them can be difficult.
Many people feel that FSBO can save them money by taking the 6-7% agent fee out of the equation. This may well save them money, if the home sells reasonably quickly. However, it may also mean that they don’t have the resources and the knowledge at hand to efficiently market and sell their home. This can mean anything from overpricing to underpricing. It may also mean that the seller isn’t aware of building defects or property issues. Or, worse, they’re attempting to sell FSBO to avoid disclosing problems that could inhibit a sale or lower the price.
Sellers may also be unaware of some of the details that need to be arranged prior to the property transaction. You or your agent may have to do some of these things in order to facilitate the purchase, such as arrange for a neutral party for escrow management. Your agent may need to do some extra hunting for accurate house information, such as property lines, if the sellers have not thought to do this.
Another thing is that your agent may have to do some of the sellers’ work for them by getting together any paperwork that the seller misses. This can work in your favor. Solving the seller’s problems may smoothe the way for a faster transaction. If a seller doesn’t have to struggle with legal paperwork as much, they are less likely to consider another offer. If your seller has spent more money than they intended to and you offer an easy way out, they may be inclined to take it.
One thing to be aware of is that many sellers are emotionally attached to the house they are trying to sell, which can make them difficult to negotiate with. Negotiations can be strained if the seller chooses to read negotiating as an insult to the worth of their home. Tread carefully and get your agent to do a lot of your negotiating if at all possible, so you can maintain your distance. However, if you can use friendly relations with a seller to advance your cause, do so. Many sellers will make decisions based on emotions and if they are positively inclined towards you, so much the better.
Get permission from the seller for a C.L.U.E. (“Comprehensive Loss Underwriting Exchange”) report. The report will show you the consumer claim information concerning the home. If a seller hasn’t had their home checked out before, this can reveal some startling information for all concerned, so it’s valuable information. The C.L.U.E. keeps up to 5 years of property claims history.
Many states have laws about disclosure statements. The seller is legally obliged to let you know certain things about the house in many areas. Be aware of these laws, as the knowledge can give you a distinct advantage over a seller who doesn’t.
Get a home inspection done. It’s wise for all properties, but especially with a FSBO where the person representing the property hasn’t the skills or the knowledge to check whether their home has a galloping case of termites or black mold.
Buying a FSBO property can be rewarding, but it requires that you follow a narrower path than you would if you were seriously considering an agent-represented home. If you play your cards right, you could luck into a great home for less.
Marci McFarland is a Sarasota real estate agent with a broad professional approach. Her unique insight into the various lifestyle requirements of her clients, combined with an intimate knowledge of her service area including Longboat Key real estate, make her an ideal choice for families and investors alike.
www.jamessmithseries.com James Smith shows you the outline that a real estate investor should use to conduct proper real estate due diligence. Due diligence is the process of evaluating whether or not a property will be a good deal.
