If you are just beginning as a real estate investor, there is no
better way to get started than by flipping real estate and
profiting quickly! Everyone gets into real estate investing for
one reason. To make money! If you’d like to make more money
investing in real estate, you need to know a few essentials.

I’ll begin by explaining what the term “flipping” means. The
simple definition for flipping is the act of buying property and
reselling quickly, hopefully for a great profit. Usually, people
think of flipping houses, or the buying and selling of a home fast,
as the only way to make money flipping real estate. However, some
investors specialize in other types of real estate such as land or
strip centers.

Some confusion arises over the process of making money flipping
property. People who specialize in finding bargain real estate,
obtain a purchase contract, and then sell the contract before
taking title to the property are known as “Bird Dogs.” These
beginning real estate investors get started with no money down by:

Finding a seller under stress with a bargain property. For
example, you may join a site like the Foreclosure Insiders Club to
access a list of properties in your area that are in danger of
going into foreclosure.

Securing a sales contract

Selling their contract for roughly $500 to $5,000 to a seasoned
real estate investor

You may be worried as to whether real estate flipping is legal?
Flipping real estate isn’t illegal. However, many unscrupulous
investors committed mortgage fraud to make fast money. Some of
these investors, working with mortgage brokers and appraisers,
resold houses to unqualified buyers inflating the property value
and home buyer’s qualifications. Often these home purchases had no
money or little money down. When these new homeowners defaulted on the mortgage payment, the mortgage lenders lost money because the house wasn’t worth the inflated purchase price.

To avoid legal problems in real estate flipping, don’t commit
mortgage fraud.

To make money real estate flipping:

1. Prepare your financing so you can close on a deal quickly.

2. Learn your market so you know what makes a good deal.

3. Find a bargain property owned by a seller under stress to sell.
Again, joining the Foreclosure Insiders Club is a great way to do
this and stay a step ahead of other investors and realtors in your
area who don’t access to this information!

4. Secure a purchase contract in your favor.

5. During escrow, plan your selling actions.

6. Close on the property on time.

7. Immediately set your selling plan into action. If the property
needs fixing, be prepared to get this done right away.

8. Market your property to your target market. Don’t just list the
property and hope for the best.

9. Find a qualified buyer. Have a loan officer check to make sure
your buyer meets all the mortgage requirements.

10. Stay legal. Don’t use an inflated appraisal. Don’t gift your
buyer the down payment. Don’t help your buyer create false W2s,
write phony credit letters, or prepare any false documents. You can
pay many of your buyer’s closing costs to make the purchase easier.

You can make money flipping real estate. It’s all a matter of
buying low, selling for full market value, avoiding mortgage fraud,
and enjoying your profits!

To Your Success!

Aiden Win

Mr. Foreclosure

Pre-foreclosure listings

ForeclosuresTaxSales.com

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Click on the link to get more information on United States Foreclosure Investor Webinars.

Hans Anderson

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Three Questions for Lifelong Happiness

by Brian Tracy – July 2009

You already have everything you need to create a wonderful life for yourself. You know everything you need to know to be your own best friend, a gentle guide, a teacher and a helper to yourself so you can be truly happy and fulfilled.

You can learn how to become your own psychotherapist for life, and how to resolve the difficulties that stand between you and personal joy.

Be Honest With Yourself

The starting point of becoming your own best friend is for you to be perfectly honest with yourself and your relationships. Refuse to practice self-delusion or hope for the best. For example, when something is making you unhappy, for any reason, the situation will tend to get worse rather than better. So avoid the temptation to engage in denial, to pretend that nothing is wrong, to wish and hope and pray that, whatever it is, it will go away and you won’t have to do anything. The fact is that it probably will get worse before it gets better and that ultimately you will need to face the situation and do something about it.

Deal With Your Problem at a Higher Level

There’s an old saying that you can’t solve a problem on the level that you meet it. This means that wrestling with a persistent problem is often fruitless and frustrating. For example, if two people who are in a relationship together are constantly fighting and negotiating and looking for some way to resolve their difficulties, they may be attempting to solve the problem on the wrong level. Dealing with the problem on a higher level, those people would ask the question, “In terms of being happy, is this the right relationship for us in the first place?”

Find the Right Job For You

Many people work very hard and experience considerable frustration trying to do a particular job. However, in terms of their own happiness, the right answer might be to do something else, or to do what they’re doing in a different place, or to do it with different people-or all three. Here are a few questions for you to answer in this arena of happiness. Write them down at the top of a sheet of paper, and then write as many answers to each one as you possibly can.

What Would It Take?

The first question is: “What would it take for me to be perfectly happy?” Write down every single thing that you can imagine would be in your life if you were perfectly happy at this very moment. Write down things such as health, happiness, prosperity, loving relationships, inner peace, travel, car, clothes, homes, money, and so on. Let your mind run freely. Imagine that you have no limitations at all.

What is Holding You Back?

The second question is a little tougher. Write down at the top of a page this question: “In what situations in my life, and with whom, am I not perfectly happy?” Force yourself to think about every part of your day, from morning to night, and write down every element that makes you unhappy or dissatisfied in any way. Remember, proper diagnosis is half the cure. Identifying the unsatisfactory situations is the first step to resolving them.

Determine Your Happiest Moment

The third question will give you some important guidelines. Write down at the top of a sheet of paper these words: “In looking over my life, where and when have I been the happiest? Where was I, with whom was I, and what was I doing?”

Decide What to Do

Once you have the answers to those questions, think about what you can do, starting immediately, to begin creating the kind of life that you dream of. It may take you a week, a month, or a year, but that doesn’t matter. Every single thing you do that moves you closer to your ideal vision will be rewarding in itself. You’ll become a more positive and optimistic person. You’ll feel more confident and more in charge of your life, and you’ll achieve true peace of mind.

Action Exercises

Here are three steps you can take immediately to put these ideas into action.

First, examine your business and personal relationships carefully. Is there any situation you wouldn’t get into again if you had it to do over?

Second, make a list of every single thing in your life that would make you happy and then think about what you could do to begin achieving them.

Third, allow yourself to dream and fantasize about your ideal life, what it would look like and feel like, and then do something every day to make it a reality.

Brian Tracy is Chairman and CEO of Brian Tracy International, a company specializing in the training and development of individuals and organizations. His goal is to help you achieve your personal and business goals faster and easier than you ever imagined.

http://www.briantracy.com/

Listen To Brian Tracey Interview at The Wealth Creator Source

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“Any idea that is held in the mind that is either feared or revered will, begin at once to clothe itself in the most convenient and appropriate physical forms available.”

Andrew Carnegie

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How to do Your Own Foreclosure Appraisal to Determine the Market
Value of a foreclosure Property

There’s a lot of buzz about foreclosure auctions, free government
foreclosure listings and buying and selling them for profit.
However before submitting an offer on every foreclosure – you need a foreclosure appraisal. Out of 100 properties that I consider, I would narrow it down to about 10 that are worth looking at in more detail, and then submit offers on maybe 3 of them. The more offers I make, however, my chances of buying one at a substantial discount is greater.

So how do I know whether a foreclosure is a good deal and worthy of further investigation? Well, you need to determine what price you can potentially sell it for. Here’s what you can do to do your own foreclosure appraisal.

1. Comparable Market Analysis.

How much are similar properties selling for in the area? You can
find out in a couple of ways.

a. General market research

Drive around the neighborhood starting with properties within a
small radius and take note of all the properties for sale. Call the
realtor or the owners (they usually have a lawn sign with their
phone number) to find out what price they are asking for and
compare what features the property has – bedrooms, square footage, age, bathrooms, etc. Then expand the radius and do the same thing. With this, you know what price sellers are asking, which may or may not being what the property can sell for.

b. Through a Real estate agent

This way is more accurate than the method described above. See if you can find a realtor who will help you. Realtors have access to
an internal database of all properties that have sold through MLS
real estate Canada. You can request them to print off a report of
all the properties that have sold in your subject property’s area
within a certain time period (I would go back 1 year usually). You
can even search for only properties with a certain number of
bathrooms, square footage, etc that is comparable to your subject
property.

By seeing what similar properties sold for, you can now have a good idea of the price range of what you can sell your foreclosure
property for if you bought it for resale.

2. Cash Flow Analysis and Capitalization Rate (Cap Rate)

This is typically done for investment properties or properties with
rental income. The capitalization rate is the yearly rental income
divided by the price of the property.

So a property with an annual income of $50000 and a price of
$500000 means that the cap rate is 10% (50000/500000 = 10%). Each area has a certain cap rate, so if you know how much rental income a property has in one year, you can divide it by the cap rate and you will get the price.

Eg. Yearly rental income = $30000 Cap rate in the area = 9%
Property value = $30000/9% = $333333

3. Checking the Government Tax Assessment Value

Every city has a record of how much a property’s value is assessed
at for property tax purposes. This price is what the government
says that the property is worth. Compare what prices properties are selling for to the government tax assessment value. If they are
usually higher than the tax assessment value, find out by how much. Apply the same correlation to your subject property. If properties in the area are selling for about 10% more than their tax
assessment values, and if your subject property’s tax assessment
value is $500000, than the market value is probably around $550000.

Using Your Foreclosure Appraisal And Determining What To Offer

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Now that you have a good idea how much you can sell the property for with your own foreclosure appraisal, how do you know how much to offer the seller for the property? Now whether you are buying a foreclosure through foreclosure auctions and free government foreclosure listings will determine your strategy.

In a foreclosure auction, you basically have to bid an amount low
enough that will give you enough profit but high enough to beat the other bidders. I don’t like foreclosure auctions because there is
too much competition. I get pre foreclosures from government
foreclosure listings sites, these properties are not being
auctioned and usually have not been listed yet – which is perfect.

For these foreclosures, you need to do gauge how motivated the
seller is to sell. The more desperate they are to sell, than the
lower price they are willing to accept.

1. Finding Out How Long They Have Been In Default

Foreclosure listings sites sometimes has information on how long a
property has been in default. If they have been in default 90 days,
that means the mortgage lender(s) has just notified the owners that they will be foreclosed on if they don’t make payments or pay off the mortgage. The longer they are in default, the more desperate the sellers are because they do not want to lose all the equity in their property to the lenders.

2. Finding Out How Much They Bought It For and How Long Ago

Foreclosure listings sites sometimes include the original mortgage
amount, which gives you a good idea how much the seller’s bought it for and how long ago. If they bought it 20 years ago, then there is probably a ton of equity in the property from the appreciation over the years. In rare occasions, the sellers are willing to sell their property for what they bought it for, which would be a killer deal for you.

3. Finding Out How Much They Owe On The Mortgage

Foreclosure listings sites sometimes include what they still owe on
the mortgage. You can offer to pay off their mortgage, or offer a
price between what they owe on the mortgage and the market value. However, this amount is usually the minimum the sellers would accept to sell you the property.

So now you know how to do your own foreclosure appraisal through comparable market analysis, cap rate, and tax assessment value. You also know how to find foreclosures before they are in foreclosure auctions from government foreclosure listings.

To Your Success!

Aiden Win

Mr. Foreclosure
P.S. Get the best of deals available for Price, Terms, Urgency,
Information from our database goldmine of the latest pre-foreclosure listings

ForeclosuresTaxSales.com

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