Real Estate Investing Facts

How To Get Sellers To Beat A Path To Your Door
And Practically GIVE You Their House For Pennies On The Dollar!

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Hans Anderson

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An Appraisal

An appraisal allows the lending institution to determine if the property being purchased is suitable as security for a mortgage. For conventional mortgages, a lender will in most cases require that a professional third party assess the property to ascertain its current market value.

In the case of a “high-ratio” mortgage (with a down payment of less than 20 per cent), the mortgage insurer will go through its own internal appraisal process. In particular, lenders and insurers are concerned that the property (in terms of its age, condition, and remaining economic life) constitutes a good match with the borrower and their ability to repay the mortgage. An appraisal does not usually include a detailed property inspection.

A Home Inspection

A home inspection is not used to determine property value, but will provide an assessment of the physical condition of a property. A well-trained home inspector will perform a comprehensive visual inspection to determine the condition of the building and all of its major systems (for example the roof, structural, heating, plumbing and electrical systems).

While an appraisal is intended to provide the lender with sufficient information to decide on mortgage financing, a home inspection will hopefully reveal to a potential homebuyer whether the building and its systems are in sound working order. If there are outstanding issues, a good inspector will provide the potential purchaser with a schedule outlining the estimated costs and when these repairs will need to be completed.

Hans Anderson

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To make money as a real estate investor, you really only need 2
things:

1. A motivated seller

2. Know how to do no-money-down deals

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Let’s deal with the first one. A motivated seller can be found in many ways. But some ways can be more effective than others.
Here are some places where you can find them:

1. For sale by owners (FSBO)

These are sellers who choose to sell their properties without the help of a realtor. Most of the time, these people want to save the realtor commissions.

These sellers find themselves overwhelmed by phone calls from
realtors who haggle them to list their properties with them.

So by approaching them as an investor (using some of my proven phone scripts) you can quickly find out whether they are motivated sellers and then proceed accordingly.

Where can you find them? Newspaper classifieds, craigslist, online classifieds, kijiji.com, “House For Sale” signs.

Disadvantages – finding a motivated seller in this category can be done, but it’s usually a hit and miss situation. Out of 100 FSBO’s you can be lucky to find 1 that is motivated enough to make a decent profit with.

2. Expired listings

These are properties that were listed on the MLS, but have not sold. And their listing contract with the realtor has expired which allows the owner to sell property on their own.

Well actually, under most listing agreements, the realtor who
had the listing is still entitled to his/her commissions up to 3
months or more after the listing has expired.

If you are looking for a motivated seller, it is actually quite
difficult to find one here because you have to consider why the property didn’t sell for so long in the first place.

And also, you have to fight with a bunch of realtors who are again haggling the seller to re-list their property.

3. Foreclosures

Foreclosures are found listed on the MLS.

Sometimes you can get a good deal from these. But if you have actually gone through the process of trying to buy one, it can be a complete nightmare.

As I explained on my site, foreclosures are owned by the bank, and must undergo a tedious legal procedure.

The lawyers cost money, not to mention the realtor gets paid commission which both cut into your profits.

Also, after you have done your inspections, appraisals, financing, made your offer and have your offer accepted… only after all that has been completed will you be able to have a CHANCE to buy the property.

Notice that I said only a CHANCE. That’s right, you
still are not guaranteed you will get the property – for 2 reasons:

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Reason #1 – other bidders can outbid you at the last second during the court hearing even if you have your offer accepted.

And #2 even though your offer is accepted by the bank, the judge has to approve of the sale (so if he thinks you’re getting too good of a deal, he won’t let you buy it).

And oh yeah, if you are lucky and take the whole thing to the end (which actually takes months), you will need to pay for the foreclosure in cash.

If you don’t have access to a few hundred thousand dollars to play the foreclosure game, then you can forget about it.

I’m not saying you can’t make money with Foreclosures, some people do and make 10-20% of the market value.

But considering the amount of work and resources needed to make a deal work, in the same amount of time, you could have done 3-5 preforeclosure deals, made MORE money on every single one of them and most importantly, done it without using any money.

4. Pre-Foreclosure listings

If you have read my site, you would already have an idea what pre-foreclosures are and how they work.

As you may expect me to say, this is the best source to find
motivated sellers.

And I’m not saying this just to promote my site, this is from my personal experience, because I have done almost every real estate strategy known to man, and working with pre-foreclosures is by far the easiest, fastest, way to put the most money in your pocket.

Have I found motivated sellers from FSBO’s, Expired Listings and Foreclosures? Yes, which allows me to ask, “Why make 10-20% in profits when you can make 25-50% profits while doing only HALF the work – in a FRACTION of the time?”

If you don’t believe me, then I encourage you to go ahead and try all the other methods out there to see what it is really like.

Then you will see what I mean. But then again, why bang
your head against the wall when I have already shown you door that leads straight to a real estate goldmine?

So decide for yourself.

Here’s what I suggest, go ahead and join as a Foreclosure Insiders Club member (while it is still open to new members).

I am so confident that you get more motivated sellers than you know what to do with that I offer a money-back guarantee.

It just doesn’t get any better than that.

Chances are, now that #1 is basically handed to you on a silver platter, all you need to do is #2 and BAM! You’ll get big fat real estate profit checks just like mine – perhaps even bigger.

My members are already doing just that!

Aiden Win

Mr. Foreclosure

Canada’s Largest Database Goldmine Of Pre-Foreclosure Real Estate For Up To 50% Below Market!

P.S. In Part 2 of this series, I will uncover the ingredient #2 that you can start using instantly to bring in the cash without you needing any to start with!

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All Life Wishes to Reward Its Benefactors

by Jim Rohn –

Parents, leaders, employers, teachers and volunteers: Have you discovered one of the great positive mysteries of life? Here it is: All life seems to wish to reward its benefactors.

For example, instead of saying “What if somebody doesn’t respond” you say, “What if they do respond?” Instead of saying “What if someone says no?” You say, “What if they say yes?” Instead of “What if they start and quit?” say, “What if they start and stay?” or “What if it doesn’t work out?” You say, “What if it does work out?” and the list goes on and on.

If you become the benefactor, you will receive these incredible rewards. If you are the benefactor to the garden, the flowers seem to bloom and say, “Look at me. Look at how bright and beautiful I am because you took care of me. I wish to reward you by being beautiful, lovely and spectacular.”

If you become the benefactor of your own children they want to reward you with their progress. I taught my daughters how to swim. As they were about to dive they’d say, “Daddy, daddy, watch, watch, look, look, watch,” as if to say “Look at what you have created here, you’ve spent the time with me and now look at me. This is the payoff. Watch me dive.” I was their benefactor.

I have found that all life wishes to respond to the benefactor, the people who give their time, give their effort, give their patience, give their ideas and the benefit of their experience. Whatever or whomever has benefited from that, wishes to respond. The crop wishes to grow. The child wishes to show you how much progress they’ve made.

And remember that whatever you move toward tends to move toward you. Just as when you move toward education, education starts to seek you out. Or when you move toward progress and progress seems to want to embrace you. You will find that, just as predictably, as you move toward helping those in your care they will wish to repay you with their own success and accomplishments.

To Your Success,

Jim Rohn

These articles are by Jim Rohn, America’s Foremost Business Philosopher. He has been internationally hailed over the years as one of the most influential thinkers of our time and has helped motivate an entire generation of personal development trainers as well as hundreds of executives from America’s top corporations. Mr. Rohn and our other recommended “Great Thinkers” books, videos and audiotapes are available under “Sales Tools” at Recommended Reading. To subscribe to the Free Jim Rohn Weekly E-zine, go to www.jimrohn.com or send a blank email to subscribe@jimrohn.com.

Copyright 2009 Jim Rohn International. All rights reserved worldwide.

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There are two ways to make serious money by focusing on “price” in your real estate investing.

(Find Great Deals)

- Front-End Price – when you buy a property for 50 cents on the dollar, you’ve already won. You’ve made your money on the “front end” of the deal by buying very, very cheaply.

- Back-End Value – if you bought a piece of property 15 years ago for $100,000 and today it’s worth $200,000 then you’ve still made great income on the basis of price/value – even if $100,000 was the market value of the property at the time you bought it.

Basically it comes down to two things: Buy property cheap right now and/or allow your properties to massively appreciate.
How can these be done?

“Buying On The Cheap”

Let’s cut through the fluff. There are a LOT of sources for buying property at a low price. Here are just a few of them:

- Pre-Foreclosures
- For Sale By Owners
- Estate Sales
- Fixer-Uppers
- I could keep the list going, but the point is this:

There is no lack of opportunity for buying property at a great price.

The fact is this: If you want to buy property cheaply, there is plenty of it. And very soon, I’m going to share with you everything you’ll need to find those properties and buy them.

Just imagine: What is it going to be like for you when you are able to buy 5 more properties every single year – each of which increase your wealth by $40,000. Won’t that be helpful to you? Of course it will – and we’ll get into that here in The Real Estate Strategist very soon.

“Appreciation: Skyrocketing Values”

Okay, I’m going to be as honest as I know how. I’ve always been far more focused on generating real, spendable cash in the immediate near term. And because of that, I’m not going to tell you a whole lot about buying for the sake of appreciation…

But for me – I’ll say it like this: With few exceptions, I’d rather make a $25,000 cash profit right now rather than a $100,000 cash profit in 5 years from now.

Why? It’s easier to make $25,000 than it is to make $100,000 my time is to valuable. And it’s truly easy to turn $25,000 into $100,000 in a risk free way.

Should you buy property for long term appreciation? I’m not going to be so arrogant to tell you not to do this, because you can, and probably will, make money from that strategy. But it’s not for me…

…Instead, I’m going to teach you to make money TODAY.

Aiden Win

Mr. Foreclosure

Make Money In Foreclosures Enroll Now

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