Beware of ads that tell you, when you buy our informational product you can make thousands of dollars in the Real Estate business. Because, when you get there informational product you don’t get all the information you need to achieve this goal. You will have to buy more and more of their products to get the secrets of their ads claiming your success.

I bought into these very ads myself, and paid way too much money for this same information, which is mainly common knowledge. I’m going to help you right now with these so called real estate money making secrets, and here they are:

Buying a home with no money down: Negotiating the down payment with owner financed and for sale by owner Real Estate.

Common version of getting cash back when buying a home: After 2 years of mortgage payments you refinance the home.

Making money as a Real Estate investor: Flipping Real Estate= buy at low cost and renovate for resale (This also includes the common version of getting cash back when buying a home).

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People that are new to flipping real estate for profit make a lot of costly mistakes and sometimes deals that could’ve been very profitable turnout being very expensive. One of the biggest mistakes that people make is taking too much time to get the job done. People that are needed to flipping real estate frequently go over schedule and over budget.

Time is money and the more time you take to get your project done the more money it’s going to cost you. Don’t be afraid to hire some help when it comes to getting the repairs done. Even if you are capable of doing all of the repairs yourself it will be well worth your while to hire some help. A lot of people think that they will save money by doing the job themselves. It’s true that if you do the work yourself you just have to pay for materials and if you hire a contractor you are paying for materials and labor. The problem is that it might take a small crew three days to do a job that would take you three weeks to complete by yourself. (more…)

The problem is replacing the home will eat up all of the money that they have received from the sale of their home! Well it does not have to happen, there is a way to keep most of your profits and live in a home of your choice without having to pay cash.

First let’s look at the options

If you purchased your home 30 years ago you most likely paid a lot less then your neighbors in the area. So lets say you purchased your home for $100,000 which 20 years ago would have been a higher end home. Now we went through the years of tremendous appreciation and maybe you had the opportunity to sell your home in 2005 for $750,000 but, you decided that you would hold out for more. Then it hit; the devaluation period that started in late 2006 and in some areas of the country is still going on today. So now you are thinking you better sell before you lose any more money and not have any left to purchase a replacement home.

Determining today’s value

You paid $100,000 for your home 20 years ago; now take that 30k and calculate 4% per year compounded over 30 years this would be about what your home should be worth today. You have calculated the value you should be looking at a home worth around $220,000 in today’s real numbers based on 4% appreciation, or look at it this way 100% return on your home purchase. Remember forget about what you could have gotten back in the boom most if not all of the value at that time was false or inflated. Now you have a value that you can realistically rely on receiving today if you sell! So now what do you do to replace your home. Well what are the choices and what is the net that you will have to work with after all is said and done.

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With current 5 year CD rates at 2.94%, and dropping, one of the things we’ve been doing is replacing a lot of our private lenders that are at 10, 12 and 15% interest rates with MUCH lower rates. Just think about how much money you, as the real estate investor and holder of the property, could save if you replaced all your 12% money with let’s just say 7%. That’s a 5% savings each year and on just a $100k home that is a $5,000 savings. So, how exactly do you go about it?

Begin Setting the Stage
When you send your private lenders their monthly or quarterly statements put in a little blurb about their current rate and compare it to other rates. (you can get current rates on various websites). This keeps your lenders updated and shows them what a great deal they are getting from you. Reinforcing the great decision they made to invest with you. (more…)

When the real estate market is in a downward trend, many real estate investors shy away from buying a home. They do not want to enter into a large financial commitment when the market is changing, or they want to buy but not before the market hits absolute bottom. However, some of the most successful real estate investors in the world made their money by buying when everyone else said to sell. While the overall market is declining, there are still countless opportunities for great returns.

A slow-moving real estate market may be the perfect time to buy. Prices are down, there is an abundance of inventory and sellers are anxious so they are willing to deal. A high number of foreclosures means real estate can sometimes be purchased for a price that is far less than it is worth. These factors can add up to the perfect buyer’s market. (more…)

Networking should be a primary form of marketing for all real estate entrepreneurs who are seeking investors. One reason is because networking costs very little but that connection brings with it a lot of trust, so it’s easier to ask for, and get, investors. Another reason is because the SEC has strict rules about how you can get private money and advertising for it is illegal. And the third reason that networking should be on your to-do list is because it’s something you’re always doing; you’re always meeting people, shaking hands, and connecting.

Sometimes, new real estate entrepreneurs ask me about where they should be meeting potential investors. My first answer is: “Everywhere!” It doesn’t matter where you are, if there is someone else in the room, you can network with them. They might invest with you or, just as often, they’ll know someone who might be interested. (more…)

If you are a real estate investor, attracting private money lenders and investors is a crucial element of your business success. Having a real estate investor website specifically for attracting and convincing potential lenders and investors that you are the best solution for their investment money is therefore a must.

But you must have the right website in order to accomplish this objective – a web site that is simple, professionally designed and laid out, and most importantly, one that leaves no doubt in potential lenders minds that you are the best person they can invest their money with. Identifying the right source of such a web site is therefore crucial. First, why do you need private money? (more…)

Any time you are flipping houses it is less risky if you can complete the project more quickly. This is especially true now (2009) when prices may fall even further as you wait to sell the home. But at any time there are good reasons to move fast. One obvious one is that the faster you complete a project the sooner you can start the next.

Perhaps the biggest reason to move fast is that real estate always has holding costs. In fact, you might be paying out as much as $1,000 per month for interest, taxes, insurance and utilities while you are working on that home. This means a sale three months earlier for the same price nets you $3,000 more profit – the amount you didn’t have to spend to wait. (more…)

It seems like everyone is talking about buying real estate using private loans from private investors. I get three or four emails a week with some expensive seminar pitching how to find private money to fund your real estate deals. I don’t know about you, but I have problems going up to someone and saying, “Can I borrow money from you? I want to go buy some real estate.” I’d like to suggest an alternative way to find investors who want to work with you, one where private money starts to seek you out, rather than your having to seek it out.

A couple of days ago an investor friend called me up and asked, “Robert, I bought an investment property that I need a short 90-120 day loan to get my cash out so I can go buy another property while I sell this one. Would you be willing to make me a loan until the property sells and I can pay you back? I’d be willing to pay you 10% interest and one percentage point. Your LTV would be about 67%.” I asked him if he would be willing to pay an additional percentage point for every 30 days past his initial 90 days. This way I knew he would stay motivated to sell the property and I would quickly get my money back for my own deals. He readily agreed. (more…)