In the real estate world, foreclosures can be a gold mine or a money pit. One way to go about finding one’s that will make you money is to find a pre-foreclosure in your market. Sometimes this is easier said than done. The first place to look for a pre-foreclosure is online. Start doing your research on websites like Zillow.com. Zillow makes it simple to determine which homes are in pre-foreclosure (according to public records) and can help you locate them. Another great way to find them is to use your connections. Talk to your friends in real estate and Read more…

When it comes to watching the real estate market, one of the most effective tools you can use is the Internet.  Here are three places to go online for useful real estate information… 1. The Wall Street Journal’s Market Watch real estate section will help you stay aware of national business and economic trends that influence interest rates and the perceptions of buyers and sellers nationally.  Don’t forget local online business news reporting to keep you in touch with your local market, ranging from the San Francisco Chronicle to the Miami Herald. 2. Trulia.com is a real estate site with Read more…

The economic media is awash in pundits with opinions on every aspect of national trends in the economy and real estate.  But do those opinions and trends apply to the local market?  What’s the best way to stay in touch with what is happening with real estate in your local market? Here are some resources to help you stay connected to what’s happening in your local market, so that you can make smart, sophisticated real estate investing decisions. 1.       Check out the MLS and Chamber of Commerce.  Both these resources will provide excellent data about what’s happening in the local Read more…

You know your budget for your next investment project, and you know where to find opportunities in the area that holds your interest.  Isn’t it enough just to look at the local listings and do the normal due diligence? It’s no secret that, after the last few turbulent economic years, both the real estate market and other economic markets are changing.  Each market affects the others, and can provide leading indicators of what you can expect in the near and long term.  Trends in stock prices influence the attractiveness of real estate investing, while interest rate movement affects the willingness Read more…

Presenting information about a real estate project is just a small part of actually learning how to invest in real estate, but it can be a bit unnerving if you don’t have the right skills to do so. Here are three presentation skills that will help you whether you’re in the board room with investors, or at the kitchen table with sellers. 1. Be Confident. Nothing sells better than confidence. You know how to invest in real estate, now show everyone else that you know what you’re talking about. You can build your confidence by simply building your knowledge about Read more…

The more you learn to invest in real estate, the more you’ll realize that a great portion of your success depends upon effective communication.  Often, real estate investors approach potential sellers who are in distressed real estate situations with a letter. Here are two key tips to writing an effective one… 1. Let Them Know What’s in it for Them. Always speak in language that is focused on them: their needs, their problems, and the solutions you offer.  Don’t spend a lot of time talking about yourself just yet, except to build credibility and prove to them you can help.  Read more…

Dealing with sellers and their objections is a daily occurrence for real estate investors. While some sellers can pose quite a challenge, most objections can be dealt with by following a few simple steps. 1. Be Honest. When trying to figure out how to buy rental property from sellers that have a lot of objections, the best thing to do is to answer their questions as thoroughly as possible and to just be honest. Most of the time, people can sense whether or not you’re being truthful. In cases like this, honesty is always the best policy. 2. Listen. It’s Read more…

Seasoned real estate investors know that in order to buy property below market value you must be good at building a rapport with sellers fast.  What are some tips and tricks? 1. Be Professional. Sellers want to know that you are a professional, and that you’re going to handle your business in that manner. The best way to start off a great relationship is by treating the seller with respect, no matter what kind of distress they’re in. 2. Be Knowledgeable.  Homeowners don’t care whether or not you know how to buy property below market value, but they do care Read more…

In real estate, there are lots of terms to learn and recognize before you start to do business with buyers, sellers, and banks. Pro forma is one of the terms that you should keep handy in your real estate vocabulary. Pro forma is the financial model used to make a projection in regards to the profitability of a piece of real estate. These projections can be based on several different factors, including mortgage rates, acquisition costs, mortgage principal, and even monthly mortgage payments. Using the pro-forma model is very helpful for seasoned investors, as well as new investors hoping to Read more…

Real estate is a very lucrative way to build wealth for future generations. Wealthy people have long known this secret, and spend valuable time training the younger generations on how to invest in real estate. There are three reasons why real estate is a proven way to ensure that your family is financially secure for generations to come. 1. Tangible Assets. Owning and knowing how to invest in real estate means that you have tangible assets that will always hold value (aka storehouse for wealth). Even if the actual value of the property decreases (something that usually corrects itself over Read more…