Cheap, Bargain, Real Estate; Good Deals, Below Market, Low Priced properties are available if you know how to buy them. By Jody Hudson – Realtor since 1972. How to FIND and BUY: Cheap Bargain Real Estate, Good Deals, Below Market, Low Priced and Less Expensive; homes, lots, land, businesses, and condominiums. They are everywhere and easy to find. Here is how to find and buy them from anyone, anywhere. This article lays out the steps: How to find and buy a Bargain, A Good Deal, in real estate; that is; how to get it real cheap! Yes, there are ways! Nearly every call or e-mail that I get is asking me to find the buyer a bargain. We all feel that way when we are buying as well. All of us want a good deal. We all want to get cheap real estate. And we can all do it. There is a bit of a challenge however. Every single buyer that I’ve ever had in my thirty two years of selling real estate has wanted to sell the property they have for more than it is worth. Herein lays our challenge as Realtors — and of course for you as purchasers. To get those HOT deals in real estate there are at least three things you must do: 1. First of all as a buyer you must be able and willing to act faster than any other buyer. 2. Second you must be able to know a bargain when you see one. This takes experience and education in the specific market . Any assumptions made from other markets, about the subject-inteded market, will sentence you to certain failure… 3. Third you must BUY it. That is write a deposit check and write a contract that will win over the other contracts that may be presented at about the same time as yours. This group of three steps, sounds simple, but only about one buyer in each ten year period is willing to do these three things in order to get the cheap property they have asked us to find for them! I have several people, and so do most Realtors, that are the most; ready, willing and able and we call them first! If you want to be one of the ones called you must be MORE ready, willing and able! Recently, August 2002 the waterfront home next to ours was listed for sale for $249,000 and it was worth at the time about $350,000. Kate and I called each of our family members, our wonderful neighbors on the other side (one of whom is a local builder and the other a mortgage broker) and some of our best clients and a best friend of ours, a builder and investor, who had already said he liked the fine home. (Note that property is now worth about $800,000 Sept. 2004). We explained that the home was going on the market in a few hours and that they must act fast. Our neighbors on the other side, the most knowledgeable of the bunch wanted to make an offer of $180,000 saying they thought that was all the property was worth. They knew better or at least should have and they should have bought it. They just “hoped” they could get it for less and that they didn’t have to move fast. The offer they made was ignored and wasted our time. They did however get another property in a few days, for a lot more money, that was worth a lot less, as a result of improved alertness and awareness after losing the one next to us. Our savvy investor friend put in a couple of offers below the asking price with several contingencies. Meanwhile we are telling everyone to write a contract for full price with no contingencies and calling on both our phones as fast as we could call. None of our best friends or family would pay attention. They were ALL too greedy. They knew the property was far under-priced but wanted it for even less… Lesson: when it’s a good deal – ACT instead of getting more greedy and losing the deal totally. Then our lovely new neighbors came and saw the property. They also were knowledgeable about similar properties, and had lost several properties they liked by moving slow, writing unreasonable contracts and not paying attention to real values. This time they did it correctly. In fact they wrote a contract on the spot, with no contingencies, and for MORE than full price so that if anyone did offer full price they would still have the best chance. They paid $5,000 more than the full price on the spot, told the sellers they could have settlement any time they wanted it and before they even heard back from the sellers they arranged for a mortgage of MORE than they needed and asked for the money to be immediately available. They did not ask for a home inspection, a survey, or for the sellers to fix anything. The home is 30 years old and has not had one bit of maintenance. There was a burst hot water tank, a roof that needs replacing and a few HUGE cracks in the foundation. All these problems cost them about $15,000. They have, as I write this, owned the property for several months and worked on it every weekend, before they could take a break and enjoy it. They love it. If they were to fix all of the things that need fixing, paint the trim and freshen up the yard and landscaping; we could get $900,000 to $950,000 for this home for them in a few months on the market. And, city sewer will be here in a few years, at that point the property will instantly go up another $200,000 and all the people we called knew about the pending sewer too. The buyers didn’t find out about the sewer coming to town until after they had contracted to purchase the property. The sewer is still not in — WOW. They are glad they did the One, Two, Three to make it happen! By doing the three things listed above the purchasers of the home next to us have made the wisest purchasing decision thus far in their lives and have one of the best bargains that have been available in the last several years. The sellers are happy too as they just wanted to sell it as fast as they possibly could, due to a sudden and dangerous illness of one of the owners. I’m writing this article to serve you the reader. But you must know it is self serving as well. Much of our time as Real Estate Agents is spent trying to successfully educate our buyers and sellers. If they would take our advice they could be far, far, more successful in selling or buying. The articles I write here [http://www.kate-jody.com/essays/index.html] are those advices that I give my customers and clients – if they ask. Most don’t and when they do, very few take the advice. Just like in every other profession, we the professionals do what we can to help those who come to us but it’s up to them to take the advice. Bargain homes are always available – but hard to sell. They are homes that are in need of some repair or cosmetic improvement or that are in an area of transition. We have several on the market right now and they are hard to sell. Someone with vision will eventually purchase them, fix them up and perhaps sell them at a huge profit – often to someone who says they want a bargain but won’t do what it takes to get a bargain. Funny isn’t it, and this sort of thing happens all the time. It has consistently happened in my 35 years in the real estate business and being a licensed Realtor since 1972. Just know this, if you want a fixer-upper, so does everyone else, but you need to be very, very, educated and able to spend the time and money to renovate the property effectively and affordably. And, you need to do One, Two, Three! If you want a bargain; educate yourself and be ready to DO — One, Two, and Three. We’ll try to help you. By Jody Hudson Copyright 2002-2004 www.Kate-Jody.com Jody Hudson: [email protected]
While there may be certain periods of time, when one, might find a better opportunity, than another, in terms of buying or selling real estate, it is rarely a good idea, to try to apply the principles of market – timing, to this endeavor. There are so many factors, which might impact pricing, some more obvious and/ or predictable, while others more dependent on less predictable current events, etc. While human nature, is such, we all like to find a bargain, the actual fact, is, doing this, has certain risks and uncertainties, and other factors, involved. With that in mind, this article will attempt to briefly examine, consider, review, and discuss, some reasons, market – timing, is challenging, and often unwise.
1. Are you selling one house, and buying another?: If you are, as many do, when you sell the first home at a higher price, the new home, will also cost more. Therefore, how might market – timing make a difference?
2. Mortgage interest rates: So many factors affect interest rates, and the effect of rising interest rates, generally raises the rate one pays monthly, for mortgage expenses. Every increase in rate, means someone may not qualify for the same amount of loan, and will pay, more, every month, for every dollar borrowed.
3. All real estate is local: Market conditions change from region to region, and, in some cases, from neighborhood, to neighborhood (even when nearby). The adage, All real estate is local, explains, how conditions vary, depending on location, and since factors, such as supply and demand, pricing, schools, safety, conditions, etc, should also show you, why it is not only challenging, but often, ill – advised, to proceed, that way!
4. World and domestic changes/ conditions: When events in Washington concern financial markets, we sometimes witness increases in interest rates, real estate value, etc, which go beyond, logic, but are often based on emotional factors. In addition, unrest in areas, in the rest of the world, trade wars, and restrictions, etc, have an often – unanticipated result!
5. Supply and demand: The economic law of Supply and Demand, states, when supply is high, or demand is low, prices drop, and when they are the opposite, we witness rising prices. What causes certain changes in market inventory, and when this might change (often, somewhat, suddenly, and not expected), makes market – timing, considerably challenging!
A simple rule should be, to know your needs, goals, priorities, reasons, and personal finances, consider mortgage rates, etc, and, if you find the right house, for you, at a fair price (based on local market), try to buy it. Will you have the discipline to do, what’s best for you?
If you have always wanted to become a real estate investor, now is the perfect time to achieve your dream. Today’s economic conditions and housing market are suitable for long term and profitable investments, so get the most out of your savings by investing in the housing market.
If you are wondering about the benefits of housing investments based on the current market trends, here are five reasons why this is a good option.
- Good Long-Term Returns: For people who are willing to improve their investment and work on it to increase its value and sell it at a later date, real estate can be a good bargain. Buy an old property, refurbish it, and sell it again at a good price to gain a profit. You can also rent your property if you want a continuous flow of cash.
- The Economy is Improving: The economy is finally rising from its recessive state. As it improves, people who had to foreclose on their homes will once again be looking for prospective house and properties to buy. Thus, an investor will have plenty of prospective buyers to sell his home to, once the has renovations are completed.
- Endless Opportunities: Investors are provided with boundless opportunities, as there are always people who are willing to sell their homes. Whether it is due to foreclosure or other reasons, many people are quick to sell to an investor. On the other hands, many buyers are ready and willing to purchase homes for their families. Regardless of economic and market conditions, the housing market never comes to a complete standstill.
- Tax-Free Profits from Rental Properties: Many real estate investors use their savings to buy rental properties that they can rent to tenants at favorable rates. The rent money received from tenants is exempt from taxes; thus, it is a purely accounted as your profitable income.
- An Asset: If you do not have any existing monetary assets, then choosing real estate is a good idea. No matter how much the economy might fall, you will always be able to encash your property as an asset to get money in a time of need.
Considering the above reasons, the time is now for becoming a real estate investor.
However, when searching for investment property, always consider multiple options, make sure you have the money to fund your investment, and create a backup plan in case your investment faces any major issues over time.
All too often I see small business owners missing the mark with their marketing. Sure, it’s easy to do when you specialize in a specific industry niche and you spend your time engulfed in industry sector jargon. However, it’s best to put yourself in your potential customer’s shoes and think your marketing through from their perspective, addressing their most important questions. Your customers want to be able to trust you, to know you are looking out for their interests and that you don’t just see them with Dollar Signs in your sunglasses.
Below is a sample page, perhaps good for a website, brochure, email, or letter. Why not look this over and consider how you might form your own message. Use your own voice, your own style and remember you are talking to your customer across the table for the first time. You know what questions they will ask. Show that you care, that you are working for them, and will go out of your way to get them the best rates, and great service. Here is the sample:
Commercial Real Estate Loans
Are you looking to purchase an income property such as an apartment building, small office building, or retail center? Would you like to put several rental properties in your real estate portfolio into one commercial mortgage? Wish to find a suitable piece of land and develop that property? Do you need a loan for acquisition and construction?
Do you want to buy a business property with a business on it; a restaurant, carwash, service station, laundry mat, hotel, etc.? Are you looking for a commercially zoned property with a warehouse or industrial building on it? Are you expanding an existing business and/or want to own the property under your business rather than paying the monthly lease?
Are you in the agricultural sector, looking for specifically zoned farming property; land for a vineyard, orchard, or crop such as berries, vegetables, or flowers? We have significant experience to make this happen. Our area in Southern CA has one of the best climates in the world, and incredible top soil for growing almost anything.
We can assist with all types of commercial real estate loans including government-guaranteed loans such as FHA, USDA, and HUD. If you are looking for an SBA 7(a) loan or a CDC/SBA 504 loan for commercial real estate we can get it done.
We can assist you with traditional commercial mortgages, commercial bridge loans, or commercial hard money loans. We also have lines on non-traditional sources for hard money commercial real estate loans, which are custom tailored to you needs for complicated projects outside the normal scope of typical commercial real estate loans and mortgage offerings.
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Why not try something like this? Just because the Federal Reserve has raised rates doesn’t mean you have to let new deals and new clients move to your competitors. I hope you will please consider all this and think on it.
It patently requires time, work and ability to get an incredible deal for land. Obviously getting profitable deal is one of the tasks of entire business. But here we will let you know how to make a profit on purchasing a property. Doing this obviously requires research, skilled transaction and complete dedication – still if one follows the given underneath techniques you can yield stunning achievement.
To be effective in Real Estate you need to know how to purchase land below the market value, and purchase properties that bode well. For this we will first let you know why individuals offer property below market value, what its real market worth is and afterward how you can purchase land below market value.
Why do individuals offer property below market value?
Nobody wishes to offer their property less than its value. If one is doing so then undoubtedly there must be some reason for that. In majority of the cases reason is time pressure. Choices can frequently be irrational and emotional in these circumstances. For Example:
– Facing budgetary issues.
– To share funds with legatee.
– Facing Foreclosure Problems
– Personal issues.
– Interested in another property.
– Migrating because of work issues.
Whenever you discover a dealer who is keen on Short Sale, it’s nothing less than a golden opportunity for you to confer the deal with the cost and contract terms in your favor.
In such cases, never be reluctant to make inquiries like: “What is the reason of sale?”; “For how long has the property been available in market?”; Knowing these details will give you a clear idea of how much room is there for negotiation due to which your deal will turn out to be simple.
What is its real market worth?
Market worth is the original cost at which a specific property will be sold in its present condition. The cost is determined by the business sector or at times it also relies on the interaction of a purchaser and dealer. Remember that it is not settled like the cost of an item at a retail shop. This makes land bargains at an exceptionally productive open door. There is only one way of finding the definite business sector estimation of a property if you are not an agent and that is by observing practically identical deals. You have to discover recent offers of comparative properties in surrounding areas for this. It is the most accurate way to do this on your own. Likewise the least demanding way to know the market value for this is to go for such service suppliers. They will take complete liability to provide you a beneficial deal.
Remember that if you are looking at a property that necessitates repairs then you need to get it in even lower cost else you aren’t purchasing underneath real market worth.
Approaches to purchase real estate below market value:
To purchase real estate most importantly get this clear that there are short sales below market value, there are Fair market deals, auctioned property and the off market properties that can be sold below market value. With a specific end goal to use benefits of purchasing real estate less than its market value, go for these properties.
Short Sales are a phenomenal hotspot for financial specialists. Short sales are possessed by private vender; however the vender has a commitment to pay the bank more than for the amount they are attempting to offer the home. With a specific end goal to sell the home, the bank needs to take consent to take less cash than they are owed. Truly, short sales take up to 6 months or even a year to close since sellers here don’t effectively hop onto a conclusion. They take their requisite time to settle on choice.
Fair market deals are homes claimed by a private vender who have reasonable play in the home selling decisions. They can offer it without including the bank in the basic leadership. It is harder to discover fair market deals in light of the fact that the merchant is generally not in a gigantic hurry to offer their home underneath market value. There are fewer situations where you can find a great deal on a fair market sale.
Numerous service providers go for a property that is never listed for sale since they expect that it might cost them not exactly genuine market worth and they could easily gain the benefit. These are off market properties, since they are not available to be purchased. It requires cash and investment to have the capacity to buy these sorts of speculation properties.
At the point when a property is dispossessed by a seller, so it’s obligatory for him to attempt and reclaim its misfortunes before promptly assuming responsibility of the property. That property is termed as auctioned property. This is the reason numerous homes are unloaded at the courthouse steps. So you should simply, determine when your local courthouse holds its auctions and grapple the most profitable deal from it as soon as possible.
In addition never let go the deals in which such terms are being used by the vender:
Generally speaking, to figure out how to purchase real estate underneath market value all you need to do is a lot of work and sparing time in research, hence after adapting these techniques your deal can be extremely profitable.
Keep in mind the old expression, ‘you profit when you purchase, you get paid when you offer’. If you are having any trouble finding a great deal on a house, check out our site http://www.stopforeclosure.co.