Tips To Minimize Your Risk & Maximize Your Profits (Part 1)

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By Tamera Aragon

Quote to live by:

“Without effort, you cannot be prosperous. Though the land be good, you cannot have an abundant crop without cultivation.” – Plato

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Real Estate As a Path To Wealth & Freedom

Forbes magazine lists the top 400 wealthiest people every September. In September 2007, 40 of the 400 people on that list made their billions specifically in real estate. Many of these people started with nothing, some immigrants even, to move up into this category. Real estate is definitely a path to be seriously considered in building your wealth. Did you know that most of those 40 billionaire real estate investors are only doing their real estate part time? And do you realize they can run their real estate investing business from anywhere in the world?

Freedom… Just the sound of that word brings a smile to my face. Real Estate investing offers you the freedom to make your own choices about how and where you spend your time along with who you spend it with. Financial and time freedom is definitely something successful real estate investors enjoy.But what about the risks you say? Of course for every “tit” there is a “tat”, for every high a low, for every good a bad. Yes, unfortunately like any entrepreneurial venture, there are risks. My husband owns a retail store and he risks every day that someone is going to trip and fall and sue him. He risks that he may not sell enough to pay his bills, etc. I think you get the point. However there are steps you can take to minimize your risks and maximize your profits.

Top 7 Tips To Minimize Your Risk & Maximize Your Profits

Rule #1 – You Do Not Need To Re-Invent “The REI Wheel”

You will need to get training and have a mentor or coach, (or maybe several), in order to succeed. Even the best athletes in the world have a coach. Why? Because a coach will keep you on track. Don’t try to do it on your own. That school of hard knocks is going to cost you way more than good training and an experienced coach. I believe this to be the first step in minimizing your risks and maximizing your profits.

Rule #2 – Do Your Due Diligence (or as I say, “Do the Due”)

Would you buy a car without checking the engine, tires, brakes, or interior? Would you marry someone without learning all you can about them and knowing their flaws and good things before you take the plunge? I hope not!! Then why do so many real estate “investors” buy a property without doing the proper due diligence before they get into a contract?Answer: Many simply lack the knowledge of what to look for in a property when considering it for investment purposes. In other words, you don’t know… what you don’t know, right? So here’s what you need to know. Before you ever buy a piece of real estate you should check it out from top to bottom so you know exactly what you are getting into. A little bit of work upfront will save you huge headaches and money down the road.

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People often ask me, “What should I look for before committing to buy a property?” There are two ways to make money in real estate. If the property is going to supply these profits for you, you would want to consider it.

  1. When the property brings you cash flow from monthly rents while also appreciating.
  2. When you make a profit re-selling the property through appreciation.

Now keep in mind, you can profit from appreciation two ways.

  1. Market appreciation – the economy is causing properties to increase in value.
  2. Forced appreciation – when you either buy property cheaper than what you can resell it for or you can do some improvements to increase the value more than what you spend.

Here are Three Most Important Questions I ask myself before I consider a property for investing?

  • Would we buy it for ourselves?
  • Would we want to tell our friends and family?
  • Is this a good deal for other real estate investors?

The most important outcome to consider is if the answer to this question is yes, “Will my money put into this property make me more money?”I call what I do real estate “investing”, not real estate “divesting”. You will always want to do the same. How do you know if it is going to make money? You do your due diligence before you commit to buy any property. Of course, as you know, there are never any guarantees in life.

However, if you have certain criteria every property needs to meet in order to profit and how to evaluate a property for those qualities, the likelihood that you will succeed are much greater. It’s very easy to get caught up in wanting to help people if they need to sell their house. Or you may just personally think a property is good looking. But those are not the only reasons you would want to buy. To avoid getting emotionally involved in a property purchase, I have created a due diligence checklist. I have provided a tool that has saved many people from both passing on deals they should take as well as taking deals they should pass.

I took from my own trials and errors & created a checklist – The Real Estate Investing “Before You Commit” Due Diligence Checklist. Keep in mind every one of mine or your personal due diligence items on that “checklist” do not need to be followed on every deal you consider. However, it’s a great list to follow and assure you have remembered to consider all that can affect the outcome of your purchase. Your due diligence makes all the difference on whether your purchase of property brings you a profit or a loss.

Rule #3 – Invest Using the Strategies that Make Sense and the Location That Makes Sense for the Current Market Conditions

I always say invest where it makes sense and dollars. You don’t need to invest in your home town, because you live there…nor do you need to go all over the country investing everywhere else. Do your homework and invest in locations that align with the real estate investing niche you chose using the strategy that is a fit.

For example, three years ago I was investing nationally in pre-construction in most strong appreciating markets. That strategy made sense at the time. It would not make sense in a depreciating market.

Today I live in a town that has been on the top 5 most foreclosures list for over 2 years. Why would I need to invest nationally when there are more than enough leads right in my own backyard? Where to invest varies depending on the location of the investment as well as market timing.

My investment choices change as often as the market does. Being sensitive and aware of changing market trends is helpful to know where to invest and the most profitable strategy to follow. The last four rules of the “Top 7 Tips To Minimize Your Risk & Maximize Your Profits” will be concluded in Part 2.

Tamera Aragon

Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

HOW TO MAKE MILLIONS IN REAL ESTATE

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By Joe Arias

It’s no surprise to hear that investing in real estate is one of the best ways to build wealth and gain financial freedom. So many successful people have figured out how to make millions in real estate. When you work hard, constantly aim to learn and grow, and network efficiently, you can also make millions in real estate. Unfortunately, many people go into real estate expecting to make a ton of money without putting in the work. If you do not go about it correctly, you can lose money in real estate instead of gaining it.

Tips for How to Make Millions in Real Estate Investing

Focus on One Method at a Time

There are so many different methods to make millions in real estate investing. But you can’t do it if you are spread too thin. You have to master one thing and get good at it if you want to make money doing it. It’s also important to focus on one method so you can fully understand your goals. If you have multiple methods happening simultaneously, your goals could start to get a little murky.

Not to mention, trying to do everything at once can lead to costly mistakes. You simply won’t have the time, energy, or knowledge to follow through on every avenue.

Many people who are just starting off in real estate investing choose to do either real estate wholesaling or invest in rental properties. Real estate wholesaling is great for beginners because it requires very little to no capital to get started. It can be a little tricky at first getting the connections for your first sale, but it’s an excellent way to get your feet wet with little risk on your end. Investing in rental properties is another great investment when starting off because it’s generally pretty simple and, if done correctly, will result in a steady flow of cash each month. That cash can be reinvested into more real estate investments. As you continue to profit and buy more properties, your portfolio will grow, and you will be that much closing to being able to make millions in real estate.

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Establish Your Goals

Once you have narrowed down the method of real estate investing you want to focus on, you must establish your goals. Consider questions like: What are your short-term goals? What are your long-term goals? What types of properties do you want to invest in? Without goals, you will never make it to becoming a millionaire through real estate. When you know what you want out of your investments and your career, you can begin to make smart business choices that align with your goals. You will have an easier time choosing the investments that help you achieve success. You’ll also have an easier time deciding what types of properties you want to invest in, how you plan to finance them, and how to manage them properly.

Break Down Your Goals Into Steps

Of course, it’s essential to think big when setting your personal and professional goals. You also need to be realistic on what you can accomplish based on your experience, capital, and time. You cannot make millions in real estate overnight. It will take a lot of time and hard work, and you need to be realistic about that with yourself. Now that you’ve established your short-term goal start there. Break that goal down into smaller steps until you reach something actionable that you can do today to get started. Consider how long each step will take until you fully complete your short-term goal. As you complete this step, you may realize that you need to go back and set a new goal. That is absolutely fine and a significant first step toward success. As you begin to work through these steps, you may find that you need to edit or change some.

Don’t Invest All of Your Money on Day One

It can be exciting to get started in real estate investment. However, you should not put all of your money into your very first investment. You are at your least experienced that you will ever be, and you’ll likely make a few mistakes. These mistakes will help you grow as an investor and eventually make millions in real estate, but not if you put all of your money into them right away. The best thing you can do for yourself is to start small and make less expensive investments like single-family homes to start. Once you gain more knowledge, experience, and connections, you can begin to make larger investments.

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Constantly Educate Yourself

The biggest thing you can do for yourself when learning how to make millions in real estate investing is to educate yourself. Learn as much as you can from every experience and every connection you make. Ask lots of questions to others in the field. Consider getting a mentor who aligns with your goals to help you quickly learn how to become as successful as they are. Read books and articles, watch videos, and listen to podcasts. Constantly learning about everything new in real estate will quickly put you ahead of your competition and have you making millions years before anyone else.

Take Action

Education is nothing without action. You can spend years learning everything from every book and article and person you talk to, but it means nothing if you don’t put it into practice. Getting started will be scary, but you’ll never know if you can succeed unless you try. All of the knowledge you gained will help you get started. From there, you’ll gain invaluable experience that will teach you more than any book ever could.

Start an Emergency Fund

Ideally, you will reach a point in your career where you can trust all of your income streams to support you. When you are just starting, you don’t have that type of protection. Try to save at least six months’ worth of expenses in a savings account if anything happens, and you no longer have your income. You never know when something might happen. You may have to make extensive repairs on a property that cost a lot of money. Sometimes your properties may sit vacant and have no income. In situations like these, it’s crucial to be covered financially.

Utilize Mortgage Loans

Many people assume that you need to have a lot of money to get started investing in real estate. You don’t have to be rich to make millions in real estate; you just have to be smart. While there certainly are very wealthy people who do very well in real estate, it isn’t a necessity when you are just getting started.

Many people utilize mortgage loans when buying their first income property. How this works if you take out a loan to pay for a property. When you get tenants, they will pay you enough to cover the loan payments while still making a profit entirely. Utilizing loans allows you to buy a larger property and make more money. Once you start profiting off of that property, you can continue investing in others.

Use Data to Your Advantage

If you understand how to pull and read data and analytics, you have a greater chance of making millions in real estate. Understanding how to track and read numbers is essential for your success. When looking at potential properties, you should pull reports from different investment software and take the time to analyze how profitable those properties could potentially be. Once you get started, being able to analyze the reports from your real estate accounting software will help you make better decisions and understand your profits.

Utilize Appreciation for Profit

While not as guaranteed as profit from tenants, investors can make a lot of money by investing in properties that they predict will appreciate. When a neighborhood is up and coming, and you buy a property for a reasonably low value, rent from your tenants will be low for a few years. Once the neighborhood has become more in-demand and popular, you can start raising the rent. Because property values are high in the area, you won’t detract potential tenants by raising your rent. Plus, if you decide to sell the property, you’ll make a nice profit.

If it’s not an up-and-coming area, there are still things you can do to increase the value of your property and charge more in rent. Making small cosmetic changes and improvements with your profits can result in you making more money.

Build Your Real Estate Team

If you are looking to make millions in real estate, you cannot do it alone. You have to prioritize teamwork and trust in others to help you succeed. There are many different aspects of real estate that plenty of people specialize in. As a beginner in real estate investing, it’s even more critical that you find a real estate team you can trust. These people can help you avoid costly mistakes and succeed in real estate.

The following are some of the most important people that you will want on your real estate team:

  • Accountant
  • Accountability Partner or Group
  • Administrative Assistant
  • Attorney
  • Bookkeeper
  • Cleaning Company
  • Electrician
  • General Contractor
  • Handyman
  • Hard Money Lender
  • Inspector
  • Insurance Agent
  • Leasing Agent
  • Marketing Coordinator
  • Mentor
  • Pest Control Company
  • Private Money Lender or Equity Partner
  • Property Manager
  • Title Company

While you certainly won’t need every single one of the people on this list right away, you should start making connections now for the day that you will need them. Not every person you add to your team needs to be a permanent member. As you learn and grow, many of these people will change, but it’s essential to have them to start.

Summary

Making money through real estate investing is not an easy thing to do. If you take the time to learn as much as you can, set realistic goals, specialize in a specific method, and utilize your connections, you can make millions in real estate. To fully unlock your potential, check out our site and learn how to gain financial freedom through real estate investments.

Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors. 

RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.

Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.

“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”

From a young latino immigrant  to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.

RealSuccess Website

www.ourrealsuccess.com

Personal Instagram: 

https://www.instagram.com/joeariasinvestor/

Real Estate Investment- Instagram: 

Instagram: https://www.instagram.com/realsuccesseducation/

Video For Finding Money from All Day Training (10 Hour Seminar)

https://vimeo.com/manage/videos/528446162

1 Hour Webinar

https://vimeo.com/manage/videos/530996751

Amazon Book#1:

Amazon Book#2

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Will the Realtors®’ Commission Settlement Impact You?

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By Rick Tobin

The biggest purchase of a person’s life for the average American is their primary home where they live. Later in life, the equity in this same owner-occupied home will likely represent the bulk of the homeowner’s entire net worth.

A wise purchase can make you very wealthy, while an unwise purchase can be financially devastating. Would you prefer to take this risk alone or with a team of experienced professionals by your side?

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How many of you have seen how thick a real estate purchase and mortgage file can be at the time of closing? I’ve seen files for residential or commercial real estate loans that were three, six, twelve, and twenty-four plus inches thick by the time of closing. Could you imagine handling the closing of a purchase transaction without the expert assistance provided by real estate licensees, mortgage brokers, loan processors, underwriting teams, escrow, title insurance, appraisers, home inspectors, and several others?

As a result of the recent $418 million dollar anti-monopoly lawsuit settlement that the National Association of Realtors® (NAR) approved, let’s take a closer look at how these new buyer agency relationship regulations may directly impact you as a buyer or seller.

The potential reduction of brokerage commissions

The potential elimination of buyer’s agents from a larger percentage of future sales transactions will obviously hurt many real estate licensees. Prior to this NAR settlement, the average commission paid per real estate transaction was about 5.5%. It can be split evenly at 2.75% to the listing agent and 2.75% to the buyer’s agent or with more of the commission split going to the listing agent such as 3% for list agent and 2.5% for the buyer’s agent. Will future commission splits fall to lower amounts?

There are upwards of 1.5 million Realtors® who belong to NAR and about 500,000 additional real estate licensees who don’t belong to NAR for a grand total of nearly 2 million real estate licensees.

Upwards of 80% of real estate licensees (about 1.6 million) own at least one home. With the future loss of income from discounted or eliminated buyer’s brokerage fees, many of these real estate licensees may be forced to list their home for sale while pushing the national home listing inventory rates higher.

Generally, the buyer’s agent does the most work in a real estate transaction because they tend to interact with almost every party involved in the transaction (listing agent, mortgage broker or banker, escrow, attorney, and/or title insurance, appraiser, home inspectors, environmental specialists, etc.). Wouldn’t the elimination of a buyer’s agent be problematic for many transactions across the nation?

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How will first-time buyers afford to buy their buyer’s agent directly?

The average first-time homebuyer invests approximately 6% of the purchase price. For all homebuyer types (move-up, 2nd home, investor, etc.), it’s closer to 13% nationwide and as high as 18% here in California.

VA (Veterans or active military personnel) homebuyers are not allowed to pay buyer’s agent fees. Most of them qualify with no money down 100% LTV loans. FHA buyers usually come in with somewhere between 0% and 3.5% down. Many times, FHA home buyers do not have any extra cash to pay their buyer’s agents directly.

If homebuyers are now expected to find and hire their own buyer’s agent and pay them anywhere between 1% and 3%, it will be very challenging for many homebuyers to come up with the additional funds to pay their buyer’s agent directly and purchase their dream home.

Commissions and seller credit negotiations

Commission fees for the listing agent and buyer’s agent have always been negotiable. This new NAR settlement doesn’t change that option. Yet, it makes it more challenging for buyers, sellers, and real estate licensees to complete a transaction.

If a buyer prospect signs a buyer’s agency agreement with a real estate licensee for 2% and the seller or new home builder offers to pay 3% to the buyer’s agent, then can the buyer’s agent be paid the higher 3% commission offered by the seller or is the commission amount limited by the 2% fee mutually agreed to by the buyer and buyer’s agent? For licensees, this is a topic to be discussed with your employing broker and/or advising legal experts.

Many times, a purchase deal is structured with seller credits that cover the buyer’s agent and listing agent fees and overall closing cost credits (loan, escrow, title, inspection, and/or appraisal fees), which may vary between 5% and 10% of the total purchase price. Without these seller credits, the buyers may not have enough of their own funds to cover the required down payment and closing costs with or without being required to pay their own buyer’s agent.

The rise of dual agency, attorney closings, and self-represented deals

This NAR case settlement may set a legal precedent for future courtroom cases to completely outlaw dual agency where one licensee represents both the buyer and seller. I’ve written real estate courses in more than 30 states over the years and have held eight different real estate, mortgage, and securities brokerage licenses, so I’m somewhat familiar with the fact that many states already outlaw dual agency.

Many legal groups are behind the push to eliminate real estate licensees so that lawyers handle a higher percentage of closings like they do in New York state and elsewhere. Attorneys like to say that dual agency for Realtors® is akin to an attorney unfairly representing both sides in a lawsuit.

A buyer’s agent is focused on protecting their buyer more than any other licensed or unlicensed professional involved in a purchase transaction. Why would so many people be happy to eliminate the main party who is truly working in the buyer’s best interests?

Contingency dates and disclosure risks

Real estate contracts and inspection reports are incredibly complex. A buyer or seller who attempts to represent themselves in a purchase contract may miss important contingency dates for the completion of the appraisal, home inspection reports, or formal mortgage approval and lose their 1% to 3%+ in earnest money deposits.

Sellers, in turn, who don’t fully disclose all known or potential home and environmental risks to their buyers may later be subject to multi-million dollar lawsuits related to mold, cracked foundations, leaky roofs, or toxic air from a nearby chemical plant. The seller’s $300,000 home price sales gain later turns into a – $1.7 million dollar loss after the $2 million dollar court judgment is filed for not clearly disclosing all known or potential risks.

The median U.S. home sales price is at or just below $400,000. The average buyer’s brokerage commission fee is 2.5% or about $10,000. A buyer who is self-represented may pay too much for the home at prices well above $10,000 and put themselves at greater risk for missing out on the disclosure risks that could later cost them tens or hundreds of thousands of dollars.

A future lawsuit against the seller may net them zero if the seller files for bankruptcy protection unless fraud can be proven. The buyer still may collect zero from a recorded judgment if the seller has no assets.

For more successful real estate licensees who can afford a rather large marketing and networking budget while controlling a high percentage of the listings in their region, how many buyers’ agents will show your listing if there’s no buyer’s agent commission being offered by the seller? Why would someone work for free and take on such significant risk for nothing?

Mortgage brokers who hold a real estate broker’s license like me could step in and write up the purchase contract, negotiate the seller credits, and bring in the money to close it. Yet, why would I want to double my workload if I act as the buyer’s agent to collect no additional commission and significantly increase my liability risks? In many of my purchase deals, I value the assistance provided by the buyer’s agent more than any other professional.

Will home values be impacted by new agency regulations?

The real estate sector represents upwards of 20% of the national economy. For people who don’t hold real estate licenses, they may still be directly impacted as future home inventory numbers possibly rise and property values start to decline. As foreclosures rapidly increase, these become the neighborhood sales comps that either hurt or help your home value.

Some in the media are claiming that this buyer’s agency commission reduction or elimination will be very good for homeowners. Again, the average buyer’s brokerage commission is closer to 2.5% than 2.75% or 3%, yet I will increase it to 3% for the average $800,000 home sales price in California to arrive at an alleged $24,000 commission savings for the buyer and/or seller.

If home prices fall just 5% in California due solely to these massive Realtor® regulation changes, that’s equivalent to a $40,000 price reduction for the seller. If so, the seller is now losing $16,000 in gains ($40,000 – $24,000 = $16,000 in total losses) with just a 5% reduction in sales prices in spite of paying no buyer’s agent commission fee on a typical $800,000 home sales transaction. What happens if home prices fall 10%, 20%, or more?

The rise in mortgage rates, insurance costs, utilities, and overall skyrocketing inflation rates will also inspire more homeowners to list and sell. Real estate prices are influenced the most by the old economic theory known as supply and demand, for better or worse.

As more and more residential and commercial property go underwater or upside-down (mortgage debt exceeds value), how will buyers or sellers be able to handle the complex process of forbearance, pre-foreclosure, or short sale discounts on their own without the help of an experienced advisor?

To learn more details from the perspective of the National Association of Realtors®, here’s an informative post that’s entitled The Truth About the NAR Settlement Agreement.

Whether you’re in favor of this NAR settlement agreement or hate it, please research as many different sides of this topic to better understand how it may help or harm you as a buyer, seller, landlord, tenant, real estate licensee, or third-party professional.

Rick Tobin

Rick Tobin has worked in the real estate, financial, investment, and writing fields for the past 30+ years. He’s held eight (8) different real estate, securities, and mortgage brokerage licenses to date and is a graduate of the University of Southern California. He provides creative residential and commercial mortgage solutions for clients across the nation. He’s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation; the oldest real estate school in California; and the first online real estate school in California. Please visit his website at Realloans.com for financing options and his new investment group at So-Cal Real Estate Investors for more details. 

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

HOW CAN YOU BUY AN APARTMENT TO RENT OUT FOR PROFIT

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By Joe Arias

Investing in apartments is one of the easiest and best ways to make money as a real estate investor. Apartments will always be in demand, especially as younger demographics continue to wait until later in life to buy homes. Aside from the regular maintenance, renting apartments for profit is a generally hands-off process, making it great for beginners just getting into real estate investing. In this article, we will share how you can buy an apartment to rent out for profit.

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Why You Should Buy an Apartment as an Investment

Before explaining how you can buy an apartment as a real estate investment, it’s important to address why you want to. When done correctly and knowledgeably, apartments can be a very profitable real estate investment strategy. With apartment investing, you have a guaranteed amount of money that you know will come in every single month. Many other real estate investing strategies do not have this reliable income stream. Apartments are also generally easy to maintain. As long as you are not investing in a large complex – which is not recommended for beginners – you will not need to rely on paying any management companies. Since demand is high for apartments, they are seen as low-risk investments, which is perfect for any beginner. It will be very easy for you to keep vacancy low and profit quickly.

How to Buy an Apartment for Real Estate Investing

There are many steps to buying an apartment for real estate investing. You will have to pick where it will be, find a good fit, conduct an analysis, look into options for financing, get it appraised, and then get tenants to start making an income from it. Below are the steps broken down into specifics to help you get started in apartment real estate investing.

Decide on a Location

The first step of buying an apartment is to decide where you will buy. There are important factors to consider: median home value, median age, unemployment rate, population growth, median salary, and job growth. All of these factors give you a little more insight into the area and the direction in which it is going. Areas with high job growth and low unemployment rates mean there are plenty of jobs. This, in turn, will lead to population growth and will result in more demand for apartments and eventually allow you to charge higher rates. Choose somewhere that is growing but not outright unaffordable for buying your first property.

Find Apartments for Sale

Once you have decided on a location, it is time to start looking for apartments for sale. At this point, you need to start considering what you are looking for in an apartment building. Consider things like the number of units, whether or not you will need to renovate, and home value. An apartment building may be a perfect fit with unit types, but it may not be the best option for your first investment property if it is pricey and will require work.

Perform a Property Analysis

Once you have narrowed down your search and found a few properties that you think could be a good fit, it’s time to perform a property analysis to understand further which property is the best option. Use the investment property calculator to get an idea of each property’s cap rate, positive cash flow, and cash on cash return. These numbers will let you know the property is a good investment or not.

Look Into Financing Options

Now that you have a better understanding of the costs of the apartments you are looking at and the return you expect to get, it’s time to look into your financing options. Most real estate investors do not have the capital on their first deal to buy it outright. Using financing will allow you to buy the property and use the income to pay it off quickly. You can either choose to finance through a traditional mortgage, a home equity loan, or private financing. Most beginners prefer to do a traditional mortgage for their first property, but you must do your research and find the financing option that works best for you. If you already have a home, you may be better off with the home equity loan.

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Get the Apartment Inspected and Appraised

Once you decide on the apartment you feel is the best investment, you need to have it professionally inspected and appraised. The inspection is essential to ensure you are not buying a property with any damage you were not aware of. Structural damage especially could be very costly. Your mortgage provider will require an appraisal to ensure the purchase price is similar to the appraised value.

Renting the Apartment

Once you have purchased the apartment, it’s time to rent it out and make some income. For the best results, you will want to invest in making any necessary home improvements and ensuring the apartments have a modern look with updated appliances and amenities. Make sure to screen all potential renters to lessen your chances of dealing with eviction or undesirable tenants. Hire an attorney when you first start off to deal with all of the legal aspects of renting out an apartment.

Summary

Learning how to buy an apartment is essential to a successful real estate investment strategy. It’s an excellent way for beginners to start making a reliable income from their investment properties. Apartments are generally very little work once they are purchased and are an easy way to make passive income.

For more tips on real estate investing, make sure to check out the rest of our articles.

Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors. 

RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.

Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.

“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”

From a young latino immigrant  to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.

RealSuccess Website

www.ourrealsuccess.com

Personal Instagram: 

https://www.instagram.com/joeariasinvestor/

Real Estate Investment- Instagram: 

Instagram: https://www.instagram.com/realsuccesseducation/

Video For Finding Money from All Day Training (10 Hour Seminar)

https://vimeo.com/manage/videos/528446162

1 Hour Webinar

https://vimeo.com/manage/videos/530996751

Amazon Book#1:

Amazon Book#2

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Tax Deeds & Tax Lien Sales Investing – Part 1

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By Tamera Aragon

When homeowners fail to pay real estate (property) taxes, the government has the right to sell their property in a state “tax sale”. In a Tax Lien state, homeowners have an opportunity to pay back the amount owed within a specific time frame even after their property has been “sold” to an investor. The investor may be paid back with interest. Should homeowners miss the pay deadline, the investor becomes owner of the property at great savings. In a Tax Deed state, investors bid for immediate ownership of a property or are eligible for the deed and ownership of the property after a redemption period passes.

By law, Tax Deed sales must be announced to the public, and are usually sold to the highest bidder. The winning bidder purchases the deed to a piece of property, becoming the new owner and obtaining all rights to the property – clear of any mortgages, liens, deeds of trust, etc.

One interesting thing to note is very few people know much about Tax Deed sales. So, competition may not be as fierce in this niche as it is in others.

Why Is Tax Lien & Deeds a Good Investing Niche to Consider?

  1. Tax Deeds are sold in almost every state throughout the United States. 50 states are governed by state-mandated laws to protect & reward investors.
  2. You can pick Your Price. Research the list and pick ones out that are in your price range.
  3. You can obtain properties which allow for all types of exit strategies (flip, rent, or live).
  4. Investors & Banks have been using this strategy for over 150 years.
  5. The rules vary from state to state. In certain circumstances you can obtain an entire property for only the taxes and penalties owed. Generally, you will pay between 50 to 90 percent below market price.

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General Downsides of Investing in Tax Lien & Deeds Niche?

  1. Lacking Liquidity of Funds: In a Tax Deed transaction, you can have your money tied up for several years before you can sell the property, because title companies may not issue title insurance on the property until all liens are cleared, and it is obvious that clear title can be granted. This process will sometimes take more than a year. Fixing up and or remodeling properties to maximize your eventually sale can also take considerable time.
  2. Time and Complexity: Tax Deed laws vary from state to state and sometimes from county to county within a state. This requires a time commitment to learn the rules of a state and its counties, research properties and attend auctions. In addition title companies sometimes will not issue title insurance for at least the first year on any property bought at a Tax Deed sale. This means it could be hard to get a loan until it is clear.

Investing Risk: Purchasing property at a Tax Deed sale definitely has risks if you have not done extensive due diligence. You must do your homework, title searches, drive buy inspections, history reports etc. Once you buy a Tax Deed, you will own the property including all of it potential problems. The major thing to keep in mind is that at a Tax Deed sale, unlike a Tax Lien sale, you are buying the real estate and we believe that the required level of due diligence becomes extremely high. The other thing you want to know at a Tax Deed sale is if the property is being purchased free of all other liens and encumbrances. There are a number of states where this is true and a few where it is not true. You need to make sure that you get what you paid for. This requires knowledge of what the values are and what the potential hazard could be.

In summary, Real Estate tax sale laws vary from state to state, as do the redemption periods, and there are risks investors should be aware of in addition to the potential rewards of buying tax sale properties.

Pros and Cons of Tax Lien & Tax Deed Sales

TAX LIENS: A lien is a financial claim made against a property. A Tax Lien is a claim for unpaid property taxes issued by the local taxing authority. Failure to pay real estate taxes is one of the leading causes of distressed properties leading to home loss. Investors typically buy Tax Lien properties through an auction after a homeowner fails to heed warnings by the tax authority to pay property taxes. Most states allow homeowners to reclaim their property by paying off the debt in full by a certain date. This is called the “Redemption Period”. The redemption period offered varies from state to state. However, in some locations, investors may have to wait two full years before being paid back or gaining the deed for the property.

Tax Lien Pros

  • Possibility of good returns in interest (up to 24 percent in some states) paid by homeowners.
  • Possibility of owning property at a fraction of its true value.
  • Option to sell, rent or hold the property for additional profit once title is held.
  • Lower Investment Risk: If the homeowner doesn’t pay up, the tax purchaser is first in line to own the property. No tenants, banks or brokers to deal with.

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Tax Lien Cons

  • May Not Make Any Money: There is no guarantee the homeowner will pay off taxes and interest on the lien. The process of getting the deed at the end of the redemption period isn’t simple and may require a lawyer.
  • Required Capital: You must pay what is typically a large amount of cash for your bid at the tax sale. You definitely will need more capital to buy properties at Tax Deed sales. Although it varies from property to property, from county to county, and even from state to state, you will likely need a minimum of $5,000 to $10,000 to get started in Tax Deed investing. A good credit rating may also be necessary to sign finance contracts. Check local rules and regulation as well as the history of Tax Deed auctions in an area to get a feel for the capital you may need.
  • Uncertainty of property condition: With no prior home inspection, there is no guarantee of the property’s condition or value.
  • Property Owner may Be Foreclosed on: If you foreclose, you are stuck with the hassle of selling the property from which you may profit but on the other hand you may not recoup your initial investment.

TAX DEEDS: A Tax Deed is a legal document indicating ownership of property, also referred to as “title.”When the government intervenes to put properties delinquent in real estate tax payments up for auction, investors can pay the back taxes and own the property for well below market value. To locate and invest in Tax Deed sales, check local newspapers, local tax collectors or the Internet, where many websites post relevant information.

Tax Deed Pros

  • Quick and easier way to become a property owner.
  • Opportunity to acquire existing equity.
  • Opportunity to purchase property directly from the property owner at bargain-basement prices prior to a Tax Deed sale.

Fortunately, investors who sow the seeds of diligent research can reap the rich rewards of tax property sales. DUE DILIGENCE is required for Tax Lien and Tax Deed investing deals. This concludes my article on Investing in Tax Deeds and Tax Lien Sales – PART 1.

Please watch for my next investing article that will wrap up all you need to know to start investing in Tax Deeds and Tax Lien Sales – PART 2. I’ll be going over the steps real estate investors should take for Tax Lien and Tax Deed Investing deals.

Tamera Aragon

Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Inflation, Home Price Swings, and Wealth Distribution

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By Rick Tobin

Between January 2020 and October 2021, the M1 money supply (cash or cash-like instruments) quickly rose from $4 trillion up to $20 trillion in just 22 months. Money velocity, or money creation speed, is the true root cause of rapidly declining purchasing power and skyrocketing inflation. The more money in circulation, the less purchasing power for the dollar.

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In January 2024, Americans were paying $213 per month more to purchase the same goods and services one year earlier in 2023 because of rising inflation and the declining purchasing power of the dollar. As compared with two years ago in 2022, Americans are paying $605 more per month. Sadly, we’re now paying $1,019 more PER MONTH ($12,228 more per year) today for the same goods and services we purchased three years ago in 2021.

Shipping, trucking, and other transportation costs are quickly rising amid geopolitical tensions. Historically, increasing transportation and energy costs are a root cause of inflation trends. Don’t be surprised if inflation rates and interest rates are both higher later this year instead of lower.

Home Value-to-Income Ratio in the U.S.

The U.S. home value-to-income ratio is calculated by dividing the $342,000 median home value by the $74,580 median household home, according to Economy Vision. If home prices had grown at the same rate as income since 2000, the median U.S. home would cost nearly $294,000, or 31% to 32% lower than today’s prices.

U.S. households need an average income of $166,600 to afford a home, but the median household income is $74,580. The lowest home price-to-income ratios in large metropolitan regions are in Pittsburgh (3.2x), Buffalo (3.5),and Cleveland (3.5), while many California regions are near 10 to 20x. Some smaller suburban or rural regions in Southern Illinois and other Midwest regions are closer to 1.5 to 1.8 for home price-to-income ratios.

Increasing Distressed Residential and Commercial Mortgage Numbers

Millions of Distressed Residential Mortgages

The federal government keeps extending the millions of distressed FHA and VA loans, or offering discounted loan modifications, partly so that they don’t push the national home listing supply skyward and reduce home prices at the same time.

The C-19 foreclosure or forbearance moratoriums for millions of FHA and VA borrowers began back in the fall of 2020. As a result, many of these home borrowers haven’t made a mortgage payment for more than three years.

The FHA forbearance moratoriums for FHA borrowers expired on November 30, 2023 while the VA forbearance moratoriums were extended until May 31, 2024. At some point, these loans will need to be brought back current, sold, or foreclosed.

In the previous housing crash that was especially bad during 2008 to 2012, only about 2% (or 1 in 50 mortgages) of all residential loans were delinquent. Yet, these distressed home mortgages became future lower value comps for the nearby homes while driving their prices downward too, sadly.

If and when the national home listing supply numbers rapidly increase this year, it will eventually have a negative impact on home price trends because it’s all supply-and-demand economics at the true core. When supply of a product or asset rises and exceeds buyer demand, then prices tend to fall (and vice versa).

Concerning Commercial Mortgage Trends

An estimated 44% of office buildings nationwide with mortgages in place are claimed to be upside-down with negative equity here near the start of 2024. Some office buildings are selling for as low as $9 per square foot, not $900/sq. Ft. By the end of 2024, the underwater office building numbers may be well over 50% and the overall underwater or upside-down numbers for all commercial property types may be somewhere within the 20% to 25% range.

Physical and Online Retail Store Numbers

  • In Q3 2023, the amount of U.S. retail space available for lease plunged to an all-time low since the CoStar commercial real estate group started tracking back in 2007.
  • The previous seven years in a row (2017 – 2023) shattered all-time retail space closings per square foot in U.S. history.
  • Through just September 2023, 73 million square feet of retail space closed in 2023, as per Coresight.
  • 140 million square feet of retail space has been demolished in the last decade, according to CoStar.
  • Top 6 online sales percentages in 2023: 1. Amazon (37.6%); 2. Walmart (6.4%); 3. Apple (3.6%); 4. eBay (3%); and 5. Target and Home Depot (a tie at 1.9% each), per Statista.
  • 10.4% of total annual U.S. retail sales were online in 2017;
  • 12.2% of total annual retail sales were online in 2018;
  • 13.8% of total annual retail sales were online in 2019;
  • 17.8% of total annual retail sales were ecommerce in 2020;
  • 18.9% of total annual retail sales were ecommerce in 2021; &
  • 18.9% of total retail sales were online in 2022, per Statista.
  • The full 2023 online year results weren’t published yet.

Record-High Car Payments

Some new monthly car payments are reaching $3,000 per month, while average new car payments are near $730 to $750 per month. Additionally, many monthly car insurance payments are reaching $400 to $500 per month in cities like Detroit and Philadelphia. How much are these car owners paying in gas and maintenance as well?

The national average cost for car insurance rose a whopping +26% from last year, according to Bankrate.

The most expensive cities for car insurance are:

Detroit – $5,687
Philadelphia – $4,753
Miami – $4,213
Tampa – $4,078
Las Vegas – $3,626

The cheapest cities are:

Seattle – $1,759
Portland – $1,976
Minneapolis – $2,044
Boston – $2,094
Washington D.C. – $2,430

The average car loan today is valued at 125% LTV (loan-to-value) for the typical car on the road with a loan with an average negative equity balance of -$6,000. This is partly because so many car buyers are purchasing cars with no money down and adding their registration, licensing, taxes, and warranty fees on top of it before driving off of the car lot. New cars usually drop in value about 20% in the very first year of purchase.

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Inflationary or Deflationary Economic Cycles

Inflation has been described as an increase in the general level of prices of a certain product in a specific type of currency. Inflation can be measured by taking a “basket of goods,” and then comparing them at different periods of time while adjusting the changes on an annualized basis.

General inflation measures the value of a currency within a certain nation’s borders, and refers to the rise in the general level of prices. Currency devaluation measures the value of currency fluctuations between different nations. Some related terms associated with inflation are as follows:

* Deflation is a rise in the purchasing power of money, and a corresponding lowering of prices for goods and services. The Fed doesn’t like this economic period of time and will probably cut short term rates to offset it.

* Disinflation refers to the slowing rate of inflation. The Fed may like this type of economic time period, and may stop raising rates at this point in the economic cycle.

* Reflation is the period of time when inflation begins after a long period of deflation. Depending upon the severity of inflation, the Fed may pause the rate hikes or gradually begin rate hikes.

* Hyperinflation is rapid inflation without any tendency toward equilibrium. It is inflation which compounds and produces even more inflation. It is when inflation is much greater than consumers’ demand for goods and services. The Fed, and the rest of America, do not typically like this economic period, so they may enact a series of significant rate hikes to slow inflation.

The Wealth Distribution Imbalance

Wealth distribution across the U.S. has become increasingly concentrated in the hands of fewer people since 1990. Overall, the top 10% of wealthiest Americans own more than the bottom 90% combined, with more than $95 trillion in wealth for the top 10%.

Here in 2024, the share of wealth held by the richest 0.1% is near its peak with a minimum of $38 million in wealth in just 131,000 households.

With $20 trillion in wealth, the top 0.1% earn an average of $3.3 million in income each year. The greatest share of the wealth owned by the top 0.1% is held in corporate equities or stocks and in mutual funds, which make up over one-third of their total assets.

Households in the lower-middle and middle classes as found in the 50% to 90% income and asset brackets are claimed to have a minimum of $165,000 in wealth held primarily in real estate and followed by pension and retirement benefits.

Unless you’re in the Top 0.1%, the odds are quite high that the bulk of your wealth is concentrated in real estate if you’re fortunate enough to own at least one property today. In our next meeting, we will discuss how to find discounted real estate and other investments and how insurance and estate planning can help protect your assets for you and your family.

Extreme Rate Swings, Steady Home Gains

Between 2000 and 2023, the median U.S. home appreciated approximately 10.63% per year. By comparison, California homes rose 12.55% per year between 2000 and 2023.

Doubling Value Forecasts: The Rule of 72 is an investment formula used to estimate how long it may take for an asset to double in value using a projected annual rate of return (72/7 or 7% = 10+years).

A home purchased using the national average annual gain of 10.63% would double in value in just over 6.77 years if purchased this year (72/10.63 = 6.77 years). A California home would double in just 5.74 years (72/12.55) if these same average annual appreciation gains continued.

Home prices tend to go skyward following a Fed pivot when they start slashing rates. When will the Federal Reserve start cutting rates again? Let’s take a look at their calendar for 2024 two-day meeting dates: Jan. 30-31 (no rate change); March 19-20; April 30- May 1; June 11-12; July 30-31; Sept. 17-18; Nov. 6-7; & Dec. 17-18.

Inflation severely damages the purchasing power of the dollar while usually boosting real estate values. Because it’s more likely than not that inflation will continue rising above historical average trends, then real estate may be one of your best hedges against inflation as your wealth compounds and increases as well.

Rates may be lower, the same, or higher by the end of 2024, partly due to our volatile inflation movement and weakening dollar. However, there’s a tremendous upside for real estate investors if you’re willing to stay focused on the opportunities and not let the negative news scare you away.

Rick Tobin

Rick Tobin has worked in the real estate, financial, investment, and writing fields for the past 30+ years. He’s held eight (8) different real estate, securities, and mortgage brokerage licenses to date and is a graduate of the University of Southern California. He provides creative residential and commercial mortgage solutions for clients across the nation. He’s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation; the oldest real estate school in California; and the first online real estate school in California. Please visit his website at Realloans.com for financing options and his new investment group at So-Cal Real Estate Investors for more details. 

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

Elevate Your Experience this Saturday

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What Can You Expect from Realty411’s Investor Summit? 

Watch these videos below to find more information.

Elevate your experience at Realty411’s Investor Summit in Irvine, California, by upgrading to a VIP Guest. Our National Investor Summit is this Saturday, February, 24th, 2024. This event will unite investors from throughout California and the nation!

We are starting a 9 am with networking and a delicious breakfast for our VIP Guests. In addition, our VIP Guests will also enjoy lunch with additional networking opportunities with like-minded real estate investors. VIP Guests will also receive our latest publication.

Don’t forget to Elevate your Experience with a VIP TICKET today. Only a limited amount of VIP tickets remain at $47.

A variety of important subjects will be discussed at our upcoming conference, including: multifamily investing, land banking, industrial real estate, infinite banking, asset protection, real estate development, single-family investing, finance and private lending, lead generation for agents/brokers, out-of-state investing, probate investing, long-distance rentals, mindset for success, and so much more!

Be sure to connect in Southern California THIS SATURDAY, February 24th, 2024. Join us to learn and network with fantastic companies, such as:

Marco Kozlowski, Investor & Author
Marcella Silva, Dirt is Gold
Rusty Tweed, TFS Properties
Abbas M., Model Equity
Amanda Brown, MAG Capital Partners
Barry Duron, AltLender Mortgage
Jonah Dew, The Cash Compound
Jeremy Rubin, The Friendly Flipper
Kaaren Hall, uDirect IRA Services
Kris Miller, Legacy Wealth Strategist
Paul Wilkins, Probate Expert / Investor
Anthony Patrick & Mindy, New Harvest Ventures
Eli Smushkovich, CV3 Financial Services
Linda Pliagas, Realty411.com
And More!

DOWNLOAD AND LEARN TODAY!

READ IT NOW!
DOWNLOAD THIS!

Maximizing Your Home’s Value: Top Interior Design Secrets for Resale Success

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By Michael Alladawi

If you want to maximize your home’s value, a well-designed interior can make a huge difference. Whether you’re planning to sell or just increase its worth for the future, implementing key design strategies can pay off big time.

But before you dive into making changes, it’s crucial to understand what truly adds value. Not every design choice will significantly impact resale value, so it’s essential to focus on the areas potential buyers are interested in.

Use Energy-Saving Fixtures

As the issue of environmental concern grows and utility costs escalate, many buyers now consider energy efficiency as they look for a new home. By adding power-efficient features, you will be able to satisfy this need and improve your house’s value greatly.

There are many energy-saving appliances now available. Take LED lighting, for instance. The average energy saving through these devices has been noted as being up to 75% less than what amount is needed in standard incandescent lamps, and their life is much longer.

Apart from cost saving, these characteristics can also be a healthier and more environmentally balanced way of living. Smart thermostats, leak detection systems, and smart home systems often attract new buyers and are a good way to increase your home’s value.

Undertake a Kitchen Remodel Project

The kitchen is commonly referred to as the heart of any home. It is the place where food is cooked, and families sit together to enjoy each other’s company. This could make a modern kitchen a great selling feature.

Some of the most common updates that will make your kitchen look much better without breaking the beak include modern appliances, countertops, and cabinets. One of the most common improvements is stainless steel appliances, as they look great and last seemingly forever.

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Granite countertops or quartz countertops are also popular due to their high-end look and durability for regular usage. Adding cabinets to your kitchen also gives you more room for storage and keeps things organized.

But, when you do a kitchen remodel, the aesthetics must be balanced with practicality. If you have a kitchen with a beautiful but less-than-functional design, prospective buyers will be turned away. You can also consider introducing a practical layout, a generous amount of counter space, and easy-to-clean surfaces.

Replace Outdated Carpets and Rugs

Firstly, updating your rugs and carpets inside the house can make a great deal of difference in its overall aesthetics. For example, hardwood floors are what many homeowners turn to because they have a timeless appeal and a better wear and tear rate. They are easy to maintain, flexible, and can fit in nearly any interior design idea you might have.

Another great option is tile, especially when applied to rooms like the kitchen or in a bathroom remodel since they require water resistance. Tiles can also be a great decor solution, available in many colors, patterns, and textures.

The investment in new flooring may appear to be a larger expense initially. However, taking into account the possible return on investment, it can pay dividends in the long term, considering you’ll be less likely to need a flooring remodel in the future as well.

Remove and Restyle Outdated Popcorn Ceilings

Many homebuyers consider popcorn ceilings – which used to be a norm in homes constructed from the 1950s to the 1980s – outdated. From a design standpoint, popcorn ceilings can darken and date the look of any room they are found in. Plus, these textured ceiling coverings made with similarly textured materials may contain asbestos, which is now illegal to produce since 1977.

Removing popcorn ceilings and adding a more contemporary finish make your home look newer. The process includes removing the old texture, fixing any issues with the original surface if needed, and applying a new finish headboard or even just smooth plaster.

Redesigning your ceilings not only adds fresh style to your house but also allows you to improve lighting and insulation. Smooth surfaces reflect light better, which creates a brighter and more spacious room. In the meantime, if you replace insulation during repairs and remodeling, you may likely improve energy efficiency in the home.

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Maximize Practicality with Added Storage and Closet Spaces

Ample storage space is one thing that potential buyers may seek in a home. Insufficient storage can create the impression of a too-cluttered or small home, which is often a no for many buyers.

There are numerous creative designs for storage or closet spaces in underutilized areas. You can, for example, convert the area under staircases into a small closet or put shelves or custom cabinets in hallways or alcoves. For bedrooms, there could be a walk-in closet or bed frames with storage compartments.

These features not only provide you with additional space for storage in your home but also improve usability. The benefits of a well-organized home cannot be overemphasized since this type of environment attracts potential buyers who are willing to pay more in order to live in a more practical space.

Use Strategic Paint Choices

One of the simplest ways to transform and modernize a space is by giving it a fresh coat of paint. A relatively cheap renovation could help you greatly improve the attractiveness of your residence.

In the choice of paint colors, it is wise to go with neutral hues. Even though bold and bright colors can show your style, they may not be attractive to many buyers. Whites, greys, and beiges attract the largest spectrum of users – these colors are easier to match up with interior styles and furniture colors. They also create an illusion of larger and brighter spaces, which is more welcoming.

But neutral does not have to be boring. Make your interiors interesting using different shades and textures within the same color family. Additionally, saturation of the paint should also be considered. The most commonly used are satin and semi-gloss finishes since these alternatives are easier to maintain and last longer.

Get the Most Value Out of Your Renovations

Renovating your home can be exciting, but you shouldn’t forget that not all renovations will increase the value of the house. When planning a renovation, you should consider current trends while also looking at your budget. This could protect you from overspending on unnecessary improvements and also help you to identify which renovation techniques will give you the best return on investment.

MEET MICHAEL ALLADAWI

Michael Alladawi, CEO & Founder of Revive Real Estate, is a Southern California real estate veteran with a proven track record as a builder, investor, and respected home flipper. Michael created Revive Real Estate to share his industry knowledge and help homeowners maximize their profits when selling their homes. Michael’s passion for his work is as big as his desire to create lasting partnerships. For Michael, it all comes down to how much value one offers, both in business and life relationships.

Targeting Properties – For Sale By Owner (FSBO)

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By Tamera Aragon

One of the longest proven successful ways to get good leads as a real estate investor is calling on For Sale by Owner (FSBO’s) listed properties. In my experience, I have found great success in helping FSBO’s with their situation while at the same time buying discounted real estate. If you are on a budget and just getting started then you can do this yourself, or if you can at all afford it, I highly recommend you hire someone like a virtual assistant to do it for you.

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Why Are FSBO’s Good Leads?

Often times homeowners who place their house on the market without a realtor ( FSBO’s), are in a position where they need to sell a home quickly. When this happens, you are able to help them by closing quickly with cash, while at the same time, you receive a great discount. There are many reasons a homeowner might need to sell quickly. Some are trying to avoid getting behind on payments, some are already behind on payments, others need to immediately move to new location for job, some received a property gifted through probate, may be experiencing illness or maybe the landlord doesn’t want to own a property for rent any more, etc. Whatever the specific reason a person doesn’t utilize a realtor and place their property for sale on the MLS, Craigslist, Kijiji or even EBay, it is likely there is an opportunity for you to get a great wholesale deal.

Where Do You Get FSBO Leads?

The first step is to locate the properties not listed on MLS, however for sale by the owner direct. How do you do this?

1. Classified Ads Online: There are several online classifieds such as Craigslist.org or Kijiji.ca or backpage.com and many others. It’s so easy to search the internet for this stuff just type “your city” properties for sale by owner; see what comes up in the Google and Bing search engines!

2. Newspaper classifieds: Checkout newspapers in the areas you would like to buy. (also often available online)

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What Do You Do Once You Have The Locations For Leads?

A. Grab a copy of the FSBO magazines offered for FREE in grocery stores. These could be great leads as someone is paying a lot of money to put their house in a magazine. I view this as sign that the owner could be a motivated seller.

B. Go the websites of newspapers and look at their classified section online. You can put these links in your favorites.

C. Visit FSBO online websites. Here are a few sites I like:

  • Owners.com
  • ForSaleByOwner.com
  • FSBO.com
  • HomesByOwner.com
  • Trulia.com

You will want to check the FSBO sections in these resources daily. If there is a good real estate deal for sale, it will be sold quickly to the person who acts quickly – You!

What Do I Look For In A FSBO Deal?

All ads listed could be potential investments. To save time however , you want to be looking for keywords or phrases that indicate the seller has a motivation to sell or is showing signs of flexibility. Here are a few examples of keywords to watch out for:

“Must sell” “Just reduced” “For Sale Or Lease” “Seller Financing” “Fixer Upper” “Handyman Special”

Create Your Motivated Seller “Hit” List

This is a list of those you will want to contact to find out more about the property and the seller’s situation. If using paper (like a newspaper in hand), you will want to mark the ads with your sharpie or highlighter as you are scanning the paper for those “motivated” words listed above. Mark as many ads as you can! It is better to have too many leads than too few. If online- – -copy and paste the ads found on newspaper, classifieds and FSBO sites to a word or excel doc, then print it out. Remember having too many leads is a good thing as it keeps your options open.

Tamera Aragon

Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.

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Survey: Americans Prefer Portugal, Costa Rica & Mexico for Overseas Real Estate Investment

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Survey of International Living Readers Also Shows Preference for Beach, City Properties, Good Healthcare, Safety

By Ronan McMahon

Cabo San Lucas, Mexico – Ronan McMahon’s Real Estate Trend Alert, a leading source of real-time information for investors on off-market, insider real estate deals in up-and-coming locales, today released the results of a survey that ran in late October with 434 readers of International Living responding. Both people who are professionally active and retirees were surveyed. Portugal is the preferred destination, in second and third place are Costa Rica and Mexico respectively. When deciding to invest in a property, quality of healthcare and safety and crime rates are among the most important criteria investors consider.

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Investing in property abroad is no longer an option that is only available to affluent investors, but has gradually become more and more popular with middle class families in the last decade. Through the survey that was conducted with the readers of International Living, Real Estate Trend Alert set out to understand the preferences of American investors in terms of where they want to invest, how much they want to invest, and what they are looking to achieve with their investments.

Investments

The first question pertained to the amount people are planning to invest.

What is the total amount of investment(s) you are planning to make?

A large majority (79.54%) of respondents plan to invest less than $500,000. 38.14% even plan to invest less than 250,000. The numbers look very similar across retired and employed respondents. While at first sight, one might consider the investment amounts modest, it is important to take into account that in many foreign countries the price of real estate is considerably lower than it is in the United States. In Mexico, for example, it is possible to acquire a luxury condo in a five star beach and golf resort for $250,000.

Objectives

Respondents were also asked about the objectives they seek to realize with their investment(s).

What are your primary objectives with your planned purchase(s)? (Ranked)

The number one reason Americans invest in property abroad is that they want to relocate. In second place comes the search for temporary residence and in third place follows the search for a property that can be rented out. With only a few exceptions, the way respondents ranked their objectives are the same for people who are retired versus people who are employed.

Countries

Respondents were also asked where they plan to purchase real estate.

In what countries are you considering purchasing properties? [Top 5]

Portugal came out as the clear winner here, followed by Costa Rica. Mexico, Panama and Spain complete the top five (but the order in which they do so is different for retired Americans versus Americans who are employed).

Types of areas

Investors were also asked in what type of areas they would like to invest.

In what type of area(s) are you considering purchasing properties?

Beach property is the number one category of property purchased by Americans abroad. The city and suburbs follow in second and third place respectively.

Criteria for choosing a country

Finally, respondents were asked what criteria matter most to them when selecting a place to invest. For every country of the top five most popular countries, the three most important criteria were listed for the people who selected that specific country.

View on what people consider important when buying property abroad who selected one of the top five countries.

Safety and crime rates and quality of healthcare are predominantly present in the top three criteria for people who considered any of the top five countries to invest in. Both Costa Rica and Mexico have market conditions (perceived potential for appreciation) in their top three. For people who selected Panama, quality of governance was (on third place) an important factor to consider and Americans who want to invest in Spain attach (on third place) great importance to cultural affinity with the place.

“Americans want to feel safe.”

“The picture we got from the survey is very clear. Americans want to live close to the beach in a country where there is plenty of sun. They also want to feel safe and have high-quality healthcare,” said Ronan McMahon, founder and editor of Real Estate Trend Alert, who’s been a part of more than $2 billion in international real estate transactions over the past two decades.

“When Americans look to invest in property abroad, they do so for many different reasons with relocation being the most important one. People want to move to Portugal, Costa Rica and Mexico first and foremost. Panama takes the third place with retired Americans. When we look at the budgets that people have available to spend on property abroad, with a large majority not planning to spend more than $500,000, it is no surprise that we see Central American countries so prominently represented in the top three most favored countries.”

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MEET RONAN MCMAHON
AND REAL ESTATE TREND ALERT

Ronan McMahon’s Real Estate Trend Alert (RETA) is a real estate investment newsletter founded in 2008 by international real estate investor and author Ronan McMahon. It’s sourced and written by Ronan and his team of real estate experts who search the globe with boots on the ground for six-months out of the year looking for the best real estate deals. Since its inception, RETA has helped thousands of individual investors access off-market, insider deals in up-and-coming locales the world over. More info at www.ronanmcmahon.com.

Media Contact
Ray Young
Razor Sharp PR
512.694.6097
[email protected]

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