Why You Should Focus on the Foreclosure Niche In Your Real Estate Investing Business
The opportunities that exist in the foreclosure niche are huge right now and they are continuing to grow at a rapid pace. This is spurred by the increase in foreclosure rates across the country being led by California and Florida. Focusing on foreclosure transactions allows you to work on Luxury Homes without the traditional Risk you would normally assume by qualifying and signing for a mortgage.
In the Foreclosure Niche, you take control of a property by getting the deed and selling the home to an investor or owner occupant depending on the price range, neighborhood and condition of the house. By Focusing on Luxury and Higher end Home, you can make more profit per house with the same amount of work. When you combine this with the ability to short sale Jumbo Mortgages, Youve got your golden ticket.
Lenders are extremely flexible on negotiating high pound mortgages and jumbo loans because they definitely dont want these houses back. Would you rather make 10% of a 150 thousand pound home or 10% of a 1.5 million pound home? The Mortgage Marketplace has created such a large number of defaulted mortgages that it has created unlimited opportunities to do these types of transactions.
This is because of the very aggressive sub prime products they put out in the market place and their loosened guidelines for allowing weak borrowers to buy properties they normally wouldnt have been able to buy. They did this because of competition needed to get their money out in the market place. The Foreclosure Niche is the Best Niche in the Real Estate Investing Business because:
1. The ability to control High pound and High Profit Potential Homes with no Risk.
2. You dont have to have Good Credit because you dont have to qualify for mortgages in your own name.
3. You dont need a lot of money to get started. This business has very low barriers of entry.
4. You dont need any experience because if you follow my system, it will show you how to create the huge checks by following the step by step system.
5. You can purchase a foreclosure quickly because you have a motivated, cooperative seller.
There are not enough investors in the marketplace right now to handle the volume of homes going into foreclosure. We need more investors and Im on a mission to create very successful investors that want to get extremely wealthy over the next two to three years.
This situation wont last forever. Just 3 years ago it was very difficult to find these types of deals. Its so easy now, its pathetic! Take advantage of it while its here.
To get a Free 52 Week Foreclosure Investing eCourse, click this link right now: http:www.dcfawcett.com
When talking to people who are trying to sell their house I’m often asked the question, Why should I sell my house to you?
That’s a great question. Today’s house seller has lots of options: they can list their house with a real estate agent, they can try to sell the house themselves or they can sell their house to a real estate investor. None of these choices is necessarily better than the others: they each have their own advantages and disadvantages.
Here is what I say when asked why someone should sell their house to me:
1. I’m fast. In many cases, sellers are in a rush to get their house sold. Maybe they’re facing foreclosure or they’re settling a divorce. Sometimes the seller has moved because of a job and needs to sell the house quickly to avoid two mortgage payments. Or someone might inherit a house and they don’t want the hassle of dealing with the repairs and marketing necessary to sell the house.
Most people who try selling their house themselves or through a real estate agent find that it is anything but a fast process in most cases. Unless you are willing to sell your house at a significantly reduced price, in many markets you could find yourself waiting one to three months before you accept an offer.
On the other hand, because I’m an independent investor with private funds I can often close a house purchase in 7 days or less.
2. My offers are flexible. I make my offer fit the seller’s needs. If the seller wants to close quickly, that can be arranged. If the seller wants cash all at once or a monthly cash flow, I can do those, too. I can also make up past payments and take over current payments to immediately relieve money burdens on the seller.
I can be a lot more flexible with my offers than the traditional offers sellers typically receive. That’s because I’m independent and not part of a bank bureaucracy which has to follow lots of rules. I’m also aware of possible creative solutions to meet sellers’ needs that your average home buyer wouldn’t think of.
3. I’m open-minded. I might buy someone’s house when no one else will. In many cases I buy houses that have fire damage, termites, mold, foundation problems, roof problems or need major repairs. Houses with these conditions scare most buyers and real estate agents hate listing them because they know such houses are hard to sell.
I actually enjoy talking to sellers with houses like these because I can see the house’s potential value after all the repairs are made. I’m also not worried about extensive repairs as long as the after-repaired-value of the house justifies the expenses.
In conclusion, I encourage sellers to investigate all avenues of getting their house sold in the way that best meets their needs. If they decide that working with me to buy their house makes the most sense, then I’m more than happy to help.
Investing has become increasingly important over the years, as the future of social security benefits becomes unknown.
People want to insure their futures, and they know that if they are depending on Social Security benefits, and in some cases retirement plans, that they may be in for a rude awakening when they no longer have the ability to earn a steady income. Investing is the answer to the unknowns of the future.
You may have been saving money in a low interest savings account over the years. Now, you want to see that money grow at a faster pace. Perhaps youve inherited money or realized some other type of windfall, and you need a way to make that money grow. Again, investing is the answer.
Investing is also a way of attaining the things that you want, such as a new home, a college education for your children, or expensive toys. Of course, your financial goals will determine what type of investing you do.
If you want or need to make a lot of money fast, you would be more interested in higher risk investing, which will give you a larger return in a shorter amount of time. If you are saving for something in the far off future, such as retirement, you would want to make safer investments that grow over a longer period of time.
The overall purpose in investing is to create wealth and security, over a period of time. It is important to remember that you will not always be able to earn an income you will eventually want to retire.
You also cannot count on the social security system to do what you expect it to do. As we have seen with Enron, you also cannot necessarily depend on your companys retirement plan either. So, again, investing is the key to insuring your own financial future, but you must make smart investments!
When it comes to smart investing, all world news is forex news.
Forex traders know one of the advantages of their field is that the forex market is open 24 hours a day, five and a half days a week. But a 24-hour marketplace means theres forex news coming in constantly, too. With so much information coming from so many markets literally at all hours of the day, it can be hard to keep up with all the news available to you.
But at the same time, an informed trader is a successful trader. To make informed decisions on when to buy and sell currencies, youll have to keep an eye on all the news you can get your hands on. Many Web sites make it relatively easy for you by corralling the forex news into one place, often dividing it into subcategories for easy navigating. Any forex trader, whether new or experienced, should find a news source he likes and check it often.
Many of these forex news sites also offer commentary and analysis, beyond just a simple ticking off of the latest rates. Here youll find experts talking about the issues involved and perhaps offering insights beyond what you would have come up with on your own. Some news sites charge a registration fee for access to all their materials, but it can be worth it in the long run.
Aside from running 24 hours a day, another reason there is constantly a stream of forex news is that so many factors can influence a currencys strength. Natural disasters, government actions and other things — both foreseeable and not foreseeable — can cause a nations currency to go up or down in relative value. An experienced trader will look at all this news and know how to predict what effect it will have.
Often, forex news isnt labeled as such. Any economic news at all can affect the forex market; a sharp-eyed trader is on the lookout constantly for news that might impact his trading. In other words, a good trader will have to be an expert on world affairs, monitoring political, social and other developments in other countries. All of this, combined with the more specific forex news dealing with the details of exchange rates and so forth, gives you the information you need to be successful at currency trading.
What’s The Value Of A Real Estate Blog For Investors?
Developing a real estate blog allows you to build your business by building up a regular readership of investors and potential buyers. Unlike a website, a blog can bring you more business because people are more interested in the casual tone of blogs and are more likely to read blogs regularly.
If you’re doubting the value of a real estate blog for investors, don’t. Blogs are a wonderful way to build your business if you’re an investor. If you’re an investor, designing a blog intended for investors can help ensure that you have a steady readership of potential investors who may be interested in hearing about the latest property you have to sell.
For example, imagine that you set up a real estate blog for investors to share your best advice for real estate investing and your most recent adventures in investing in your community yourself. Eventually, you notice that you have hundreds of readers regularly. One of your properties is renovated and is ready for sale. You quickly put up an image and video of the property on your blog. That’s it. All your blog readers can look at the property and if any of them want to purchase it, they can contact you.
The truth is, there are many benefits to developing a blog:
1) Its a great online marketing tool. Blogs are fully searchable by search engine such as Google. This means that if you have a search engine optimized blog, anyone looking for real estate investors in your area, homes in your area, or any of your services can find their way to your blog. By simply considering keyword optimization when you write your blog, you can increase the chances that people will come to your blog from search engine traffic.
2) Its a great way to build traffic to your web site. If you already have a web site for your investment business, you may assume that you don’t need a blog. A blog, however, can in fact boost traffic to your web site. This is because blogs provide reciprocal links to your web site. This ensures that people from your web site move to your blog, and vice versa. The extra links also improve the search engine rankings of both your blog and your web site.
3) It is often far easier to get readers regularly returning to your blog than to your web site. Web sites tend to be static, with basic information and a professional design. While this can be very useful, many online viewers respond to a little bit of personality, humor, and wit. Blogs are a more casual form of online communication, and they allow you to express your true personality online. This can ensure that you get more readers. Plus, since blogs are updated frequently throughout a week, many people are more likely to bookmark blogs and return often.
4) Developing a real estate blog for investors lets you appeal to investors and first-time homeowners. Everyone can benefit from the tips that you outline in your blog. From homebuyers to investors, people may be visiting your blog fairly regularly, and this helps ensure that there is a wide array of potential customers ready to buy your house when you have a property to sell.
You have always been interested in investing in a business, however you always hold back because you are scared of making a bad choice and losing your investment. However, there are some ways to evaluate businesses to reduce the risk you are taking when you invest. Of course, risk is never eliminated, but when you properly evaluate what makes a business worth investing in then you will more than likely have your answer whether the company will be a success or failure before you invest your pounds. The following tips will help you make the right investment.
Investment Tip #1 Management
When deciding whether a business is worth investing in or not you need to evaluate the management because a business really is only as successful as its management. Because of this you want to evaluate if the management is knowledgeable, rational, and able to make the right choices to make the company money and prevent it from losing money. Of course, this is an easy question although the answer is a little more difficult.
Investment Tip #2 Business Plan
A business plan that is well laid out and shows positives, negatives, and how the company and management will handle problems within the business is very important. A good business plan shows that management knows where the company is, where it wants to go, and what it needs to do to get there. Be sure you take a look at a companys business plan before you invest.
Investment Tip #3 Return on Investment
The ROE, or return on investment, is also crucial when you are considering making an investment in a company. Of course, the ratio of equity to debt can be confusing, but if you evaluate the ROE and other economic factors you should be able to tell if the company is bringing money in or losing it.
Investment Tip #4 Room for Growth
Making sure the business has room for growth in its market is also important. A company that has little competition is preferable, but a company with a moderate amount of competition and a plan to be number one is ok as well. Just do your research.
When you are interested in investing in a company you need to take your time and evaluate the company, look over financial statements, talk to management and have all of your questions answered to your satisfaction. After all, it is your money and you arent going to give your money to just any company. So, be sure and confident in the company and have that backed up with proof and you will decrease your risk investing in a company.
Was that House a Good Investment? The Answer may not be so obvious
I am surprised how many people dont know the difference between enterprise value, which is the sales price of a home (debt plus equity), and equity value, which is what is left at the end of the day when you sell your home and pay off the mortgage. In determining whether this was a good investment for you, it is only the latter calculation that matters.
Most people simply look at how much the value of their home has appreciated since they bought it, and compare it to what they paid. Lets say someone bought a home for 500,000 a year earlier and their neighbors identical home just sold for 550,000. Simple math would suggest a potential 10% return in one year (a 50,000 profit on a 500,000 purchase). This, while straightforward, is not an accurate calculation for several reasons.
First, it is critical to factor in transaction costs on the sale of your home and deduct them from the gross sales price to see how much of the sales price you have left. These include what it might cost you to prepare the house for sale (painting, landscaping, staging in some cases, etc.), as well as real estate commissions and other transaction related costs. Lets say in our hypothetical example our seller would invest 10,000 in sprucing the place up for sale, and the real estate commission plus other closing costs on the hypothetical 550,000 sale might be another 33,000 (say 6% of the sales price). Thus that 550,000 sales price results in only 507,000 after these transaction-related costs, implying a mere 1.4% return (7,000 profit on a 500,000 purchase price), right? Wrong again.
To calculate your investment return you need to compare your profit (or loss) to the equity you have invested, not the entire home price. Lets say you put 5% down to buy the home, which equated to 25,000. Your 7,000 profit in this case actually represents a very attractive 28% return on your investment in only one year. One way smart homeowners can increase their returns is to appreciate how much the return on their invested equity can be enhanced by saving say 1% in the agents listing commission. In the example above, a 5% sales commission vs. 6% would have increased our hypothetical sellers return on their 25,000 of equity investment from the 28% we just calculated to an astonishing 50% (12,500 profit on the 25,000 investment).
A couple of basic takeaways from this: First, make sure to factor in all costs of a transaction. Second, understand the difference between the aggregate home value and the equity you have invested in the home, which is what impacts your true economic return. Third, appreciate the impact sales-related costs can have on your return. While a 5,000 commission difference seems relatively insignificant in the context of a 550,000 home sale, it is VERY significant in relation to the equity investment in your home, which is the basis of determining your return on your investment.
The Key to Successfully Investing in Investment Real Estate in Latvia
With annual real estate price gains in the region of 40% achievable from certain areas of the Latvian property market, surely the key to successfully investing in real estate in Latvia is just getting into the market right now and enjoying the record price increases?
Well no actually!
While property price gains of 40% in parts of Latvias capital city of Riga have been recorded and have resulted in a surge of overseas investor interest in this new European Union member state, the key to long term success is in understanding the local Latvian economy.
Although Latvia is an attractive, interesting and historic country of diverse geography which creates a stunning natural environment for tourists to explore, it is not a tourism hotspot and not a country trying to target tourism. Rather it is a country with a government committed to transforming its economy from the one paying the lowest wages in Europe to the one attracting the largest amounts of foreign direct investment in the European Union.
The success or otherwise of the Latvian governments commitment to improving levels of foreign direct investment and boosting the local economy is key to the ongoing and long term success of the investment real estate market in Latvia.
Why?
Because a real estate investors target audience whether for rental property or resale real estate is the local Latvian people. And if their government can continue to improve their economy, push up GDP, increase the wealth of the common man and make owning property a real prospect for more and more Latvians as is their vision, then a real estate investor buying into an incredibly cheap market now will have a growing audience gaining in wealth status to target for his rental income or equity appreciation in the future.
An indication that the Latvian real estate market is going to prove successful and that property investors who carefully select their investment real estate assets in Latvia will profit from them over the medium to long term is that the mortgage market in Latvia, which is in its absolute infancy, is gaining substantial strength.
Interest rates in Latvia are incredibly low in real terms and outstanding mortgage loan figures in Latvia are at least 40% lower than in other EU countries. This means that more and more local and international lenders are becoming aware of the huge potential for profit in Latvia and are beginning to enter the marketplace this should give an investor great confidence for two reasonsfirstly the financial institutions committing to the mortgage marketplace are not in it for the short haul and secondly the increase in availability and affordability of home loans means that an increasing number of Latvians are being afforded greater purchasing power and are gaining in financial strength. Because, as stated, it is the local market that will ultimately provide an investor with his target audience, this bodes well for the long term profitability of property investments made in Latvia today.