Kentucky Real Estate Business

Posts Tagged ‘Business’

Is your career going nowhere? Are you stuck in a dead end job? Have you struggled formerly to get past an employment interview for that great job? Worry no more – there is an answer to your questions! Just set up your own real estate agent business – however where do you start?

Having your own venture means you are no longer the one who takes the instructions (or shouldn’t be); by all means be a first-rate boss take note of your staff (if you have any), pay attention to their recommendations and reflect upon the information they give to you. Now it’s your job as the boss to organize this knowledge and put plans into action…”failing to plan is planning to fail.”

This is finally it; you’ve completed the jump and you’re operating your own business. This is the moment when you need to truly focus on what you want for your business and your way of life.

Try to keep the two separated as much as possible…this can be really problematical for a good number of people in particular if you now work from home. Bear in mind though the main of working for yourself was to better your life as a whole. Don’t let the new business be “An Albatross around your neck”…it’s there to get you the rewards you have always wanted.

However having lots of money in the bank is a relief.

For your own personal regard; think of the feeling you have compared to being in an everyday employment or no employment at all. It is a lot easier to get out of the sack at daybreak knowing you are building a business for yourself and your relatives; you’re doing it for your boss – who you might not even get on with.

We live in a big world; their are thousands of real estate agent businesses – but they aren’t all identical; as a new entrepreneur it’s your duty to run your business the most professional way you see fit by your experiences you’ve gained in life so far.

Not many people begin their own business – most people don’t have that “daring do”. The point is do you have it? Are you motivated to do well in business as well as in life?

Start-up your real estate agent business today!

http://business.ezinemark.com/start-up-your-own-real-estate-agent-business-16dd208be65.html

What do you do when you have cash flow issues?

This can cripple your business whether you are an experienced real estate investor or if you’re a beginner. In early 2002, I had hit the wall. A ,000 a month negative cash flow problem. I’d just quit my J.O.B. of 17-1/2 years so I could achieve my dream of becoming a fulltime real estate investor.

I thought I had this business all figured out. I’d attended great live events and studied at the feet of the masters. I didn’t foresee the downturn in the rental market in my city and it reached up and bit me. I hadn’t done the job of finding private lenders, so I couldn’t fund my business.

Ouch!!!

Fortunately, I had a 15 minute coaching phone call with Ron LeGrand because I had signed up for a mentoring program with him. That 15 minute call got me on the right path.

He even made me the feature article on a monthly newsletter he published that month.

Some of actions he gave me were:

1) Get out 10 pointer sign for each empty house. Replace the ones that come up missing each week. Get the empties filled.

2) Get a mortgage broker that will handle C&D credit and get some of my lease option tenant/buyers cashed out.

3) Cut back on buying houses and focus on selling.

He had more actions and I’ll share them in a future newsletter.
Let me list a few ways to get out of trouble or at least generate some near term cash…

1) Refinance!

Yep, if you’re paying a private lender 15% and you are holding the property longer than planned, you need to make sure you don’t get upside down on the property. Watch your profit margin. If you need too, either bring in a private lender at a lower rate or find a lending institution for 6% or 7% and refinance. Now, you’ll need to do the math and see where the breakeven is:

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a) Loan x 15%/12 = interest per month
b) Loan x 6%/12 = interest per month
c) A – B = $ saved per month
d) Closing cost $ / $ saved / mo = breakeven

So if the breakeven calculation comes out to 6 months then if you are going to hold the property longer than 6 months, then do the refinance.

2) Find at least 3 mortgage brokers and let them compete for your business.

3) If you have a bunch of equity in the property…

a) Sell at full price and if need be, carry back a 2nd mortgage and then sell the 2nd. Hint: How to sell a 2nd? Run an ad in the local paper.
b) Wholesale to a RE investor
c) Cut price and look for a cash buyer

4) Look at your ‘model’. What I mean by that is to take a hard unbiased look at the structure of your business. Is it making you money? Do you know your real numbers?

Let me give you an example. When I got into the business, I was using a buy & hold philosophy of low end properties. It worked but I wanted to make more money and not wait years to payoff the property to have a great cash flow.

So, I decided to buy, fix & sell the same houses with a lease option exit strategy. I’d fix the property to sell and not to rent so I had a larger lien on the property.

It didn’t work. The reason it didn’t work was because the tenant/buyer had a ‘renters’ mentality on these low end houses.

They would live in the property for a few months to a year and then quit paying. I’d evict, put ,000 back in the property to get it up to speed and then do it all over again (and again and again).

When I did the math, I realized that I wasn’t making the profit I had expected. To top it off, when I did get one of these closed, I’d end up carrying back a 2nd mortgage. Ouch! That just added insult to injury.
Let me give you a model that might work for some of you.

1) Target a medium price range property or higher.
2) Purchase for all cash using private money. Let the money accrue.
3) Fix and retail.
4) If not sold by 6th month, then refinance at 6-7% interest
5) This frees up the private lenders money so you can use it again.
6) Put a lease option tenant or land contract (contract for deed) buyer in the property. This covers your monthly expenses.

Look at all the upsides to this model. You buy a property for all cash and have zero holding cost. You are trying to retail and get quick cash. If it doesn’t sell you go for soft terms, free up the private lender money so you can use it again and get a cash flow property because you refinance the property at a low interest rate.

This cookie cutter approach will make you wealthy.

5) Tenant/buyers that have credit challenges…

a) If they need to open up a credit line to get financed, I hand them the form when we do the lease/option or land contract (contract for deed for some of you).
b) Put an escalation clause in the contract both on the price of the property & in the monthly rent/mortgage.
Something I am currently testing…

I am purchasing credit repair packages and then offering them to my tenant/buyers that have credit challenges. I’ll keep you posted.

In closing, I realize some of the items above might not be very popular with some of you but on the other hand, it might be a life saver to others.

The key to all of this is to take action

http://www.articlesbase.com/business-articles/lack-of-cash-flow-can-destroy-your-real-estate-business-in-days-2772200.html

By Ferdinand Kjaerulff

At a time when the number of homes on the market is increasing, prices fall and they take longer to sell, typically with the least well advertised taking the longest to sell. Very often the buyer finds it difficult to envisage how your home can be remodeled or refurbished once he or she has moved in. This is a challenge that is difficult to resolve simply with the pictures from a traditional real estate broker, floor-plans or time-consuming viewings.

Emphasizing its typical approach to this market, a web-based design tool launched by RobinHus.dk offers completely new opportunities for streamlining the sales process and reducing the cost of real estate trading. The RobinHus tools allow visitors to the website to experiment with all the opportunities presented by your home in a way that can encourage buyers to place a greater value on your property. When the interior of the dwelling is decorated according to the buyer’s own tastes and preferences, there is huge potential for increasing the value of what is otherwise just another empty room, standard picture or one-dimensional floor-plan.

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LoveMyHome is not just a representation of the property as it is – or how the seller would like to present it – but is quite literally transformed into a “”playground” in which the interested buyer can fulfill the full range of his or her dreams for the potential new home.

It also represents a whole new business model for the housing market, in which real estate agents and internet sites can add monetary value to their web traffic through a brand new online design experience. This new way of presenting homes for sale benefits “product placement” as a relevant and valuable service to the online visitor and potential buyer – in contrast to the largely irrelevant and intrusive banner advertisements that frequently detract from the display of homes for sale.

It also represents a whole new business model for the housing market, in which real estate agents and internet sites can add monetary value to their web traffic through a brand new online design experience. This new way of presenting homes for sale benefits “product placement” as a relevant and valuable service to the online visitor and potential buyer – in contrast to the largely irrelevant and intrusive banner advertisements that frequently detract from the display of homes for sale.

http://www.articlesbase.com/interior-design-articles/creating-value-for-your-real-estate-business-4856147.html

The majority of us are smart sufficient to realize that no real estate system is infallible, and if there is anything seems too be fine to be true, it probably is. However, that doesn’t imply that you need exceptional credit and an excess of cash to get started in real estate. Here is some strategy for financially-constrained hopeful investors to begin generating real estate currency flow.

Try to be a Dealer:

There are two types of quick-sale real estate investors; one is retailer and other is dealer. Retailers are those who buy properties outright and sell them for quick revenue. Retailers risk is highest, but so is their possible reward. Contrary to the late-night real estate televangelists, retailers typically need extensive cash for a down payment, and at least for the decent credit.

But in the case of dealers, by contrast, buy and sell contracts and not properties. They find negotiate properties and sign purchase contracts with their sellers. Dealers then sell these properties or simply the contracts to retailers, making a solid profit in the process. This is known as assignment of contract. Generally, the only money required is the earnest cash to secure the deal. A good dealer can then flip the contract for a quick without ever taking ownership of the action.

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Try to use a Double Closing:

A double closing allows a trader to earn a higher profit margin than a project of contract. With an assignment of contract, there is forever possible that the deal will eventually fall through. The dealer is secluded in this case because she has already received her proceeds from the sale of the contract, but the retailer who buys the contract from her is suspicious of the deal declining through, and thus, will factor it into the cost he is willing to pay. With a double closing, the dealer assumes more danger, because if the deal falls through, she receives nothing. However, with this greater risk comes a greater reward.

A double closing begins with the trader signing a purchase agreement with the property owner. Then the dealer signs an agreement with the retailer, in which the retailer agrees to buy the assets from the dealer at a higher price, and deposits that quantity in escrow. The property owner signs the deed to the dealer, who then signs it to the retailer. The retailer then signs the loan papers, and the process is to be end – the property owner is paid his asking cost, and the dealer is paid the differentiation. Note that the dealer came to the table with no cash, and her credit was never a matter.

Need some investments for Real Estate Success

There are some ways to get benefit from real estate without significant financial investment. However, it doesn’t mean that success comes free and easy. At the very smallest amount, you will need to make a considerable investment in yourself. In order to achieve something, you must be willing to work hard with enthusiasm. Even with a million dollar real estate collection, your brain will always be your first and most assets. Ensure to invest in your education on a daily basis, and learn as much as possible about your local market, real estate law, and investment strategies.

http://www.articlesbase.com/real-estate-articles/start-real-estate-business-with-least-investments-1410057.html

Article by Joseph B. Smith

The large number of foreclosed properties in the market today not only presents a great opportunity for people to own new homes, but also to earn a profit in the real estate industry. With properties in home auctions usually getting sold at less than half their original prices, interested investors can easily turn a profit through a buy-and-sell venture or rental business. Properties being bid out in the market are also quite extensive; they come in all forms, shapes, sizes, and locations. This gives investors flexibility in deciding which piece of real estate to target.How to Jumpstart Your Real Estate InvestmentThe trick to taking advantage of these benefits is getting the lowest possible price in home auctions and identifying the additional investments that would allow you to rake in a bigger profit margin. Knowing how much you might have to spend in possible repairs and upgrades on your target home would also help you plan your bidding strategy well if you intend to do a house flip.For those interested in investing in rental homes, doing a research on a particular area, especially those that are densely populated that could be suitable for such homes, can be quite helpful. On the flip side, you may also want to target certain customers who would want to have homes in quiet neighborhoods. Simply put, doing your homework and planning ahead will get you along way in the real estate business. And although all these things would seem quite tedious to undertake, online listings providers are at hand to help you in this endeavor.Online listings providers basically lays out all the information you would need on distressed properties being auctioned off by banks, homeowners and other institutions. By simply browsing through thousands of such homes through the Internet, you would be able to increase your chance of coming out with the best possible investment decision.Therefore, you would not have to personally do a house-by-house check on all the properties to see which ones need repairs or refurbishments. Foreclosure listings also provide up-to-date schedules of upcoming or ongoing home auctions, thus ensuring you do not miss out on the latest homes to hit the market.

http://goarticles.com/article/Starting-Your-Real-Estate-Business-with-Home-Auctions/4104651/

Article by Antony White

When a person fails to pay the monthly mortgage installments, his home in question comes under foreclosure and such foreclosure homes are sold by banks, lenders or government agencies to collect the debt. Such foreclosure homes can be purchased by others and the buyer gets a chance to save anywhere from ten to fifty percent off the market value, which is incomparable to any other profit on real estate.

In fact, buying a foreclosure home has become a lucrative business and the reasons for choosing a foreclosure home are many. It may be that a person needs a home to satisfy his business aspirations or it can be just to realize the dream of acquiring a home at an affordable price. This makes the job of hunting for a home much easier.

In fact, foreclosure homes are of many categories like some of the foreclosure homes are under the control of the government, some under the department of veteran affairs while others under the US department of housing and urban development. There are some banks that own some foreclosure homes.

Foreclosure homes are a good profitable real estate business, provided, the buyer knows the tricks of the trade. As most of the foreclosure homes need considerable repairs, it would be profitable only if the buyer acquires them at a significantly below market rate. Sometimes the buyer will face the challenge of vacating the homeowner who might refuse to do so. This may cause unnecessary stress and a lot of expenses for the buyer. These situations are quite common when foreclosure homes are bought through auctions, although they are available under market value.

But there is a way out to avoid this headache and it is better to purchase a foreclosure home from the home owner directly. When the buyer is short of sufficient funds to purchase a foreclosure home, he or she has to obtain pre qualified financing that would offer extra bargaining leverage and ensure that the buyer is qualified to buy the foreclosure home.

For someone who is naive to buying a foreclosure home, there is private real estate investors who purchase real estate owned properties and are in a position to guide through the process. In addition they can help to locate a foreclosure home more quickly. The buyer has to ascertain whether there are any liens attached before buying a foreclosure home because creditor and tax liens can be a legal hassle that warrants a lot of time and money.

Purchasing a foreclosure home and a normal house makes a lot of monetary difference which is the main bait in this business. Foreclosure homes can offer great profits only if it is invested, knowing all the intricacies involved and taking every step with great caution.

http://goarticles.com/article/Foreclosure-Homes-as-Profitable-Real-Estate-Business/1239910/

Article by I.Poral

We can’t deny the fact that blog nowadays, is one of the most effective and inexpensive real estate internet marketing tool that brokers, agents and real estate professionals are preferred to use. Over the past few years the used of blogs in promoting a real estate business have been growing in an extremely rapid rate.

Start a blog now for your business by first choosing the right blogging platform that you think will best work for you. Then, start right away by providing such high quality information regarding real estate in your blog. Starting a blog is easy, but you should first to know some of these basic tips to make your blog be more effective, competitive and successful.

Time and quality content – having a blog really requires a lot of time to spend in writing and posting a content regularly. Search engines like with the Google always like a blog site with fresh content and having a constant blog post a day will help your blog rank higher. With that you will be receiving a sufficient amount of traffic that will help your business grows in the form of leads.

Inter act with your site visitors – respond to each of the email that you receive and each of the comment posted by a prospect clients and let them know that you are an expert in this field. Just keep on continue answering and giving them with valuable information for them to build a trust with you.

Connect with your local community – involve yourself in your local community by attending in the neighborhood meetings, activities and events. Joining this kind of network will really help and benefit your blog.

Be as what you are in your post – in writing a blog post just think that you are having just a casual conversation with others. Just use words that you are using in your daily conversation for the readers to relate and understand the whole idea of your post. This is how you can capture the eyes and mind of the readers.

http://goarticles.com/article/Tips-on-how-to-make-your-real-estate-business-blogs-be-effective/2669384/

Article by Sara Reid PhD

Investors in the real estate business can make mistakes when the market is up as well as when the market is down. When the market is down the results of those mistakes tend to be even worse. Just because you have all cash or plenty of back-up does not mean that you cannot make a mistake.The investors with the least money tend to “hype it up” when trying to get others into their deal. Every person that has something to do with the deal needs to have some “skin in the game”.Some of the mistakes that investors make are discussed below.1. Violating the Securities and Exchange Commission laws: Investors get so caught up in trying to make a big profit that they try to get a number of other people involved in their deal. The SEC violation comes when you promise a Guaranteed Investment yield on real estate. There are people in jail for doing such things. There are ways to involve others in your investments and one of those ways is to have all parties have some sort of direct ownership in the property.2. Not doing through due diligence: You can lose your shirt by omitting one little piece of information, such a zoning laws. Environmental laws can also be a big issue, so do not ignore finding out about these potential problems. A few years ago I found a property where I wanted to build a small apartment building. Everything seemed to be going well then I found out that there was an endangered bird near the property so I would not be able to build. 3. Starting to build a commercial building before getting permits for everything: Many building departments will allow you to start building your structure when you get the site plans approved, even before all the plans for the project are approved. Don’t expect one department of the government to actually talk to another department. You may have as little as a 50% chance that everything about your plans will be approved. A contractor friend of mine got a permit to install 150 windows. In the middle of his project the county changed the requirements and he had to change all the windows he had already installed.4. Not getting a survey done before you buy: Property lines need to be established clearly before you purchase. Any possible disputes or problems need to be handled before you take the next step. The former owner may tell you that there is enough land for you to build your mini storage unit complex. He could be right about the past zoning, but the property laws may have changed since he last checked. The zoning laws may now require a lot more land to build your complex. Sellers are not usually out to take advantage of you but it is not their responsibility to do your due diligence. 5. Expecting someone else to do your due diligence: This is especially a problem when you get involved in an investment in another state or out of your area. Keep in mind that no one cares as much about your money as you do. You may know the laws and problems in your area or state but you may not know the laws in the state you are looking to invest. If you have a partner who lives in the other state then send him a very long list of things that you want answers to before you take the next step. Never assume that someone else, even a partner, will get all the answers you need and want. 6. Not finding out about the state of the area economy: Just because your area population can continue to support an apartment building does not mean that the area where you are looking to invest can continue to support all of the apartment buildings in that local area. Find out about the unemployment rate, other properties that are selling, plans in the county, growth trends in the area and much more. What good is it to own an apartment building if there are no renters? This can result in a huge drain of money. Notwithstanding all the other problem that come with a low occupancy rate.

You cannot imagine the problems that you can encounter, especially when you are not prepared. When you go into the real estate business prepared for all kinds of things, you will do a lot better, make more money and not have a heart attack in the meantime just because you did not cover all your bases.The more education and information you obtain about the real estate business the better you will be prepared. Just because you have all the education, experience, money and experts to help you there is no guarantee that you will not run into problems.

http://goarticles.com/article/Real-Estate-Business-6-Deadly-Mistakes/3375848/

Article by Cedric Welsch

SEO services for real estate are necessary if you are to bring your real estate business online. Every day, people are closing deals using the Internet as the medium. If your business does not have a presence online, then you suffer a good deal of loss because most of your competitors are already promoting real estate properties online.

What Is SEO and How Does It Work

Search engine optimization (SEO) is an important aspect of any advertisement campaign on the Internet. If your business website is not easily searched on the web or is not on the top ten search engine results, then it will suffer low traffic and sales conversions. Hence, the website’s pages need to be optimized properly.

There are various ways of doing SEO: through on-page optimization, off-page optimization, or pay-per-click (PPC) advertisement. Each of these types contributes to the site’s search engine rankings. Optimizing the site on every page requires the use of relevant keywords in the page content, URL, meta tags, page description, file names, etc. Optimizing the site off-page requires creating back links in other relevant websites. The back links should direct the visitor directly to the exact page URL you want to optimize. This can be done through article marketing, blogging, and blog commenting. PPC is another approach, but this type of optimization does not come free.

Choosing an SEO Company

The process of optimizing web pages is not an easy task. It has to be done in an organized manner by an expert. If the process is done incorrectly, it will either do nothing to raise the site’s page rank or worse, have the site banned from Google. Therefore, hiring the services of an excellent SEO company is a must.

To choose the best company to work with, do some research on the Internet and select as many companies as you can handle. Find out how many years they have been in the industry and see if their previous clients are happy with their work. Do not always rely on on-page testimonials. Check outside sources like forums or blog comments.

Find out how much they charge as well for specific services and determine if they do provide various optimizations services. Keep in mind that SEO has to be done in as many ways as possible to get the best results. As long as you choose the best SEO services for real estate, you will not have to worry about not getting ranked high on the search engines.

http://goarticles.com/article/There-Are-SEO-Providers-That-Specialize-In-Real-Estate-Business/4648371/

It is a very popular business in Calgary. The agents of it are famous all around the globe. It is basically a place for the tourists.

is a type of business in North America. This place is famous for its exceptional beauty. It is one of the populous cities in North America. It is fully covered with Rocky Mountains. In this place there are some urban parks which are famous all around the globe. These parks are really very broad. In Calgary the winter games used to hold every year. It is also a place of eco-tourism. Many tourists used to come each year the scenic beauty of this place. And those come to this place easily get influenced with its beauty. They try to get a home or a flat in Calgary.

is the brokers of homes and flats. Anyone who have planned to take a flat or a home in Calgary should contact with these brokers. It is metropolitan city. It has many beautiful resorts. The economy of the Calgary is mainly depended on the petroleum industry. Other things like agriculture and other high-tech industries generally contribute to its economic growth. This city is situated in Canada. It is the first place where the winter games first held in 1988. Winter games are generally held here.

In Calgary the business of the is very famous as because the homes or flats in Calgary are of great demand. The agents of it are really famous around the world. They provide every facility to the customers. Calgary is bordered by the Foothills to the west, Rocky Mountain and some urban parks. Calgary has a number of green parks or the famous urban parks. These parks are famous for its extensive boundary. Calgary the winter games used to held every year.

agents are famous all around the globe. This place is famous for its exceptional beauty. The economy of the Calgary is mainly depended on the petroleum industry. This city is situated in Canada. It is also a place of eco-tourism. The agents provide various ranges of prices. The homes or flats in Calgary are of great demand.

http://www.articlesbase.com/software-articles/calgary-real-estate-business-is-a-popular-business-4360536.html

Every day I have somebody ask me what I do. I say “I’m a real estate investor”, that’s when I start getting the eye rolls. Then the excuses start flying. Just the other day I had a guy say “I tried to rehab an investment property, but the market was just too bad, I couldn’t get the project completed, I ran out of funds and that is that”. When I hear words like this I just smile, because that guy is not a real investor. So that is why I’m writing this article. I want to give you 3 awesome tips so you are not the guy or gal who is sitting on the side lines while the rest of us are taking advantage of a great buyers market!!!

Tip # 1 – Train Your Mind

Having a strong mind is probably the best thing that you can do for yourself in any business. However, this is especially important in real estate investing. Most failures come when the mind tells you it is time to quit or maybe it tells you to never get started.

The difference between the wildly successful investors and Mr. I do one deal a year is that the successful investors believe that they can do anything! They never say I am going to try and flip a house. The successful investors say “I am going to flip a house and I am going to make at least 20k doing it!” So, train your mind! Break through those barriers and do whatever it takes to get you into a state of mind that is tough as nails.

Tip # 2 – Learn How to Evaluate a Deal

This is a very important aspect of investing and one that you must make sure you do and do well. First off, get yourself a good book on how to estimate repairs and learn it inside and out. You don’t have to know everything to a “T” but you will need to know how to ballpark an estimate and quick.

This is what is going to make sure you get the majority of the deals you come across. When you are negotiating with a seller you do not want to be the guy who says let me go crunch some numbers and I will get back to you. Those are the investors that end up calling the next day only to find out that somebody who knew what they were doing came along and put the property under contract. Once you figure out how to ballpark repairs then there is a simple formula that will give you the maximum price you should ever pay for a wholesale deal.

ARV*** (After Repair Value) * 65-70% – cost of repairs
***after repair value is found by pulling comps and seeing what similar houses are selling for in the area within the last 90 Days

So learn this formula and learn how to estimate repairs and this will give you the confidence you need to make offers.

Tip # 3 – Take Action

This is the most important step of all! Taking action is what is going to make you money in this business. I see this everyday especially in my market here in St. Louis. We often times run into investors looking at the same properties my partner and I are looking at. St. Louis is small enough that we often run into one another. Anyway, bottom line is there are several investors around here and other parts of the country that will go out and look at 100′s of house only to do nothing at all with them! Now, I can only speak for myself and my partner here, but if we are taking the time to go look at 100 houses I know based off of our ratios that we are going to take action and flip at least 30 of them. In fact, those were our ratios when we first got started, now we screen all the deals so well that if we are looking at 100 houses 80 of them better work out or we are doing something terribly wrong. Anyway, do yourself a favor and take action. Even if it is just reading a book about real estate investing, I guarantee that if you do something everyday that puts you a step closer to your ultimate goals of being a successful investor that in a years time you will have accomplished a lot!

Go Out and Be Successful!!!!

http://business.ezinemark.com/turn-up-the-heat-in-your-real-estate-investing-business-4f2a0758cd2.html