How to Sell Your Real Estate Note

Author: Peter Doblerbr
Source: articleage.combr
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Unlike traditional residential real estate mortgages, real estate investment financing is way more creative and offers more options than you think. The golden rule in real estate investment is OPM (Other Peoples Money).
I have enough money; shouldnt I buy my real estate investment for cash? No, I absolutely advice against investing large sums of cash into a single real estate investment. There are two reasons why not. First, you give away most of your profits by not leveraging your real estate investment. Second, it is far too risky to put every egg into one basket.
Let me explain the leverage issue for a moment. I will give you an example of a $100,000 investment property that typically increases its value (appreciates) by 7% average a year. Maybe more, maybe less depending where you live. Paying all cash for this property will yield in a 7% appreciation profit plus the net profit from renting the place. Now youre looking at roughly 15% of returns.
If youre conservative with your investments you might be satisfied with this kind of a return. These days you might get equal or better returns with other conservative investments minus the hassle of being a landlord. But you dont mind being a landlord, because you understand and utilize the leveraging method with financing your real estate investment.
With the example above you will make roughly $15,000 a year in profits from your investment. Now lets take a closer look at what leveraging can do for you. Today a typical real estate investor can get financing as high as 95% – 97% of the purchase price. Occasionally 100% financing is available as well. But this would be totally unfair in this example to compare this with all cash purchasing.
15% return sounds like a lot, but wait till you see this. Lets assume that the rental income will cover all your expenses including the mortgage payments. Taking the same example from before your net return would be the 7% appreciation profits of your property. This would translate into a $7,000 a year profit. With a 95% financing in place you would get $7,000 return on $5,000 (your 5% down payment) invested. This is a whopping 140% return on investment.
With the same $100,000 you can go out there and get 20 investment properties, finance 95% of it and make an amazing $140,000 profit a year. This beats the projected $15,000 profits with an all cash transaction any day.
Of course you will have a lot of trouble to get financing for 20 properties in a single year. Typically 5-6 new rental property mortgages are the maximum lenders will allow these days. This is the signal to get creative with your financing structures.
In this case sellers financing would be your key to achieve your goal of maximum leverage of your investment dollars. Despite the message from all these late night infomercials, seller financing is harder to get than they want you to make believe it is.
It all depends on the sellers ability to offer seller financing and the sellers motivation. Only about 1 out of 20 properties for sale are able to get seller financing. That means that theres no mortgage balance on the property. From this narrow selection the seller must be motivated to sell under these conditions. This could be tax reasons, time constraints, personal reasons and many more.
As you can see this translates into a lot of work to achieve your goals. But let me tell you one thing. This separates the tire kicker real estate investors from the real go-getters. Wouldnt you agree that a little bit of hard work and determination is well worth it to build a real estate empire?
I think it is well worth the trouble and hard work. At the end of the day you keep building your real estate investment portfolio and sooner than later you will be able to cash in.
Sincerely,

Peter Dobler
(c) 2005
Peter Dobler is a 20+ year veteran in the IT business. He is an active Real Estate Investor and a successful Internet business owner.
Learn more about real estate investments at http://www.doblerproperties.com or send a blank email to mailto:suncoastrenttoown@getresponse.combr
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Author: Jack Sternbergbr
Source: ezinearticles.combr
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Think about this for a moment. Who are todays real estate investors? Basically, theyre everyone from the butcher to the baker to Joe the Plumber. Anyone who wants to call themselves an investor – whether they have money or not, experience or not, professional training or not – is a creative real estate investor.

A diverse group, no doubt. However, it may be safe to assume that it is this very diversity which leads to some very significant weaknesses among creative real estate investors.

Due to the lack of coherence of this group, real estate investors are not well represented politically on a state or national level. By contrast, the mortgage bankers, realtors and other players in the system are very cohesive and very well represented. As a result of this cohesion, the mortgage industrys interests are well protected during the development of new regulations, and they are usually the ones who get to dictate what changes are made, and who these changes really benefit.

A case in point is the new Uniform Closing Instructions (UCI) ready to go into effect shortly. They were written by the American Escrow Association, The Mortgage Bankers Association, and The American Land Title and Trust Association who wanted to standardize the closing instructions across the nation in order to make things work better.

If you were hoping that your interests, as a real estate investor, were considered during the crafting of the UCI, think again.

After all, can you picture the committee of the three associations mentioned above (AEA, MBA, and ALTA) sitting around worrying about the fate of the creative real estate investor?

The purpose of the UCI is NOT to protect the real estate investor; its to protect the homeowner and those committees who crafted the new regulations.

Because the creative real estate investor has no representation and plays absolutely no part in the creation or enforcement of these regulations, the real estate investors interests have not been considered in the UCI. I want to make sure you understand that the investor is the last man or woman on the totem pole when it comes to the changes that will affect the real estate industry once these regulations are introduced.

Once put into place, the UCI will have two profound effects:

First, its intent is to protect consumers against fraud without need of Congressional action.

Second, (and this is the part that affects investors the most), it will spell the end of non – traditional deals – short sales, flip sales, double closings, etc. This means there will be a shift back to conventional mortgage practices and traditional investment strategies.

What does this mean to you? It means that most real estate investors will need to be cash buyers who can buy and hold properties for 12 – 24 months. That leaves out a lot of investors.

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pI recommend you claim a copy of my free report, The Uniform Closing Instructions Exposed: Critical Factors You Need to Know In A Dramatically Changing Real Estate Investing Environment at a target=_new href=http://www.uniformclosinginstructions.com rel=nofollowhttp://www.uniformclosinginstructions.com/a/ppYoull find out more about the UCI, as well as real estate investing strategies which comply with the new regulations. I am a nationally recognized expert on real estate investing whos been in the business for more than 30 years. My deals have totaled over $750 million and hes been to the closing table more than 1,500 times. I enjoy sharing my money-making insights and experience with other real estate investors./pbr
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Author: Nick Cifoniebr
Source: ezinearticles.combr
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One of the ways to find leads is word of mouth. Its really important that everybody you know is aware that you are into real estate. Youre the person they know that buys houses. You never know where your next deal will be coming from. We spend a lot of time and effort to generate leads, and sometimes it is right in front of our faces if we just went out there and talked to more people about it. When I was new in the business, I was real self-conscious about it and shy before I did a lot of deals. You are what you think you are and by talking about it, it is more likely to happen to you. Make sure that the people you hang out with know that you are a real estate investor and looking for deals. You dont have to let them know what kind of deals you are looking for, but let them know you are always looking to buy houses and getting deals on property. As those people stumble across deals or hear of other people selling houses, they are most likely to refer people to you. It is also a good idea to mention to people that you pay for referrals. My business card says on the back of it, $200 or $250 will come to you if you bring me a house for sale. If we buy it, you get $200.

Secondly, you should have business cards with you. Leave them around. I have two different types of business cards. Ive got my business card that says on there that we buy houses, cash reward paid, find me a house, we pay $200, etc. Those are the ones I leave around at a restaurant or at a gas station on top of the gas pump, or wedge them on the sign. If I go to the bank I will leave a couple of them on the counter. I just give them to people randomly and let them know I buy houses. I have another card that is a little more professional that has my name, business name, and my logo on there. I give that one to lenders, bankers, and tenants. The bright colored ones are best for leaving them at gas stations and restaurant. There is another type that looks like a folded $100 bill that people will pick up even if you leave it on the ground. You just never know where your next deal comes from. Most deals come from our direct marketing, but every now and then, you get a call out of the blue from someone who has your card.

Another cheap way is to put a sign on your car. Of course, it depends if your Spouse will let you do it. For a long time, I had a magnetic sign on my car that said, I Buy Houses on it with my phone number on it. I didnt get a lot of calls on it, but once in awhile, I would. They are pretty cheap, too. I paid about $20 or $30 for two of them. Ill never forget the first day I put those on my car. I did get a call on the first day I put that on my car, from a seller and will never forget it. Of course, I didnt get a call every day, but remember, one deal can make a huge amount of money.

Bandit signs are another cheap way to get leads. There are people that run their entire businesses with bandit signs. A bandit sign is simply a sign that can say, We Buy Houses with a phone number on it. That is really all it has to say, although you should test to see if different areas do better with this or that on it. Some people put, We Buy Houses, Any Price, Area, or Condition. They go out and put up 50 or so at a time. You can get a lot of calls right now when the market is stagnant. I guarantee you, if you go out and put out 20 or so of these, you will get some phone calls. Please note that some towns have laws against putting up bandit signs. It will be worth a call to city hall. Sometimes they dont allow it in the city, but allow it on the outskirts. Usually, it is safe to put them where you have seen them already there for awhile, placed by other people. Keep it simple. Put them where people tend to slow down, like at stop signs or where people are parking. Use common sense. Avoid highways where people are going 55 m.p.h. and cant stop to write down a phone number. One place I see them near my home is near exit ramps where you get off of the highway. Thats a good place too. You might even want to put your website address on there, as well. Also, a lot of people use a recording instead of taking the calls, and drive the buyers to a recording, and will put Free Recorded Message on the sign. A lot of people might be more likely to call because they are afraid of getting a sales pitch. If you put Free Recorded Message on it, get a 800 number, or get a message set up on it that says who you are, and let them know what your business is all about with your contact information on it. Or ask them to leave a message.

Another cheap or free way to get leads is to use the classified websites that are available. That is a great place to get the word out that you are a house buyer. There are real estate and service sections. Try different areas and post your ads there that say, We Buy Houses, Any Price, Area, or Condition or even go into more details if you like. When someone is a motivated seller, you dont need to be a fancy writer. Just get your ads out there.

There are even services out there that will get your message sent to people with iPhones. Thats not a free way, but its about.03 a message sent to iPhones.

You can also recruit bird dogs on a website. I have a website that I use to recruit bird dogs. Granted, when you put up a website to have people come to bring you houses, I dont get a lot, but I get some. Some of them do go to work and have found me lots of deals. Dont be afraid to put the word out this way.

Go ahead and put up a website or a blog for free to get the word out. It doesnt have to be fancy, just put your information out there with a picture. In 2 hours time, you can get a blog set up. Its real easy. It will be good enough to get some people to pick up the phone and call you. Good Luck!

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pNick Cifonie is a long-time real estate investor, speaker, and mentor. Nick has bought and sold millions of $s in single family homes and multi-family properties, using techniques including bird-dogging, wholesaling, lease-options, subject-to transactions, buy and holds, seller financing, retail flips, assignments, options, auctions, and has even flipped property on eBay! Nick is the current host of the popular Real Estate Investor TV, a fun, educational series found at a target=_new href=http://www.rei-tv.com rel=nofollowhttp://www.rei-tv.com/a/pbr
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Author: Courtney Park
Source: articleage.com

If you’ve got an entrepreneurial spirit, have some time and
extra cash, why not think about investing in real estate as
you’ve got the potential to earn hundreds of thousands, if not
millions of dollars a year simply by turning “flipping”
homes over.

This is particularly true these days, which is still very much
a reality in this country even amidst all the talk about the
real estate bubble.

Investing in real estate has become a booming business for
people of all backgrounds and start-up capital. Why? Because
being a real estate investor is not only easy, but it’s
rewarding to see your hard work pay off so quickly when you make
a sale with little or no money down.

Just on September 30th, there was a special segment on ABC
News, 20/20 about the latest real estate boom in America.
Real estate boom really has people flipping
for Miami and all around the country, particularly in cities
like Chicago, Boston, New York and LA. Click here to
read more on ABCNews.com

Some Important Tips In Getting The Most Out Of Your Real
Estate Investment Opportunity

If you’re low on capital money to invest in
real estate, form a partnership with friends, family or
colleagues. File a business name with the State Corporation
Commission and register with your local city to become a
legitimate tax-paying entity. Once the group of you is able to
pull funds together, put them into a bank account under your
business name. You can then approach the bank for a bank loan
for your business, increasing your chances of getting funding.

Creating a legitimate business not only can act as a liability
shelter for you, should your venture prove to be non-profitable,
but it helps to create a friendly working relationship with your
new colleagues into which everyone gets equal return on their
own financial contributions.

If you have capital to spend, invest in a tax lien. A
tax lien is, essentially, purchasing someone’s foreclosed
home, which the government retains control over until taxes are
paid. As a real estate investor, you will most likely receive a
substantial return on your money invested in a tax lien
because most homes that have been seized by delinquent tax
payers are eventually turned over to the individual or entity
that has purchased the tax lien.

To find out about tax liens in your area, contact your local
government for a list of tax lien sales and foreclosed homes.
Many states also have tax lien sale information available online
through subscription-based companies or through government
auction houses.

You don’t have to go for a killing your first year of being
a real estate investor. In fact, most people start small. Begin
by using the available money that you have to make a down
payment on a modest home in an up-and-coming area. Many people
purchase homes that are “fixer-uppers” and they get
started by doing all of the work on their own.

When the economy is booming, as it has been for the past decade,
then you can fix your home up and turn it around in a relatively
short amount of time for a moderate profit. You can avoid
paying capitol gains taxes on the cost of renovations and
improvement, so keep all receipts for work done.

If after your first purchase, you find that you are indeed
serious about investing the time and money into becoming a real
estate investor, then use the money from the sale of that first
house into purchasing another home. From the time of the sale,
you have 180 days to invest the money into a new home
before you will have to pay capitol gains taxes in what’s known
as Exchange 1031 Tax Deferred Benefits on the
money you gained from the sale.

There are many resources and lending agencies prepared to help
individuals interested in establishing a career as a real estate
investor, Furthermore, many cities incentive the revitalization
of older neighborhoods by catering to the convenience of real
estate investors. After all, everyone enjoys seeing property
bought and sold quickly within a community, for it signifies the
health of the area. Call your local government to find out if
there are specific tax advantages in place to help real estate
investors and home-based businesses alike to maximize the return
on their money.

Author: Trang Dunlap
Source: ezinearticles.com

Becoming a real estate investor requires you to step out of your comfort levels and put yourself into situations where you will have to educate yourself really fast. Better yet, you need to find people that are truly willing to help you achieve your goals. Many people think they just cannot do it, but are completely wrong.

The number one myth of real estate investing is the belief that no matter if I want to do it or need to do it, I just can’t do it. This thinking will not only kill your real estate investing dream but any other dream you might have and will definitely stop you from every breaking from your current routine.

Routines are what keeps us going. Routines make us feel comfortable and focused. Routines are what is making your boss or landlord rich while you barely squeak by in life.

So the #1 myth in investing is the myth that you just can’t do it. You can’t wrap your brain around how people are able to find good property investments, buy those properties and then maintain a monthly rental income… These same people seem to do it over and over. Do you think they are special? do you think they have some special talent that you don’t. Believe me, real estate investing can be as simple or as complicated as you want to make it.

The truth behind this myth, is a what I think of as a fork in the road of your brain. Most people will think one of these two ways, and it’s hard to switch over to the other side.

Probable thinking – These people have been taught that there is one way to make money in this world. Work 9-5, get paid, make your way up the ladder and retire with a 401k. They think it is impossible to step out from that and build wealth beyond without pounding it out in the daily grind. Unfortunately, that 401k will never amount to the same as a real estate investing plan done right.

Possible thinking – These people see others do it and know there is a way. They know anything is possible in this world and know that all they have to do it learn a little, build a plan, and then put that plan into action. Possibility thinkers never say “I can’t do it”, they say “How can that be done.” Not only do you have to think this way, but you also can speed up the learning process by finding the right people. People that have done what you want to do and learn from them.

Solid real estate investing is built on low risk, sound models that have worked for many years. These models have made many people very rich. Many of those people would love to teach you exactly what they did.

Think possibilities, don’t stay in your daily rut. Get out and learn a few real estate investing systems and you’ll be well on your way to build wealth beyond your wildest dreams.

By the way, this is only one of the myths when it comes to real estate investing. There are 8 total myths that Ihave encountered with new real estate investors. browse the list of all 8 real estate investing myths here.

Good luck and Iwish you the best.

Trang Dunlap is a real estate investing expert doing business in the San Francisco bay area. Years of committed service to her clients has made her a top producer in the bay area and he go to person when you need advice about real estate investing. You can find hundreds of quality posts at http://smartlegacy.com/real-estate-news/ about investing at her real estate investing blog

Author: gardnerwilkinson
Source: articlesbase.com

In the last few years property investment has taken a huge hit. With markets crashing in most U.S. and in some parts of the UK, the general mood is somber, as regards real estate. Almost everywhere in the world, home sales have fallen to a

Author: Karen S. Jackson
Source: ezinearticles.com

Several years ago, it was common for small investors to buy a single family, and several small properties as investment properties. With the restriction of bank credit and common market values declining in many parts of the country, a strain that has been in selling real estate. If you are a buyer, this is your kind of market. Low prices and low interest rates have made property values in a business. If you are a seller, however, this is not a good time for you. And if you are an investor who has to sell and unload a property or many properties for whatever reason, this is not a good time for you at all. It is easier for some investors away from their properties and allow them to go through the foreclosure process. If the investor does not care to sell the inevitable bad credit report that the processes of exclusion will bring to your finances, then walking may seem the easiest option. Many investors in this situation and have made back their investment properties that are giving back to the bank, and are only one point of not wanting to continue to deal with the headache of caring for a building occupied by the tenant. A little effort by a struggling investor can bring financial rewards, or at least allow the investor to break even on selling your property. Some things, an investor in trouble can do to sell their properties are: 1. Check with any tenants to see if they would like to purchase the property. While we can assume that the condition ecomonic the country has adversely affected everyone, some tenants may be in a better position to buy the property they now occupy and take off their hands. It never hurts to ask. 2. Some people are now looking for investments to maintain or turn around. If you are an investor anxiety that has several properties, you can save time and new investor money by selling their properties individually or in groups that almost anyone can walk in them. Since you save the effort to collect the properties one by one unless you are selling theirs as a group, may be able to negotiate a better deal. The best bid ofter occur if it is to deal the buyer and the seller directly with each other without intermediaries. 3. Buying properties in the steps of the courthouse. The buyer may not want to wait until the seller has his appointment with the sheriff, but having the properties of the hands of a distressed seller can net a good deal, especially if the buyer has cash and can close the deal almost immediately. The seller walks away relieved, and the buyer has new properties at a price usually lower. Bad things happen to almost everyone at some point. That phrase can describe the circumstances of many people in today's economy. When an investor is faced with the possession of properties that can no longer afford a small network to sell the properties ultimately may keep major damage from the credit investor in trouble, and dignity.

K. S. Jackson is a Realtor and real estate appraiser with over eleven years experience helping buyers and sellers to move and evaluate property. For more information, see the following website: http://ksjproperty.blog.com/