Wednesday, April 9, 2014

Real Estate Investing

Tricks to make it Big with Real Estate Investing

Real Estate Investing is one of the most attractive ways of making large amount of money in a short amount of time (if done correctly). Moreover, Real Estate Investing can be very stressful but if you make a mistake it can be very forgiving. When you see the rewards of your efforts it can be very satisfying and addicting.

Real Estate Investing is really a skill and, like any skill, it takes time to master. The main objective is to buy low and sell high and make a profit after paying all the costs involved in the transaction.

Generally, people are of the opinion that Real Estate Investing makes sense only when the market is on the rise. However, Real Estate Investing for profits is possible just about any time. You just have to know when and how to apply different investing strategies when the acquired deal parameters are analyzed. This is part of the Due Diligence process that you will acquire through Real Estate Investing experience.

Here is a list of tricks that can make Real Estate Investing profitable for you:

  1. Join a local Real Estate Investment Club. Their name usually end with "REIA" which stands for "Real Estate Investor Association" so MREIA would stand for
    Miami Real Estate Investor Association.
    MREIA Logo
    This will provide many advantages and cut done on the learning curve. I like to use CRE Online web site to find an local investment club near you.
  2. Look for public auctions, divorce settlements, foreclosures (bank REO's/FHA/VA). Since quick settlement is the preference here (and not price), you might get a property at a price that is much lower than the prevailing market rate. You can then make arrangements to sell it at the market rate over a short period of time. However, make sure that the property is worth the price you are paying. Also be Very Careful with auctions! Know what you are buying by doing your homework. You might end up buying an easement that you can’t build on or a second mortgage.
  3. Looking for expired listings. The old listings that are still unsold may provide you with good Real Estate Investing opportunities. Just get hold of an old newspaper, MLS expired listings and call up the sellers. They might have given up hope of selling that property at all and with a bit of negotiation you can get the property for a real low price.
  4. The hidden treasure or Distressed Property. A really old, high grass, mail coming out of the mailbox, dirty, unpainted looking house may scare off retail buyers but this might be your chance for Real Estate Investing that can yield good profits. Explore these properties and check if spending a bit on them (rehabbing them) can make them shine. You can get these at very low prices and make a big profit in a short time. Have a GOOD contractor lined up if you decide to rehab a property. Time is Money!
  5. Team up with attorneys: There are a number of attorneys who handle property sales on behalf of sellers or in special circumstances (like the death of the property owner - Probate). They might sometimes be looking to dispose a property rather quickly for a lower price. Be the first one to grab such Real Estate Investing opportunity and enjoy the profit.
  6. Keep tab on the newspaper announcements! Be prepared to act quickly. This means have CA$H on hand to act quickly! Property sell offs due to deaths, divorce settlements, immediate cash requirements and other reasons are frequently announced in local newspapers or on the internet (Craig’s List). Keep track of such Real Estate Investing avenues.

Education

These are all great tricks and tips but the most important objective is to invest in your education. Take every opportunity to absorb Real Estate Investing techniques by hiring a mentor or coach to learn from the Pain of Others! Look at any profession and you will see an entity, person / coach or a system involved to train individuals to be successful! Real Estate Investing is no exception!

Related Links, Blog Postings, Presentations or Articles:

Written by +Bob Burns.
 
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Bob Burns at MREIA meetingYeah Baby!
Bob Burns Print Signature Photo
+Real Estate Investor
about.me/RobertKBurns
Tel #: 305-586-5280
sec8@planocho.com

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Tuesday, January 21, 2014

Florida's Mortgage Components

The components that make up a Florida Mortgage

I was surprised to find out most people, who are home owners or my students, do not know what their mortgage consists of! Biggest financial transaction of your life and you can’t recall the interest rate that you are paying? As the sports analysts say – "C'Mon Man!"

One of the questions I ask my Real Estate Mentoring Students or Clients, what are the three parts of a Florida Mortgage? Most say the mortgage and stop with blank stare? So today I am going to discuss the three parts that make up your Mortgage in Florida. They Are:

  1. Note
  2. Mortgage
  3. Deed

That is why you have so many papers to sign at closing!

Note or Promissory Note

A note or Promissory Note can be drawn up using a template you bought in Office Depot! It is real simple! A note is contract or document signed by the people who agree to pay the debt. It doesn't have to be you! It is anyone willing to pay back, usually with interest and terms, a debt that has been incurred.

In real estate, it is typically a borrower or buyer agreeing to make monthly payments of principal and interest over 15 - 30 years to a lender, usually a bank but it could be an individual. (Good Cash Flow Strategy!) If the borrower doesn’t pay, the LENDER can sue "under the note" for breaking the contract. Usually in Real Estate, the property serves as collateral if there is a breach of contract.

Mortgage

A mortgage is document that transfers interest in property. While a mortgage is tied to the debt created by the note, it is not a promise to pay the debt. It contains language which gives the lender the right to take back the property if the borrower/buyer goes into default and doesn’t pay under the terms of the note signed. In other words, what will happen if you breech the Promissory Note.

Deed

A deed is the document that passes the TITLE from the grantor (Seller/Owner) to the grantee (Buyer/Future Owner). There are two basic types of deeds.

  • Quitclaim Deed - passes whatever title or rights the grantor (Seller/Owner) has in the property to the grantee (Buyer/Future Owner) without any warranty.
  • Warranty Deed - contains promises made by the grantor (Seller/Owner) about the title or rights conveyed. In other words, he is warranting a "Clear and Marketable Title."

A deed must contain legal description of the property and must be signed in front of a notary public in the State of Florida.

A title is the bundle of legal rights the owner has in real property or asset. In other words, the title is the ownership of the property.

P.S. Make sure you sign all documents in Blue Ink and the mortgage is recorded at the Clerk of Court office.

Written by +Bob Burns.
 

Related Links, Postings, Presentations or Articles:

####
 
Bob Burns at MREIA meeting"The only thing more expensive than education is ignorance" - +Benjamin Franklin!
Bob Burns Print Signature Photo
+Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: sec8@planocho.com

Follow US Baby!

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