Real Estate Fact & Fiction

These days, just opening the mail is an adventure. Within the jumble of million dollar sweepstakes, invoices, court papers, and rent checks, I’ve been delighted to find letters from my readers. Many of your comments and questions lead me to the conclusion that common knowledge about real estate investing is, well, commonly wrong. This article will dispel a few common real estate myths.

Not Location, Not Location, Not Location

Q: “The key to real estate investing is location, location, location. Where are some good areas to look for investment properties?”

A: The idea that the key to real estate is location, location, location, is perhaps the most widespread myth in real estate. Location is a factor in determining property value, but a profitable transaction is determined by cash flow or equity.

When examining potential real estate investments, always use cash flow and equity as your measuring stick. Equity is the difference between the property value and the sum invested. If you purchase a $10,000 property that will be worth $45,000 after repairs of $10,000, the equity after repairs will be $25,000. Cash flow means residual or “passive” income. One may agree to pay retail, or even more than retail, if there is a substantial cash flow.

In any neighborhood, if you can realize equity or cash flow then you can create profit. While novice investors battle for deals in trendy areas, savvy entrepreneurs can avoid competition and create profit in any area. For example, several parts of my native Baltimore are notorious for crime. Novice investors call them “bad” neighborhoods, but good people also live in “bad” neighborhoods. In one such area, I contracted to purchase four row homes from a retired police officer for the wholesale price of $25,000. The package was worth about $80,000, but seller’s aversion to the area was motivation enough for him to “cut ’em loose.” Within three days, I sold the package to another investor for a $25,000 profit.

Note: when looking for potential cash flow or equity, always consider highest and best use of the property. Sometimes a residential property could have commercial value; a home could be converted to an office, a rooming house, or it may be more valuable to a neighbor than it is on its own. An overpriced residential property may also be a bargain commercial property!

Buy Low, Sell Low

Q: “I’d like to create a lump sum of cash, but if I’m afraid that if I contract to buy a building, and I can’t sell it before closing, I’ll have to buy the building. How can I find buyers?”

A: Finish this sentence: Buy Low, Sell _____. Most people say, “Let’s price it high, we can always come down,” but in the meantime they turn away potential buyers, and incur carrying costs such as taxes, insurance, and liability. Don’t do it!

Years ago, my father Charles introduced me to his “$100,000 Real Estate Formula” which says, “Buy low, sell low, and do it often.” At only $10,000 profit, ten transactions generate a part time income of $100,000.

The formula offers several benefits. Obviously, discounted property sells faster. Instead of waiting for the top-dollar profit and inuring holding and opportunity costs, you can actually earn more by making smaller amounts over and over. Moreover, by leaving profit on the table for the next person and being fair with others, you will create a good reputation and repeat buyers. Not only is it less expensive and more efficient to transact with repeat buyers, buyers who profit are potential partners for future deals. When you help others, you help yourself!

The Market? Which Market?

Q: “With the financial crisis and the doom and gloom surrounding the real estate market, how can one still make money in real estate?”

A: Too often, agents and novice investors blame their real estate shortcomings on an uncontrollable force they call “the market.” They throw their hands up and say, “It’s a buyer’s market, sales are down.” The next time you hear someone complaining about “the market,” consider asking, “Which one?”

As a buyer, creating real estate profit is always possible if you look in the right market. Most novice real estate investors use the same sources to locate real estate sources: the newspaper, real estate agents, and banks. Why compete with novices who will pay too much? Avoid the competition and find bargains by focusing on untapped real estate markets.

The reality is that there are dozens of real estate markets. For example, there is a land market, a commercial property market, an absentee owner market, a market of expired listings, vacant property, tax sale property, auction property, pre-foreclosures, property with housing code violations, with non-paying tenants, there are geographical markets, and these are only a few of the fifty plus markets for income real estate.

Regardless of interest rates, property that is priced right and marketed property will sell. Likewise, if you’re looking in the right market you will always find real estate bargains. Instead of gathering at common investment watering holes, explore markets where the fruit is yet unpicked.

Most Important Real Estate Tips

Real estate property investments are a risky field. Many people claim they have the smartest advice for making it a profitable venture. Most of these statements are just false beliefs and will not benefit your money in the future. Here are some advice that actually work and every investor must take note.

How Much Experience

One doesn’t need extensive financial experience to invest in property. Many blue collar members think they cannot handle investing in real estate because of their lack of experience. But all one actually needs is a practical business sense and self-assurance when making deals with a mortgage broker or loan officer.

Connections

Even if you do not require financial experience, it aides to have peers or contacts in the real estate business. These contacts can link you with more authentic or experienced people in real estate or offer tips on how to manage the market. Though some may not agree to help, a good percentage will be more than willing.

How Much a Person Should Know

Another misconception is that one needs to know much about real estate prior to investing. Opposing this well known belief, many individuals start out with a fundamental or slight understanding of the market. After all the information gathering is finished, experience is still the best teacher.

Taking that Big Leap

It is not always smart to play it safe. Many beginning investors would rather spend on tiny properties. Truthfully, it’s more worthwhile to take a risk on something with large promise. The greatest thinkers and inventors in the past were believed to be fools during their time. Just like them, you will have to live dangerously to enjoy the advantages of your investment.

The Cash Required

One does not need to be rich to spend on real estate. Although most major players have acquired enough wealth, most of them engaged in risks with their money. A business venture is always a risk. Either you profit or you lose some.

Venturing into finance is different from setting aside money for your personal property. Distinct from savings, investments enable with you profits which let you pay back your mortgages. Cash will be spent but you’ll have means of earning it back.

Top Ten Real Estate Tips

One of the questions that I get asked a lot is “What is one real estate tip that you would give to a new landlord”? That’s a great question. So I checked in with several seasoned real estate veterans that own and rent apartments and homes in the Atlanta area to get their opinion and give you the “Top Ten Real Estate Tips for Landlords”.

  1. When screening tenants, be firm but friendly. Make sure you screen them hard. Don’t let them move all their friends & family in with them.
  2. Complete repairs in a reasonable time frame which keeps tenants happy and they will stay in your apartment for a longer time which reduces your turnover which has a positive impact on your bottom line.
  3. First of all I’d say buy the right property! If you buy for too much, or if you buy in an area that it is difficult to get good tenants, it is a downhill battle. Once you have bought the property… spend the money up front and get the place looking good, so it shows well, and you increase your chances of finding good tenants quickly. Once the tenants are in, if you are managing it yourself, have some sort of regular contact with them.
  4. I would advise ordering a credit report when they apply. You not only learn a lot about the tenant’s credit history, but you are also double checking the social security number. If you ever have to evict them and you get a judgment for the money they owe you, you know the social security number is correct if you want to send it to a collections company and try to collect on the judgment. That is one tip I don’t hear mentioned often, probably because not many people go after them. But it is something we are working on doing to see if it will pay off!
  5. Take action and actually buy the first property. I wish I had started investing years earlier.
  6. Put your properties in trust so that you can honestly tell your tenants you are not the owner of the building. This way you are the property manager. who has to get permission from corporate for everything. For example, one of the tenants wanted new carpet. That was going to be expensive. I said, “Let me see what the office says”. I went home asked my husband and he said “Hell No!” I went back and said it wasn’t in the budget. As owner they all think you have all the money in the world and get resentful. As property manager you are just another working stiff like them. Any hard feelings are directed at “The Man” rather than you as an individual.
  7. Notify the tenant as a common courtesy before you enter the property for maintenance, repairs, or inspections. Many states require at least a 24 hour notice.
  8. File your dispossessory early and take advantage of consent judgment payment plans.

9 Avoid bad neighborhoods – i.e., communities in great disrepair, with lots of crime and lots of vacancies.

  1. Work hard to provide a safe and secure rental property. Take a good look at your property and assess the situation. There are a few easy steps you can take like upgrading the lighting and trimming shrubbery. If a security light goes out, get it replaced that day. Don’t let your tenants and property be an easy mark for a criminal. Assess your property’s security and take reasonable steps to protect it. Often the best measures, such as proper lights and trimmed landscaping, are not that expensive.

More millionaires made their fortune investing in real estate than in any other form of investment. There are many methods of making a fortune in real estate investing. Regardless of the method that you use to build your fortune in real estate, you need a solid business plan to use as your road map to success. You can purchase the business plan I used to build a multi-million dollar real estate business.

5 Effective Real Estate Tips for the Beginners

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In the past few years, people stayed away from investing in real estate. According to most of them, this is one of the toughest investment options around the world. However, experts say that the above fact is nothing, but just a myth. With the following simple tips, it is easy to break the above myth, and invest in real estate in an efficient way –

#1: Business Experience Is Not Mandatory

The fact that only the seasoned businessmen can invest in real estate property in an efficient way is wrong. Though business experience acts as an added benefit, it is not mandatory at any stage. A great deal can change the thing, and can make a person confident enough to carry on the investment process. Therefore, it is the self-confidence, which matters the most, and not earlier experience in business dealings.

#2: Information in Real Estate Is Not a Necessity

Many people find it crucial having proper experience in property related issues to emerge as an expert investor. Though a person might find it astonishing, but it is not that important knowing a lot about real estate and other related issues. It is one of the most contradictory, yet resulting things in the investment process. Everyone has to start at the same point, where no one has any relevant information. It is the knowledge that person gathers over the time, which matters the most.

#3: Having A Reliable Source Is an Advantage, Not Mandatory

People, who know someone in the field of real estate investment, start with the added benefit. The process of setting a goal and meeting it, getting a team together, and relevant tips are important to a newcomer in the field. However, there are many people around the world, who prospered as a real estate investor without any source. Therefore, though a source can act as a benefit, it is not at all a part of the overall process.

#4: Big Start Is Better Than Just a Start

People often find it confusing while choosing between a big start or just a start while investing in real estate. However, in any investment process, risk is mandatory. People, who are not ready to take up risks, should stay away from the concept of lending money. Though many have a large amount of capital in hand, most of them love playing safe, and invest only a small sum. However, without any risk, there is no chance at all to gain good amount of profit.

#5: Real Estate Investment Is Not For the Riches Only

Experts found out that most people stay away from the overall process thinking that only the rich people can invest in properties. It is nothing more than a myth. Investment is a business, and there is a fair chance for everyone to earn revenue. Therefore, stop thinking and make the move to grab the revenue to move forward.

Experts designed the above tips, which broke several investment myths on its course. People, who are on the verge of investing in real estate, should keep them in mind to make each step a fruitful one.

Real Estate Tips For Landlords

Real Estate Tips

Most “guru’s” are currently spouting about how good real estate investments can be. This article won’t seek to reinforce their sales pitch, nor will it argue with it. Real Estate can be a great investment, but if you not careful it can also be a financial disaster.
You may ask who I am to speak on real estate. Whilst not a multi-millionaire selling my next great book this article can give you some practical advice of someone who rented out for over five years and explain the pitfalls and the success stories.

Important Lessons:-

1) Good Insurance:- number one is not an option – its a necessity. Ensure your asset is fully insure both normal house insurance and extras like tenant damage and loss of rental income. Given a disastrous tenant this can lessen the pain. Be WARN! Don’t under insure your house, if it burns down, particularly if there is any suspicion of arson the insurance company will do their own independent investigation and here is the real kicker – THEY WILL CHARGE YOU FOR THE PRIVILEGE – thats right, read the fine print, the insurance company before paying you out will minus their costs – i.e. $100,000 policy – $20,000 investigation means only $80,000 to you. Read the fine print, the insurance despite their ads is not your friend if a million dollar house and therefore a million dollars on the line, don’t expect the insurance company to be happy to pay out, if they can find a way to slime out of the policy they probably will. An insurance policy is a contact make sure you read it. Make sure you chose an insurance policy not just on price but also on good reputation and on company strength.
(Want more advice try Real Estate Underground – Click Here!)

2) A bargain isn’t always a bargain:- When purchasing a house remember to be very careful. Don’t buy on emotion. Never buy without visiting it several times on different days and times. I know of a nice suburb that has nice houses with big yards, but the smell of the local slaughter house is enough to make you want to vomit. Remember you only become aware of such things by visiting the house personally. Go at least one time without the real estate agent, speak to the neighbours and ask if they like living there. When buying a fix it upper check how easy it is to fix up. Does it contain asbestos, lead paint or like harmful products that are going to cost you a fortune to remove? Would you like to live there? If you don’t then don’t expect others to. Remember whilst more expensive houses may cost more they tend to attract better class of tenants and less maintenance costs as well as higher rental returns. Remember there are always more houses out there it the buyer is stuck on a price thats no good for you, don’t be afraid to walk away. Never buy a house on emotion!
(Want to learn more on fixer upper fortunes then click Here!)

3) Do it yourself:- Unless you have a huge portfolio of real estate under your control try to do it yourself and you will save a lot more. If you engage a real esate agent to rent your house they will charge between 10%-15% of the rental income, in return you get very little. They will rent out the house, may inspect once or twice a year (some agents will charge extra for this privilege) and you don’t have the choice of the tenants. Do it yourself and save the money. Pay a small fee to join online real estate black list – (this is a list that blacklists bad tenants) and you are in the same position as them. A real estate first goal is not to please you but to ensure they get their cut – this may mean they make decisions that are not in your best interest, but in theirs (e.g. they may get kick backs from their tradesman and other relationships – in my case they repaired a hot water cylinder without my permission – the cylinder was less than a year old and still under warranty – thus I could of got it repaired for free, was I angry – you bet). Don’t forget with agents its your house, if they are not keeping you satisfied, change agents. In regards to maintenance tradesman are hugely expensive, whatever you can do yourself, do. For example, changing a tap washer is an easy thing to do, some plumbers charge $100 just to pay a visit.
(Want to Buy and Sell Real Estate from home? Click Here! )

4) There is more than Rent. Remember to factor in the rise in real estate prices. You may be able to buy a cheap house in a country town, but if that town has shown no growth and is unlikely to grow then you will not be able to resell the house at the later stage for a much increased price. What creates regularly increasing house prices is even increasing demand. Be careful buying in places like a mining town or a town with one industry, mine resources are limited and one industry towns can turn into ghost towns overnight if the main factory closes. Play it safe buy in towns and cities where growth has been and will continue to be good. Therefore don’t just consider the rate of return on investment in terms of rent, but also factor in capital growth. If there is likely to be little or no capital growth the rental returns need to be higher – if they aren’t, forget it and keep looking. When a place is vacant charging too high a rent will ensure it takes weeks to fine a new tenant – every week it is unrented is costing you between $5-$10 a week in rent – (e.g. which is better renting a house for a year at $400 a week or $380 a week – if the fails to rent for four weeks at $400 even if you finally rent it at $400 you have lost out ($20 extra rent X 48 weeks – ($960) (4x$380= 1520)- if you’d rented it straight away at $380 a week – you would have been $560 better off for the year)

5) Good tenants are worth keeping. If you have good tenants who are looking after the house, you don’t alway have to keeping raising the rent every year with the general market increase – reward good tenants and increase your likelihood of retaining them by giving them a discount on the market rate. If the tenant puts in a garden and trees and other landscaping, the capital value they are adding to your property may mean you should not hit them with the highest possible rent. tenants who damage a house or fail to pay rent can cost a fortune. It normally takes 6 weeks or more to evict a non-paying tenant, that can mean a big loss, doubly so if you are paying the mortgage.

How to Invest in Real Estate

You have sufficient savings and you have decided to invest in real estate. This type of investment generally carries fairly low risk and stable returns. To achieve success, you need to master the art of investing. Find out how to get started.

Choose a strategy.

The most widely used real estate investment strategy is the purchase of a rental property. However, it is not the only one. You can also earn rental income by putting money in a specialized investment group. You can put your money in a specialized trust and earn dividends. Another highly popular strategy with seasoned investors is flipping. It involves purchasing a property and selling it quickly for profit. The first two options carry lower risk, but they generate returns much more slowly.

Prepare a business plan.

Investing in real estate is just like any other business. You will need a solid strategy for reaching the goals which you have set for yourself. Take your time to outline the steps which you have to follow and to evaluate your position based on your strengths and weaknesses. It is essential for you to get your finances and credit record in order so that you are ready for investing.

You should also look into the legal aspects of your new business. You should definitely consider investing via a legal entity instead of buying the property in your own name. This will help to reduce the risk of loss significantly.

Use a foolproof tactic for property selection.

The tactic which you use should be based on two major steps. The first one is extensive search. You should check all local listings including ones for auctions. You should work with a specialist real estate agent who can connect you directly to distressed owners. Generally, you should not limit your search to houses in your neighborhood. You should cover the largest possible area and consider all types of properties for sale.

The second step involves property evaluation based on cash flow analysis. You need to calculate how much rental income you will earn every month. The rule of thumb is for the cash flow income to be at least 1 per cent of the property price. You should also calculate the expected profit based on mortgage payments and other expenses.

Work with experienced experts.

The investors who are successful have the best people on their team. You should work with a real estate agent who specializes in working with investors and who has excellent record of achievement. In this way, you will be able to secure the most profitable deals. You need to find an expert mortgage specialists as well. This can be a broker or a loan officer. The expert will help you to get the most affordable financing deal.

Keep learning and networking.

It is extremely valuable to attend a real estate investing course before you begin. You should keep up with the trends and attend other courses, seminars and similar events on a regular basis. Networking is also important for success in this business. You will benefit from joining a professional association in your local area so that you can get valuable insight and learn from the experience of others. With the right contacts, you can secure ever better deals.

With the right strategy, skills and people, you will make money from investing in real estate.

5 Proven Real Estate Tips to Succeeding at Fixer Uppers

Now that you’re a bit more familiar with the dynamics of investing in fixer uppers, you are probably itching to make your dreams a reality. Well, Congratulations on getting closer to your goals. In this brief article, we will provide you with not one but 5 real estate tips to succeeding at fixer uppers that you can use right now to skyrocket your fixer upper profits. Are you ready? Well, let’s get started.

First of all, you must have a realistic goals and a written plan to succeed with fixer uppers. By having set goals and a written plan, you will be better able to achieve your success. For instance, it isn’t just enough to say that you want to own some fixer upper properties within 5 years, you must be more specific. For instance, you have to say, “I want to purchase 5 fixer upper houses in the next five year by working a part time gardening business and reinvesting all of my profits into my real estate venture. I will purchase my first fixer upper property within 1 year and 4 more properties each year thereafter.”

Second, you must put in the necessary education. Although investing in fixer uppers isn’t exactly difficult, it does take a bit of knowledge about finances, real estate properties, current market conditions, real estate selling and closing prices, etc. In addition, you must be familiar with the various different types of fixer upper properties you can own as well as financing options.

Third, you have to stay focused on your goals. Yes, you will experience some temporary setbacks while investing in fixer uppers and you will have to put forth a bit of effort to make your real estate dream come true but you can do it if you stay focused on your future, use proven tips from other fixer upper experts and execute your plan. Once you do this, you will succeed in your fixer upper investment efforts.

Fourth, you have to find the fixer upper investing approach that works for you and be persistent with that particular method. For instance, if you’re an expert rehabber then you might find that you enjoy purchasing fixer upper properties that need a bit of work and then flipping then. However, if your goal is to secure monthly income from your fixer upper properties then purchasing a small apartment or house in need of repair, fixing it and then renting out, might be your better option.

Fifth, surround yourself with positive people and develop a fixer upper investing team. This way, you’ll be able to capitalize on everyone’s strengths to maximize your profits. For instance, you’ll need a fixer upper renovation team, mortgage or bank broker, real estate agent, etc.

In conclusion, investing in fixer uppers can be extremely fun and exciting. However, if you truly want to be a successful fixer upper investor, you must have an individualized plan, set and stay focused on your goals, find and implement a real estate investment approach that works for you and secure a good team. Once you do this, you will become a successful fixer upper investor and can make your real estate dreams come true. Good luck!

Real Estate Tips And Tricks

We all are well aware of the fact that the price rates of real estate properties keep on fluctuating all the time and this is the reason why this market is considered to be the most unstable market. Searching out for a suitable real estate property can be a challenging task for you. You need to be completely aware of the market conditions if you want to acquire some best possible deals in this regard. There are certain tips and tricks that can actually help you in locating a suitable and prospective real estate property. You need to keep some of the necessary factors on your priority list while searching out for your dream home.

There are certain elements that you must consider before investing money in the real estate property. It can actually make your new home research, easy as well as manageable. Some of these major considerations are listed below.

Living Space
Different types of real estate properties are comprised with different kinds of living space. The overall home layouts as well as the home size are the two essential factors that you need to keep on the top of your priority list. Before finalizing any kind of deal, you need to consider the type of rooms as well as the floor type. You must always look out for such properties that are comprised with open spaces. If you love to enjoy the whole city view from your living room, then you can buy home on a third or fourth story. Make sure that you always consider the number of family members and choose your home accordingly.

Location
Many individuals do not pay proper attention on the location of their property and this leads to a lot of problems in future. However most of the home owners look out for nearby areas and neighborhood region. It is really one of the most important elements that you need to look out for while purchasing house. The location of a real estate property is the most necessary element that is actually responsible for deciding the selling capability as well as the price of the property. You must always buy a home which is located very near to the school, market, hospital, shopping mall, airport, railway station, bus stand or other basic areas.

Basic Home Amenities
The basic amenities can actually help you in finding a suitable home. They are actually an integral part of every real estate property. You must always search out for right amenities as per your needs and requirements. Your prior amenities may include kitchen, balcony, pool, drainage system, garbage system, water and electricity supply, parking and security. Some luxurious amenities may include indoor spa, living room bar and pool table. Make sure that you pay attention towards these amenities.

So, these are some of the major real estate considerations that you need to keep in your mind while looking for your dream home. I am sure that you will get a lot of help in this regard.

Real Estate Tips That Will Prove To Be The Confidence In Every Decision You Make

Real estate tips are useful when you are exploring the many different opportunities in the real estate industry. Tips are good for both buying your first home and or becoming an investor within the rental industry. In order to make the best investment you’ll need to align yourself with the appropriate information to help qualify the choices you make.

There are so many different areas within the real estate market where one can find their niche and financial success. In order to accomplish this you must first get clear about where your passion lies as this will allow you to align yourself with the right sources. Finding a mentor or professional who is living the experience you want to acquire for yourself is a smart business move.

Finding an agent that makes you feel like they have your best interest at the forefront of their mind is a requirement for the success of the process. You can measure their level of dedication by how well they listen to your needs; and how that translates into the properties they want you to view.

A strong real estate professional will not only have an interest in the type of home you are looking for; but they will also inquire about the environment you want. This is a very big deal and no portion of it should be taken lightly as it will serve as the foundation on which you will live your life. Take your time is making a hasty and compromising decision could lead to unfavorable circumstances.

The same guidelines holds true for anyone interested in the investment aspect of the real estate industry as someone who is looking to purchase a home to live in. It is vital that you put yourself in your potential renter’s shoes and ask yourself if you would want to rent the property. You want to challenge yourself to purchase properties that are appropriate for the market you intend to serve.

Being an investor will also call for you to consider how you want to manage the properties you’ve acquired. There are a number of reputable property management companies that can help you both screen and maintain the grounds on a monthly basis for a small fee. Once again it is important to assess your level of commitment to the process and to only take on the responsibility for aspects of it you will follow through on.

Having a system where you are able to screen your candidates is vital. A potential renters credit history alongside their rental patterns will help you choose responsible people. While this may be a headache for you to take on under your own there are professional services that can streamline the process for you.

Real estate tips are a great resource when they speak to the aspect of the industry you are interested in. They can help you both avoid making costly mistakes and find the level of confidence you require to make the right choices. Getting the best information can be easily attained by aligning yourself with like minded people.

Real Estate Tips For Getting Rich With Real Estate

With available land getting increasingly scarcer, property prices all over the planet are spiraling upwards and the real estate business is a good one to be in. Here then are four real estate tips for building wealth. Find Foreclosed Properties For FreeSkip the lists that you have to pay for and go right to the sources. If a property is foreclosed on, it is owned either by the bank, the county or the federal government (in the case of a federally subsidized loan). You can contact all 3 of these agencies to find a list of foreclosed properties.

Neither one of these entities is in the business of holding onto property. Once you have found a list of foreclosed properties in the area, drive past them. Look for properties in areas that are rising or well established. Keep away from foreclosed properties in blighted areas as they may no increase in value. Finding foreclosed properties in your neighborhood is easy as you are prepared to do a little legwork. Best of all, it doesn’t have to cost any cash. All of the real estate information is public; you have to grasp where to look.

Seller Financing
Foreclosure owners usually want to get shot their properties quickly and painlessly.

You should work with them to get financing or perhaps make them pay closing costs. Don’t be afraid to ask for financing, especially if you are purchasing a foreclosure that needs work and has been on the marketplace for a while. In several cases, the sellers will supply financing for you.

Learn To Bid
You will have to bid on foreclosures. Bidding methods can take a while to pick up. There are several paths to bid for different properties. If you are bidding for a property that is sold for taxes by the county tax assessor, then the process is dissimilar than if you are bidding for a property that is sold by a bank. Learning to bid is a skill that you will need to acquire if you are going to earn money in foreclosure properties. Once you have mastered this methodology and know what to do, you’ll be able to pick up properties simply. You will have to prove that you are a qualified buyer upon bidding. You are going to have to be pre-approved for financing or show explanation that you have the cash in order to to be considered for the bid. In most situations, you want to fill out a form. These can be supplied to you by the entity that owns the property.

Learn To Flip
Flipping property involves hanging on to the property for a brief period and then turning it over to another seller. As an example, you can buy a foreclosure that is run down for a very low price and then turn it over to a rehabber and make a fast profit. This is a good market for the short profit. In order to make cash on the short sale, you must find out how to learn how to flip real estate.