High Profit Real Estate Investing--make A Good Deal Every Time!

Written by Richard Odessey


Knowing what a Good Deal is Isrepparttar Key to Success in Real Estate.

Knowing and being able to negotiate good real estate deals every time isrepparttar 142292 key to real estate investing success. What to look for, and how to calculate your profit, cashflow and risk exactly and then evaluaterepparttar 142293 deal is revealed. These techniques apply to all real estate investments including foreclosures, short sales, rehabs, flips, muliti-family, lease option and owner financing.

Dear Investor,

Take this little survey: The most important key to Real Estate Success is:

1. Finding Motivated Sellers 2. Funding Your Deals 3. Negotiating 4. Knowing a Good Deal when you see one.

Yes all of them are important. And if you answered #4 you're right onrepparttar 142294 money. Why, because if your deal is a not good one, all your other skills and marketing and power will not make you money, and may even lead to disaster.

Onrepparttar 142295 other hand, if you can unfailingly target good deals, you will always be successful and allrepparttar 142296 other skills and your marketing methods will serve to increase your success.

It's a lot easier to staterepparttar 142297 question than giverepparttar 142298 answer. Why?

SO... WHAT IS A GOOD DEAL?

It's a lot easier to staterepparttar 142299 question than giverepparttar 142300 answer. Why? Because it depends on many factors like: > Market value and purchase price > Expenses, carrying costs, repairs > Cashflow and profit > Holding time > Loan terms > Risk factors > And more . . .

And most importantly, it depends onrepparttar 142301 type of deal you're doing. For example, if you have a loan on a property that you intend to rent or sell on a lease option,repparttar 142302 terms ofrepparttar 142303 mortgage, future tax increases, and current area rents are critical to consider in insuring a positive cashflow. However, if you are planning to do a short rehab job, and sell or just flip to another investor, rental income is irrelevant as are future tax increases.

IT'S WHAT YOU DON'T THINK ABOUT THAT CAN GET YOU

The thing that trips up many investors, is that in our enthusiasm to do a deal that we've found, we don't take into consideration "hidden" costs.

For example, if you're doing a renovation and you've done your due diligence on contractor costs, have you also considered your carrying costs such as mortgage payments, utilities, etc. not only duringrepparttar 142304 renovation, but alsorepparttar 142305 time it will take to sell and close with a new buyer?

Or if you're using a realtor to sellrepparttar 142306 property, have you calculatedrepparttar 142307 effect of a 6-7% commission andrepparttar 142308 closing costsrepparttar 142309 seller will pay on your bottom line. A 10% profit margin can shrink pretty quickly to zero under those circumstances.

READ THOSE LOAN TERMS CAREFULLY

Or have you taken into account, not just your loan to value ratio onrepparttar 142310 property, but your investment to value ratio (e.g.,repparttar 142311 total of all outstanding loan balances plusrepparttar 142312 additional funds you've put in from your own cash or borrowed from your home equity line or friends and family)?

And onrepparttar 142313 income side, have you calculated how long you should holdrepparttar 142314 property to receive a significant profit fromrepparttar 142315 pay down ofrepparttar 142316 mortgage. With a new 30 yr loan, you may have to wait 5-10yrs to getrepparttar 142317 same pay down you'd get after a few years from a 30yr loan that's been seasoned for 10 years. And did you carefully readrepparttar 142318 note contracts to take account of adjustable rates and pre-payment penalties?

CHECKLISTS AREN'T ENOUGH

A number of courses and real estate gurus will give you checklists. That's helpful in not forgetting something, but it doesn't help you withrepparttar 142319 laborious and complex task of putting allrepparttar 142320 numbers together.

There's just something about working withrepparttar 142321 actual real numbers, that bringsrepparttar 142322 reality ofrepparttar 142323 deal into actual focus. Our hopes and wishes dissolve beforerepparttar 142324 actual profit and loss calculations.

Moreover,repparttar 142325 numbers can pinpointrepparttar 142326 weaknesses in a deal, and pointrepparttar 142327 way to a solution. No mere checklist can do that.

WHAT ABOUT RISK?

I think you'll also agree that a Good Deal, is not just High Profit, but also, most importantly Low Risk. Many a dream of a golden future has come crashing down because some little thing went wrong. Many a would-be mogul, is now working at a 9 to 5 because their killer deal was wrecked by an unforseen glitch. This is what we mean by high risk.

How can you afford NOT to hire a Professional Organizer?

Written by Kyna Morrison


Want more free time to travel? Less stress? More money. We can do this together! What could be worse than waking up inrepparttar morning, knowing you still have a mess on your desk at work? What a way to startrepparttar 142097 day! Stressing before you eat breakfast. Agonizingrepparttar 142098 ride to work as you wonder whererepparttar 142099 charts are,repparttar 142100 boss wants on his desk by noon. Do you really want to continue your life like this? Being disorganized causes stress, an added stress we do not need. Hiring a Professional Organizer could berepparttar 142101 best move you've ever made. Would saving money cause stress? Having free time cause stress? Or, time to get caught up on work & home projects cause stress? How about that weekend trip you haven't had time for? Stress? I don't think so! We are a profession which can bring a smile to your face. How about onrepparttar 142102 home front? Know where last months bills are? Did you pay all of them? Was that a late notice you saw as you skimmed throughrepparttar 142103 mail. Byrepparttar 142104 way, how high is that pile these days? Filed all your medical bills with your insurance company? You mean they have your money & are drawing interest on it? Not good.

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