High Profit Real Estate Investing--Make a Good Deal Every Time!
Knowing what a Good Deal is - Is the Key to Success in
Real Estate. 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
on the 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. On the other hand, if you can unfailingly target good deals, you will always
be successful and all the other skills and your marketing methods will serve
to increase your success. What is a Good Deal? It's a lot easier to state the question than give the 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 on the 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, the terms of the 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 during the renovation, but also the time
it will take to sell and close with a new buyer? Or if you're using a realtor to sell the property, have you calculated the effect
of a 6-7% commission and the closing costs the 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 on the property,
but your investment to value ratio (e.g., the total of all outstanding loan
balances plus the additional funds you've put in from your own cash or borrowed
from your home equity line or friends and family)? And on the income side, have you calculated how long you should hold the property
to receive a significant profit from the pay down of the mortgage. With a new
30 yr loan, you may have to wait 5-10yrs to get the 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 read the 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 with the laborious and
complex task of putting all the numbers together. There's just something about working with the actual real numbers, that brings
the reality of the deal into actual focus. Our hopes and wishes dissolve before
the actual profit and loss calculations. Moreover, the numbers can pinpoint the weaknesses in a deal, and point the 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. The successful investors do deals with low risk. Deals that are so robust that
even if almost everything went wrong they'd still come out with a profit. Build In A Safety Margin For example, suppose you have a rental with a positive cashflow. Is your cashflow
high enough or your option payment big enough, that even if you had to evict
your tenant for non-payment and it took you 2 months to fill it with another
cash-paying customer, you'd still come out ahead? Or, is your investment to value so low that even if you had to offer your buyer
a big discount for a quick sale, you'd still walk away from the closing table
with a fat check? In real estate things can and usually do go wrong. It's Normal. So, wouldn't
you like all your deals to have these kinds of safety margins? Fixing the Problems with Your Deal Now, if you knew in advance that your risk was too high, or your cashflow was
too low, or your profit over the life of the deal wasn't enough, you'd want
to think of solutions. This is what is meant by being a "transaction engineer". Find the
solution, fix the problem, test it on the numbers, and then negotiate it into
the deal. And if you can't find a solution (but there always is one) or the seller won't
accept it-NEXT! I can tell you from real experience, a bad or risky deal is NEVER WORTH DOING-no
matter how enticing the vision. The personal stress, heartache, and loss of
confidence can be even more harmless than the potential financial loss. In the
words of an ex-president's wife, if you are faced with doing a bad deal-Just
say No! What's the Answer? Some experienced investors have a feel for good deals, and can avoid trouble
most of the time. Others only do a particular type of deal and use a rough "rule
of thumb" to evaluate their risk and profit. However, what's really needed is a "calculator" or computer program
that will take in all the variables and 1) Calculate the exact profit and cashflow for all kinds of deals. 2) Measure and Evaluate the financial risk in the deal 3) Use standard and safe criteria for what constitutes a good deal 4) Suggests alternatives to fix what is wrong The Deal Evaluation Tool We've taken tons of real estate courses and looked at all kinds of real estate
software, and nothing has come close to what we as investors need. So we decided
to create our own Deal Evaluation Tool. Well after several months of testing and improvement, we now use it for all
our deals-short sales, subject to, lease option, rehab, wholesaling, and
even some commercial. Since we can try out different "what-if" scenarios, it's kept us away
from some real pitfalls, and helped us negotiate better profit margins. We wouldn't
"leave home without it". Constantly Meeting The Needs Of Investors Well, some other investors wanted to try it, so we put it on our website. Much
to our delight we now have a community of users and a users group that shares
their insights about doing deals and creative ways to use the Deal Evaluation
Tool. Their suggestions, are leading to a rapid improvement of already incredibly
useful tool. There is just nothing out there like it. We've also put a demo
up for those investors who would like to get a feel for using it. And we hold
classes for new users. Knowing all the numbers, and having evaluated our risks with the Deal Evaluation
Tool gives us more confidence in negotiating deals with sellers and more consistent
high profit real estate deals. And that's what we all want, isn't it. Richard Odessey along with his wife Michelle have the premier site on the internet - http://www.InvestorWealth.com for training and teaching real estate investors
to do high profit deals. They offer regular Free Teleseminars by the top real
estate investors in the country, the best tools to enhance your real estate success
like the Deal
Evaluation tool. They also offer 4-8 hands-on training seminars with personal
advice from experts that investors can take from the comfort of their home. Richard
and Michelle have been investing for over 5 years and personally teach and mentor
other investors.
MORE RESOURCES:
London Ontario Real Estate Information
Can I Sell My Private Mortgage Notes?
How to Prequalify a Buyer When You Sell Your Home By Owner
Purchasing Property With No Money Down: My Personal Experience
Budgeting Your Log Home: Where Do You Start?
How to Get Financing after Filing Bankruptcy
Joint Ventures In Real Estate Development; So How Do They Work?
How to Price Your Property?
How to Make the Real Estate Market Work For You and Get The Most Money
Cheap, Bargain, Real Estate; Good Deals, Below Market, Low Priced Properties Are Available...
Real Estate: Reasons and Priorities for Purchasing Property
A Powerful Suggested Technique for YOUR Home & Property Search
Horses In My Back Yard
How To Give Yourself A $20,000/Year Raise Without Asking Your Boss
How Do I Implement The Lease Purchase Plan?
How I Became a Real Estate Investor
Safe, Scenic & Secure Sussex County Delaware
Quality of Life in Sussex County Delaware. Facts, Statistics, Observations and even opinions!
Investing in Real Estate Profitably: Financing Options for Purchase of Rental Houses, Part 1.
Investing in Residential Real Estate: Achieving Positive Cash Flow
Regarding Real Estate On Leased Land
How Much Home Can You Afford In Todays Market?
Why Do Realtors Advertise Your Home in Print,on the Radio, on Television, etc.?
I have a buyer for your property and I can sell it now!
Where Does Your Real Estate Commission Fee Go - Why is The Commission so HIGH?
What We Do To Sell Your Property!
Maximizing Curb Appeal and First Impressions to Sell your Home
Juggling The Day With A Deal
The Many Benefits Of Lease Purchasing
Various Aspects Of The Lease Purchase Business
What Can I Realistically Earn In A Lease Purchase Business?
Real Estate, Real Property and Leased Land; Definitions, Discussion and Explanations
Tax Deferred Exchanges of Investment and Business Real Estate
High Tension for the Buyer and Seller of Real Estate Can Be Reduced
Legal Information About the Real Estate Contract
Real Estate: Buyers Agent, Sellers Agent & Dual Agent (defined and explained)
Landscaping Adds Great Value to Real Estate And Helps You Sell
Are You Profiting From O.P.P.?
The Many Ways To Profit From O.P.P.s Multiple Cash Streams
How Do You Profit From O.P.P.?
Lease Purchasing Is The Perfect Home-Based Business
Buying Country Acreage and Rural Properties, To Buy or Not To Buy
The 21st Century Way To Build Equity
Property Types A, B, C And D
The Psyche of The Seller and The Tenant Buyer
Reprint Rights and How To Use Them To Generate A Steady Income
Seller Objections To Lease Purchase
Tenant/Buyers Have Multiple Options
The Devine Secrets Of The Ya Ya Lease Purchase Hood
How To Get The Best Rental Accommodation In The Area By Using Your Capital
Strata Title Hotel Investments
Why You Should Rent To Live And Buy To Invest
Time Is A Major Real Estate Wealth Growth Tool, So Use IT And Watch Your...
Property Auction & Why You Should Run A Mile From Them
Condo Hotels Offer Luxury and Great Investment Potential
Condo Hotel Trends - A Look at the Big Picture in Vacation Home Ownership
The Benefits of Fractional Ownership in Private Residence Clubs
Real Estate Development Marketing
Buying Land For Development Requires Careful Planning and Execution
Home Inspections or Home Warranty?
Peace of Mind for Home Inspections: Choose the Right Inspector!
Preparing To Make A Zero Down Offer
Using The Internet In Your Lease Purchase Business
Real Estate Local FAQs.
Sell Houses Fast & Top Dollar: Design Psychology
What is a Predatory Lender?
Find Bucks in Yucks! 20-Year-Old Woman Turns Doghouses into Dollars!
Selling by Owner = Saving by Owner?
You Have 15 Seconds to Sell Your Home! 11 Steps You Can Take to Sell Your Home for Top Dollar
Selling by Owner Tips
Using Transformation Psychology to Sell Investment Properties
How to Become a Successful Real Estate Investor
Buying Houses: Types of Bargains to Find
Financing Houses
Using Color Psychology to Sell Your Home
Five Things to Help Sell Your Home Fast, and For More Money
Ten Steps for Becoming a Successful Real Estate Investor
Finding a Great Listing Agent for Your Home: 8 Tips
Selling Houses: Design Psychology and Interior Colors
Interior Design Secrets for Selling Houses
Five Ps of Selling Houses
Selling Houses: The Basics of Design Psychology
The Costs of Transforming Your Home into a Buyers Dream House
Fixing Houses: Mixing Your Own Paint for Savings and Harmony
If Your House Is a Mess, You Dont Have To Sell For Less
18 Easy Steps to Buy a Bargain House
How to Choose Your Real Estate Lender
Create a Sizzling Home Sales Flyer
A Beginners Guide to Flipping Houses
Questions Investors Should Ask When Buying and Selling Investment Property
Real Estate Investing: How to Choose a Lender
Real Estate Investing: Infomercial and Mentoring Scams
Why You Need a Lender to Sell Your Home
Selling Your Home: The Power of a Great Sales Flyer
The Secret to Maximum Real Estate Profits: Lighting
Selling Investment Houses: Props & Profits
Selling Houses: Cutting Edge Design Tips for Selling
Dont be Tempted by We Buy Houses (Updated)
Buying and Selling Distressed Houses for Maximum Profit (Update)
Selling Houses Fast: Basics of Design & Color Psychology
Selling Houses: Flooring & Feelings
Selling Houses: Psychological Effects of Landscaping
Credit Help: Buying Real Estate -- Not the Same as Buying Cars
Fixing Houses: Using Psychology for Profits
Selling Your Home Quickly, Even if You Have No Money For Repairs
Talk to a Lender Before You Sell Your Home
Selling by Owner Escrow or Closing Checklist
Investing in Real Estate Profitably: Eliminating the Need for Mortgage Insurance
How to Make Money in Real Estate Without Doing the Scrunch Work
Achieving Positive Cash Flow from Your Real Estate Investments
Selling Houses: Design Psychology Works!
Selling Your House Fast!
Transforming Doghouses into Dollhouses
Selling Investment Houses: Psychology of Mirrors
A Real Estate Primer
What are the Elements in Real Estate?
Curb Appeal
What to Look Out For When Buying Off Plan
Staging® Your Home for Sale: a Superior Real Estate Home Marketing Technique: Part 1
What Does It Take To Be A Donald Trump in Real Estate?
On the Crossing of Continents
Panama is Hot - A World Class Retirement Haven Thats Ripe For Profitable Real Estate Investment
Personal Branding Techniques for Real Estate Agents and Brokers
Real Estate Investing Myths That Steal Profits From Your Pocket
Budgeting Your Log Home - Creating a Checklist
Do You Want To Sell Your Rehabs Fast?
How Much Should I Pay For This House?
Real Estate Investment 2005 - The Hottest Countries for Investment in 2005
Real Estate Investment - Why it is Big Business?
Tax Free Exchanges: Watch out for the New Residence Rules
Home Inspectors - Negotiating a Lower Price
Finding the Right Real Estate Agent:: A Guide for Seniors
Why it is Important to Hire Just One Real Estate Agent to Buy a Home
The Professional Investors Plan
How to Buy a Home When Your in Your Twenties
Why Invest In Property?
Location, Location, Location
Prepare Your House for a Successful Sale
Pricing your House to Sell
Virtual Agent? Online Real Estate
Curb Appeal
Water, Water Everywhere on the Waterfront
Before Selling Your Home
When Showing Your Home
For Sale By Owner Listings
Should you Sell your Home yourself?
Evil Gains Entry
How to Sell Your Own Home and Save Thousands of Dollars
Home Inspection Checklist - Home Inspectors
The Value of Foreclosed Property
Investing In Commercial Property
Investing In Land
Selling Your Home - A FSBOs Guide to Keeping It Safe
Seven Questions You Should Ask When Buying a Condo Hotel Unit
What is a Foreclosure?
Expenses of Home Ownership
Dealing With Dual Real Estate Agents
At Home In Your Overseas Home
A Real Estate Investing Primer
The Real Estate Bubble Fallacy
Tax Assessment/Appraisal: How Do I Know What My Home is Worth?
How to Build a Real Estate Investing Power Team
How Can the Average Person Build Wealth in Real Estate?
Product Review of Carelton Sheets No Money Down Course
Real Estate News
Types of Listings with Agents
The New First Impression in Home Selling
Buying a House in Scotland
Fixing Houses for Resale: Three Beginning Steps to Increase Profits and Have Fun
Basic Tips for First Time Home Buyers
Homebuyer Heaven Can't Possibly Last
Selling Your Property Without An Estate Agent
Avoid The Traps Of Finance
Big Discounts With Property Investment Clubs?
New or Old House?
How Not To Blow Your Build Budget
Is a Vacation Home Right for You?
Should You Buy Real Estate Now
Staging Homes for Top-Dollar Sales
Real Estate Bankruptcy
How To Negotiate A Higher Price For Your House
Maintaining Small Town Charm In An Ever-Changing World
OPM - The Art of Leveraging
A Difference Between Appraisal, Assessment, Home Inspection
Investing in Real Estate Like a Stock
Getting Raw Land, Not a Raw Deal!
Investing in Real Estate Vehicle for Wealth Building
A Possible Bargain: Foreclosed Properties
How Can I Stop Foreclosure on My House?
Buying New Construction...How Do I Begin?
Dont Sell Your House--Ever!
A Singles Game of Real Estate
Investment Real Estate Done Right -- Your Quickest and Safest Path to Wealth
Atlanta Georgia Real Estate - Marietta - East Cobb, Roswell, and Alpharetta
How to Attract Clients in Residential Real Estate
How to Build Your Dream Home
Property in Bulgaria - Huge Investment Potential
Unravelling The Real Estate Buying Process in Canada
Why Canadian Real Estate is Such Good Value
How To Find Your Dream Home In Belize
Negotiating the Real Estate Contract
Be A Realtor With Curb Appeal
Investment Real Estate -- A New Twist: Be the Bank, Not the Landlord, and Get Rich Without the Work!
Build Your Retirement By Investing In Real Estate
Appraisal vs. Market Value: How to Avoid Pitfalls in the Sale of Your Home
Utah Real Estate
Purchasing Land: What To Look For
If You Cant Afford to Retire...Move
Moldy Homes are a Great Investment
NAR® Broker Will Swear It - Real Pro' Agents Share It - FSBO Truth
How to Get the Best Price for Your House
Flat Fee MLS Listings - Is This The Future Of Real Estate
10 "No Money Down" Ways to Buy Real Estate
Look Past the Bottom Line for a Propertys Potential
10 Tips for Investing in Distressed or Foreclosed Properties
How to Research and Purchase a Good Investment Property
Termite and Moisture Damage Not Reported
Free Tips That Will Dramatically Increase the Selling Value Of Your House (Part 1)
Dont Overpay for a House, Even in Todays Market
What Homeowners Should Know to Stop Foreclosure- Speaking Your Lenders Language
Finding A Capable Agent To Meet Your Real Estate Needs
How to Prepare Yourself for Owning a Dual Purpose Second Home
Conditions Are Right For Buying The Higher Priced Home You'Ve Always Wanted
What To Expect In Closing Costs On A Home Purchase
Avoiding A Bad Investment Is Easier Than You Might Think
Working With Your Real Estate Attorney
What's Your Style? A Guide to America's Most Common Home Styles
XML error: XML_ERR_NAME_REQUIRED at line 1 | 
