Commercial Real Estate Investment Articles

A key to understanding the power of using “paper” in real estate transactions is to understand that despite what a promissory note might state on its face as the amount of debt owed, it could very well have different perceptions of value to different folks.

So often, beginning real estate investors focus on techniques that they lose sight of the important issue: Is this a good deal? Learning to recognize a good deal takes research, education and, above all, experience. Here’s a good formula to determine whether a potential real estate purchase is a deal. It’s a simple acronym called C.L.E.A.R.

Acquiring investment real estate can be handled with many approaches. Two very popular “no money down” approaches are lease options and “subject to,” or “getting the deed.”

As investors who buy homes directly from motivated sellers, we are usually listening to a seller’s sad story. It is important to know where to “draw the line.” What we mean is, some of us are strictly business and don’t even flinch at the saddest of stories. If the numbers don’t work, “Sorry. Try another investor.”

Finding good real estate deals is an art that takes time to master. Like any business, customers are what drive it. Your primary customer is the seller who is motivated to sell below market value. Finding motivated sellers requires advertising, marketing, salesmanship, and, like any business, keeping your nose to the ground.

Whether you plan to rehab or wholesale, you’ll need to build a buyers list. These are the investors to whom you’ll sell properties. If you plan to wholesale real estate, these folks can make you very rich.

Do the homeowners still owe the bank money after a real estate foreclosure? That is a good question. When you negotiate a successful short sale, keep in mind that the agreed upon price is payment in full.

In a huge victory for managed and self-directed IRA owners everywhere, the U.S. Supreme Court ruled in April 2005 that IRAs receive Federal Creditor Protection. This means that creditors cannot seize assets in an Individual Retirement Account.

A lot of hoopla has been floating around the news media lately about the “bubble” theory of real estate. That is, the theory that the real estate market is going to burst. In my opinion, the theory has no merit.

Question: Is this true? I keep reading that the inflation on real estate is so high and the market is going to crash. Should I be worrying?

One of the biggest problems real estate investors face when structuring transactions involving seller financing is the seller’s concern for security and assurance that they will be repaid. Let’s take a look at a typical example:

Savvy investors understand that they can often put together more deals through incremental negotiations over the actual repayment terms of the property sale as opposed to focusing solely on the property’s sale price.

The mobile home/land deal is a hybrid investment property. Using any one of the techniques found in creative real estate investing, we buy land with a mobile home on it, or we buy a mobile home and place it on land we have purchased. The mobile home itself is initially treated as personal property, much like a car. The land is treated as real estate.

I had a great conversation with a mentorship student yesterday who shared with me how he and his wife are selling their third house (their first two houses they still own) and will net $45,000. It inspired me because I had talked with them over a year ago when they had a tenant/buyer back out of a deal, and they were at an emotional low.

Once upon a time not too long ago, a peanut farmer had just left the White House, a former actor replaced him in our nation’s highest office, and the Prime Rate (the interest rate banks charge their most credit worthy customers–usually their most prominent and stable business customers), was at 20%.

On my online newsgroup and at seminars, I am often asked, “How do I get from where I am (usually single-family residential properties) to dealing in larger scale properties?”

In this article, I’m going to be discussing some fairly recent and mostly unknown law about contracting through electronic methods that can be a big help to all players in the real estate investing world. Let’s start with some real estate legal basics everybody knows.

Clearly there are benefits for both the buyer and the seller when a flexible seller is willing to provide owner financing to you as the buyer of their property. Let us take a look at a few examples:

Many self-acclaimed real estate gurus state that everyone should quit their jobs and immediately jump into real estate investing full time. They often claim incredible results from students with little experience.

Are you considering tax lien investing as a strategy? If you take the time to learn the ropes, you’ll discover why real estate is the best wealth-builder in the universe–the safest, most accessible, most lucrative investment you can make. You’ll also find out how to use your real estate investments to create multiple income streams and have a river of money flowing your way every day.

Mistake #1 They take TOO Long. Good deals don’t wait around for indecisive people. Many people “think a deal to death.” One way to lower your anxiety level with a deal is to move forward provisionally (i.e. with a clause of some sort.)

You know, it’s utter nonsense to submit offers to sellers and just hoping they’ll accept. Sure, I used to do that; and I’d sit there by the mailbox with my fingers crossed, praying the mailman had more than bills and junk mail for me today. And every now and then one of those offers would show up all signed off and I’d be the happiest knucklehead on the block.

Zillions of “newbie” investors are jumping on the bandwagon trying to make a profit after losing big in the stock market. I meet them all the time, and many are making big mistakes!

It stuns us how many investors say, “I can’t find any good deals.” Folks, you’re not looking!  We think that many new investors (who watch too much late-night TV) are under the impression that if they decide to become investors, the “investor fairy” will drop deals out of the sky.

Having a firm grasp on language patterns will help you close more deals. In addition to using embedded commands (word groups that order you to do something), you must incorporate assumptive language patterns into your vocabulary. Assumptive language patterns assume the outcome of what you are asking.