Keep Your Property In Good Shape: Stay Profitable By : James Klobasa

However, you do not require thousands of dollars for that. Only a little amount of cash will do. This little expenditure will eventually turn out to be a highly profitable investment, as it will attract your tenants, and you will be able to bargain a higher rent from them.

Replacing The Old, Ugly Switch Plates
One of the common mistakes that most real estate investing landlords and rehabbers do is that they paint the entire unit except for the old ugly switch plates. Ridiculously, sometimes, they even paint over them. Do not overlook such things, and get them replaced by new ones. It may cost you as little as about 40 cents each. Even if you have to replace the switch plates in the entire house, it will cost you somewhere around $15 only. While you do this, try to be creative and innovative. Consider nice brass plates for the foyer, living room, and other obvious areas. For that, even if you go for the most expensive ones, it will not cost you more than $4 each.

Improving The Condition Of Doors
Doors can be another inexpensive replacement. For example, if you have ugly brown doors, it is always a great idea to replace them with decent white doors. If you do not at all want to expense that much, for real estate investing rental purpose, you should at least consider replacing the downstairs doors.

Replacing The Door Handles
Just imagine an old door handle, especially with crusted paint on it. If you let it remain unrelated, what impressions will its drab look create on your real estate investing tenants? If you do not want to spend expense on that, consider replacing them with new brass finished handles. It will not cost you more than $10 overall.

Painting The Trim

If you do not want to paint the entire interior of the house, you should consider painting the trim at least. It will substantially enhance the look of the real estate investing house. If your house is one of the new, modern, custom homes with typical beige or off-white walls, with bright white trim, painting the trim with a semi-gloss bright white paint will certainly be a great idea. The same goes with the floor trim.

Improving The Foyer Area
Besides the front door, it is the foyer area that creates the first impression for the real estate investing tenants. You should consider gracing the same with linoleum floors. A good one will not cost you more than $100 in materials.

Kitchen Cabinets
I will not suggest to you to replace the complete kitchen cabinet, but you can at least consider painting them. If you have style wooden cabinets in a lovely dark brown shade, paint them using a semi-gloss white and finish them with colorful plastic knobs. However, it is not necessary to paint the inside of them.

Do Some More
If you have done everything to improve the look, do some more. How about adding a nice colorful mailbox instead of the usual old black one? Your tenant will be impressed with the creative look this adds to the house.

Always remember, in real estate investing business, you never get a second chance to build a first impression.

Useful Tips For Landlords On Dealing With Problem Tenants

It is not uncommon to see landlords being victimized by bad tenants. There are innumerable cases where tenants who initially appeared to have a clean profile and nice attitude, suddenly turn vicious and start mistreating their landlord. When a landlord screens and interviews a prospective tenant he usually uses all possible means to find someone suitable, but sometimes these methods fail to work. Even with all the precautions a landlord takes, he often ends up with problem tenants like raucous partyers, drug addicts, or scam artists trying to live rent-free.

To avoid such problems, the first thing that every landlord should keep in mind is to document everything. Verbal promises are useless. If there is a disagreement, they usually prove to be quite useless. Establishing impeccable documentation, including the rental application, the lease or rental agreement, termination notice, and an itemization of security deposits will secure your position. Thereafter, if you land in court, these documents will be the proof supporting your case.

The next matter to consider is to treat every applicant on an equal footing, irrespective of race, sex, religion, age etc. Do not allot rental accommodations according to gender, age, or status, unless the tenant specifically demands it. These days, most landlords insist on tenants showing them their ID cards. However, it is illegal to demand ID cards inconsistently. Hence, if you do require verification by ID cards, then you need to check each and every applicant’s, and not do it selectively.

The task of showing prospective tenants apartments requires a lot of time, but it is important not to rush it, or succumb to the impulse of trying to please the first candidate that comes along. Remember to question them thoroughly, and never let anyone persuade you to allow them to stay temporarily.

The next important step is to check the references thoroughly. If you think that it is a very time consuming process, or are not sure that you will do a good job, you can entrust it to tenant-screening agencies that will charge around $10-$20 per application, and will give you accurate data. Additionally, also run checks on the candidate’s criminal, credit and employment background. A good source of information can be the tenant’s previous landlords, but beware of the candidate’s friends posing as landlords. Although all this may seem like a hassle, but it is nothing compared to the problems that unsavory tenants can create.

Make a lease agreement and make the tenant sign it before he moves in with his belongings. Making a tenant sign a lease agreement is especially important if he or she happens to be a student. For additional security, you can also ask the student’s parent to co-sign the agreement.
Problems also often arise when the tenant is of some other nationality. These problems arise not because of the difference in nationality, but as a result of different traditions and customs, which can become awkward in an apartment environment. You need to spell out all the rules and conditions, documenting them and making the tenant sign it.

Personal bankruptcy is one of the problems that landlords are increasingly faced with these days. According to the law, you cannot evict a tenant if he has filed a bankruptcy petition. Although efforts are being made to change the laws, it will take time. In the mean time, you can master the legal paper work and boost your chances of recovering some of the money owed to you.

It can be tough being a landlord, and to survive it you should always be up to date with the latest tenancy laws and rules. Take regular advice from people who are experienced in real estate issues, or you can also take the help of self-help legal guides, or join a local apartment association, and save your apartment from problem tenants.

By : Kevin Kiene

Pay Attention To Detail

It is the details in real estate investing that can make you or break you. As you can imagine, unplanned repairs can put a serious dent in any profit that you were planning to make from a deal. The failure to notice a crack it the foundation can leave you financially devastated when major repairs need to be done before you can sell your investment. And if you have a knack for noticing details that others do not, you could find profitable properties that other investors pass over.

The key to noticing the small details of any real estate investing opportunity is to slow down, be observant, and ask questions. Do not accept any investment opportunity if you are not well versed in every detail of the agreement and know all there is to know about the property itself. Granted, gathering and studying the necessary information might take up some of your time, but it is time well spent as the time spent researching a property directly corresponds to the amount of money you will have in your pocket after the investment has been sold.

One of the first instances of any real estate investing venture where your eye for detail will be needed is during the initial walk through of the property. This happens before any agreement has been made and is meant to give you an idea of what kind of condition the property is in. Be sure to inspect all of the major mechanics of the property such as plumbing, heating, electrical, etc. You should look for any flaws in the structural integrity of the home and make note of any repairs that need to be done. Even though you are not an expert in these areas, you will be surprised by what you can learn about a property if you pay attention.

If you have any questions about issues that arise during the walk through, you should consult a professional to evaluate the property. This is because seemingly small problems, such as cracked drywall, may not be purely cosmetic but may point to a major structural issue that will cost a great deal of money to fix.

Another area where attention to detail is vital in real estate investing involves paperwork and the legal mumbo jumbo that makes up every real estate transfer. Be sure to read all paperwork thoroughly and ask questions if you are having trouble understanding a particular clause.

The bottom line is to not be afraid to inspect and ask questions. Never make a deal based on the seeming honesty and upfront attitude of the seller. Dig deep; find the hidden details of the property. After all, it is going to be your money on the line and your potential profit that will be lost if the investment fails.

Your Real Estate Business – A Facebook Secret Exposed

Getting your real estate business in front of a massive crowd can be expensive especially if you are using Google AdWords. Used incorrectly your Google AdWords campaign could be costing you $7 – $8 per click. But you do have an alternative and it’s much cheaper. Enter social media and in particular Facebook.
 
With over 350 million accounts, Facebook offers you an ever increasing audience to market your business in. On average, a Facebook user spends 21 minutes per visit on Facebook; triple the time spent on Google search.

Knowing this it’s imperitive that you start getting yourself in front of as many Facebook users as possible. The fastest way to do this is to start your own Facebook Fan Page. With over 8 million Facebook Fan pages starting daily there’s no time to waste.

Facebook Fan pages are the way of the future and here’s why:

1. A Blog On Heat

Blogs are great but their environment is a little closed. There’s no great viral effect without effective marketing. The average Facebook user has 100+ friends. When you add content via your Facebook page it appears on your friends pages as well. Once they share your information, your message goes viral.

Simply add the Facebook Connect widget to your blog and you’ll soon be giving your traffic a boost. Facebook also has a tool called Facebook Fanbox which you can also add to your blog.

So if people are logging into their Facebook account a couple of times a day they get to see your content. It’s difficult to get people logging into your blog more than once a day.

2. Getting Recommended

You know that the best sale is one that’s referred to you. Having a fan page can make this easier. Your recommendations go out to your friends and they can accept or ignore without the obligation felt via direct email. Fan pages offer a less obtrusive approach to getting recommended.

3. Don’t Market, Engage

Don’t fill your fan page with marketing hype. This is the quickest way to have people unsubcribe from you. Build a relationship first. Engage with them. On average it takes people 7 interactions before they buy from you. Keep your page social and watch your list grow.

4. The Money Is In The List

Most blogs have a capture form on their front page so the owner can build a list. Facebook Fan pages has the same feature. Now when people log into your page a few times a day, you also have the opportunity to add them to your personal email list.

Now the future of email marketing is always under the spotlight so it’s important to build your list within Facebook at the same time. A bit of a protective plan just in case email marketing goes pear shaped ove the next 10 years or so. And remember our Gen X & Y friends are not big email marketing users and prefer the instant messaging features of Facebook and other social media forums.

5. Taking it Away

Facebook fan pages also give you the option of creating time scarcity through your updates. This is not possible or less effective on blogs because of the long time delays.

But with your fan page you can create urgency by including a time countdown in your updates for an upcoming launch or display limited seating for a webinar etc.

This keeps your friends engaging with you as well as building excitement via your page.

I think you’d have to agree, having a Facebook Fan page is a great tool in building your profile using cost effective (cheap!) viral marketing.

Grab your today and stay ahead of the pack. You’ll be way ahead of the rest of the online community.

Financial Analysis of the Deal: A Real Estate Investor's Most Important Skill?

Rather than just give you my analysis spreadsheets, my objective with this article is to show you how to develop your own.  It is critical that you learn how to do so if you are to succeed at real estate and I want to encourage you to begin “playing” with Excel as soon as possible.  This will be far more beneficial to you than giving a cursory glance to someone else’s work because it is easy enough to understand.  Consider this a case of teaching you how to fish and feeding you for a lifetime rather than giving you a fish and feeding you for a day.

You see, chances are my spreadsheets would not even be suitable for you because I am likely using a different investment methodology.  Even if we are both using a similar technique there could be small differences based on our respective financing or some other aspect that means it doesn’t quite fit.

But more important than any of that is this:

I have found that the greatest benefit of developing your own analysis spreadsheet is that you become intimately familiar with the numbers.  By the time you’ve developed it and used it a few times you understand the numbers inside out and upside down and have a thorough understanding of what numbers are most important and what effect certain adjustments will have.

 

You should always use your spreadsheet but the funny thing is that once you’ve gone through this process you actually don’t need it as much because you have such a thorough understanding of what numbers will work for you and your market.  What could be more valuable to a real estate investor than that sort of innate knowledge?

The PMT Function in Excel

Before we get into it you need to familiarize yourself with the PMT function and it’s variants in Excel.  PMT stands for “payment” and is a variable in a set of functions related to loans.  The variables in this set of functions are:

•PMT – payment
•PV – present value
•Rate – interest rate
•Nper – number of periods
•FV – future value
•Type – payments due at start or end of periods

One thing to be aware of is that the interest rate must be for the same time period as the payment.  So if the payments are monthly you must remember to divide the annual interest rate by 12 when you put it in this equation.

Inputs and Outputs

In designing your spreadsheet you need to think about what inputs and outputs you will need to evaluate a deal.  This needn’t be very difficult.  You can just begin listing variables down the left-hand column and you will soon figure out what other information you need as you go.  Then you can drag and drop stuff to rearrange it later.

But as a primer here is a list of things that you could include as inputs:

•Property Address
•Value
•Price
•Closing Costs (can estimate as % price)
•Percent Finance
•Down Payment
•Amount Borrowed
•Term of Loan (years)
•Number of Repayments per year (needed for PMT function)
•Loan Interest Rate
•Management Fee
•Repair Costs
•Expected Rent
•Vacancy Rate

The output we are looking for is, of course, some form of return on investment.  I’m generally looking at cash-on-cash return (CCR) which is the return on the cash that I put into the deal (not the price of the property).

CCR = net annual cash flow / cash invested
If you have a private investor you would also include an analysis of their cash-on-cash return since the deal must work for them too.

Ultimately though, you can use this spreadsheet to adjust various inputs so that you CAN meet your desired return.  In other words, if your desired CCR is 30% you can adjust various inputs to determine what price you should offer on a property in order for it to be a viable investment.

You would probably also include some other key numbers in a tidy Evaluation Report such as:

 

•down payment

•closing costs

•total investment

•monthly income

•monthly expenses

•net cashflow

But once again the numbers you display will depend upon your investing methodology.  These are more typical of a cashflow investor than a flipper.

What-if Analysis

And finally, you can use your completed spreadsheet to run various what-if analyses.  For example, what if:

•you get a higher (or lower) LVR (loan-to-value) ratio loan?

•interest rates increase?

•your investor increases the down payment?

•you charge the tenant a greater option fee?

•you change the term of the loan?
•you reduce your management fees?
•you reduce your closing costs?
You can see what I’m getting at.  Once you have a working model you are armed with some very powerful information.

The Layout
I’ve included this screen capture of one of my spreadsheets just to give you some layout ideas.  Please do not try to model your spreadsheet exactly from this one.  This is for a very specific investing methodology and many of the fields will not make sense for your siutation.

However, I just wanted to show how I divide the spreadsheet into:

•input area at the top (where yellow fields are inputs and blue fields are calculated)
•brief “Deal Evaluation” report at the bottom with some of the key outputs I mentioned earlier (for a cashflow investment)
•a “What-If” tool in the top-right corner
Possible Spreadsheet Layout
I hope I’ve given you enough information to just start playing with a spreadsheet and figure this out for your situation.  If you have specific questions or difficulties just come back here and use the comment field below.  Either I or one of your fellow readers should be able to help you out.

Investors Leaving Mumbai-Gujarat Emerging as More Preferable Destination

Hardik Shah, who deals in real estate in Vapi town of south Gujarat, is a busy man these days. Vapi has been a favourite location for industrialists from Mumbai who want to set up plants in Gujarat because they find the state more investor friendly. On Wednesday, he was with a client near Sanjan trying to identify land for a medium-sized petrochemical unit. “Of late, inquiries from Mumbai have increased substantially for suitable land near Maharashtra’s border with Gujarat. These people are upset with parochialism in and around Mumbai,” says Shah.

Obviously, Amitabh Bachchan is not the only Mumbaikar who is rooting for Gujarat. The shrill tone of ‘Amchi Mumbai’ is driving investments towards Gujarat. S Sukeja, director of a firm which makes cranes, says, “Though we are based in Mumbai and we had planned some expansion in Thane, we have now decided to relocate the new unit to Gujarat.” This, according to government officials, has pushed up realty prices by at least 10 to 15 per cent in just the last two weeks. “Normally, realty deals in Gujarat take place only after Uttarayan. But the trouble in Mumbai has only spurred interest here,” a collector of a south Gujarat district told TOI.
“Of late, investors from Mumbai and Hyderabad have come here due to political disturbances there,” said Jaxay Shah, president of Confederation of Real Estate Developers’ Associations of India (CREDAI), Gujarat chapter. That this should happen in a year when both states are celebrating their golden jubilee is also significant. The hype around Swarnim Gujarat is creating an air of positivity around the state at a time when its neighbour is trying to slam the doors on ‘outsiders’. So, be it a large infrastructure firm, which is planning to shift a substantial part of their operations from Mumbai to south Gujarat, or a leading company that is close to setting up a steel plant in the state instead of Maharashtra, the list is growing long.

“The number of inquiries from companies in Maharashtra has certainly gone up in the past one year ever since the Marathi ‘manoos’ thing started,” say senior state government officials. “Some of these investors are of course Gujaratis who are feeling increasingly uncomfortable in the neighbouring state,” he said.

ESTATE IS FOR SALE ON MYSORE CALICUT ROAD at Bangalore

ESTATE IS FOR SALE ON MYSORE CALICUT ROAD

120 acres of plantation land,

Converted plantation land

Has a very good approach road

Freehold (owned by Company)

Immediate Settlement

Clear Documents,

60 kms from Mysore city, 45 kms from Mysore airport (one hr drive)

200 kms (4hrs drive) from Bangalore

Located at Bangalore-Mysore-Calicut National Highway Road

Situated at Gundlupet Taluk, Mysore District

Additional Information :

Well Established, well maintained, 10 year old estate. Estate is covered under Coffee, Areca nut, Black Pepper and silver oak trees. The whole plantation is well fenced with barbed wire and very well protected. Crop yielding plantation (Approx. One Crore crop yield per annum. All are well grown and in the yielding condition. Over 10 bore wells with the electric pump sets (KEB connected) with support generator. Drip and sprinkler irrigation system are in place with good working condition. There is enough water in the bore wells to irrigate the whole plantation at all times. Extensive modern infrastructure facilities have been built and maintained very well. One multistoried (0-1-2 floor) office cum staff quarters building along with 5 labour quarters. There is a garage for all type of vehicle with godown for inputs and implements. There is a raised and cemented drying yard.

Price : Rs.20,00,000/- (Rupees Twenty Lakhs Only) per acre

Total Price : 24 Crores

BROKERS PLEASE EXCUSE,

Enquiries from genuine direct parties only considered.

Proof of financial status for buying property from the buyer is expected.

Contact :

G.K.SERVICES

Real Estate Consultants,

No.37, Krumbiegal Road,

Near Lalbagh main gate,

Mavalli,

BANGALORE-560 004

KARNATAKA, INDIA

Tel : 091 – 80 – 32432582

Mob : 091-9740931961

Email : realestate_gkservices at yahoo.co.in

Real Estate Agents and the Internet

Real Estate Agents and the Internet – How to Buy and Sell Real Estate Today

Ten years ago, a search for real estate would have started in the office of a local real estate agent or by just driving around town. At the agent’s office, you would spend an afternoon flipping through pages of active property listings from the local Multiple Listing Service (MLS). After choosing properties of interest, you would spend many weeks touring each property until you found the right one. Finding market data to enable you to assess the asking price would take more time and a lot more driving, and you still might not be able to find all of the information you needed to get really comfortable with a fair market value.

Today, most property searches start on the Internet. A quick keyword search on Google by location will likely get you thousands of results. If you spot a property of interest on a real estate web site, you can typically view photos online and maybe even take a virtual tour. You can then check other Web sites, such as the local county assessor, to get an idea of the property’s value, see what the current owner paid for the property, check the real estate taxes, get census data, school information, and even check out what shops are within walking distance-all without leaving your house!

While the resources on the Internet are convenient and helpful, using them properly can be a challenge because of the volume of information and the difficulty in verifying its accuracy. At the time of writing, a search of “Denver real estate” returned 2,670,000 Web sites. Even a neighborhood specific search for real estate can easily return thousands of Web sites. With so many resources online how does an investor effectively use them without getting bogged down or winding up with incomplete or bad information? Believe it or not, understanding how the business of real estate works offline makes it easier to understand online real estate information and strategies.

The Business of Real Estate

Real estate is typically bought and sold either through a licensed real estate agent or directly by the owner. The vast majority is bought and sold through real estate brokers. (We use “agent” and “broker” to refer to the same professional.) This is due to their real estate knowledge and experience and, at least historically, their exclusive access to a database of active properties for sale. Access to this database of property listings provided the most efficient way to search for properties.

The MLS (and CIE)

The database of residential, land, and smaller income producing properties (including some commercial properties) is commonly referred to as a multiple listing service (MLS). In most cases, only properties listed by member real estate agents can be added to an MLS. The primary purpose of an MLS is to enable the member real estate agents to make offers of compensation to other member agents if they find a buyer for a property.

This purposes did not include enabling the direct publishing of the MLS information to the public; times change. Today, most MLS information is directly accessible to the public over the Internet in many different forms.

Commercial property listings are also displayed online but aggregated commercial property information is more elusive. Larger MLSs often operate a commercial information exchange (CIE). A CIE is similar to an MLS but the agents adding the listings to the database are not required to offer any specific type of compensation to the other members. Compensation is negotiated outside the CIE.

In most cases, for-sale-by-owner properties cannot be directly added to an MLS and CIE, which are typically maintained by REALTOR associations. The lack of a managed centralized database can make these properties more difficult to locate. Traditionally, these properties are found by driving around or looking for ads in the local newspaper’s real estate listings. A more efficient way to locate for-sale-by-owner properties is to search for a for-sale-by-owner Web site in the geographic area.

What is a REALTOR? Sometimes the terms real estate agent and REALTOR are used interchangeably; however, they are not the same. A REALTOR is a licensed real estate agent who is also a member of the NATIONAL ASSOCIATION OF REALTORS. REALTORS are required to comply with a strict code of ethics and conduct.

MLS and CIE property listing information was historically only available in hard copy, and as we mentioned, only directly available to real estate agents members of an MLS or CIE. About ten years ago, this valuable property information started to trickle out to the Internet. This trickle is now a flood!

One reason is that most of the 1 million or so REALTORS have Web sites, and most of those Web sites have varying amounts of the local MLS or CIE property information displayed on them. Another reason is that there are many non-real estate agent Web sites that also offer real estate information, including, for-sale-by-owner sites, foreclosure sites, regional and international listing sites, County assessor sites, and valuation and market information sites. The flood of real estate information to the Internet definitely makes the information more accessible but also more confusing and subject to misunderstanding and misuse.

Real Estate Agents

Despite the flood of real estate information on the Internet, most properties are still sold directly through real estate agents listing properties in the local MLS or CIE. However, those property listings do not stay local anymore. By its nature, the Internet is a global marketplace and local MLS and CIE listings are normally disseminated for display on many different Web sites. For example, many go to the NATIONAL ASSOCIATION OF REALTORS Web site, http://www.realtor.com, and to the local real estate agent’s Web site. In addition, the listing may be displayed on the Web site of a local newspaper. In essence, the Internet is just another form of marketing offered by today’s real estate agent, but it has a much broader reach than the old print advertising.

In addition to Internet marketing, listing agents may also help the seller establish a price, hold open houses, keep the seller informed of interested buyers and offers, negotiate the contract and help with closing. When an agent provides all of these services it is referred to as being a full service listing arrangement. While full service listing arrangements are the most common type of listing arrangement, they are not the only option anymore.

Changes in the technology behind the real estate business have caused many agents to change the way they do business. In large part, this is due to the instant access most consumers now have to property listings and other real estate information. In addition, the Internet and other technologies have automated much of the marketing and initial searching process for real estate. For example, consumers can view properties online and make inquires via email. Brokers can use automated programs to send listings to consumers that match their property criteria. So, some agents now limit the services they offer and change their fees accordingly. An agent may offer to advertise the property in the MLS but only provide limited additional services. In the future, some real estate agents may offer services in more of an ala carte fashion.

Because of the volume of real estate information on the Internet, when people hire a real estate agent today they should look at the particular services offered by the agent and the depth of their experience and knowledge in the relevant property sector. It is no longer just about access to property listing information. Buyers and sellers historically found agents by referrals from friends and family. The Internet now provides ways to directly find qualified agents or to research the biography of an agent referred to you offline. One such site, AgentWorld.com, is quickly becoming the LinkedIn or Facebook for real estate agents. On this site an agent can personalize their profile, start a blog, post photos and videos and even create a link to their web site for free. Once unique content is added to their profile page the search engines notice!

Some have argued that the Internet makes REALTORS and the MLS less relevant. We believe this will be false in the long run. It may change the role of the agent but will make knowledgeable, qualified, and professional REALTORS more relevant than ever. In fact, the number of real estate agents has risen significantly in recent years. No wonder, the Internet has made local real estate a global business. Besides, Internet or not, the simple fact remains that the purchase of real property is the largest single purchase most people make in their life (or, for many investors, the largest multiple purchases over a lifetime) and they want expert help. As for the MLS, it remains the most reliable source of real estate listing and sold information available and continues to enable efficient marketing of properties. So, what is the function of all the online real estate information?

Online real estate information is a great research tool for buyers and sellers and a marketing tool for sellers. When used properly, buyers can save time by quickly researching properties and, ultimately, make better investment decisions. Sellers can efficiently research the market and make informed decisions about hiring an agent and marketing their properties online. The next step is to know where to look online for some of the best resources.
Internet Strategies

In the sections that follow, we provide strategies and tips on how to use the Internet to locate properties for sale and research information relevant to your decision to purchase the property. There are many real estate Web sites from which to choose and although we do not mean to endorse any particular Web site, we have found the ones listed here to be good resources in most cases or to be so popular that they need mention. One way to test a Web site’s accuracy is to search for information about a property you already own.

Finding Real Estate for Sale

Despite the widely available access to real estate listings, many believe that MLS databases continue to offer the most complete and accurate source of real estate information. Most MLSs now distribute content to other Web sites (primarily operated by real estate agents). An excellent starting point for MLS originated content is the national NAR Web site, realtor.com, which is also the most popular web site for searching real estate listings. Virtually all local and regional MLSs have an agreement with realtor.com to display much of their active listing inventory.

Some local and regional MLS systems also have a publicly accessible Web site. However, to get complete information you will most likely still need to find a qualified local REALTOR. Many local real estate agents will also provide their customers (via email) new listings that are input into the MLS that match their predefined criteria. This can be very helpful to a busy buyer.

There are also many Web sites that display both real estate agent listed and for-sale-by-owner properties. Some of the more popular Web sites include zillow.com and trulia.com. These sites offer other services too. For example, zillow.com is best known for its instantaneous property valuation function and trulia.com for providing historical information. Another source of properties for sale is the state, regional, and local Web sites associated with brokerage companies; for example, remax.com or prudential.com. Search engines like yahoo.com and classified advertising sites like craigslist.com also have a large number of active real estate listings.

One key difference between these sites is how much information you can access anonymously. For example, at trulia.com you can shop anonymously up to a point but then you will need to click through to the agent’s Web site for more information. Many new real estate search engines allow you to sift through listings without having to fill out a form. The best strategy is to browse a few of the sites listed above to find geographic areas or price ranges that are interesting. Once you get serious about a property, then that is the time to find a qualified REALTOR of your choice to conduct a complete search in the local MLS.

It also never hurts to search the old-fashioned way by driving through the neighborhoods that interest you. There is no substitute for physically, not virtually, walking the block when you are making a serious investment decision. In this sense, real estate is still a very local business and standing in front of the property can lead to a much different decision than viewing a Web page printout.

Valuing Real Estate

As we mentioned, one of the most popular real estate tools is zillow.com’s instant property valuation. Just type in an address and in and you get a property value. It even charts the price ups and downs, and shows the last date sold (including price) and the property taxes. There are other sites that provide similar tools such as housevalues.com and homegain.com. Unfortunately, many people use these estimated values alone to justify sales prices, offers and counteroffers. However, these are only rough estimates based on a formula that incorporates the local county sales information. These estimates can swing wildly over a short period of time and do not appear to always track actual market changes, which are normally more gradual. In addition, these estimates do not automatically take into account property remodels or renovations or other property specific or local changes. This is not to say these sites are not useful. In fact, they are great starting points and can provide a good ball-park value in many cases.

When it comes to getting a more accurate value for a particular property, there are other strategies that are more trustworthy. One is to go directly to your county’s Web site. More often than not the county assessor’s area of the Web site provides sales and tax information for all properties in the county. If you want to research a particular property or compare sales prices of comparable properties, the local assessor’s sites are really helpful. When you visit a county’s Web site you are getting information straight from the source. Most counties today publish property information on their Web sites. Many times you cannot only see the price a previous owner paid, but the assessed value, property taxes, and maps. Some county assessors are now adding a market and property valuation tools too.

Given the importance of valuation to investing, we are also going to remind you of the two most important (non-Internet) valuation methods: real estate agents and appraisers. Working with a local REALTOR is an accurate and efficient way to get value information for a property. While one of the primary purposes of the MLS is to market the active property listings of its members, the system also collects sales information for those listings. REALTOR members can pull this sales information and produce comparable market analyses (sometimes called CMAs) that provide an excellent snapshot of a particular property’s value for the market in a particular area.

Finally, the most accurate way to value a property is by having a certified appraiser produce an appraisal. An appraiser will typically review both the sold information in the MLS system as well as county information and then analyze the information to produce a valuation for the property based on one or more approved methods of valuation. These methods of valuation can include a comparison of similar properties adjusted for differences between the properties, determine the cost to replace the property, or, with an income producing property, determine a value based on the income generated from the property.

The Neighborhood

There are many ways the Internet can help you get the scoop on a particular neighborhood. For example, census data can be found at census.gov. You can also check out the neighborhood scoop at sites like outside.in or review local blogs. A blog is a Web site where people discuss topics by posting and responding to messages. Start by looking at placeblogger.com and kcnn.org/citymediasites.com for a directory of blogs. Trulia.com has a “Heat Map” that shows how hot or cold each neighborhood is based on prices, sales, or popularity among the sites users.

Schools

When it comes to selling residential property or rental properties that cater to families, the quality of the area school district makes a huge difference. There are many Web sites devoted to school information. Check out greatschools.net or schoolmatters.com. Most local school districts also have their own Web site. These sites contain a variety of information about the public schools and the school district, including its district demographics, test scores, and parent reviews.

Finding the Right Real Estate Agent

A recent addition to the Internet boom in real estate information is Web sites that let real estate agents market their expertise and local knowledge by displaying their professional profiles and socially networking with blogs. You can search to find an agent with a particular expertise, geographic area of specialization, or an agent offering specific services. The web site AgentWorld.com lets users quickly and easily find an agent with the right expertise using keyword searches and clean and simple agent profiles. AgentWorld.com also enables agents to post personalized blogs, photos and videos to help consumers find the best agent for their needs. Plus, many agent profiles include a direct link to the agent’s web site where you will likely find the local MLS listings.

Maps and Other Tools

The Internet has made mapping and locating properties much easier. To get an aerial view or satellite image of a property or neighborhood, go to maps.live.com or maps.google.com or visit walkscore.com to see how walk-able a particular property is. These sites can give you an idea of the neighborhood characteristics and the types of entertainment, restaurants, and other facilities that are within walking distance of the property. Maps.Live.com provides a view at an angle so you can see the sides of houses and Maps.Google even gives you a 360 degree street-level view for certain neighborhoods. If you have not tried one of these satellite map Web sites, you really should if only for amusement.

Final Thoughts on Internet Strategies

The Internet is a very effective research and marketing tool for real estate investors but is not a replacement for a knowledgeable experienced real estate professional. The Internet can save you time and money by enabling quick and easy property research and marketing options. Sites like AgentWorld.com also help you efficiently find a REALTOR who fits your buying or selling needs.

Always remember, when it comes to Internet strategies for real estate: More knowledge is better. You need to use the Internet to build your knowledge base on a target property or to find a real estate agent with expertise you need. However, the big caution here is that the Internet should not replace human judgment and perspective, expert advice or physical due diligence-keys to successful investing.

Make Money in Real Estate

Make Money in Real Estate – Unlock the Secret

Maybe you’ve heard someone say you can make money in real estate with no money and no credit, maybe you haven’t. (Maybe you’re not up late at night watching TV infomercials.) But the truth is you can… if you know how. While it is possible to do deals with no credit and no money, it can be tough when you’re first starting out. Usually you’ll still need SOMEONE’S credit or money… but it doesn’t have to be yours.

Here’s how it works:

One of the oldest and simplest ways to make money in real estate with no money and no credit is to partner with someone who DOES have these things but doesn’t have the time or the skill to go out into the market and wrangle up good deals. You see, in real estate as with most things, a good education goes a long way. Maybe your education came from an online course, or the school of hard knocks, but either way, if you can go out there and find a DEAL, finding someone to help you fund it will be a cinch.

The first question everyone always asks is, “So how do I know a Good Deal when I see one?” Well that’s simple. When you’re first starting out you want to be looking for properties that have a 30% profit potential or greater. What that means is, you want to be able to buy the property, fix or clean it up for resale, and then put it on the market for 30% above the total of what you have invested in it (purchase price + fix up).

In order to do this properly you’ll need to work backwards. (Don’t worry; in this case working backwards is easier than walking backwards and chewing gum.) You’ll need to determine what the fair market value of the house you’re looking to purchasing is, so that you know what you can sell it for. You do this by checking what other similar homes have sold for in the immediate area. You can ask your Realtor for this information or there are several websites today that can give you sales data.

Then, you want to chop 30% off this number right from the start. That will tell you how much you can spend on the whole deal and still make money. Next you need to determine what repairs the home needs if any. Chances are it could use something, even if it’s minor, like paint and carpet in order to help it look nice and sell faster. Subtract the total amount for estimated repairs from your running total and the remainder is what you can afford to purchase the property for (including all closing costs).

Now that you know what a good deal looks like and how to spot one, the next thing you need to do is figure out how to acquire it without spending any of your own money. This is where a partner comes in. So far you’ve done all the legwork. Now it’s time for your partner to do their part. You can meet several people who would be happy to partner with you on a good deal at your local real estate club. You can spot them pretty easy; sometimes they’ll even be wearing shirts or buttons that say “We buy houses”.

Introduce yourself and explain your deal to them, show them you’re numbers, and spell out exactly what you intend to do with the property and how you intend to sell it. These guys are pros at spotting a good deal and knowing just how to make money on it. If you’ve got a hot deal, they’ll be glad to get involved.

How much you make on the deal will be determined by how involved you are in it. If you’ve located a good potential property and are basically just bringing it to an investors attention you’ll probably get a finders fee of a few hundred dollars when the deal goes through. If on the other hand you’ve already negotiated with the seller and have the property under contract then you stand to split the deal 50/50 with your investing partner. As with most money making endeavors; the key is education. The more knowledgeable you are, the more prepared you’ll be, and the higher your earning potential will become.