Tag Archives: how to make money in real estate

Homesellers, It’s not personal…It’s Real Estate

In every aspect of life, some people are apt to get their feelings hurt easily. If someone doesn’t like your outfit or says your kid doesn’t play soccer well, etc. But in business, people try to get a thicker skin by saying, it’s not personal…it’s business. When selling your home, you need to remember the same thing when under critique. It’s not personal…. it’s real estate. Homesellers need to keep in mind that homebuyers have to find what is best for their needs and wants and if it is not this house, it will be the next. What the seller likes or wants in the home or its decor or use is not relevant to what the buyer will want. Different strokes for different folks. The goal is selling the home at the best price in the fastest time.

Here’s what I have heard sellers say….If it’s good enough for me, it’s good enough for them. They can take me as I am and the house as it is. They are nit picky. They don’t understand that this cost me $$. They are too young and don’t know any better. They should appreciate… They don’t know…. or IF THEY DON’T LIKE IT, THAT’S THEIR PROBLEM.

If you want your home to stay on the market forever or sell for less money, keep thinking that way. But if you change your thinking, this is what you need to do to prepare for the mindset of selling a home successfully.

1. THINK “It’s no longer your home…it’s a means to an end – a product.” You want to get where you are going and selling your home is the means. You need to think of it as a retail product and “stage” it to appeal to your target market home buyer. Homes sell faster and for a better price if they appeal right away to the target homebuyer…with as little work possible. Sometimes your target homebuyer will be about as far away from your taste as possible. To sell, you need to appeal to them and make changes, even if it doesn’t appeal to you.

2. BE REALISTIC…REALLY understand the good and bad points of your house. Sometimes you can fix the bad points, sometimes you can’t. Upgrading or not, staging or not and pricing must be based on the market and your home. What you think your home is worth isn’t always what the market thinks. Homebuyers look at the market. The market wins. Listen to your expert Realtor advice, which they should be able to substantiate with comps. They are the market, don’t ignore them.

3. FEEDBACK….Feedback from home buyers and other Realtors is important and hard to get…so when you get it, don’t dismiss or ignore it. This is what people are thinking who could have bought your home….but instead there was a reason they bought another home. They may not like the decor or the layout, etc. You have to figure out if it is cost effective to fix or change it or you may need to adjust your price….or you can ignore it, make excuses and sit on the market forever.

And if they don’t like your wall-to-wall mirrors or southwestern decor…don’t take it personal. That is why you should not be in the house when they are there. They don’t want to hurt their feelings, so they will not say what they need to say and their Realtor can’t do his or her job explaining the home and countering objections. Once they have it in their heads they don’t like something, it is tough to reverse or change.

4. FINANCING…Whether you agree or not, times are different now than when you were starting out and buying a home. Many first-time homebuyers these days have very little down payment and no extra for closing costs. Often they will ask you for closing costs, but what you are really doing is allowing them to finance the costs into the mortgage. Negotiate your bottom line like a business….don’t get caught up in how much they are putting down or whether or not they want to finance closing costs. It should only matter if they are capable and likely to get the loan and you are getting a net price that works for you.

5. INSPECTION…It is wise to have an inspection done on a home or a used car, or anything before you make a major purchase. The inspector’s job is just like a doctor doing a physical. They will tell these homebuyers everything that is wrong with the home. That is their job, some are better and putting things in the right perspective and some are not. The key is again, don’t take it personally. You may not agree with what is said is wrong with the house, you may think it is nit picky, but the point is the home buyers do care and if you want to complete the sale, you need to decide if the price is worth making some repairs or negotiate what is or is not important to them. Also remember, once you know there is a problem, if there is, you have to disclose it for the next buyer.

REMEMBER – home buyers are your customer. They have the money.

Millennial Buyers – How to Live for Free

I blog a lot about Millennials because they are very important to every aspect of our economy and housing recovery. One of the millennial trademarks that is unique to this generation is the “boomerang” or “failure to launch” effect of millennial graduates moving back in with mom and dad.

Let’s face it, after the taste of freedom in college, living with your parents as an adult is a little awkward and can be difficult to conduct your life on your terms and spread your wings.

It can have the same difficulties to your parents who don’t keep the same nocturnal calendar as their adult children and are tired of having to tell an adult to pick up their things.

To solve all of those problems and plan for the future, several of my millennial buyers have come up with a new idea that I am calling the Millennial Boarding House.

Instead of living with mom and dad, this formula can be used by smart millennials who don’t want to waste money on rent and want independence. You can be a first-time buyer and create an investment nest egg to move up in the housing market, get government grants and most importantly LIVE FOR FREE. Here is how it works….

1. Use your good credit rating and income to qualify for a nice starter home that has a good price, good area, good schools and is in an accelerating and not a declining area and has potential for future resale. You can do some work updating it if you like or not. The idea is good for now and easy to sell in the future. There are still deals out there and we are in an accelerating marketplace. Interest rates are good. Waiting will cost more.
2. Use government grants through the @Home Illinois program to get $5k in free down payment and/or closing costs.
3. Find a few friends to be roommates and charge them a few hundred dollars each month. Cheap for them and they get independence from their parent’s house or basement.
4. You can live for Free. If you have two or three extra bedrooms, you can charge friends enough to cover your monthly payment and you pay nothing or next to nothing each month to live.
5. You save money by not having to pay anything each month to live, building your nest egg for the future.
6. In a few years when you are ready to get married or start a family, you sell the house for a profit and a nice down payment on your first family house. Or, you keep the house as an investment and rent it out for future income.

There it is, an easy formula for success to start saving money, not waste money on rent and plan for the future. Do yourself a favor and call a Realtor – call me – and get on the path to future equity and success.

Show Me The Money – Tips on Real Estate Investing

If you have thought about buying some foreclosure homes or short sales to flip – good idea – there are opportunities out there.  Check our blog on how to get into the market, but here are a few tips on how to Invest and Win.

1.  Get Some Help – First, get some help from professionals, Realtors are FREE to you to find you good deals and advise you on the process.  You can find a contractor who is willing to work with you and give you advice in or to get the work.  Or you can pay a minimal amount for inspectors to find out what is wrong with the house or how to fix it.  This way you can protect your interests.  You make the final decision, but why not consult and expert.

2.  Have a Plan and stick to it – You need to have a strategy to buy, strategy to fix and exit strategy in order to ensure your investment is protected.  Real estate investing is speculation.  You need a plan to ensure you know the best use of your money and how to get out.  More speculators have been stuck because they didn’t do their homework ahead, consult professionals and didn’t have an exit plan.  This is not a time when you can wing it.

 3.  Budget, Budget, Budget – Seriously, large corporations spend months coming up with annual budgets and regularly review it.  That is how you and they will make money.  Figure out what everything will cost – taxes, municipal and state fees, closing, attorney, etc. fees, interest on money, materials, labor, maintenance, etc.  Don’t leave anything out and then keep a spreadsheet and update to know how you are doing.  You have an exit strategy, so you know what you can get.  Stick to the budget and wait for the bottom line to turn GREEN.

 4.  Timing is Everything – You have a plan, but a big part of it is timing.  The longer you keep the property without money coming in from either rental or sale, you could be paying money (depending on how you got the money).  If you are paying interest, you need to factor that cost, plus taxes and maintenance into your overall budget.  The longer you stay, the more you pay.  So, just like you budget, you need to know your timetable and stick to it.

 5.  Not too much, not too little – just right!  Just like Goldilocks, you want to update and repair your investment home just right.  If you do too much or too little, you will not get the value and end up losing money.  And you only have one shot to do it right, unless you want to waste money.  Again, do your homework, get professional help from your Realtor who can assess the market and show you the comparable upgrading the area.  And remember, unless you plan to live in the house, what you like doesn’t matter.  Don’t upgrade to your tastes or wishes, different people have different tastes.  Know your market and get help to find out who that is. 

Call 888-788-9544 to learn more about how to make money in real estate.

How Real Estate Can Pay for Your Retirement and Make You Money

Foreclosures, short sales, many people are hearing these buzz words and wondering how they can get in the market and make the most of the real estate deals. Many people say – I don’t need a new home or want to move. And I am not a contractor. Plus, I don’t have a lot of extra money to spend. How can I get into the real estate market?   Anyone can get into real estate today. You don’t have to know anything, be a contractor or a wealthy investor to make money in real estate.

Why get into real estate? Rampant foreclosures and short sales have presented the opportunity to buy properties, fix them up and rent them or do a popular rent to own option renting to buyers while they fix their credit.   These distressed homes can be purchased at below market prices, fixed up for sometimes very little and with the correct exit strategy, money can be made.   If you are working with those who know better how to buy, fix and exit, there is money to be made. But How?

1. Investor Groups – If you just want a piece of the action, I have worked with investor groups who have knowledgeable real estate brokers and contractors at the helm who can offer people a 20-30% or more return on investment (ROI) for a minimum $10,000 investment. You can be a partner in a house or group of houses that either flip, rent or have a built-in rent to own buyer. You don’t do any work, but get updates and make money. You can get into a group with people you do or don’t know and have little or total involvement in the group.

2. On Your Own – If you are handy and have some time, you can do a lot of the work yourself and make even more money. This is very popular with tradesman or handy people who are unemployed.

3. Show me the Money – How do you get the money – can you get a loan? Loans for these properties are few and far between, possible – but not probable. But there are a few ways to get it.  Home Equity Line of Credit – These pay interest only, not principle. And yes – ha ha, who has equity. But there are people who still have equity in their homes. If your credit score is good and you have equity, you can get a low interest loan.  Retirement Funds – Most people put their money in and IRA or 401k, look at the statements every quarter and hope for the best. Some even get involved in trading in stocks and spend time researching and different markets. You can self-direct your IRA through third-party companies and get money to buy and fix up houses. And you can either defer the taxes on profits or pay less taxes on profits. You won’t get your money now, but the ROI is more than a mutual fund and can help pay your way to a nice retirement.

Call 888-788-9544 or see our website www.remarketingconsultants.com.  See the blog for other tips on investing in real estate.