The more you learn to invest in real estate, the more you’ll realize that a great portion of your success depends upon effective communication.  Often, real estate investors approach potential sellers who are in distressed real estate situations with a letter. Here are two key tips to writing an effective one… 1. Let Them Know What’s in it for Them. Always speak in language that is focused on them: their needs, their problems, and the solutions you offer.  Don’t spend a lot of time talking about yourself just yet, except to build credibility and prove to them you can help.  Read more…

It’s an unavoidable truth when investing in real estate; you’re going to have to deal with a wide range of sellers. Some are professional and easy to interact with, while others are full of emotions like fear and anxiety. Dealing with these sellers can be a challenge, especially if they are on the verge of losing their home. Here are some tips for interacting with sellers of all types. Put yourself in their shoes – It sounds cliché, or maybe like something your mother would tell you, but it’s a great thing to remember. A property seller is often in Read more…

Dealing with sellers and their objections is a daily occurrence for real estate investors. While some sellers can pose quite a challenge, most objections can be dealt with by following a few simple steps. 1. Be Honest. When trying to figure out how to buy rental property from sellers that have a lot of objections, the best thing to do is to answer their questions as thoroughly as possible and to just be honest. Most of the time, people can sense whether or not you’re being truthful. In cases like this, honesty is always the best policy. 2. Listen. It’s Read more…

In my previous post I told you about the advantages of finding distressed properties and motivated sellers. I also told you that if you can solve the seller’s problem – namely that he is in danger of losing his home – then you can likely make this a win-win situation. In this post, I’ll tell you how you can position yourself as a problem solver, and get some pretty good real estate bargains in the process. Now let’s not kid ourselves, we’re not in the business of fixing other people’s problems for the sake of feeling good. But if you’re Read more…

Seasoned real estate investors know that in order to buy property below market value you must be good at building a rapport with sellers fast.  What are some tips and tricks? 1. Be Professional. Sellers want to know that you are a professional, and that you’re going to handle your business in that manner. The best way to start off a great relationship is by treating the seller with respect, no matter what kind of distress they’re in. 2. Be Knowledgeable.  Homeowners don’t care whether or not you know how to buy property below market value, but they do care Read more…

As a real estate investor, I’m always on the lookout for underpriced properties. It’s one of the best ways I’ve found to ensure I make money on my real estate deals. When I can buy a property for less than what I believe it to be worth, that allows me more flexibility in what I do with it. I may be able to rent it for a positive cash flow, or I may be able to quickly rehab it and flip it for a profit. The key though, is in finding these underpriced gems, which is not always easy. One Read more…

Finding distressed properties is critical to making money in real estate, and for new investors looking to learn how to fix and flip houses, it’s not as hard as you might think. Here are five ways to locate distressed properties that could become the next item in your portfolio. 1. Physical Distress. Take a drive in the neighborhood and look for properties in physical distress. If you see broken windows and a lot of peeling paint, you may be looking at a property that is in financial distress as well. This just might be a great find and a fix Read more…

If you want to be a successful real estate investor, you need to learn how to do the calculations that are going to ensure your properties will make money for you, not lose it. Today I’d like to talk about some of the important calculations you’ll need to use in evaluating properties. This can be complex stuff, so I’ll explain it as simply as I can – but don’t expect that you’ll be able to do a complete evaluation after just reading this post. Use it as a springboard for the in-depth research and learning you’ll need to do. Understanding Read more…

In real estate, there are lots of terms to learn and recognize before you start to do business with buyers, sellers, and banks. Pro forma is one of the terms that you should keep handy in your real estate vocabulary. Pro forma is the financial model used to make a projection in regards to the profitability of a piece of real estate. These projections can be based on several different factors, including mortgage rates, acquisition costs, mortgage principal, and even monthly mortgage payments. Using the pro-forma model is very helpful for seasoned investors, as well as new investors hoping to Read more…

Real estate investing is an exciting business, to be sure. If we aren’t careful however, it can end up being a costly one as well. Some people out there would have you believe that the only thing you have to do is find the right property to purchase, and make an offer. That’s a part of it yes, but it’s far from the whole picture. If you want to thrive in this business, you’ll have to treat it like a business – with all of the effort, strategy and planning that a business requires. Today’s real estate environment can be Read more…