Auctions: An Exciting Way of Selling Your Property

auction1Auctions are an age old phenomena. People have been selling their properties through the process of auctions for centuries. But the popularity and respectability of auctions has experienced a great hike in past few years.

Jeff Adams, one of America’s top real estate consultants and is going to pull out some interesting tips and tricks of the trade for you, from his vast pool of experience in this field for many years.

Real estate auctions – a rising trend
In the earlier times auctions were not seen in a very favorable light. More often than not they were considered to be the last resort for selling a property when none of the other traditional means of liquidating it have worked in favor of the seller.

In recent times, however, this perception has been gradually changing. Many sellers are now voluntarily choosing to put their lands and houses for auctions. Many are opting for the services provided real estate brokers to help them get maximum rates for their properties through auctions.

So what is a real estate auction?
A real estate auction is just another effective way used for selling a property such as a house or land. This process is different from its traditional counterparts in some ways. Unlike the other methods, an auction is always a faster and more intense method of selling a real estate involving public sale of a property. The various methods used under the process of an auction include open cry, competitive bidding, etc.

Important features of a profitable real estate auction
A property can be put on an auction if the owner of the property wants to do so in the hope of getting a fair price for his property. However, he should have a good equity position of auctioned properties in which case he can avoid paying for the sales commissions.

The timing is another important factor. Auctioning a property while the market for those properties is on a rise is important.

A real estate auction can be a win-win situation to all the parties involved in the sale. Following are a few benefits you can expect when you put your property on an auction whether you are a seller, buyer or a realtor. Let’s see them one by one.

Benefits of a real estate auction to the seller
When auctioning a real estate, you have the freedom of setting a price which is higher as compared to the value in the going market. This will be the minimum price you will be expecting to get. By setting this minimum desired amount, you avoid any risk to buy the property back in case it fails to fetch the set price.

Additionally, by opting for a direct auction, you will avoid the need to pay sales commission to auction houses which is normally about 8%-10% of the property value.

Auction a property that is not in use can save a lot of maintenance expenses. Also, being a quick method of disposal of property, it saves you long-term costs including taxes and maintenance.

You get a huge exposure for the property as a large number of pre-qualified buyers attend an auction.

Not only that the sale of the property at its real value in the market is assured, but the competition created by an auction among the buyers can also benefit you greatly by fetching a much higher price for the property than its true market value.

Benefits of a real estate auction to the buyer
It is a smart way of investing. Through the process of competitive bidding, the properties are usually bought at a fair market value.

In a multi-property auction, you get a great variety of properties on display at the same time giving you a wide range of choice for investment.

You as a buyer have the choice of deciding the purchasing price.

Long negotiation periods and time of purchase can be avoided in auctions.

You are aware of the purchasing and closing dates and that you are involved in a fair competition on equal terms as other buyers in the market.

Benefits of a real estate auction to the realtor
Through an auction, you are offering your customers a new and exciting way of selling their properties. This increases their interest in your services and its perceived value.

It helps you develop your market niche and increase your revenue and share in the market.

Not only does an auction make the property visible to a great number of potential buyers but it also brings a large number of people to you property listings which include other types of property deals as well. This gives your business an overall increased exposure.

An auction is an interesting and entertaining way of selling or buying a property. For an experienced buyer or a person with reasonable research and understanding of the process, it can certainly fetch exciting deals.

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Jeff Adams Real Estate: Understanding Foreclosures from Each Player’s Point of View

re-success-3Foreclosures are not a very recent phenomenon. Even in earlier times, when the term was not coined, foreclosures occurred; however, with a few alterations in the process as we know it today.

When people borrowed money or anything that had monetary value from a lender and were unable to pay it back, the asset that was used as a security deposit would get taken away from them. This asset was usually land, which would then either be kept by the lender for personal use or he would sell it off to recover his money and maybe make a profit.

In today’s scenario, the basic structure of foreclosures has remained the same; however, the term and process has gained quite a few different dimensions, especially the point of view of each player involved in the process of a foreclosure. Although a foreclosure is quite an unfortunate occurrence, looking at one today, you will notice that it has gained more of a profitable angle to it.

Foreclosures are now a legal process and understanding the different steps of the process is quite essential if you are stepping into the world of foreclosures.

The Process of a Foreclosure
For starters, it is necessary to understand what precedes and what succeeds a foreclosure; let’s take a simple example.

You have been working at company X for a few months now and you wish to buy a home. Your salary from company X falls short to buy one and hence you decide to solicit a loan from a bank. Your loan gets approved, you buy a home and you keep making your monthly loan payments towards the bank.

You have been paying off your loan for months now and you still have some more to go, but unfortunately, you lose your job and have no source of income to repay your loan anymore. You also have no savings and neither are you able to find yourself another job.

What now?

As stated legally, the asset that you deposited for security, in this case your home, will be taken away by the bank since you stopped making payments towards your loan. Your real estate property now belongs to the bank and it gets termed as “foreclosed” property.

The bank now puts up your property on public auction so that they can recover the loan money from the person who buys your property.

So you can see the three major players involved in the process of a foreclosure are:

– The defaulter who couldn’t pay back his loan
– The lender (bank)
– The buyer

The Defaulter
The defaulter is the most unfortunate player in the foreclosure game because he only faces a loss. Quite a number of people in the United States have been suffering from foreclosures because of the current economic scenario.

However, there are ways in which foreclosures can be avoided, such as:

Selling off your property before it is foreclosed and using the money to pay off your loan

Renting your property and using the money to pay off the loan (Both of which can be done if your family/relatives or friends can put you up in their homes till you pass your financial crisis)
Inviting a paying guest into your property.

If none of the above three options are possible for you, facing a foreclosure is inevitable.

The Lender
The lender is in a no loss, no gain situation because he is able to recover the money that he lent. However, at a public auction, it is possible that there will be a marginal difference between the money to be recovered and the money at which the asset is sold, thus, leading to a marginal profit.

The Buyer
The buyer undoubtedly makes a profit because he buys the asset at a much lower rate than its market price, since the loan amount usually never exceeds the market price. It is this fact that is being taken as a basis to make a profit.

Big hedge fund companies that are entering the real estate market in the United States have been using foreclosures as a base to make their profit. They scan the market for foreclosed properties, make sure they are present at every public auction and with a good bid, they buy the property. After observing the real estate market conditions, they sell the property to an interested client for its market value, thus making a good profit on the deal.

An individual buyer, not associated with any real estate company, may also buy the foreclosed property and he may either use it for himself, or sell it or put it up for rent. Either way, buying a foreclosed property is a profitable deal, even if it means dealing with the emotions of those who have lost the property.

For a thorough understanding of foreclosures, the legalities involved and how you can avoid your own property getting foreclosed or making the most from a foreclosure, you may refer to the book Foreclosure Profits System by Jeff Adams.

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Real Estate Investment : a sure shot way to beat inflation

re-profits1An ordinary investor is often confused and confounded where to put in his hard-earned savings for good returns. According to Jeff Adams, a veteran real estate investment advisor, buying real estate property is “the most priceless investment”.

Investing in real estate can be done by buying housing properties or pieces of land at strategic places. Individual preferences come into play if the property is bought for self occupation or use. In such cases the assistance of real estate agents is sought in identifying a property that meets specific requirements.

The properties bought and retained for investment purpose, however, do not have such constraint. What matters most is that such property should have a future demand and should fetch a good price.

Appreciation in the Value of Real Estate Property
According to the data gathered by the U.S. Census Bureau, the value of real estate has consistently increased during the period from 1940 till the year 2006. Thereafter, it dipped temporarily for two years before rebounding again. This shows that investment in real estate is the best option in the long run.

Rental Income out of Real Estate Holdings
The biggest hurdle in holding real estate for investment purpose is the amount of time, botheration and the cost involved in maintaining it. It is a good idea to rent out such property in order to raise the funds for periodic mortgage payments, maintenance cost, tax liability and marginal profit. Eventually, after the mortgage is paid off, the property becomes self-owned and, all the while, steadily appreciating in its value.

However, the paucity of tenants can compel you to keep the property idle and might strangle you for funds required for recurring pay outs. Some irresponsible tenants can also be destructive to the property.

Real Estate Investment Groups
These groups buy, build and manage large real estate complexes collectively, thus freeing the individual investors from the hassles of being direct landlords. The individual real estate investors can own one or more self-contained living spaces in such complexes.

The group managers charge the investors a percentage of the rent receivables as fees for their service. Some groups have an arrangement to pool a portion of the rent as a safeguard against some units remaining vacant, thus hindering mortgage payments.

RETTs
A Real Estate Investment Trust (RETT) is a trust incorporated for the purpose of using investors’ money to buy and operate real estate properties. RETT units are bought and sold at major exchanges just like any other stock. This is an innovative way of turning real estate into an invisible exchange traded instrument accessible to common public.

Housing Loans
Investing in real estate needs to raise huge funds, which is beyond the capacity of small, fixed income group of investors. Fortunately, they need not wait till they accumulate the required funds, by which time the prices might further escalate. They can take advantage of various types of home loans that are available upon 10% to 20% down payment against the mortgage of property, such as:

  • Fixed Rate Mortgages where the interest rates remain constant.
  • Adjustable Rate Mortgages where floating rates of interest are applied in consonance with the money market.
  • Hybrid Loans: These are a combination of the above two.

 

The Interest Rate Cycles
The interest rates depend on the overall state of a nation’s economy and corresponding money supply with the public. The central monetary body of the government too regulates the interest rate in order to direct the money supply into developmental activities. The current low interest rate regime is favorable for investing in real estate with borrowed funds.

Foreclosures
The recessionary period affects real estate market along with other economic activities. The defaults on mortgages become common resulting into foreclosures or confiscation of the property by the lenders. The lenders auction the foreclosed properties in order to recover a part of the outstanding dues.

This throws open great opportunities to buy cheap properties at such auctions. Of late, hedge funds have increasingly started entering into the real estate market because of this opportunity to make quick profits.

Hedge Funds
The hedge funds constitute a group of high net worth investors aiming to make quick money out of their investments. The availability of technology and well-researched information enables them to concentrate on lucrative properties and they buy them en-bloc precluding the access to small investors.

They usually do not hold on to those properties for long and avoid blocking their investors’ money. They offload them as soon they are able to get expected returns and move on prospecting new opportunities elsewhere.

The arrival of hedge funds is an indication that the property market is lucrative under the current circumstances. The small real estate investors can take a cue from them and buy reasonably priced good properties still available within the same or adjacent areas. Unaffected by the limitation of the hedge funds, they can hold those properties longer for better returns.
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Building a Buyers List for Your Real Estate Investing Business

brighter_real_estate_future_Venturing into the world of wholesaling can be a very lucrative decision. If there has ever been a time when buying and selling houses is proving to be profitable, it is definitely right now. One of the most important steps to take before you begin the wholesaling process is building your buyers list. It is crucial to have a list of investors already in place for a variety of reasons. It determines what areas of town you should focus on, it ensures that your houses will sell quickly, and it keeps the cash flow positive.

Having a variety of different types of real estate investors can prove to be invaluable.   Making sure to include both high-end and low-end property landlords, contractors, rehabbers, new and seasoned cash buyers, as well as bargain buyers and wholesale buyers in your list puts you in a position to sell houses at every level.

There are several ways to go about finding real estate buyers for your list. Begin building your list of buyers by marketing to the masses. Placing ads in the classified sections of the newspapers and also replying to current classified ads are good ways to start. Sending direct mail to mortgage brokers and realtors can and connect you with potential real estate investors.

Another way to network with potential buyers is by visiting your local Real Estate Investor Association (REIA) clubs. Use your business cards and get as many business cards of others as you can. Visiting local churches and letting the priests, pastors, etc. know what you do and offering your help to parishioners and members of the clergy is another way to connect with possible buyers.

Take advantage of the massive resources technology has to offer. Place ads in online classified sections, Craigslist, and eBay. Peruse specialty websites such Home-Buyers.com, Buyers.com, FindMoreBuyers.com, and We Buy Houses.com. A great resource for finding non owner occupied leads and wholesale buyers is Listsource.com. Leads for landlord type buyers can also be generated via websites such as Socialserve.org or by just Googling the public housing authority for a specific area and viewing the section eight units.

Other buyers can be found on websites such as Kijiji.com, and Backpage.com. Take part in online forums and websites specializing in real estate. Peruse websites like Craigslist and eBay. Join and visit social networking sites such as Facebook, MySpace, and Twitter. Media marketing on television and over the radio is another way to generate leads.

When you do get responses from possible real estate buyers you need to make sure you ask them the right questions to establish your relationship and secure the potential for future deals. Knowing the right questions to ask is key. Besides asking for general information such as name, telephone number, and email address, you should also ask for what areas they prefer and if they can close with cash immediately.

Asking what their price range is and if they would be interested in future deals is beneficial. Investors should also be asked if whether or not they are interested in rental properties and rehabbing opportunities. Inquiring about specific criteria will allow you to create a more clearly defined list of buyers in your database.

Building a buyers list is an ongoing process and should be constantly monitored, refined, and growing. When the list has been established, it is time to find the deal and the money will come.

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New 2016 Marketing Strategies for Private Real Estate Investors

foreclosures-3Advancement and usage of real estate advertising systems is an important piece of purchasing and selling houses. Without some kind of promoting plan it is difficult to find real estate properties available to be purchased or purchasers who are prepared to buy. Whether attempting to purchase or sale private homes, business properties or crude area, advertising is the way to achievement.

The primary phase of real estate investing and marketing includes adding to a general arrangement. The plans for marketing offer investors some assistance with establishing their target market and recognize the purchasing propensities for potential customers. People inspired by private properties will have diverse needs than those purchasing commercial real estates.

Retired couples will have distinctive housing needs than newly wedded couples or families with youngsters. For selling properties, real estate investors, must assemble as much data as possible about their customers and the business sector.

A standout mistakes amongst the most real estate investors make is to gear the promoting materials around their own triumphs. The principal guideline for any promoting effort is to expel the marketer from the overall equation.

Despite the fact that the customers may be awed that an investor has 20 years experience or closed a lot of real estate bargains, they truly need to know how the financial specialists can take care of their issues or offer them some assistance with buying or selling property. Thus, a major real estate investing tips is, advertising materials to address speculators take care of issues and overcome challenges.

The most ideal approach to begin is to make a list of normal issues purchasers regularly confront. After the lists of issues have been created, make a list of how your organization can tackle every issue.

These may incorporate the financing alternatives for purchasers with terrible credit and the individuals who have recorded bankruptcy or lost their home to dispossession. Realty promoting materials can offer financial specialists some assistance to establish trust and create connections how they can take care of issues.

Another essential part of marketing plan in real estate market investing is to create the follow up methodologies. Individuals rarely settle on critical money related choices just by reading an advertising pamphlet or direct mail advertisement. In most times, it takes five to seven contacts with an individual before real estate arrangements come to pass.

According to Jeff Adams real estate guru, realty promoting arrangements need to incorporate the different devices financial specialists can use to pull in purchasers. These may incorporate building up a website; conveying letters, deals flyers, or postcards; follow up marketing systems; and promoting techniques, for example, bulletins, signage, park seats, Web advertising, or Classifieds advertisements in neighborhood daily papers or realty magazines.

Real estate advertising is an on-going procedure, so financial specialists need to survey their promoting endeavors on a quarterly premise and make fundamental alterations. Innovation is continually advancing, so financial specialists must attempt to stay updated on the business sector patterns. Real estate investors need to consider hiring specialists to help with showcasing materials.

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A Plan for Agents who are Investing in Real Estate

predictions_2A lot of agents are willing to sell the real estate properties; and in such attempts, a lot of agents have become successful while others have not. In this article we are going to provide you with different steps that can be really helpful while dealing with the real estate properties.

1. Consider Who Purchases Investment property
Firstly, know that as a real estate agent with even less experience, it is highly likely that you’re encompassed by potential real estate financial specialists. It is the mortgage holders who additionally purchase investment property. As a private real estate investor who has settled a relation with those you’ve sold a house, you also have at your knowledge, somebody who may buy a duplex, an apartment building, or other kind of investment property; so you now have access to the potential real estate investors close to you.

2. Know You Can Offer Investment property
The misguided judgment among most residential real estate brokers is income property, which is a special business kept just for the commercial agents and it is not possible to make this a part of their real estate. Yes, there are some business properties left to business experts, but this is not about skyscrapers or the investment conglomerates. What’s in perspective here are the parties or investors who are contributing to supplement their wage or making arrangements for retirement.

3: Show to yourself as completely engaged
According to Jeff Adams, the investors are not going to have complete trust in any real estate broker who doesn’t pass on some enthusiasm for rental income property. So spend a couple of hours getting to know the prominent returns and reports connected with investment; for example, the cap rate and APOD. Buy quality real estate software so that you can check the numbers and the present income reports of your client.

Keep in mind that the first impressions are the most enduring. The more occupied with real estate you are first appear to a financial investor, the better your chance to pick up his or her certainty that you’re better than the normal private real estate market operators and the better risk you’ll increase in the long haul devotion.

4: Act like an Accomplice
According to one of the major real estate investing tips, act like an “accomplice” by your activities and deeds to pass on to your client that you are as dedicated as they are to secure their retirement fund and truly you do care how their cash gets spent. Listen to what your financial investor’s goal is and do not simply forward data on each rental pay property available to be purchased.

Be particular. Assess the numbers yourself in advance and present just those properties that are in the range of value, productivity, and rates of return which suit with your client’s objectives. It will, obviously show to your speculator that you care enough about his or her cash and you’re willing to offer them some assistance with making a keen venture choice.

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Things Real Estate Buyers Should Know Before They Invest – 2016

Jeff Adams Real EstateAcknowledging what your specific needs is really important before you delve deep into real estate investing. Since chances are more than likely that every arrangement will be different from one another and the people with whom you are making every arrangement with will be varied too, it is the key factor that real estate investors don’t generalize their arrangements.

Not all purchasers and merchants are in the business sector for the same things. For instance, neighborhood attributes, like having access to shopping centers and restaurants, distance to public or non-public schools, the areas of nearby recreational centers, and other such locations may be an important point for real estate market, yet it may not appeal to a lot of real estate investors. The points of interest and disadvantages ought to be clearly characterized and understood by all the parties included.

Never assume
“Assume” is typically connected to a negative essence and not simply in the matter of real estate. According to Jeff Adams, real estate investors should never assume anything. Doing as such frequently prompts cash lost and time squandered. Basically, it should be considered that you don’t need to invest what you do not know. Enrolling the services and counsel of experienced land experts is a decent approach to territories in which you are new to or that appear to be sketchy.

These people have an abundance of learning that can give you understanding on which regions of the deal you could possibly know about. Making inquiries is really great, however listening to the answers is considerably more important when seeing real estate properties.

Gain as much information as possible
One of the important real estate tips is, as a potential speculator, you should try to drench as much data as you can. This won’t just help you in better deciding the estimation of the home, but it will also permit you to see what it is worth to you. Working with real estate professional permits, you exploit their insight and qualities which will balance any inadequate knowledge and shortcomings on your part.

Don’t decide in fear
Fear of the obscure is additionally an element to consider. Fear of not realizing what’s in store prevents the purchasers or frequently drives them to settle on hurried choices, especially for the first time real estate investors. Whether it is a down business sector, for example, the one we are now encountering, or an up business sector.

Choices made in fear lead the purchasers in making rash buys that could be regretted later on. The expression “should have, could have, would have” rings a bell in such situations.

This is the reason it is so much important to know the different factors before entering into the real estate market. It is a fact that with any business, knowledge and information is the main strength and the same goes for the real estate market as well. Before buying or selling a property, it is important that you get your facts right. The right knowledge and information generates confidence in a real estate investor.

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