Purchasing, Renovating, Marketing, and Selling

News Source: http://www.canadianmortgageupdates.ca/

    A full time rehab investor needs to manage the four phases of every deal. Becoming a rehab millionaire means having at least 16 deals in work every month and maybe more. Four deals turning a $20,000 profit each month will bring in $960,000 each year. If you’re only turning two houses each year, you’re going to need to keep your day job. If you want to be a serious, full time, professional real estate investor, you shouldn’t be swinging a hammer or even licking envelopes, you need to be managing a team that is doing the work for you. The Million Dollar Pipeline There are four major categories to your million dollar real estate pipeline . You should have four properties in each category at any given time. During each month, you should be purchasing four houses, which immediately go into the rehab phase. On an average of once a week, you should have one property finishing rehab and going onto the market. At the same time, you should be collecting a paycheck approximately once a week as your investments are sold to both pay you and invest in the next project. The novice investor focuses all of his or her energy on one stage at a time. That’s an “onsie-twosie” investor. In other words, he or she may only do one or two deals in a given year. If that fits your goals then great! Go for it! But if you want to be a million dollar real estate investor, you’ll systematize the process to keep the pipeline full. You’ll have several projects going at the same time. Have a Plan Having four deals in each phase will be a full time job managing your own business. You’ll need a system to keep it organized. You’re going to need a plan. Decide on your target market. Decide on your target buyer. Decide your price level to flip it. Organize your tools. Get your spreadsheets together. Decide how much time you are going to dedicate to this business. Line up your funds. Raise the capital to do your deals. Start making offers! It all starts by putting the first deal together and then growing your business one deal at a time. Get started by finding some seed money and putting your effort into finding the right house to renovate. These are houses that sit on the market for months because the retail buyer wants a house that is already in “perfect” condition. Your job is taking the less than perfect house and turning it into the perfect house that retail buyers will pay you top dollar for. Of course, you will have competition. There will be others fixing and flipping houses. The houses you want, won’t actually sit on the market for months. The aggressive real estate investor has a constant eye on everything coming onto the market. Making fast, low-ball offers for less than desirable houses is one of the secrets to success. Patience is another part of being successful. Your low-ball offers probably won’t be accepted right away. But when retail buyers don’t show any interest, your offer will become more attractive to sellers that either won’t fix the house or can’t afford to. A couple of months later they come back showing interest in your low-ball offer. In summary, today is a great time to be in the fix and flip business. Just remember that it’s a means to an end. The income potential is very real. But in the end, it’s not only about the money. Once you have a system in place, the money will consistently roll in. You’ll have plenty of time to do, be, and have everything you want in life!

Students Face Challenges Over Home Buying

News Source: http://www.consolidatemydebts.ca/

Buying your first home is never a cheap process and most of us will initially struggle, but it is much more difficult for students who can graduate with substantial amounts of debt. This means they often need to earn substantially more money in order to buy a home. An estimate by RealtyTrac found students typically need annual salaries of approximately one third more compared to those first time buyers without student debt. This equates to around $8,700. ReatlyTrac arrived at this figure by taking the median home price for each county and state, and calculating the minimum amount needed to qualify for a loan on this home. This assumed the buyer had a 20% deposit and was based on a 30 year 4.13% loan.

The article in the Wall Street Journal does point out that this figure is dependent on where the student is living, and the average amount of student debt can vary from state to state. Interestingly, some of the areas with the most expensive housing also have the lowest rates of student debt. A good example is California, where house prices are amongst the highest in the country, yet it has one of the lowest levels of student loan debt. Those states where graduates with student loans need to make more income to qualify for loans, compared to those without debt include Pennsylvania at 49%, Ohio at 53% and Michigan at 55% and Rhode Island at 56% and Connecticut at 58%. In comparison, students in California only need to earn 12% more than graduates without student loan debt. This figure is 17% for New York and Virginia, rising to 19% for those in Wyoming, and to 20% for graduates in Utah. The good news is that graduates with student loans, and who are earning the median household income for the US are able to afford the monthly payments on median priced homes in 96% of the markets analyzed by RealtyTrac. Apparently a graduate with a bachelor’s degree can expect a starting salary averaging $45,000, but is likely to have an average of $33,000 debt, a figure that has tripled in the last two decades. However other figures show that graduates who have managed to find well-paid jobs are pretty lucky, as around 40% of those unemployed are millennials, and many are either college age or recent graduates. In addition, recent graduates with student loans seem to find it harder to build wealth.

Practical Tips For Buying Residential Real Estate

Article Source: http://www.consolidatemydebts.ca/

Investors spend a lot of time searching out just the right options and the real estate sector, may perhaps, be one of the safest places to invest. Despite the "doom and gloom" reports regarding real estate, those purchasing real estate for strict investment purchases know that the current situation is a rare opportunity.

When you are in the market to buy a home, do not go looking at the houses that are on the top of your price range first. It is better to look at one in the lower end of your price range. The reason for this is that if you see the more expensive one first, you will always compare the other houses to it.

When deciding if you can afford a property, take outdoor maintenance costs into consideration. A house with a small yard and a big patio will require less costly upkeep than one with acreage and lots of greenery. If there are unhealthy trees that need removal, get estimates for the work, and factor the cost into your affordability decisions.

Check the neighborhood for sex offenders online at the National Sex Offender Public Registry. Knowing if one of these predators lives in the neighborhood that you may move to is important to the safety of you and your family. Check for registered and formerly registered offenders. Taking a minute to look may save your family heartache.

When looking to buy a home, consider waiting until the fall season. It is not during the peak market which allows you to make lower offers on a home because sellers are ready to unload before winter sets in and the market stalls completely. You may get the home that you did not think you could afford at just the right price.

In the end, if you are willing to part with a portion of your finances for an extended period of time, then you could reap massive rewards. When it comes to land, it matters not about market fluctuation, but rather, to the wise investor that sees an opportunity to own a bit of the future recovery.