• what to look for when buying investment property
    Real Estate

    Here’s What To Look Out For When Buying An Investment Property

    Getting into the world of real estate investing is really fun and can be insanely rewarding, but if you’re new to the scene or you’ve only worked with a couple of properties, there are still things that you might not know to look out for.

    That’s what we’re aiming to help you with here.

    Get that home inspected!

    When you’re getting into investing, there’s a super high chance that you’re going to be working with a property that needs some work. Sometimes the amount of work needed can be staggering, and you can be spending tens of thousands of dollars restoring a home. The challenge with a project home like this is that there can be a lot of different issues that don’t yet have any symptoms. The only real way to know for sure is to get the home inspected.

    Whether a house is being purchased for a family or for an investment, it’s always worth getting a professional inspection done. There are a number of Houston home inspectors to choose from, and most of them have very competitive pricing, which is around $300-350. Spending a few hundred bucks to make sure that there aren’t any hidden problems that can come back to bite you in the ass is incredibly useful and affordable. A wiring or foundation issue that you missed because you were trying to save a few hundred bucks might come back and cost you several thousand.

    Insurance

    Another thing to keep in mind is insurance. While you’re working on a property, you want to make sure there’s plenty of coverage, especially when you’ve got sub-contractors working in it.

    The most important coverage, however, is if you’re using the property as a rental. You need to make sure you have liability insurance in place in case anything every happens with a tenant or a guest. And home warranty will cover any major appliance breakdowns that can occur while you’re renting out the property. Maintenance should be factored into your financial projections for the rental, but there are always circumstances that extend beyond your projections, so mitigating those costs will be very beneficial.

    Location

    When you are looking at potential properties to purchase, make sure you do extensive research on their locations. You don’t want to buy a great piece of property, only to learn it’s in an undesirable location or an unsafe location because it will be hard to rent it out or resell it at a higher price. Not only do you want to do research online, but you want to actually go to the locations and see them in person.

    Type of Property

    Let’s not forget to mention you want to look out for the type of properties you are browsing. For example, a condo in a desirable location will likely be more profitable than an apartment building that is in excellent condition, has many units and is selling for dirty cheap, but located in a horrible location. However, an apartment building will generate far more profit in the same location that the condo is in. When it comes to investment properties, location and the type of place it is matters.

    Buying investment property is a major undertaking, and you want to know what to look out for. The above are only a few things to look out for. With that said, all you have to do now is keep the above info in mind and start looking at investment properties to buy.

    If you’d like to learn more about real estate investors and the effects they have on our Houston community, check out our article about The Saviors of Behind The Scene: Real Estate Investors. Alternatively, we have a quick start article about getting started in wholesaling here: How To Get Started In Wholesaling.

  • Wholesaling real estate
    Real Estate

    How To Get Started In Wholesaling Real Estate Today

    If you would like to get started in the lucrative world of wholesaling real estate, you can begin very easily as long as you have the capital or comparable funding options. You may have a relationship with the bank that will provide you with loans that will allow you to acquire real estate as you find it. Wholesaling real estate is a little bit different than marketing real estate at its retail cost. This is typically done when people are purchasing what are called fixer-upper’s, homes that will need some type of work in order to make them more marketable. However, it is much more, for people to act as a mediator, connecting buyers and sellers and making a profit on the difference between the selling price and how much the home is purchased for. Here is a brief overview of how you can get started in wholesaling real estate today.

    Overview Of Wholesaling Real Estate

    People that are able to wholesale real estate are adept at making connections. They can connect sellers and buyers very easily. They are also well aware of how to use the proper forms that will be used when making these transactions. They will simply assign the proper contract for each deal, and when the transaction is over, they will make the difference between the buying and asking price. Another way of looking at people that wholesale real estate is that they are nothing more than brokers. They are often used by people that need to find a home quickly, or need to sell a home as fast as possible.

    How To Get Started Wholesaling Real Estate

    This is a type of business that does require quite a bit of work initially. You need to first set up a network of contacts. For example, you could set up a website that presents your business model, representing yourself as a broker for connecting buyers and sellers of real estate. Many people wonder why you would not simply go through a regular realtor. However, realtors are nothing more than brokers as well. They facilitate the ability of buyers and sellers to get together in order to have this type of a transaction.

    Real estate investors, including wholesalers, play a pivotal and crucial role in keeping the city alive and thriving. Check out our article on Real estate investors and home buyers.

    Is It Better To Be A Realtor?

    From one perspective, if you are licensed to be a realtor, you will be able to plug into an already existing flow of homes that are being purchased and sold. You will receive a commission as the broker between the two parties once the transaction is complete. However, there is often a limit to how much you can make per transaction. This is typically about 3% of the total sale of the home.  The marketing methods for real estate agents also tend to differ, as you need to generate leads that are either ready to buy or sell at market value, such as with https://findhoustonhome.com. On the other hand, if you are wholesaling real estate, you can charge as much as you want for every transaction, which could be a higher percentage rate or a flat fee for your services. And your audience for buyers/sellers widens greatly.

    Once you have set everything up, and you have a consistent flow of people buying and selling homes, this will become much easier. Essentially, you are setting up your own real estate transaction business. You can find out more about the laws and regulations for each state, depending where you live, by doing a search on the web so that there are no problems with your real estate wholesaling business.

    In any case, if you’re going to get into the real estate industry, you need to understand the importance of networking, as that can really enhance your success or hamper your growth.

     

  • Real Estate Networking
    Real Estate

    The Importance Of Networking For Real Estate Investing

    In order to sell real estate, you need a conduit by which you will be able to present your properties to people that will be interested in purchasing them. This is often referred to as networking. In general, people regard real estate offices around the nation as a common form of networking. This is why people will list their properties with large real estate businesses so as to have the highest probability of selling their houses fast. However, if you are trying to sell these on your own, you may want to develop your own network. Here are some tips on how to set up your own networking system when investing in real estate.

    The Importance Of Networking

    Networking is very important for three reasons when it comes to marketing real estate. First of all, it allows you to contact potential buyers that might be interested. For example, you may know people that are interested in purchasing houses that they are going to rent out. They may want to add these to their portfolio of homes that are generating their monthly and annual income. Second, networking allows you to have choices. You may know certain people that will be more receptive to certain homes that you have purchased, whereas others would not want to consider the purchase at all. There are some that purchase homes for the purpose of renting them, whereas others are looking for houses that they can flip in order to make a fast profit. Finally, networking allows you to have a consistent flow by which you are able to sell homes as you acquire them.

    How To Set Up Your Own Network

    When you initially start out, you need to make contacts with people that are in the same industry. You may have several homes already, and you simply want to meet with people that will be interested buyers. To do this, you can use websites online, set up a Facebook page, and also go to meetings where realtors and investors gather throughout the year. This will put you into contact with potential buyers, as well as sellers that may also have homes that you would like to purchase. To set up your own network, simply provide your contact information on business cards, websites, and social media pages. This will allow people to take down your information and contact you. Conversely, they will reciprocate by providing you with their information. Doing so will allow you to build a real estate investing network which will give you a constant supply of leads for purchasing and selling homes.

    Investing in real estate is always going to be a very beneficial business. The cost of real estate continually rises, therefore your investments will gain in value year after year. Likewise, if you are holding a portfolio of rentals, you know that the cost of renting homes is progressively increasing as well. This means that you will have a built-in way of generating more revenue on an annual basis based upon the going rates for rentals in neighborhoods throughout the country. Now that you know how to do this, you can begin to set up your own network for real estate investing that can prove to be very profitable.

    Check out our recent article about: The Saviors Behind The Scenes: Real Estate Investors and Home Buyers.

    Photo credit: Jet Lending Super Investor Meeting.

  • The Saviors Behind The Scenes
    Real Estate

    The Saviors Behind The Scenes: Real Estate Investors and Home Buyers

    Houston sits at around the 3 million mark in population, yet there’s one, fairly hidden, group of people that play a significant role in keeping the city revitalized and help it recover from disasters that we experience.

    The real estate investors.

    People think that all investors do is try to find homes that they can profit from, but what they don’t see are the implications and ripple effects from what they do.

    How the city grows and expands

    In our city, we’re used to seeing construction, whether it’s new land expansion, a new building, or roads/highways.

    With new construction, we often see large master plans, new commercial buildings, or single family residences being built in neighborhoods, and all of these are commonly known that investors are involved in the creation of these.

    As the city expands and we have more and more demand for homes and office buildings, investors identify that there’s this need and they facilitate that growth with new construction.

    But what’s less commonly known is that roads and highways are often influenced by investors as well.¬†While those are things that are funded by city and state departments (aka tax-payers), investors help identify what are common trends and value-add projects to cities.

    When a city commits to a new development or revitalization project, investors advise on what the market generally needs and wants, and how best to provide value to the community.

    Recovering from disasters

    After Hurricane Harvey, many homes were damaged from the floods to the point where they were uninhabitable for months or even an entire year after the event. This would have left entire neighborhoods completely abandoned as residents rushed to find new housing in a city where almost 50% of its real estate was affected.

    Real estate investment companies, such as Express Houston Home Buyer, were quick to take action, immediately looking for those that were affected and trying to figure out a financial way to relieve the homeowners while also restoring the home.

    The problem for investors is that residents often think that they’re there to profit from a homeowner’s suffering, but in reality the homeowner is going to suffer regardless in a situation like this, and the real estate investor is able to help that homeowner completely get out from under a mortgage where the home is uninhabitable, was uninsured, and there are no funds to repair it.

    Investors spend a lot of money and effort restoring homes, and to say that they should not make any profit would mean that they make no living. This is something often overlooked for homeowners that don’t know the industry or how it affects the community.

    This is how bad the homes were damaged, to give an idea of how much work needs to go into each home that took on significant water:

    Within 2-3 months in the aftermath, many homes were beginning to come back on the market, available for others that were displaced to purchase and move their families into.

    8-9 months after Harvey, homes that were affected and sitting after the floods were still showing up, and investors have been continuously taking them over and restoring them, helping suburbs and neighborhoods repopulate and increase their value.

    Waves of gentrification

    As residents move into newer development areas and Houston receives more and more transplant residents from other cities and states, it’s inevitable for older homes to lose value and deteriorate as they age.

    Because Houston is so large, restoration occurs in waves. In a particular 10 year span, there might be certain areas of suburbs of the city that start to attract investors, where they buy up properties and rebuild or restore to put them back on the market and increase value.

    In those 10 years, another area becomes ripe for the same process, and investors move into it to repeat the same process.

    Because of these waves, Houston’s neighborhoods are able to be updated to modern homes and designs. If this process didn’t occur, we would have large parts of the city that were completely abandoned and homes that were entirely uninhabitable. This would force the city to spend more and more on expansions and eventually the the city would start losing a lot of its appeal and value to newer, smaller cities.

    This revitalization effect is immensely important for a city as old and large as Houston, but there are some areas that try to fight gentrification.

    To learn more about real estate investment in Houston and how it affects our community, check back for more as we continue to share from our group and those that have played an important role in real estate here.