Biggest Rehab Mistakes in Real Estate Investing

Posted by Ugly Guy - May 25, 2013 - Real Estate

Common Rehabbing Mistakes Made by Real Estate Investors

Biggest Rehab Mistakes

It’s easy for real estate investors to make mistakes when rehabbing investment properties, but some errors will cost you more than others. The four biggest rehab mistakes include, in no particular order:

Over remodeling

Under remodeling

Overestimating the property value

Underestimating the holding time

Over remodeling

Many new investors make this mistake because they think the property should look as good as their own home. And this includes splurging on items like granite countertops, hardwood floors, and other bells and whistles. For remodeling an investment property, it isn’t necessary that you pull out all the stops to transform it into the most beautiful home. For example, laminate wood flooring is an inexpensive alternative to real wood; it’s also easier to maintain and install.

Under remodeling

But don’t cut all the corners when rehabbing a property. As an investor, you want your property to sell at a significantly higher value than you bought it for, and that may not happen if you risk under remodeling. This is where you learn the difference between inexpensive materials — and cheap. If you cut costs at every opportunity, you may end up with a cheap looking property that’ll fall apart sooner rather than later.

Overestimating the property value

You might go into the project thinking you’ll transform the project from drab to appealing (mistake #1: over remodeling) and overestimate the value of your investment property. Consider other environmental and structural factors when investing in a property to avoid making this mistake and potentially losing money.

Underestimating the holding time

Of course you want your property to sell shortly after you put it back on the market. But you can’t predict the demand for properties, and the market fluctuates constantly. There may be some times when you remodel a property and resell it in a matter of weeks; other times may be months. It all comes down to studying your target buyers and their wants and needs, even though you can’t truly determine when they’ll want your house. So just be prepared.

The reality is that these mistakes probably can’t be avoided, especially in the housing market. It’s fickle. However, you can do your best to learn from your mistakes so you make less of them.

If you are interested in rehabbing houses and would like to learn more CLICK HERE

Real Estate Investing with No Money

Posted by Ugly Guy - May 25, 2013 - Real Estate

Real Estate Investing with Little or No Money

Recent polls have shown that those individuals that are interested in real estate investing do not enter the investing arena is due to the money limitations. The current state of the economy has added to this fear or hesitation. However, this is arguably, the best time to invest in real estate in the past century. So how is it possible to invest without money?

There are several different types of real estate investments and yes there is one that requires very little or no money. This strategy, Assigning, is basically making an offer on a property and the assigning the contract over to another investor at a profit.

Many successful real estate investors use this strategy exclusively. In order to be successful in this strategy (or real estate investing in total) you must have the right attitude, determination and a network of individuals that you can rely on for advice and assistance.

Known as the “We Buy Ugly Houses®” people, HomeVestors® independently owned and operated franchisees have purchased over 50,000 houses nation-wide in the last 15 years. Historically, the only opportunity available was the ‘Full’ franchise, which had steep financial requirements for entry, and many quotas and requirements. Recently, the Full Franchise business model was revised and a new Associate Franchise model was introduced. The new Associate Franchise model gives unprecedented access, tools and opportunity to the masses. The HomeVestors® system truly is an “exclusive club” made up of the most talented and respected real estate investors in the country. The opportunity to learn and grow within the system simply cannot be matched.
As a franchise system, HomeVestors® provides world class training, use of the most well-known and respected brand in the industry, and a best in class marketing system for lead generation. The company strives to help provide an ‘out of the box’ opportunity for those interested in becoming real estate investors or expanding their real estate investing career.
If you are interested in learning more on how to become part of America’s #1 Home Buying Team CLICK HERE

Real Estate Investing – An Important Lesson

Posted by Ugly Guy - May 23, 2013 - Real Estate

Great Deal - An Important Lesson in Real Estate Investing

Real Estate Investing – An Important Lesson

Great deals, not necessarily great markets. It is, undoubtedly, the most important lesson you can learn in real estate investing. Finding a great deal can be the difference between minimal cash flow and maximum profits. Some real estate agents will tell you that location is key in real estate investing, and while it is important, spotting a great deal is much better.

The key is to find the motivated sellers. Their properties can be in any kind of area or neighborhood; low-income or suburban, big city or small town. Neighborhoods don’t discriminate against motivated sellers in any case.

These motivated sellers will put their properties on the market for a number of reasons — must move quickly, personal situations, properties that are in dire need of repairs, etc. — these are Ugly opportunities that can mean great deals.

Finding that great deal may not always be easy and the good deals do not last long. Stay on top of the market, network and advertise!

Whether you’re interested in learning how to be a real estate investor, want to buy rental properties, or simply want to generate a supplemental income, there’s no better opportunity than the HomeVestors Associate Franchise Program. Considering the cost of the associate franchise, having access too and being mentored by the #1 brand in real estate investing is equivalent to the cost of a long weekend training retreat by a self-proclaimed real estate ‘Guru. You owe it to yourself to learn how HomeVestors newest franchise opportunities can make investing in real estate both easy and attainable.

To learn more about real estate investing CLICK HERE

The Importance of Landscaping when Rehabbing a House

Posted by Ugly Guy - May 22, 2013 - Real Estate

The Importance of Landscaping when Rehabbing a House

When most investors are looking to make improvements to a property, most cost-effective improvements to a home are cosmetic. Better-looking properties mean better prices. One important aspect of this is often overlooked: landscaping a property can be one of the investments you can make with the highest return. Need proof? The 2011 HomeGain Survey found that an investment in landscaping gave, on average, a return on investment of 258% in the value of sold homes.

So clearly, when landscaping is done right it can make a big impact on a home’s value. Now the question presents itself. So what is the best way to landscape a property?

First, you need to have a property that will see the greatest return on the investment in landscaping. Small things like using slate tile over a concrete patio can make a big difference for a relatively small investment.

Second, be aware of the time of year. If it is November there will be very few things that you can do in most parts of the country. That being said there are plants and trees that will do well in colder temperatures.

Third, start your landscaping projects first. Depending on what your plan is most landscapes will take time to start growing. If the landscaping project is done first there will be time for that to mature while the home renovation is taking place.

Fourth, look for licensed landscaping contractors. Using licensed contractors may be a little pricier however in the end it may cost you less.

Lastly, do not forget lighting. Lighting is one of the most important parts of landscaping. Not only will the lighting add curb appeal and allow for prospective buyers to see the landscaping in the evening but it will also provide a security measure.

Keep in mind that a house may have all the best amenities on the inside, however that will not pull prospects in. You want to make the buyer’s first impression a good one and adding curb appeal will do that.

Remember that there is no one-size-fits-all solution. Each home has a different allure, and your investments should be geared towards the home, not towards properties you’ve sold in the past.

WATCH UGLY HOUSES NEED LANDSCAPING TOO NOW!

If you are interested in learning more about real estate investing, CLICK HERE

How to Avoid Bad Real Estate Investments

Posted by Ugly Guy - May 21, 2013 - Real Estate

How to Avoid Bad Real Estate Investments

Real estate investing is becoming a booming profitable business all over the country. However, with the current economy, it is wise to not place yourself on the wrong side of the investment. This is critical to avoid loss and to improve your ROI.

Most people believe that by simply jumping into real estate investing that they will earn a substantial income. This is not necessarily the case. This is however not the case. For success in real estate investing, you must research, apply critical thinking, tread carefully and think like a businessperson rather than a homeowner, for substantial rewards.

Here are some key things to note to give you an edge if you are considering becoming a real estate investor:

1). Acquire formal training.

Learn as much as possible about real estate investing. There are a lot of training options available. Be careful in the training that you select. There are all types of training programs available some of which cost thousands of dollars and some that are even free. Attending some type of training should be the first step in determining if real estate investing is for you.

2). Location, Location, Location.

Geographic location is another important aspect to consider when determining success in real estate investing. In order to be successful you should look for areas that are attractive to prospective buyers and offer opportunities for investments that will have a return on your investment.

3). Consider a Franchise.

As a new real estate investor it is imperative that you find a qualified mentor to guide you along the way. Purchasing a franchise is one way to achieve that goal. Having a seasoned real estate investor on your side will definitely assist in your overall success. HomeVestors, the number one homebuyer in America offers a solid program that can help mentor you through the learning process.

4). Do what you do best.

Real estate investing requires a network of different skill sets. If your strength is meeting and talking with people that is what you should do. Leave the other things, i.e. accounting, repairs, etc. to someone who does that the best. That is why is important to develop a strong network of individuals that can help you be successful. options may be good, in some instances, it may also come as a blindfold to some good investment opportunities.

5). Always have contingency plans.

As a real estate investor it is wise to always have a contingency plan. Although planning is key there are unavoidable obstacles that can occur. Successful investors have plans for these which helps them avoid additional losses and expenditures.

Ugly Opportunities allows it franchisees to work toward their highest potential in the field of real estate investing. With help from mentor Mike Hambright, each franchisee obtains professional training to invest in only the homes they believe they can truly succeed with. Flipping and remodeling homes can become a successful career and there is no better time to join then right now.

If you are interested in learning more, watch our Free Webinar. It could change your life!

Learn Real Estate Investing

Posted by Ugly Guy - May 20, 2013 - Real Estate

Learn Real Estate Investing

Ever considered investing in real estate? You know, flipping houses…but with less drama than the TV shows. Real estate investing can provide financial freedom, help build long term wealth, and change your life, but it’s not as easy as the late night infomercials would lead you to believe. Most important is that you follow a real system, and have an experienced mentor to provide support.

Real Estate Investing offers many different potential opportunities. The most common are ‘Retailing’ (buy a house, rehab it, then sell it again), ‘Wholesaling’ (learn to acquire houses at deeper than usual discounts, then sell ‘as is’ to other investors for a quick profit) and ‘Rentals’ (buy houses that may or may not need repairs, and turn into a rental property). Of course, there’s commercial properties vs. residential, and on and on. Like everything, it’s critical, especially for newcomers, to focus on a particular strategy. If you’re not focused, you’ll likely end up spread too thin, and not perform well at anything.

There’s unfortunately a lot of hype in investing in real estate. To be successful, especially early on, you should focus on the fundamentals and keep it simple. It’s a business that can get very complex, if you let it. It’s important to have a strong coach or mentor, and have a system to follow. Otherwise, you’re on your own, re-creating the wheel in a business that would be happy to eat your lunch.

HomeVestors of America, the “We Buy Ugly Houses” folks is the only house buying franchise system in America, and its franchise system has purchased over 50,000 houses. Many started with no experience, and are now some of the largest and most successful real estate investors in the country. Learn more about whether this opportunity may be right for you by registering for our free webinar. It could change your life!

Common Real Estate Investment Rehab Types

Posted by Ugly Guy - May 19, 2013 - Real Estate

Common Rehab Types

There are three common rehab types in the real estate investing industry. These three styles take your rehab from one-size-fits-all to a style that fits the opportunity. Changes in the market have forced us to tweak this model over time. Here are the three most common styles of real estate rehabbing:

Rental Rehab — Rehabbers and sellers often demand a high quality rehab, considering buyers have the power in this market; however, tenants have less leverage in real estate. When rehabbing a rental property, you probably don’t need things like: granite, stainless steel appliances, real wood floors, etc. The key is to optimize your rental income while minimizing your rehab. But if a repair is needed, don’t shy away from it. Find your balance.

Top Notch Retail — At HomeVestors, our rehabs in the “top notch retail” space are generally the nicest house listed on the block. We put in all the bells and whistles, and analyze the competition to ensure we sell quickly. How do we do it? We buy at low prices so we don’t have to skimp and work with our vendors and contractors.

Wholetail — Until recently, we didn’t use this method much, which is also referred to as “pre-hab.” What it entails is that we do a light rehab to make the houses livable, and then we sell it at a great discount. This opportunity allows us to look for the “value buyer” who is willing to sacrifice some quality for a great deal. The buyer then has the chance to earn some equity on the property.

Always keep your prospective buyer in mind when rehabbing a property. Think of the expectations for the neighborhood, price point and profile of a typical homeowner in the area. And then get started.

As a franchise system, HomeVestors® provides world class training, use of the most well known and respected brand in the industry, and a best in class marketing system for lead generation. The company strives to help provide an ‘out of the box’ opportunity for those interested in becoming real estate investors or expanding their real estate investing career.

To learn more about this exciting opportunity CLICK HERE

Real Estate Investing Clubs

Posted by Ugly Guy - May 18, 2013 - Real Estate

Real Estate Investing Clubs

A real estate investment club is a great way to network with other real estate professionals. Whether you’re just starting in real estate investing, or you’re an expert, joining a club could offer you excellent resources and information for the housing market

Real estate investment club members come together to:

● learn about investment practices
● get tips on available commercial and residential properties
● become familiar with local laws and regulations
● trade vendor information
● find a supportive group of people with common goals

You can use the Internet to find a local real estate investment club by searching ones in or near your area. You can also join an online club if that’s more suitable for you. If you want support and motivation, a club is a great place to start.

It is important that you attend a few meetings from a couple of groups to get a feel for the group and its members. It is important to find a group that will help you in building your network and have the resources to address your needs. Get an understanding of what the group focuses on and they experience of the real estate investors in the group.

In addition to real estate investors, there are many other types of individuals that attend these meetings that can be beneficial to your network. Members of real estate investing clubs include bankers, title companies, general contractors and other business professionals which may be of benefit to you.

There is value in joining a real estate investment club. If you have any questions or concerns, bring them up at club meetings. Ask professionals for advice, build strong connections with members, and you will likely never have to face your work alone.

If you would like to learn more about becoming a part of America’s #1 Real Estate Franchise System CLICK HERE

Analyzing Real Estate Investment Deals

Posted by Ugly Guy - May 16, 2013 - Real Estate

Analyzing Real Estate Investment Deals

Effectively determining how much profitable income a certain property will obtain for you can be difficult. However, there are three important factors to determine when analyzing your real estate investment deal.

Know your niche- This is especially true for beginners in the real estate business. It can be complicated to constantly switch back and forth between varying real estate investment strategies because of how the analysis differs from one investment strategy to the next. For example, the net income produced by a rental property is completely different from that of a wholesale property and this can cause many headaches for any rookie trying to create a business without a clear-cut investment strategy. After establishing what your investment strategy will be, you should also determine exactly what location you are looking to invest in, and you should have a pre-determined price range for your future investments.

Buying criteria- This criteria will be determined based on the chosen investment strategy. You should know what price potential buyers will pay you for your property in order to establish the maximum purchasing price. Wholesalers, for example, say that you should not buy a potential investment property for over 65% of what you plan on selling it for. It is always important to use conservative figures to avoid any fiscal complications in the future.

Know the numbers- There are two specific numbers you should know when purchasing an investment property. The primary factor you should consider is the cost of the renovation and repairs and include as the total ‘investment’ for that property. The second number you should determine is the market value of the property after the repairs have been completed. This may seem complicated for beginners, but you do not need to be an expert. Network with appraisers, other investors, real estate investors, etc., and surround yourself with a team of professionals to help verify the numbers associated with your deal.

Knowing how to properly analyze your real estate investment opportunity will not only give you leverage when dealing with the seller, but it will help you to optimize your profit margin, and lead to greater success in the real estate business in the future.

If you are interested in learning more about real estate investing CLICK HERE

Thinking About Real Estate Investing – What is Holding You Back?

Posted by Ugly Guy - May 15, 2013 - Real Estate

Thinking About Real Estate Investing – What is Holding You Back?

One of the most difficult parts of real estate investing is simply getting started. There are many different gurus in the market that will sell you a class to ‘teach’ you real estate investing but does it really teach you? There are plenty of opportunities in real estate investing in today’s market. If you have ever considered real estate investing now is the time.

Fear- One of the biggest reasons I see on a day-to-day basis that prevents potential investors from taking that first step is apprehension. There is a fear of uncertainty with new investors that can delay the decision making process. In the real estate investing arena you have to be prepared to make offers quickly or the property will most likely be off the market swept up by another real estate investor.

Greed- Some believe that becoming a real estate investor will bring you a lifestyle of glamour and grandeur. Although some have achieved this the truth is that most real estate investors do not. That is not to say that real estate investing cannot be lucrative and provide for a very comfortable lifestyle. Be realistic in your return expectations and fair in your offers.

Lack of Knowledge- Finally most new real estate investors does not have much experience or a mentor to help them through their first transaction. Whether you’re interested in learning how to be a real estate investor, want to buy rental properties, or simply want to generate a supplemental income, there’s no better opportunity than the HomeVestors Associate Franchise Program.

Never before has there been an opportunity like HomeVestors® newest franchise offering. The Associate Franchise Program allows qualified candidates to join our amazing system, an exclusive club for a much lower price than a full HomeVestors franchise. Considering the cost of the associate franchise, having access too and being mentored by the #1 brand in real estate investing is equivalent to the cost of a long weekend training retreat by a self-proclaimed real estate ‘Guru. You owe it to yourself to learn how HomeVestors newest franchise opportunities can make investing in real estate both easy and attainable.

For those hardworking individuals with the desire to change their lives, there may be an opportunity for you to join the HomeVestors family! CLICK HERE TO LEARN MORE