Real Estate Education from Granite Real Estate Investment Club » real estate club education

How do I get into Real Estate Investing within a major company?

admin — Sat, 11 Oct 2008 13:31:16 +0000

I am a newly licensed real estate salesperson. But my goal isn’t really in this state, or being an agent for more than three years… and it’s not about the market, Im just a little anxious. So listen, I got the license because i want to get into investing, I want to flip houses and then be able to sell them myself, access to the market, etc. I already have partners in mind, whom after a few words are very interested in joining me. I know a ton of people in the construction business, landscaping, you name it. What I am having difficulty in, is finding a company where I can be an investor or even an assistant to learn the ropes. Is it true a license is not going to cut it, and I need to go to school for some crazy business degree or something. Can anyone help me with this, I’m mostly looking for advice, no links to investing on my own, I have zero dollars and I want to invest WITH money.

I want to try some real estate investing how do I get into foreclosures?

admin — Sat, 11 Oct 2008 13:31:15 +0000

I know the market is doing really bad but I know alot of investors are making alot of money off of foreclosures.How can I have a piece of the foreclosure pie?
I am buying them too. There is absolutely nothing different about buying a foreclosure then buying a regular home, other then there are no disclosures. Procedure is the same, you need to get yourself an agent and get your financial paper together (banks will not even look at offers unless you can prove you can pay for it first). But for real estate investors is there another way?

Does anyone know why short sales take so long?

admin — Sat, 11 Oct 2008 13:31:15 +0000

I am two months in on trying to buy a house under short sale terms and nobody seems to know anything. The bank just takes so long to make a decision-WHY?
Banks are a lot like people, at least in the fact that they don’t like to lose money. The bank wants to be 100% sure that accepting your offer of a short sale is their best financial choice. They have to evaluate all their options. If they think there is still a chance to get the owner to catch up on their mortgage payments, then that’s a better choice because they don’t loose as much money. Or if they think they can make more money by foreclosing the house and selling it at auction, then that’s their best choice. They will only accept a short sale if they are certain that its their best financial option. Chances are that there is one person who processes them and they have so many transactions on their desk right now that they just don’t have time to look at it. Your best bet is to call everyday. Plus, your Realtor should be helping you out on this one.

what are some good books or web sites to teach me how to get started in real estate investing?

admin — Thu, 09 Oct 2008 16:33:02 +0000

I plan on investing in real estate in the next few years. Right now I want to school myself on how it’s done. Any a good references?
Do your homework. Value of real estate is dropping faster than it’s ever had since the great depression. Until you are confident that real estate has hit rock bottom, I would not invest in it. I have invested in real estate, and the value of my portfolio is really plummetting. Even though real estate is a steal right now, and I am in the business, I would not buy at this time. Tread slowly, and look both ways

What are the benefits or drawbacks to expanding my home search to include FSBOs and foreclosures?

admin — Thu, 09 Oct 2008 16:33:02 +0000

How does the buying process for foreclosures or FSBOs differ from homes sold by agents?
Foreclosures are easy and straight forward, except there are no disclosures, it is buyer beware. You have the same buyer beware problem with FSBO, although there are disclosures you have people who are not always sure of the laws. You will also find they want more then the house is worth, one reason they refuse to pay an agent. If you go FSBO make sure you have an very through inspection and an attorney present when you sign anything. Most FSBO sales end up in court, usually because a law was broken.

Why are real estate agents discouraging me from viewing short sales?

admin — Thu, 09 Oct 2008 16:33:01 +0000

I am in the process of purchasing short sales. Many short sales are not on the MLS, they are for-sale-by-owner. Realtors don’t work for free…by a property being listed on the MLS, they know that there is a commission agreement built into the listing…this is not true with all short sales. Unless you are willing to pay your Realtor, if the seller is not willing to pay the commission, then you will have to pony up…and they know you are very unlikely to do that. Second, short sales are difficult transactions and it can take a week or more just to negotiate the offer, because the mortgage company loss litagation department has to approve the offer…not the homeowner. If you have told your Realtor that you would need closing costs paid, would expect some repairs to be made before you buy…..these are not things that you will get paid for if you buy a short-sale. Not every property that is “on the market” will pay a Realtor commission. Realtors also work for a broker, and the broker is who dictates what kind of commission would be needed in order to make the transactions worth their while. Remember that Realtors are self-employed, out of the 50% of what commission is getting paid out, they have probably spent a fortune in gas, meals for you, they pay MLS dues every month, to the brokerage, the biggest is they have to buy their OWN private health insurance, Errors and Ommission Insurance, they get taxed at about 30%, they have to pay an accountant to file quarterly taxes….once you break that down….what makes it to their bank account is very little for some transactions.

What do I need to know to start my own business in Real Estate Investing?

admin — Tue, 07 Oct 2008 18:30:09 +0000

In a year or two my husband and I want to start our own business in Real Estate Investing. We are currently closing on a house that we are going to rent out. When we start getting more into it, such as with the renovations and everything, should we have our own name and make ourselves a company or should we not even be company and just buy houses and sell it or rent it out? If we do start a company how do I go about in doing that? I’m clueless right now. thanx alot! You should always run your Real Estate Business as an entity of some sort; ie. (Corporation, Limited Liability Company, Limited Partnership, or Combination such as a Limited Partnership with your Corporation as a Limited Partner.) Join some local real estate investment groups a.s.a.p. For help deciding which type of entity, and setting it up you could visit with an attourney that is familiar with real estate investment; or you could visit irs.gov and go to the business links for starting a new business. NEVER EVER run a business under your soc. sec. number. ALWAYS run a business with an E.I.N. Employer Identification Number

How do I find REO and foreclosures in my area?

admin — Tue, 07 Oct 2008 18:30:09 +0000

I want to buy a house, but with my credit and the amount I want to pay a month, I need lower prices. I also can’t buy a condo due to the FHA we are approved for. I want to be able to make a profit by buying it cheap as a foreclosure and then resell when and if the market goes sky rocketing in California again. Please help me find good and accurate websites with HUD foreclosures and REO properties so I may buy a house.
Just because they are HUD foreclosures and REO properties does not mean they are going to be a good deal. You have to remember that many people had their houses financed to 100% or more when the market was high. They did not pay on them and the banks an HUD took them back at those high prices. Sometimes you can get a short sale but you can figure the short sale price is going to be what the house is worth on todays market. It not going to be a low priced deal. It is normally best to find a good agent that deals with people that are behind on their payments before foreclosure starts. Many of them are willing to make a deal to keep from losing the home to the bank and screwing up their credit.

Anyone with foreclosures or short sales experience?

admin — Tue, 07 Oct 2008 18:30:08 +0000

I want to start my own business in real estate, and read about short sales. I thought that this may be a good place to start so I can build capital. I want to start investing, I’ve been a property manager for single family homes as well as two apartment buildings however, I feel there is more I need to learn before I jump in. Any advice on getting into short sales/foreclosure mitigation. I want to start this biz in Cleveland, Ohio.
You’ll receive a billion answers, because there’s quite a bunch of ways to start this. The first thing you should do is buy more books, read and re-read until your confident. Don’t go to a seminar and spend $4,000. But rather, spend $50.00 or so and buy 2-3 good books written by investors. It’s almost as good as having a mentor by your side except you’re not paying anything to them. One thing that I want to comment is that you’re in the right path about building capital. That’s your first priority. Second is making the right decisions and making sure the market you are in is sellable — you are able to flip that property within 6 months or less. Suggested reading below.