4 Tips To Prepare Credit Score Boosts Far Ahead Of Time

Get your debt situation shaped up as soon as you can. Not only will this fiscal fitness program lift your qualifying ratios, it may also boost your credit scores.

Here are some tips:

1. Consolidate bills. One loan consolidation payment of $280 a month will hurt you less than four seperate bill payments of $125 each. However, don't close three accounts and run one up close to its credit limit. Credit scoring doesn't like "high" balances relative to credit limits.

2. Pay down debt. If your installment debt has only 11 or 12 months to go, prepay two or three payments. That pushes those debs off the table and out of sight--under the rules followed by most lenders.

3. Pay off debt. If you can swing it, get rid of as much debt as you can.

4. Avoid new debt. No matter how much you are tempted, do not take on new debt prior to applying for a mortgage. Even if you can easily afford it, wait until after you've closed your mortgage. To build wealth, permanently swear off destructive debt--debt you incur to pay for depreciating assets or wants rather than needs.

These tips especially apply if your ratios push against the lender's guideline total debt limits, if your credit score falls below, say, 680, if you're requesting a low-down-payment loan (a loan-to-value ratio of greater than 80 percent), or if you're trying to qualify for a non-owner-occupied investment property.

A pint-sized debt load will offset any warts in your borrower profile.


from "The Beginner's Guide To Real Estate Investing", 2nd Edition by Gary W. Eldred, PhD

How To Maximize Your Home As An Investment Asset

Is your home a valuable asset or a liability?



With the present economic crunch, many homeowners are left thinking if their house is a wise investment or merely place to stay. Is your home a valuable asset or a liability? Here are some of the major concerns of homeowners and tips on what they can do with the property given the present economic situation.

Is my home more of an investment or a liability?

Although your home can be considered your most valuable asset, it is unlikely to deliver greater gains in the long run as compared to investing in a diversified portfolio of stocks and bonds. This has been held true even before the drop of real estate values. Over the past two decades – including the period of the real estate investment growth—the average gains of home prices are just about 3.6% per annum as compared to stocks, despite their recent drops, were up 8.4% about the same period.

The Long-Term Advantages

There are, however, other important financial benefits of owning a home. A homeowner can benefit from tax breaks. These are deductions for property taxes and mortgage interests (plus, the first 500,000 that couples make after selling is tax-free). Owning a home could also be counted as an ideal savings tool— with every mortgage payment, you are forced to set aside money, thus keeping your savings intact in form of a tangible asset. This is also the key reason why most homeowners have a higher net worth than renters. Throughout history, real estate has been considered a good hedge against inflation.

Additional Tips

If you plan to resell your home in the future, don’t overspend in renovations, you might recoup when you sell. Instead, focus on fixing its problems and invest in projects that add functionality to the home.

Be realistic about your gains. In the long run, the value of your home can have an expected rise of about one to two percentage points over inflation.

Zillow Android App - Mobile Real Estate

Real Estate Data by Voice and at Your Fingertips!
As the leader in mobile real estate, Zillow now provides real estate data and info for all U.S. homes on the free Zillow Android App. See Zestimate home values, homes for sale, homes for rent, and more. Use Android's voice search feature, plus built-in GPS technology, to search for homes as you talk, walk or drive through neighborhoods.

To get the free Zillow Android App, visit the Android Market or scan this QR Code with your Android phone.



Zillow Android App Features:
- See Zestimate value of any home

- Search filters:
For sale, for rent, Make Me Move homes, and recently sold
Price, beds, baths, and more
Map view (high-resolution satellite and street view), list view

- Search location:
From where you are (via GPS locater)
Type in an address
Voice search (speak an address)

- Full-screen color photos (in portrait or landscape mode)
- E-mail homes to a friend
- View homes curbside with a Google Street View of homes
- Save favorite homes and searches
- Get driving directions to a home with Google Maps

A Real Estate Broker's Tips To The Summer Rental Market

Summer is high season in the New York City rental market, and this past weekend I was reminded of that. I had two guys and their mother in from California, and on Saturday afternoon we put in application for a two bedroom apartment. We even had a back up unit with the same management company. By Monday afternoon, however, we were told that someone else beat us to the punch in the application process for both units, and by only a few hours. After two more days of looking and a little low-grade stalking on my part, they ended up finding something else.

That said, as I enter yet another summer rental season, I thought I may offer some realistic advice for tenants out there. While other outlets may try to offer guidance, unless you work in the field there really is no way to understand exactly how this business it works.

Look for An Apartment In The Middle of The Week: This is the best piece of advice I could give anyone. Everyone looks for an apartment on a weekend, and in peak times like summer you're more likely to lose one you saw on a weekend than if you saw it in the middle of the week. Monday mornings are crazy in the real estate business, because everyone who looked over the weekend and put in an application, or considered putting in an offer to buy a place, is waiting for approvals and feedback. Also, inventory lists are more likely to be accurate in the middle of the week, once the ebb and flow on Monday morning has passed.

Brokers are also not as busy on Wednesdays and Thursdays, and will have time to devote to your cause. I can easily book two or three appointments on a Saturday, and if you're not one of the first in the queue you may actually get rescheduled.


You'll Probably Have To Use A Broker In Manhattan Every time I'm at a cocktail party there's always that sanctimonious twit in the corner who claims he's found every apartment he ever had on Craigslist or through word of mouth. That's great. When you need something specific, however, such as a good share apartment for a couple of new college grads or a one bedroom within walking distance to Grand Central, a broker will make good use of your time.

Just be careful who you choose. When you answer a random Craigslist Ad from a hole in the wall brokerage called something like #1BestNYCLivingSpace.com, don't be surprised if the guy you meet is a little sketchy, pushy or at the very least, smells bad. Ask around to people who have had good experiences. If you need a high end, Upper East Side Classic Six, a marquee name brokerage will most likely be able to get it for you.

You Don't Have to Work With 12 Different Brokers. Thanks to the guidelines set up by Real Estate Board of New York, every broker in Manhattan has access to every listing out there. Unless someone has something in their pocket that they're not sharing, chances are your one genius broker can find it. Remember, this is a business relationship. If you're running around town with different brokers, it won't inspire anyone to make an effort try to find something for you. It's a waste of their time. Fidelity will get you what you want.

What's The Deal With The Broker Fee, Anyhow? The broker fee, which is generally 15% of the annual rent, is how the broker gets paid. Some people think it goes to the landlord, but it's a service charge for the broker who found you the place. Most landlords in Manhattan don't deal with the general public, which is why a job like mine exists. We also have access to the whole gamut of available apartments, from your standard rentals buildings to private owners who just have one or two units to offer.

When you ask a broker to lower their fee, you're asking them to work for less, which never makes us happy. Even if we only showed you one apartment, and you took it, it doesn't mean we did any less of a job.

If you have a slow week at your desk job, doing little but surfing Facebook and shopping online, does your boss ask you to take a cut in your pay? Nope. There is more to being a broker than just opening a door. A good one spends their week previewing, managing their marketing and scoping out new listings. We also have to be ad-hoc therapists, tour guides and financial advisors. It's less passive of a job than you think.

from huffingtonpost.com

Maryland Town Covenant Bans “Negroes & Chinamen” From Owning Property

Cape St. Claire Improvement Association board members are working to remove racially discriminatory language from covenants that date back to the 1940s.

The paragraph in question reads: “At no time shall any lot or any part thereof be sold, leased, transferred to or permitted to be occupied by any Negro, Chinaman, Japanese, or person of Negro, Chinese, or Japanese descent. This restriction is not intended to include servants or employees of the owner or occupant of said lot.”

read full article here!

A Step-by-Step Guide To Non-Internet Real Estate Marketing

from biggerpockets.com

Last week I wrote a controversial post about why you should stop doing Internet marketing and instead use direct mail if you want to become a highly successful real estate investor.

And today I’m going to show you the exact direct mail steps I use in my own business which make me over six-figures a year. Anyone can follow these steps and there are only two reasons why these steps couldn’t make you six figures too.

The first reason is that you don’t follow what I say and you don’t send out letters. This is the reason 99% of people aren’t successful. The second reason is because you send out a terribly written letter that doesn’t get any response. Luckily, if you network properly you can find investors who will share their profitable letters with you.

Here we go…

First and most importantly you have to choose the area you invest in. I like bread and butter locations with a lower-than-average housing value. One of the areas I personally invest in is Stafford, VA zip code 22554.

Once you’ve picked your area you have to get a list. The people that I prefer to mail to are absentee landlords. I could write 20 pages on why I love going after landlords, but let’s just say they’re often motivated sellers. So now that you’re going after landlords you call a list broker and order 1,000 or 2,000 names in your zip code of choice. (I like to use Melissadata). They email you the names in an excel spreadsheet.

Now you have to create your letter.

But how? Well… first always personalize. Use a person’s first name. Mention their city and state where you want to invest and mention how you specialize in working with landlords who want to get rid of nightmare rental properties. (Pile on the benefits of working with you.)

Also, include a free offer in your letter. For example, I include a free special report called “The 5 little-known ways to eliminate tenant hassles forever.” Another thing I do is offer a free lunch. I tell the person that once I evaluate the deal over the phone and see that it meets my criteria I’d like to take them out to a free lunch to discuss things.

Be creative…

You can offer a number of things, but make sure they realize there is no-obligation for calling you and getting your free report or free consultation.

Once the letter is done you simply send it off to your letter shop along with the excel spreadsheet and they take care of the rest. Or, you can of course do it yourself. Just make sure that whoever does your mailing knows to use a white #10 envelope and to hand write all addresses in blue ink.

Once the letters go in the mail, you’ll get calls from motivated landlords in the zip code you specialize in. If you follow the steps I just outlined you can see this isn’t tough, and once again, this method will crush the nerds who love internet marketing any day of the week and make you a heck of a lot more money.

10 Real Estate Investing Secrets Every Investor Should Know

Business success is the result of what you know. In every industry there are key elements—secrets—that if known will help to insure success, but if not known will certainly lead to failure. Real Estate investing is no different. Success begins with knowledge. What are some of the critical lessons that every real estate investor should know? Here are ten of them for starters…

Secret #1 - Use Other People's Knowledge
The first secret is probably the most important of all the others—using other people’s knowledge. There are only two ways to gain knowledge. Either you gain it from other people's mistakes or make the mistakes yourself. If you refuse to learn from other people’s mistakes—you are destined to learn from your own mistakes. The secret is to learn from others and avoid the pain of learning the hard way. Here is the secret—you can jump start your investing success by getting a good mentor and constantly reading and listening to CDs by successful real estate investors.

Secret #2 - Consistency and Quantity of Quality Offers
The second secret is also very important—it is the power of consistently making a lot of quality offers. In order to become a successful real estate investor, it is absolutely necessary to place many offers that, if accepted, will result in great deals. Without offers there can be no good deals and good deals are the basis of success in real estate investing. If you do not ask you will not receive.


Secrets #3-7 - Skills to Develop
Secrets three through seven are the skills that will have to be developed in order to run a successful real estate investing business. These skills are:

•#3 - Finding Good Deals
•#4 - Obtaining the Money to purchase the good deals you find
•#5 - Fixing up the property so that it is marketable
•#6 - Effectively marketing the property
•#7 - Property management
Master each of these skills and real estate investing becomes much easier. However, fail to develop them and you are in for a rough ride.

Secret #8 - Prepare Quality Offers with a Chance of Being Accepted
Secret number eight is that you must prepare quality offers that have a chance of being accepted. These offers must be high enough so that some of them will be successful. But they must be low enough so that, when one is accepted, it will result in a substantial return on your investment of time and money. This can be easily accomplished by using some of the effective software on the market today such as TurboBidder2 or similar real estate analysis software.

Secret #9 - The Ability to Determine True Property Value
The ninth real estate investing secret is that you must be able to determine the true value of property. True value is the amount that the property can be sold for in a reasonable period of time. The quickest way of determining true value is by paying a professional appraiser to work their magic. But that is not necessarily the best way. It doesn’t make sense to be paying an appraiser to look at thirty properties when you only expect to purchase one of those deals. That means that you must find an inexpensive way to determine true value. There are professional realtors who work with investors. These realtors can provide accurate comparable sales (comps) of similar properties. These comps can give you a very good idea of what a property is worth.

#10 - Have a Burning Desire to Succeed
And finally Secret Number 10 is that you need to have a burning desire to become successful. Your attitude and drive can make up for lots of early mistakes and pitfalls that might sink a lesser person. As Calvin Coolidge once said, “Nothing in the world can take the place of persistence”.

I hope this article will help you in your quest to build wealth through real estate investing. For more articles on real estate investor training, visit my website at www.dennisjhenson.com. Also on that site, you may sign up for free reports, articles, and e-books and find free forms, documents, MP3 downloads and much more. Also visit www.turbobidder2.com for a great real estate investing tool.

Thank you,
Dennis J. Henson

Learn other secrets of success like this: 10 Real Estate Investing Secrets.

7 Things To Do With a Real Estate License Besides Sell Houses

Sometimes after obtaining a real estate license the harsh reality sets in that life as a real estate agent is not quite as glamourous as it’s cracked up to be. Other times personal circumstances might change where a steady salary or work hours are necessary. If you find yourself thinking that being a real estate agent might not be quite the right career fit for you, there are many other things you can do with a real estate license besides selling homes.

1. Apartment leasing agents: Many landlords and agencies need someone who can show property to prospective tenants, write lease agreements, and take care of other details. Rather than hiring an outside broker to perform this work they will manage this process in-house and hire their own leasing agent as an employee.

2. Licensed Assistant: This can have its perks as you will probably have set hours, steady paychecks, and not get the complaint calls from clients. Become friends with the top producers in your area or watch for ads to see if any are needing extra help with their workload. You can also consider becoming a virtual assistant.

3. Writer: The internet is an open market for writers, especially those who can offer a viewpoint in a specialized field such as real estate. You can start your own website or publish articles on sites such as AssociatedContent.com. You can also search for paying writing jobs on sites such as sologig.com.

4. Real Estate Scout: Many companies often need someone to scout out properties for new locations or developments. There are also many investors who can benefit from having a full time employee on hand who can help find houses that have good future profitability.

5. Marketing Assistant: After having my daughter I just couldn’t see myself going back into real estate full time. I partnered with a few high profile agents and became their marketing assistant by helping them with mailing campaigns, brochure designs, newsletters, and other marketing related activities.

6. Home Stager: While you may need additional professional designations this can be a profitable business by meeting with potential sellers and helping them decide what changes are necessary to sell their home as quickly as possible and for the highest price. Bonus: You might even be able to earn some referral dollars by referring your clients to agents to sell their home.

7. Title and Closing: There are many title and closing companies that can offer jobs in gathering and coordinating the necessary documents and procedures for closings. As more and more banks depend on larger companies to do this for them, many job opportunities are available.

These are just a few of the many possibilities available in finding a new career where your real estate license won’t go to waste! If you have any other ideas, feel free to share them in the comments below.

from upstartagent.com

7 Timeless Skills For Any Real Estate Market

The real estate profession changes every day, but the qualities you find in top-performing practitioners do not. The details may shift as technology rolls forward, yet the underlying skills are always the same. If you can master these, you'll be successful in any market.



Skill 1: Meeting New People

The simple fact is that if you never meet anyone new, you will never have anyone new to sell to. Whether you encounter them for the first time in person, online, or over the phone doesn't matter. Get one-on-one with them in a conversation about their needs, and you've at least started down the path to success.



Skill 2: Making Personal Connections

You don't have to be the best at everything to succeed in this business. You just have to be competent and likeable.People buy from people they like. Develop the ability to connect with your clients and make them trust you, and 90 percent of your sales process is done. Want a quick way to engender trust? Tell the client something that it's not in your best interest to tell them. Show them that honestly is more important than anything to you.


Now, this doesn't mean to tell them that you got sued last week — that will make people nervous. But it could mean mentioning that the houses in another neighborhood have the same amount of space and are less expensive. They know that you get paid more if you sell them a higher-priced house. Showing them something in their best interests instead of yours makes you trustworthy.



Skill 3: Following Up on Every Lead

Follow-up is a big area where agents fail. If you aren't going to take every lead you get and work it to death, then you'll never be a top performer. Working every lead until it either closes or is clearly not a lead anymore is critical to building the solid pipeline that's required to keep your business continually producing. This means that you need a system to make sure that nothing gets dropped or forgotten. Throw away your Post-it notes; they should never be used as a place to write down a lead. All leads need to be kept in one place, and all of them need a minimum amount of information. That includes:

•The person's name
•Contact information
•What property they contacted you about (or where they came from if it wasn't from a property)
•What their timeframe is for moving
•If they're buying, selling, or both
•If they're buying, what they're looking for and in what area
•What their emotional hot buttons are (what they get excited or angry about)

If you don't have all of the information you need, don't be afraid to contact them again for more information. And once you have the information you need, continue to contact them on a regular basis to make sure they stay on track. Don't worry that you'll be bothering them—instead, worry that they would otherwise forget who you are or feel ignored by you.



Skill 4: Asking for What You Want

This is typically a big problem with real estate rookies, but you'd be surprised how many veterans forget this piece of the puzzle, too. It's not always easy, but you have to ask for things to get them. Ask for the sale. Ask for the appointment. Ask for the phone number of the person your client wants to refer.


Don't wait for people to call you, for the clients to say they're ready, or for the buyers to tell you that this is the house they want. Be direct. Ask them, "Is this the house you want to buy?" "I'll get your house on the market tomorrow if you'll sign right here." "Which is better for you: Monday at 6 p.m. or Wednesday at 3 p.m.?" "Why don't you give me your friend's number and then you don't have to think about it anymore?" All of these are great closing questions used by some of the top practitioners in the industry.



Skill 5: Setting Appropriate Expectations

Once you have the contracts signed and your clients are committed to the process, then it's all about meeting expectations. And make no mistake, there will be expectations—whether you set them or your clients do. This is why it's important to set those expectations yourself; you don't want to get blindsided by something the clients decided to expect without consulting you.


The best real estate professionals are masters at setting expectations. They know what reasonable timeframes are, and they don't make promises they can't keep. They let clients know immediately if things need to change and they set the new expectations quickly and decisively, leaving no room for the clients to wonder (and worry) what happens next.



Skill 6: Taking Care of Details

You must treat you business like a business. This means that having a system in place to make sure that deadlines get met, appraisals are ordered, home inspection responses come in on time, appointments aren't forgotten, and problems are solved. You should even have systems to make sure that your clients—and, if you're really smart, the other side's clients—have handled all of the details that they need to attend to. Hold on to every deal and work it until it closes, letting nothing go. In saving multiple deals from certain death each year, top performers improve their closing ratios and increase their per-hour earnings.



Skill 7: Paying Close Attention to Money

Lots of agents tell me that it's not about the money for them; it's about the people. And that's great. I love helping people, too. But if you don't focus on making money, you're not going to make any. Real estate is your business, your livelihood, and you deserve to be compensated for the skills and services you provide. If you stop paying attention to the money, you'll do things like:


•Negotiate away your commission.
•Not take a referral fee "to be nice."
•Work on listings that will never pay you anything close to reasonable compensation for the amount of work they are because you "feel bad for the person."
•Take overpriced listings so that the sellers will like you.
•Not make buyers sign contracts.
•Stay with a broker who pays you a below-market split.


All of these things result in you working too hard and not making what you deserve. It's not your job to right the wrongs of the world. It's your job to make a living for yourself, preferably a really good one. It's not about the number of deals you do; it's about how much money you get to keep when the deals are done.


You have to focus on the money if you hope to be successful. If you're not making a profit, you're running a charity, not a business, and you don't get grants like charities do to make ends meet.


You have to keep up with changes in technology, industry regulations, buyer and seller priorities, and economic conditions. But the skills that I've listed above will take you further than any new flashy marketing plan or social media technique. No matter what's going on in real estate, these skills will be the difference between a good agent and a great one.


from www.realtor.org by Kelle Sparta

5 Reasons Realtors Fail at Social Media

As a Realtor or broker, you know the value is there in social media, but despite your best efforts you’re still struggling. How can you change your social media luck?

Below are five reasons many Realtors and brokers fail in social media and how you can turn it around:

1. You have no plan. Social media is one tool in your marketing toolbox. Make sure you create your strategy BEFORE you try to implement one. Schedule time every morning and evening to devote to social media. 30 minutes in the morning and 30 minutes in the afternoon/evening. If you don’t have a plan – it will take you twice as long!

2. You don’t have great content. This is a biggie. If you’re finding it difficult to engage people through social media, then it may be a sign that you’re not giving them enough to engage with. It doesn’t matter how likable, charismatic or helpful you are, if you’re posting things of little interest, no one is going to care about the content OR your brand. Where to get good content? Click here for a recent post I did about sources for content for Realtors.

3. You put the wrong person in charge. Social media is not something you can delegate 100% as a Realtor or Broker. You can delegate some of it – but the personal interaction that makes social media work, has to come from you. Realtors or brokers that tend to do well are the ones that are personable, humble, and that genuinely enjoy talking to people and being social. If that person is not you then you may have a difficult time attracting fans or followers. Consider hiring someone to help you, whether it’s an assistant or intern.

4. You’re not listening. There are two different kinds of Realtors in social media. Those that listen, and those that pitch their listings . Realtors who engage in the latter typically have a difficult time gaining traction. While you can definitely use social media to target new clients and pitch your listings, you have to develop a relationship with your fans and followers first. Realtor and broker Facebook Pages that succeed are the ones who are able to integrate personal interactions and also offer them something they’re actually interested in (i.e. community events, local school info, market stats, etc.) – and they do so on a consistent, daily basis. They can offer that info that because they’ve listened. That’s the power of social media

5. You’re just ‘dabbling’ with it. If you spent $5 on a newspaper ad and saw no return, you wouldn’t be surprised. However, we all know that most newspaper ads (for real estate) can run $400-800 each (SF Bay Area pricing.) If you spend nothing on social media, then you’re going to see the same return. And that’s where many Realtors and brokers are right now – they’re ‘dabbling’ or ‘experimenting’ in social media, but they’re not dedicating any resources to it. They’re not investing their time to learn, to keep up with what’s new, and they’re not paying for tools that will help them monitor and benchmark what they’re doing. Just like with anyone else, the investment you put in is going to dictate the value you get out of it. Realtors or brokers who ‘dabble’, should expect to get dabbling results. Shameless plug: working smart in social media will be a hot topic at this year’s Real Estate Connect SF – check out the program!

Above are five of the biggest reasons I’ve seen for why Realtors and brokers don’t get as much out of social media as they could. What have been your experiences with it? Leave me a comment below!

by Katie Lance for www.futureofrealestatemarketing.com

5 Fixes to Gain More Clients

Errol Samuelson, president of REALTOR.com, identified ways real estate pros can make quick fixes to instantly attract more quality leads — that is, buyers serious about entering a transaction. His fast-paced presentation at the REALTORS® Midyear Legislative Meetings & Expo spelled out the problems and offered solutions for building a Web audience, making contact with leads, developing meaningful communication, cultivating leads and clients, and following up after the transaction.

Here’s a look at his top five:

1. Audience: A changing dynamic between the buyer and real estate pro is evident in NAR statistics: In 2001, 48 percent of buyers purchased properties their practitioners found for them. That figure dropped to 36 percent last year.

“You have a larger audience out there of people finding homes themselves and bringing them to their agents,” Samuelson said.

The Problem: Finding content and resources to add to your Web site that meets the needs of the audience you’re trying to connect with.

The Fix: You can look at real estate sites in three distinct ways. A “type A” site publishes content and news stories. It will generate lots of traffic, but visitors tend to read one article of interest and leave the site. “It’s a great way to build brand; a great place to build awareness,” Samuelson said.

The “type B” Web site offers a lot of market stats and trends. Again, this site will get hits, but often the visitors may not always be potential buyers, Samuelson says.

A “type C” site specializes in searches and listings. These sites tend to keep visitors engaged for longer periods of time — often the visitors are in the early stages of looking for a home.

Samuelson says the key is to know what to expect from these sites and create a blend of all three.

2. Contact: People are twice as likely to phone an agent rather than use e-mail when looking at homes online, Samuelson said. With a mobile app, the potential client is 10 times more likely to call vs. use e-mail.

Why is mobile so important? “This is one of the fastest product adoptions ever,” Samuelson said. There were more than 1 billion app downloads in the fourth quarter of 2009 alone.

The Problem: When a potential client does make a call, Samuelson said statistics show agents only answer 30 percent of the time. Furthermore, 45 percent of the calls go to voicemail (but over half won’t leave a message), 17 percent ring but voicemail never picks up, and 8 percent get the wrong number.

The Fix: With the shift to mobile devices, answering the phone becomes more important than ever, Samuelson said. If you can’t be there to answer, make sure someone can. And be responsive to voicemails right away.

3. Communication: First-time buyers made up 47 percent of the market last year. Your job is to communicate with relevance to the people who are buying.

The Problem: Call reluctance. The main reasons for call reluctance, Samuelson said, is that practitioners don’t know who they are calling or what to say.

The Fix: Approach communication as a way to help potential clients understand the home buying process. Realtor.com offers a first-time home buyers’ guide you can find at http://www.realtor.com/freetraining/midyear.

Don’t forget to put your contacts into a database — it’s too hard to do it any other way, Samuelson said. Track who is opening your e-mails; list interest signs and personal interests, too. This way you’ll feel more comfortable engaging them on topics they prefer, Samuelson said.

4. Cultivation: To cultivate is to grow.

The Problem: Not tailoring your approach to grow relationships with potential clients in ways that are lasting and meaningful.

The Fix: Samuelson said that mixing up your forms of communication can make a huge impact on interest level. Sure, use regular phone calls and e-mails, but also send quick messages on personal matters. Use market trends as a conversation starter. Meet in person for coffee; introduce the human element.

And don’t forget to ask for feedback on the job you’re doing. The idea of authenticity is important when providing relevant information that’s fact-based.

5. Transaction: The close of a sale is not the end of an agent-client relationship – it’s just another phase.

The Problem: Practitioners get overwhelmed dealing with the transaction or don’t have a system in place to continue their interaction with a client. According to the 2009 NAR Buyers and Sellers Survey, 21 percent of home owners don’t hear from their agent again. Approximately 43 percent hear from their agent occasionally, 13 percent monthly, and 9 percent weekly.

The Fix: Continue your cultivation after the sale, which is becoming easier than ever with social networks and blogs.

by Erica Christoffer, REALTOR® Magazine

Choosing Your Real Estate Agent

It is recommended that you have a real estate agent help you with your transactions. But how do you know which agent to select? The choice can be difficult, but here are some questions to ask during potential agent interviews.



1. Do you have references from past clients? Ask their past clients if they were pleased with the service the agent provided them. Did they communicate in a timely manner, and were they kind and courteous?

2. What does being an agent mean to you? By asking this question you'll be able to see what their work ethic and business philosophy are. You want an agent that puts their priority on your happiness first, and their commission check second.

3. How long have you been in real estate? This is not to say that someone new to the business would not be a great asset. However, depending on the nature of your transaction, you may feel more comfortable with an agent with a proven record of sucess.

4. How many homes did you sell last year? Just because an agent has been in the business for a while doesn't mean they've been successful. You don't want to have your home on the market for months, when a savvy agent could have it sold in weeks.

5. What designations and certifications do you hold? Beyond holding a real estate license, agents can opt to expand their education and skills. There are a multitude of courses and programs available. In general, these certifications mean a more specialized agent.

6. What is your marketing plan? In an ideal world a house would just sell itself, right? But the market swings back and forth on a constant pendullum between being in favor of sellers and then buyers. If you are selling a house in a buyers market, then you need a solid marketing plan to make your home stand apart. Open houses, email campaigns, webcasts, and brochures are just a few of the items your agent may use.

7. Do you do dual agency? Dual agency is when the agent represents both the buyer and the seller. This is legal, as long as disclosed, but it may not be something you're interested in signing up for. Be sure to ask.

8. What are your home sales stats? It is important to ask them how long it takes them on average to sell a home. And then ask what the area average is. They should know this information off the top of their head, or at least have the statistics readily available.

9. How do you communicate with your clients? There is nothing worse than not being able to get ahold of your agent, with questions, for updates, and for feedback. In today's modern world of technology, there is no excuse for them not to stay in constant contact. There is email, texting, cell phones, and a myriad of other options. Ask what they use to stay in touch with their clients.

10. Do you have other connections? Meaning, will they be able to refer you to contractors, mortgage lenders, banks, landscapers, pool maintenance crews, and the like. This will be especially important if you are new to the area.


by Carla L. Davis for RealtyTimes.com

Good Buy or Goodbye?!

Tips to shopping for foreclosed, short-sale and flipped homes

It has a mountain out back and, apparently, a mountain of debt.

Weeds and overgrown landscaping obscure a for-sale sign in the front of the foreclosed home northwest of Deer Valley and Cave Creek roads in north Phoenix.


"This one is not too bad," real-estate agent Gary Holloway of Zip Realty said of the long-vacant home. "They get no love."

The four-bedroom house, built in 2006 by Courtland Homes, is missing a dishwasher, refrigerator and built-in microwave oven. It also has some quarter-size holes in the kitchen wall. Otherwise, it appears to be in reasonably good condition.

The foreclosed home in the Eagle Bluff subdivision needs appliances, new carpeting and paint at a cost of at least $15,000. The two-story 3,182-square-foot home has a good view of one of the unnamed Union Hills beyond the back wall.

And it could be a good buy for a cautious buyer who knows what to look for in a foreclosure.

Listed at $210,000, the home was in escrow and could become yet another of the thousands of foreclosed Valley homes that buyers have acquired from banks.

Arizona had 21,442 foreclosed homes in the first quarter of this year, according to RealtyTrac.

The state has the nation's second-highest foreclosure rate behind Nevada, with one in every 49 homes with a mortgage receiving a foreclosure filing in the first quarter, according to RealtyTrac. That's triple the U.S. average.

Just fewer than half of Phoenix's 5,183 home sales in the first quarter were foreclosures, Zip Realty reported.

Buyers of foreclosed homes can save tens of thousands of dollars on the purchase price. But real-estate agents warn of pitfalls.

Jeff Barker of Diamondback Realty in Scottsdale said buyers must rely on a home inspection to protect themselves when buying a foreclosed home.

No disclosure of missing appliances or damage is required at the trustee sale of a foreclosed property.

"You've got to do your due diligence," he said. "And hire a good real-estate agent."

Buyers often make a big mistake in underestimating the cost to remodel a foreclosed home, said Barker, who has listed about 75 homes for banks.


Learn home market

Ron Bernier, a broker with Zip Realty, said buyers can better understand the market value of a property by driving past it and seeing conditions in the neighborhood.

Buyers can expect to be bidding against others for foreclosed homes in the lower price ranges. Plus, deals often fall apart when a property does not appraise at a high enough price to satisfy the new lender.

Holloway of Zip Realty said buyers might also consider buying a previously foreclosed home that an investor already has remodeled, what's known as a fix-and-flip property.

The traditional resale market is struggling to compete on price with the distressed properties and fix-and-flip homes, he said.

To reveal market options, Holloway visited the Eagle Bluff neighborhood to show the foreclosed home mentioned earlier, as well as a similar short-sale home and fix-and-flip home.


Deal or no deal

The short-sale home, slightly smaller than the other two, was listed at $240,000.

It was in better shape than the foreclosed home, with nice cabinets and light fixtures in an upstairs office. But simulated-wood flooring had been poorly installed, and most buyers would likely choose to repaint the home's neon-colored bedrooms.

Holloway also warned that a short-sale price is not "real" until a bank accepts an offer from several bidders.

"Don't fall in love with it, because it's not real until you own it," he said of a short-sale home.

The same goes for foreclosed properties. Holloway advises clients to keep looking because distressed-property deals often take a long time to complete and can fall apart completely.


Home shows well

The fix-and-flip home he showed was nicely staged.

"Investors know the drill," Holloway said. "It's like a model home. They even installed a new doorbell and coach light at the front door."

Inside, new granite countertops, back splash and cabinets had been installed, along with new tile, carpeting and kitchen appliances. It comes with a home warranty.

The house listed at $270,000, but the investor had agreed to a price of $265,000 before a buyer got cold feet.

At $265,000, the investor stands to make about $15,000 in profit, Holloway said. The previously foreclosed home sold for $195,000 and the investor spent about $35,000 on remodeling it. The investor also will spend about $20,000 to market the home and pay closing costs and commissions.

The extra cost of the fix-and-flip over the foreclosed property might be a better deal for someone wanting a home that's move-in ready.

However, Barker of Diamondback Realty warned that buyers should be careful with fix-and-flip homes because sometimes the remodeling is cosmetic, with cheap carpet, paint and generic appliances.



Read more: http://www.azcentral.com/business/realestate/articles/2010/04/23/20100423how-to-buy-foreclosure0424.html#ixzz0o71PVKdP

10 Commercial Real Estate Terms You Should Know

Whether you own or rent your office space, property costs are one of the largest business overhead expenses. That's why it's important to comprehend the full ramifications of taking over the title to a property or entering into a lease agreement. Before you sign a lease, work with a commercial real estate broker with
a proven track record, and consult with an attorney skilled in real estate law. You should also familiarize yourself with some common real estate terms:

1. Appraisal: a written report by a state-licensed professional that includes an unbiased analysis of the property's value and the reasoning that led to that opinion. An appraisal report is required for any property sale.

2. Broker: an agent who brings together a buyer and a seller, or a landlord and a tenant, in a real estate transaction. All brokers must be licensed by the state in which they work. Most work on commission, and the landlord or seller usually pays the fee.

3. Build-to-suit: a method of leasing property in which the landlord makes improvements to a space based on the tenant's specifications. The cost of construction is generally factored into the lease terms. Most build-to-suit provisions apply to long-term (10-year) leases.

4. Concessions: benefits or discounts given by the seller or landlord of a property to help close a sale or lease. Common concessions include absorption of moving expenses, space remodeling, or upgrades (also called "build-outs"), and reduced rent for the initial term of the lease.

5. Escalation clause: a clause in a lease that allows the landlord to increase rent in the future. Rent increases dictated under an escalation clause may be charged in various ways, including:

• A fixed increase over a definite period
• A cost-of-living increase tied to a government index, such as the tax rate
• An increase directly related to increases in operating the property

6. HVAC: an acronym for "heating-ventilation-air-conditioning" system. In a commercial building, the landlord generally is responsible for maintaining the HVAC.

7. Lease: an agreement by which the owner of a property (the "lessor") grants the right of possession to a tenant (the "lessee") for a specific period of time (the "term") for a predetermined amount of money (the "rent"). A "leasehold estate" is the space occupied by the tenant. Common types of leases include:

• A straight, or flat, lease, which stipulates that the same periodic payment (usually monthly) be made for the entire term of the lease.
• A percentage lease, which uses a percentage of the net or gross sales to determine the monthly rent. This is most often used in retail properties and with a minimum base rent.
• A net lease, which requires the tenant to pay maintenance, taxes, insurance and so on, along with a fixed rent. This is also called "net-net-net" or "triple net."

8. Lien: a legal claim filed against a property for payment of a debt or obligation. If a property owner fails to pay a creditor, for example, the creditor can place a lien on the property. A lien can halt the sale of a property.

9. Sale-leaseback: a transaction in which an owner sells a property to an investor, who then leases the property back to the original owner under prearranged terms. Sale-leaseback deals offer the original owner freed-up capital and tax breaks and the investor a guaranteed return and appreciation.

10. Sublease: a lease given by a tenant for some or all of a rented property. For example, if a tenant rents 20,000 square feet but only ends up needing 10,000 square feet, they may want to sublet the extra space for some or all of the remaining term of the lease, providing they continue to occupy and pay rent for the property.
Read Real Estate Considerations When Buying a Business to get a sense of the aspects of the property that you'll want to investigate before your sign any agreement. Not the least among your considerations should be the person you work with to identify real estate opportunities and bring the deals together. Make sure that you find the right real estate professional to guide you through the process and help you find the kind of property you need. How to Select a Realtor or Real Estate Broker recommends some ways to locate the right person to help you.

Real Estate Investing Tips & Insight!

Real Estate Investing is a tough business right now. While the business of buying and holding real estate as a long term investment remains a legitimate and viable strategy for wealth building, profit is no longer guaranteed as it once appeared to be.

With that in mind, the astute real estate investor will consider some specific real estate investment concepts to complement the “tried and true” strategy of long-term buy-and-hold investment houses:



* Virtual Real Estate Investing – the term “virtual real estate investing” has multiple meanings, including the use of the internet to buy and sell property, and the purchase and development of internet websites as a means of generating revenue. With an objective analysis, one can see the conceptual similarity between physical real estate and internet properties including entire websites and even individual pages controlled on larger sites like Facebook, Squidoo and Google Knol. Increasingly, real estate investors are seeing the clear opportunity presented by developing web “properties” into revenue generating assets much like physical rental properties. This trend is on the rise and will continue for the foreseeable future.

* Bulk REO – the prevalence of foreclosures in our economy has put mortgage lenders into a difficult position. With large pools of foreclosed properties on their books, it is no longer efficient for these lenders to sell their foreclosed properties one-by-one through real estate brokers. As such, mortgage lenders are increasingly opting to sell their foreclosures in “packages” to well-funded investors, at steeply discounted prices. Bulk REO investing is a rapidly emerging trend and will continue to be a significant tool for real estate acquisition and disposition until such time as the current foreclosure crisis abates and the foreclosure rate regresses to more normal historical levels.

It’s a different world in the real estate investment business. It would be very, very simple to think that the foreclosure crisis has caused the door of opportunity to be slammed entirely shut. Yet that’s simply not the case. When one observes the state of the real estate market, it is undeniable that fundamentals matter more than ever. For example, the selection of the local real estate market is of greater importance than ever, considering the huge disparity that exists among the thousands of real estate markets across the United States. Additionally, the role of regulatory compliance is greater than ever given the activist nature of the current presidential administration.

Without a doubt, there are very major challenges in today’s real estate investing market. But with some persistence, determination and creativity, there is still plenty of opportunity.

7 Great Twitter Tips 4 Affiliate Marketers

Affiliate marketing is a fantastic way to make money online. Twitter is a great way to increase your sales. Just be careful so your Twitter experience is a pleasant (and profitable) one.

Here are 7 tips that affiliate marketers should keep in mind:

1. Be personal with your tweets. Don't send out the same tweet over and over or to different people. If people are tweeting about needing holiday presents, don't send, "Hey! Shop at my site www.blahblahblah.com" to everyone! Tweets should be personal, not canned.

2. Be genuine with tweets. Don't try to be something you are not.

3. If you do send a sales link, send it as a natural part of the conversation. If you chat with people, eventually they will ask what you do (or you can drop subtle hints) - then you can mention it.

4. Don't send a direct link to your product. Send a link to your blog or a general informational website. Don't be so blatant about trying to get a sale.

For example, if a Twitter mom complains about not doing well with potty training Junior, don't send her a link to your ebook on potty training; instead, send a link to your blog post that discusses potty training ideas (that can include your affiliate link to the ebook). You will get a much more favorable reception.

5. Be useful and helpful. Not every tweet has to be about "you, you, and you". Take time to tweet about others and be a helpful part of the community.

6. Listen to your followers. Ask questions, and then help them out. You can get great feedback from tweets. (I get lots of ideas for info products and affiliate products from the feedback I receive from my followers.)

7. Use tweets in moderation. Don't tweet about every single thing you do. (Like "going to the store" - do people really care?) Don't send direct affiliate links. Don't toot your own horn all of the time. Let people hear from you, but don't be too chatty.

Used correctly, Twitter is a great way to add to your profits. Just make sure to use it wisely.

5 Great Tips 4 Real Estate Investors!

Investing in real estate is one of the most attractive ways available to most people to set themselves up financially for life. Moreover, real this can be done by almost anyone by starting with one property and building up slowly and safely.

A lot of people practice property investing as their core profession and, in fact, can make a lot of money that way.

Real estate investing is really an art and, like any art, it takes time to master. The key, of course, is to buy at a lower price and sell at higher price and make a profit even after paying all the costs involved in the two (buy/sell) transactions. Although another way is to buy and hold property over the long term. Generally, people are of the opinion that investing makes sense only when the values are on the rise. However, real investing for profits is possible just about any time (and as I just said, real estate investing is an art). Here is a list of tips that can make investing in property profitable for you:

1) Look for public auctions, divorce settlements and foreclosures (bank/FHA/VA): Since quick settlement is the preference here (and not price), you might get a property at a price that is much lower than the prevailing market rate. You can then make arrangements to sell it at the market rate over a short period of time. However, make sure that the property is worth the price you are paying.

2) Looking for old listings: The old listings that are still unsold may provide you with good real estate investing opportunities. Just get hold of an old newspaper and call up the sellers. They might have given up hope of selling that property at all and with a bit of negotiation you can get the property for a real low price.

3) The hidden treasure: A really old (and dirty) looking house may scare off buyers. But this might be your chance to buy at a discount that can yield good profits. So, explore such properties and check if spending a bit on them can make them shine. You can get these at very low prices and make a big profit in a short time.

4) Team up with attorneys: There are a number of attorneys who handle property sales on behalf of sellers or in special circumstances (like the death of the property owner). They might sometimes be looking to dispose off the property rather quickly and hence at a low price. Be the first one to grab such real estate investing opportunities and enjoy the profits.

5) Keep tab on the newspaper announcements: Property sell offs due to deaths, divorce settlements, immediate cash requirements and other reason are frequently announced in local papers. Keep track of such real estate investing avenues.

Using the above tips you could pick up property at a discount and onsell for a profit or you could rent out the properties and use the rent to boost yor income. If you do this enough times you could even retire and live off the rents.

3 Real Estate Investing Tenets That Many Experts Don't Fully Know

When you think of virtual real estate investing, a number of things may come to mind. You may think of real estate investing as real estate portfolios and real estate retirement plans and hard money lenders, or you might focus on short sales, bulk reo investing and virtual real estate investing. You likely also are wondering how these things factor into real estate investors roles in the current economy.

There is a lot of information out there on real estate investing. Knowing the basics of real estate investing education is a good way to get the most out of every lesson. Short sales, bulk reo sales, virtual real estate and general real estate investor abilities all are improved by knowing some basics of real estate investing. Check out these three real estate investing tenets that many experts do not fully know:

1. You will always end up with a positive yield when you invest in real estate investing education. Every real estate deal has the potential to create thousands of dollars in potential wealth. The knowledge of how to get that wealth is the key to your success. Learning as much as possible about real estate will increase your odds of success whenever you do a real estate deal. Small investments yield big results when you invest in learning and then implement what you learn.

2. You can succeed in real estate investing regardless of the state of the economy. Lots of people believe that real estate success is only possible in a booming economy. Actually a poor economy is not a bad economy for real estate investors. Likely you will be able to find properties at deep discounts. Also, you might find deals that simply could not exist in a booming economy. Real estate investing often is what turns the tide for poor economies. Short sales, bulk reo sales and virtual real estate all can thrive when the economy is not. You will be able to save yourself and others from serious financial difficulties if you know how to do these deals.

3. A lot of money is not vital to your success as a real estate investor. You can succeed in real estate investing no matter how much money you have. There are lots of types of deals that you can perform with the money of other people. Private lenders will lend you their money if they think you are a good investment. The best way to look like a solid investment is to have an in-depth knowledge of real estate investing. This will help you show private lenders that you are a good investment if they do not know about real estate investing themselves.

A good deal of wealth can be generated with real estate investing. You will be able to create an income no matter what the economy. You can create success for yourself using knowledge of real estate investing, short sales, bulk reo sales and virtual real estate. Knowing the basics of real estate investing will help you succeed as a real estate investor. Knowing some real estate investing basics and applying them will help you succeed as a real estate investor.