How To Screen A Future Real Estate Joint Venture Associate
1. How To Screen A Future Real Estate Joint Venture Associate
You want to take notes of the properties that are up for sale, and the ones which are looking
neglected. The first thing you should do is call your lenders. You need to work on locating property
that is good for loan approval.
They say good things come to those who wait. But have you ever watched anyone become a success
by sitting around doing nothing? No. Good things come to those who go out and get those good
things. In the case of real estate investments, however, a great marketing strategy can have good
things (motivated sellers!) beating down your door.
The real estate market is in meltdown right now. House prices are plummeting, foreclosures through
the roof, people living in their cars and houses selling for $1. I've been watching a lovely 4 bedroom
home in Florida that is listed on eBay right now for a starting bid of $1.
Becoming a successful investor that is able to build and keep a growing real-estate portfolio is going
to take continuous education, as real estate is an ever changing, dynamic environment. It is a puzzle
with many quirks to navigate, and requires a creative and knowledgeable mind. This knowledge
comes from education and experience. It is especially helpful to have mentors that have achieved
what you are trying to achieve and have been where you want to go.
I'm not saying that high volume REO deals don't go down. I'm just saying that the real estate
investment opportunities scale is in the million dollar range rather than the billion dollar range.
These bulk REO packages usually consist of a dozen or fewer properties, and they're not the norm.
The typical REO bulk packages consist of only two or three properties, and yes, they are done by
ordinary investors like you and me.
My point is this: if you're serious about investing in multiple REO properties, there's nothing wrong
with being honest about how much you have to invest. It is a lot more realistic to find ten investors
that are in for $100,000 each, or even 100 investors that are in for $10,000 each, and there are
enough low-priced foreclosure properties that a million could buy several of them at once in some
markets.
If you can afford to pay for your investments, then you can opt to use your personal funds. By
negotiating with the seller of the property, you may be able to come up with creative financing. The
property investor would also try to borrow from relatives, family, or friends. Since it can be easy for
some investors not to pay back their relatives, it would be best to draft a contract. Make the
transaction legal so that everything is in black and white. The terms can be more flexible and
negotiation is very easy. You should also be aware that just in case you're unable to pay them back,
this will result to strained relationships.
I have been to countless seminars and heard people snickering?I wouldn?t pay for that education,
only the guru is getting rich.? While it is advisable to spend your education dollars wisely, a wise
investor will probably put money into their real estate education. This education will be an ongoing
investment and a cornerstone to the rookie investors likelihood for success. I believe that a proper
real estate investor education is essentially priceless. As the old commercial use to say?you can pay
me now, or pay me later.?
REO (Real Estate Owned) refers to properties which have gone through the foreclosure process and
2. the bank now owns the house. It used to be that these properties would almost always sell at
auction, largely to investors eager for a great deal on an investment property. However, the
enormous number of foreclosures currently going on in the US means that many of these properties
now go unsold and become the property of the bank or other lending institution.
Investing in real estate is a great way to make money from home. There are countless options when
it comes to land and homes for sale and many ways to buy. You'll also have the chance to be creative
with your new acquisition and may find ways of increasing cash flow you never knew existed. Best of
all, you aren't relegated to just one area so can spread out your investments in many locations. This
gives you even more options and ways of seeing a very big return on your investments.
However, imagine if you are someone with a bit of cash to invest? Leverage is a wonderful tool to
use in investing now. By negotiating with the seller of the property, you may be able to think of
creative financing.
