Tuesday, August 19, 2008

Making the right decision in this market

The right decision for one person may not be the right one for the next person. The money you have available to you will dictate what you can or want to do. Buying properties that you are comfortable with is important. What I mean by that some will take more risk like buying a property that is empty with fix up. They also have to get tenants to fill there units that may take some time. Some people want totally filled units that are turn key. Something they fell more comfortable with. The next decision you’ll need to make is your level of cash out lay that you are comfortable with. A lot of problems occur here. Buying properties that are to much work or money can hurt you chances of succeeding in investing. I recommend that you stay with lower end properties that cash flow in this market. You’ll spend more money on cars than some of our properties. If they’re doing that good in this market wait and see in a better market. So that being said play it safe right now and invest with our proven strategies. I hope you join us soon! Sign up for our club today.

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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/

Monday, August 11, 2008

What is a wholesale property? Part 2

Question #2 How much money is needed for fix-up and who determined the cost? This question is a very important one. Some wholesaler’s provide a rehab cost. If they have done their homework fine, but if not you could get stung. Make sure the quote is done by a qualified contractor and that it is in detail.

Other items to consider; DO they need permits and prints? Who will be over seeing the construction? Does this person have experience and can provide a substantial resume’. Make sure the quote is firm and how long the rehab will take to complete. Also be sure to inspect the work before you pay. If they know your are watching they are less apt to take short cuts.
Question #3 How many successful properties has the wholesaler actually done him/herself? Be sure to do your homework, especially if you are working a full time job, and are relying on this persons abilities. Always make sure that the person your dealing with knows what they are talking about. Chances are that if they have never completed a successful rehab themselves or have only done a few, they may not be qualified to advise you or they may be experimenting with YOUR money. I have done over 100 homes myself and will admit that I still cannot foresee everything. I have never sold anything to an investor before I had done several myself.
Question #4 Do they have all the systems set up to assist you through completion and beyond? Completing construction is just the beginning. Do you have an exit strategy? Can this person help you sell? Will they help with refinancing, if needed? What about property management ? Are they going to be there through the whole process, or leave after they get their money? Again working another job leaves you little time to deal with finalizing your property.
These are all things you must consider before moving forward. Please see next months’ newsletter for the conclusion of this story.

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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/

What is a whole property? part 1

……I got a call early last week and was asked if I had wholesale properties for sale. The term wholesale can be confusing. So I though I would share what I know about wholesaling and why the term raises yellow flags for me.
A wholesale property can be bought many different ways; bank REO’S, Hud, VA, Short Sales, etc. I have also seen them at investor events. Some are good deals and others are not If I were to buy from a wholesaler I would want to know a few things before I committed to the sale.
1. How was the value determined? 2. How much money is needed for fix-up and who determined the cost? 3. How many successful properties has the wholesaler actually done him/herself? 4. Do they have all the systems set up to assist you through completion? 5. Will they still be there after closing? 6. If I can’t or do not want to sell, what is the rent in the area? What is my profit picture with that scenario? 7. Do they have recommended financial institutions? 8. Do they own proprties in the area?
Let us consider the above questions: #1. Value. Determining the value of a property can be very complex. Comparable sales must be considered. These are sales of like properties in the subdivision or area. The square footage should be within 10% of the subject property. The number of bedrooms and baths should be the same. The properties should be in similar condition and lot placement. For example, has the property been recently remodeled? Or is it located on or near a busy street, commercial property, railroad, shopping center, etc.
As you can see there are many factors to be considered when calculating the value of a home. That is why I recommend that you consult with a licensed professional realtor. Their access to information and expertise can help you avoid a potential costly mistake.

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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/