Unless you buy properties, you cannot make any money.

 Here is how to make offers that get accepted.

The offer you make depends on the type of property you are buying.
1)    Buying from motivated sellers
 It is important to have the following pieces of information if you buy houses from motivated sellers:

a)    Market Value
Do your due diligence to find out conservatively how much the house would be worth in a perfect condition.   You must have this information before you can make any offer.

b)    Mortgage balance
You must get this information before you can make an offer.   A seller who is not willing to disclose this information is not motivated enough. Move on to a motivated seller.

The mortgage balance must allow you to buy the house and still leave you with a profit.  Thus means that the offer you give must allow you to own the property free and clear and still make money.

c)    Repairs needed
 It is possible to estimate repair costs with the information provided by the seller.

 You must know how much you need to fix up the house before you can make an offer.  Of course I like to see the house and do my own repair estimates.

d)    Asking price
 Given the above 3 pieces of information, if the seller is asking for too much, the deal might not be worth it.

A  good asking price must take into account the market value, mortgage balance and repairs.   You can then make your offer lower than the asking price.  If at all the mortgage balance and repairs allow you to make an offer that can leave you with a profit, by all means do it.

No offer can be too low, but you also have to take into consideration the seller’s needs.   If they are facing foreclosure, then they probably need some money to move, or their asking price might be just enough to get away from the property.

 It makes no sense making an offer when mortgage balance is so high you cannot make a profit. Move on to the next deal.

When all is said and done, the only bad offer is the one you have not made.  Make as many offers as you can.   You’ll be surprised how many get accepted.

2)    Buying foreclosed properties
 The asking price and repairs are the only important considerations to make in this case.  Banks selling these properties are willing to negotiate.

 Most REOs are listed below market value.   If your numbers look acceptable, by all means make an offer.

Remember the banks are willing to negotiate, so always make an offer lower than the asking price.

In order to be successful in real estate investing, it is necessary to close as many deals as possible while spending as little time, money and effort as possible. Learn how you can achieve this by automating your real estate investing business with an automated real estate investor website.

You have to have a proper plan before making an entry into world of real estate investment. Then you can work for the better things that are present in your own suburbs. You are supposed to go out and search for all properties that are under sale advertisement, and select one with greater level of prosperity. If you feel all satisfied with the kind of properties then you can apply for Hard Money Loans and work for attaining a greater level of success in coming days. You can make a great level of survey for coming days ahead as to reach at a conclusion that is really going to make great changes in your career. You need to be all active and enthusiastic about what you are really going to achieve out of your investment plans.

Hard Money Loans open your corridors towards your own business. You can run a very successful real estate business and feel the pleasure of investing with zero investments. Yes! You can make a greater level of change in your lifestyle and get free of your non-paying job, only if you are committed to be thoroughly professional like real estate investors. Your choices would lead your way towards a better understanding of different worlds, and how to make great level of changes in your career. Think about your luxury home, our dream cars and dream vacations. Everything is possible if you are going to make a real choice in a very real manner. I mean your ability to be free of all emotions while making a property choice and then reselling it at profit.

Most of people keep on building such plans that are not going to benefit them, and it owes a great level to their attached emotional reaction to what they are actually doing. Make a bigger level of thinking pattern and then learn the art of looking at properties with the eyes real estate investment professional. Hard Money Loans are surely benefitting you in many ways and leading your career paths towards unknown destinations. You may have never thought of a property that is on your routine path as your prospective income source for future ventures. But it is a beauty of life that it leads us to a way that seemed quite strange to us!

I know I sure didn’t when I first got started online, but am glad I ran across the concept while searching the web one night.

The facts are true and John Reese who is an Internet pioneer and the author of one of the Internets most powerful home study courses called “Traffic Secrets” is just one of those individuals who is successfully profiting from his Virtual Real Estate empire as we speak.

John Reese has been around since the being when the Internet first became a commercial entity and knows what works and what doesn’t online simply because he is known as a Test Freak(I mean that in a good way John).

If you want to read up more on John Reese go to ==>

http://www.internetwondersezine.com/traffic-secrets.html

Now, some of you might be wondering what Virtual Real Estate is so I’ll give you a quick definition:

Virtual Real Estate is simply a Information Packed website with hundreds, if not, thousands of webpages full of targeted information.

That’s all they are. It doesn’t have to get any more complicated then that.

I’ll also give you some examples of VRE sites towards the end of this article.

Now that you know what Virtual Real Estate is, what there main purpose is and who is successfully doing it right now, lets dive into the — “6 Reasons WHY John Reese’s VRE (Virtual Real Estate) Concept Is The Way To Go In 2006″.

Reason #1. People come online for Information.

One of the main reasons WHY people come online is to search for Information that’s either related to a problem they’re facing or for some consumer reviews on a particular product or service they’re thinking about purchasing.

People rarely come online with the intent to buy something. Most of the time it’s for Information.

How do you think the Internet got the nickname – The Information Super-Highway.

Reason #2. VRE sites can target any Niche.

This is the true beauty of VRE sites simply because they can target ANY niche on the planet, it doesn’t matter.

They can be about Pets, Sports, Business, Family, Hobbies, and the list goes on and on.

I think you get the picture.

Reason #3. Us other peoples content.

The real cool thing about VRE sites is you don’t have to produce ANY of your own content if you don’t want to.

There are literally hundreds of places on the web where you can get and use other peoples work to build your VRE empire, and more importantly, they’re more then happy to give it to you.

Reason #4. Google will pay you if you want.

Want to make some $ CASH$ at the same time?

Good, because Google will happily pay you for adding a little piece of code to your webpages by signing up for their Google Adsense program, and depending on what market your targeting, they could pay you some handsome commissions every month and all that is required to get paid is for someone to click on one of the Googles ads.

And again, all this can be achieved without you writing a single word.

Pretty COOL!!

Reason #5. Add targeted affiliate programs for more $ CASH$ .

Want to make even more money with your VRE sites?

Depending on what market your targeting like in Reason #4, you can also add others peoples affiliate programs that are targeted towards the content within your VRE site that usually pay between 35% to 75% on every sale made.

If you’ve been online for any length of time then you know that content is an excellent way to Pre-Sell to your potential customer, so you’ve already gotten your foot in the door to possibably make a potential sale.

There are many places online that offer affiliate programs. Simply type in – affiliate directories – into any search engine and they will display all the results for you.

Reason #6. Unlimited FREE Traffic to your VRE sites.

The more your VRE site or sites grow, the more FREE targeted traffic you’ll get.

Your probably asking, “where the heck does this FREE traffic come from?”

I’ll tell you where it comes from. It comes from search engines like Google, MSN, Yahoo!, just to name a few.

Content is “Search Engine Food”. And search engines love content, so in order for them to be continually fed the search engines send out a little robots called “Spiders” which crawl the web continuously looking for NEW webpages to index into their database.

So, the more content that is added to your VRE site or sites, the more often these little “Spiders” will stop by to give your VRE site a crawl and index any new content you’ve added.

Point being, the more optimized webpages your VRE site or sites have that get index, the more FREE search engine traffic you’ll receive.

Do you see NOW how Powerful VRE sites are and why you should consider building a network of these that target different niches?

All your doing is giving your potential customer what they want which is Information and at the same time offering them a solution by adding Google Adsense ads and targeted affiliate programs, which is where you get paid for your efforts.

And remember, you don’t even have to write a single word if you don’t want to, and you still get paid!

John Reese really hit a home run with this concept I have to say which is way he encourages all to start building and growing them in 2006.

Now as I mentioned at the beginning that I would give you some examples of what a VRE site might be so here are a few examples for you to get started with: Article Directories, Review Sites, Directories, Mini Sites and Niche Blogs.

Well, that’s it. Now it’s up to you to get your creative juices flowing and start building your network of profitable VRE sites.

Attend your local REIA (Real Estate Investor Association) meeting. Pass out your business cards and even flyers, if allowed. Inform everybody you come in contact with that you find wholesale deals. Ask fellow investors if they would be interested in purchasing deals from you if the numbers are right. Build up a database of these people. Collect their name, phone number, and email so you can notify them once you find a deal. Also ask them what types of properties they look for.

Attend a foreclosure auction. This is not to bid on a foreclosure, but to meet rehabbers. Most people who attend these auctions are investors who buy properties cheaply, fix them up, and then sell them off. Exchange business cards with these people and add them to your database.

Place an ad on craigslist with your listings.

Resources

Cashflow 101 Board Game

Robert Kiyosaki – Rich Dad Poor Dad

Robert Kiyosaki – The Real Book of Real Estate

Learn to market your business with Piranha Marketing

Read more: How to Find Wholesale Real Estate Buyers | eHow.com http://www.ehow.com/how_5816420_wholesale-real-estate-buyers.html#ixzz16vPxgjt8

New and exciting way to buy real estate

Nationally growing and accepted means of selling property

The buyer knows the seller is fully committed to selling the property on auction day

Buyers determine the purchase price

Buyers know they are competing fairly and on the same terms as all other buyers

Fair market value is established through competitive bidding

Buyers receive comprehensive information on property via property information packet

Quick easy close

Auctions eliminate long negotiation periods

Transactions are created and completed in a timely manner

To Check out some online auctions like the Bed and Breakfast above for sale go to www.ajkaras.com but here are some questions that are asked often.

Q: I’ve never purchased a property at an auction. Where do I start?

A: Study the information available about the property in advance. The terms of a Real Estate Auction can vary, depending on the type of auction the seller has chosen. Visit the property at an Open House and ask questions. Get any necessary financing arrangements made ahead of time. Always ask questions for a clear understanding of the auction process.

Q: Since I’m not familiar with Real Estate Auctions…how can I be assured that all Dept. of Real Estate rules and regulations apply?

A: Brokers/Auctioneers must abide by all applicable state and federal real estate laws.

Q: Can I have any inspections done on the property before deciding whether or not to bid?

A: Absolutely! All property is sold “as-is, where-is” on the sale day, so you should do your inspections and ask questions prior to the sale. On the sale day, the property is sold with no contingencies required. Dept. of Real Estate disclosures are provided on the property prior to the sale: You may make arrangements with us for any other inspections you would like, as long as they are completed prior to the sale. 

Q: How do I determine how much I should bid?

A: The auction is the oldest established method of determining the value of property. The property is worth what qualified buyers are willing to pay! At an auction, you immediately know what other qualified buyers are willing to pay, so you’ll know that the price is a fair market value.

Q: What if I need time to get financing?

A: Your financing should be arranged prior to bidding on a property. This determines how much you personally can pay for the property, and establishes your comfort zone in the bidding process. There is a 30 day time frame for the buyer to wrap up loose ends prior to close.

Q: What is the Buyers Premium?

A: The Buyer’s Premium is a fee, added to the winning bid to determine the final purchase price. It should be taken into consideration when you are bidding.

Q: How much do I put down as a deposit?

A: A 10% deposit, determined by the final purchase price, is required on the day of the sale. The terms of the deposit will be in all advertising and brochures on the property. This deposit is non-refundable. The balance is generally due in 30 days or less.

Q: How do I register to bid?

A: You can pre-register with our office, or register at the auction site on the day of the sale up to one hour prior to the auction. You will be asked to provide identification and certified funds per the terms and conditions of the auction. Verify the terms with our office prior to attending the sale.

Q: What if I’m already working with a Real Estate Agent and want to bid on property being sold at auction?

A: You can certainly include your agent/broker in the auction process!  They must complete a Broker Participation Agreement specifying you as their client 48 hours prior to the auction event.  You, as the the buyer, must still register as a bidder. Your broker will be compensated by us at the close of escrow if you are the successful bidder.

Q: I’ve never bid at an auction before, and I’m concerned that I might not understand what the amount of the bid is!

A: Remember that the auctioneers and their staff want you to completely understand the process. Prior to the start of the auction, the auctioneer will make announcements, and give all attendees the opportunity to ask questions. Once the auction begins, a bid assistant may help in relaying bids to the auctioneer. If at any time you don’t understand where your bid is, or another person’s bid, always ask! Don’t make the mistake of trying to hold back if you want the property. Otherwise, you might end up missing your opportunity.

www.ajkaras.com

The 1031 Real Estate Exchange is applicable when using the sale of income property to purchase another income property.  The sale and purchase must be completed in a specified time period.

You, as the real estate investor can never have any control over the proceeds from the real estate sale.  The money from the sale of the first property is placed in trust with an intermediary.  This intermediary is supposed to collect and hold the money from the buyer of the first property and transfer it to the seller of property number two.  In recent years, however, there have been problems with the intermediaries.

Some of the intermediaries have been disappearing with the money they were supposed to be transferring.  Others often co-mingle clients money into one account.  If there is a problem with a single transaction and those monies from that transaction are frozen, everyone else’s money in that account gets frozen along with it.

The transfer of the money from sale to purchase must take place within 180 days for the real estate investor to avoid capital gains tax.  If the intermediary doesn’t make the transfer on time, the real estate investor is assessed full capital gains on the sold property.

The 1031 Exchange is a great opportunity for real estate investors, and many more of them should be taking advantage of the tax break.  There are, obvious drawbacks to tying your money up in a1031 Real Estate Exchange, but you can address the risk potential.

To lessen the risk of your money getting stolen or frozen, you can insist that the intermediary deposit your funds in a single account, with no ties to the intermediary’s personal funds or any other exchange dealings. Then simply see that the account is labeled so as to have your (the investor) name, social security, or tax identification number tied to it with a provision that the money is for the person to act as your intermediary.  You can do this without being considered in possession of the money or in violation of the exchange restrictions.  All it takes is a trip to your bank with the intermediary to set it up.

Dealing with your bank, rather than one chosen by the intermediary, makes the holding of the money prior to transfer a less risky operation for you.  Your bank knows you and will realize that this money is being held for you and will only be released by the intermediary to buy your income property.

By doing this, you are better guaranteed that the money will securely pass from the intermediary to the seller without any funny business.

Real Estate Demand:

Does the area have decent job growth? Ask local authorities and use census information. Ideally, you want to see job growth equal to or exceeding population growth. You also want areas with professional jobs moving in. It is estimated that for every professional job created, there are four service jobs created and all those employees need a place to live.
Is there a decent quality of life? It’s subjective, but important. Are there theaters and bookstores? Count coffee shops and cafes. Trendy areas usually have increasing demand for housing. It’s also a good indication of a high quality-of-life if people are willing to take lower-paying jobs just to live there.
Is there wealth in the area? It’s a good sign when there is some degree of wealth in a town. Look for nice homes. Wealth means everything doesn’t die when the economy slows.
Is the population growing? You can check the Census figures online or ask the local government if they have the statistics. Stay away from areas that have little growth.

Real Estate Supply:

New construction? Census figures can tell you what’s happened over the last ten years. Check with the local authorities to see if the number of housing units they’ve issued permits for is more or less than the expected population growth.
Number of homes for sale? Lower supply of homes for sale means upward pressure on prices. This indirectly drives up rents as well, which makes for better investing.
The available land that is buildable? Of course, less available land is better for future appreciation. When the land runs out, the prices start accelerating upwards.

When you use these questions to compare various towns and cities, you’ll see the differences more clearly. You’ll have an idea about how housing demand compares to supply in each. This will help you pinpoint the best investment real estate locations.

Real estate investing does not always mean actually being the owner of the real estate; you may just be the dealer for the property. Retailers are those that buy a real estate for a discounter price and sell it off at a profit. They face high risks as their money is involved and as they are actually buying the property they need cash in hand and a good credit report.

For dealers, they never deal with cash; they buy contracts. They are on a look out for discounted properties for sale. They buy the contract for the property and then sell this contract to a retailer at a profit. This exchange of contracts is known as “assignment of contract”. Only a good credibility is required for a dealer to acquire the contract. Without even having to take the possession of the land he would have sold it at a premium to a retailer.

The dealer also has the choice of doubling his profit using “double closing”. Double closing increases the risk factor for the dealer but also gives double the profit. The method is simple; the dealer gets his money only if the complete deal is finalized i.e. the deal between the retailer and the seller is signed. As the retailer has a risk of the deal not being successful when he just buys a contract, he agrees to pay the dealer a marginal amount. But when the dealer assumes the guarantee for the contract till it is signed and finalized, the seller pays him a much higher price, as the retailers risk is nullified. The seller gets his asking price, the retailer gets the real estate at a discounted price and the dealer “who had not invested any money” gets a profit. This is what “Real Estate Investing” is all about.

            You will only need a listing agreement if you are selling your house (or property); it is a contract to allow your agent to list your house for sale.    Basically, it makes them your agent in the transaction.  It is vital to remember that real estate agents are the employees of a real estate broker (Century 21, or Remax, for instance) a listing agreement is actually between you and the broker.  Most of the time you will work with the real estate agent, but the broker supervises their work.  The broker is also legally responsible for the agent’s actions.  Whom ever your listing agent is, remember that they earn their commission when they present a qualified buyer.  This can become an issue if you have a listing agreement, and than change your mind about selling after the agent has done the work to find you a buyer.  In a case like that, you may still owe them commission. 

            There are three different types of listing agreements.

            The first type of listing agreement is an open listing agreement.  This is when a homeowner (or seller of property) can sign an agreement with as many agents/brokers as they like.  This benefits the owner because, in theory, they can have many agents working for them at once.  The commission in this case would go to which ever agent brought in the buyer.  In the real estate field we say this is being the “procuring cause” of the sale.  The downside of this kind of agreement is that because they are not guaranteed their commission, your agents may not work very hard for you. 

            The next type of listing agreement is an exclusive listing agreement.  Just like it sounds, it gives the agent or broker the exclusive right to list your property.  In these cases, an owner can only sign with one agent or broker.  It is important to note here that despite its name, there are certain conditions that must be met by the selling agent in order to earn their commission.  They must sell the property before the termination date.  Every exclusive listing agreement must legally include a definite termination date; it can be any length of time but usually is between 90-180 days.  Also, in these types of contract the owner reserves the option to sell the property themselves.  If the owner sells the house themselves they do not have to pay the agent a commission.

            The third type of listing agreement is the exclusive right-to-sell listing agreement.  This one is similar to the exclusive listing.  It must have a definite termination date and a seller can only sign with one broker.  Real estate agents are encouraged to have sellers sign this type of contract, because no matter who sells the house, they will get the commission.  Some home owners have tried to get out of paying the commission by getting in contact with a potential buyer themselves, waiting until the listing agreement time has expired, and than making arrangements themselves with the buyer.  Don’t do this.  Not only is it unfair to a hardworking agent, but most exclusive right-to-sell agreements include a “safety clause” that assures that they can still get their compensation if this happens. 

            Real estate listing agreements are quite lengthy.  Make sure you read it through slowly and carefully and ask questions about anything you don’t understand.  Even a very basic listing agreement should include the following:

Identification of the subject property.

Acceptable terms of sale

Grant the broker authority

Determine the broker’s compensation (this can be a percentage or a set dollar amount)

A termination date (not required on an open listing)

            It is so important to read and do your homework when entering into the real estate listing agreement.  These contracts are there to simplify the home selling process and to prevent any future problems.  Make sure that your contract reflects what it is that you expect your agent and broker to do, and that you understand your responsibilities as well.

It does not matter if you already have a home that you live in. If you have the means to do so, proceed to acquire an additional residential real estate investment. Even if you only choose to keep it for a year or two, it may appreciate in value that quickly. This means you can then sell it for a profit, which can be very financially rewarding. Some professionals actually do this for a living. They proceed to purchase residential real estate all across the country, and then sell it after fixing it up or letting it gain value for a few years. It is no big secret that property investments are some of the most lucrative investments out there.

The most important thing when it comes to residential real estate investments is knowing your limits. You should never spend more that you can handle. This means you should not invest too much in a piece of residential real estate. If you can only afford 150,000, then make this your budget. At this point, you need to make certain you do your research. After all, as you probably already know, when it comes to a residential real estate investment, location is everything. You do not want to purchase a property in a bad or declining area. This is not a money-making opportunity. However, it is wise to acquire a home in an up-and-coming area. This can be an amazing investment.

Check out the areas where most people prefer to buy. These are the regions you should be considering a residential real estate investment in. Some aspects of communities to consider are the crime rate, age of people who live there, highways around the neighborhood, nearby amenities, and the climate. These are all factors home buyers keep in mind when shopping around for a house to call their own. You can get some helpful advice from websites like RichDadCoaching.com, triplenethouses.com, and e-InvestmentProperty.com in order to learn more about residential real estate investment options. The more you know, the better.