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How to Find Tenant Buyers for Real Estate Properties!

September 28, 2009

Real estate investment properties are sometimes hard to move, especially in a down market where mortgages are hard to get. However, there are always people whose credit or situation in life does not allow them to obtain a standard mortgage loan, and these individuals are in search of alternative methods to purchase a home. This is your target audience, and the best way to reach them is with aggressive marketing and advertisement methods.

There are several means of getting your message out if you have a home for sale through a rent to own or lease purchase option. One of the best forms of advertisement for this real estate is the Bandit sign, which is the little ad sign on the side of the road that shouts out to passers-by "Rent to Own" 3 Bed, 2 Bath House, 5 per month, Call xxx-xxxx". These can catch the attention of anyone seeking a way to purchase a home without having to worry about little or no credit. In order to get the best response, place at least 10-20 signs out per week, usually within a 5-10 mile radius of the house in question.

The next means of attack in your advertisement campaign is to market through typical newspaper ads. In the ad, list the same information as on the Bandit sign, with an additional message that you will have a voice mail recorder available 24/7. Many of the individuals you want as a target audience will be a bit intimidated at the thought of speaking to you directly and will feel more at ease making the call if they know they will not necessarily have to speak to a live individual on the first call. On that machine, leave a recorded message with the rent to own terms, further advertising what you are offering in the home.

One way to use this strategy most effectively is to advertise a group showing, which is more efficient than making individual appointments that take up a lot of time and can even come up empty-handed should the viewer fail to attend. With a group showing, you can have 5-6 potential buyers see the home at the same time, saving you 4-5 additional appointments and allowing you to give the same information to everyone at the same time. The idea of competition also incites buyers to move more quickly or make a better offer in order to secure the property for themselves. Making the competition visible through a group showing is a good way to entice your audience to sign the lease purchase option faster.

Don’t forget to advertise directly in front of the house that you have on the market. Have a professional sign constructed that states "Rent To Own" and add in some incentive messages like "easy qualifying" so that people are less concerned with being turned down, as they often fear with real estate agencies and mortgage banks. Also, be sure to list your rent to own property on websites that list "For Sale by Owner" properties. Many individuals looking for alternatives like lease purchases search these sites for homes that are appealing and provide the terms you offer.

With an aggressive advertisement campaign, you can find tenant buyers quickly and with ease. You don’t have to go out looking for them; once you put the word out, you’ll be inundated with calls from those seeking rent to own properties.

Charles W. Moore, a U.S. Army Veteran began Real Estate Investing in 2001. He’s a Successful Investor, and Author of, “Million Dollar Rent To Own Real Estate Secrets Exposed.” Get his Free Report on Rent To Own Real Estate Investing at: http://www.Rent2OwnExposed.com – Learn Real Estate Investing, Stocks Markets and Internet Marketing, visit: http://www.REIeBooks.com

Article Source: ArticleSpan

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Real Estate Investing, An Honest Way to Make Money

September 27, 2009

Perhaps you remember a commercial on TV from several years ago, where someone proclaimed, he made money the old-fashioned way, he earned it. The implication here is people no longer earn their money. Only people in maybe, the 1930s or perhaps the 1940s, made money honestly.

The further implication is people of yesterday were more honest, harder working, and therefore, just better people than the people of today. On top of this belief, there are also those amongst us who seem to believe just because you are making money, you are a crook. Of course, none of this is at all true.

When you run a business, you employ people and help them put food on the table. You are also investing in capital assets that tend to help grow the economy. Except in some very rare cases, the more money one makes, the more he helps grow the economy.

Making Money is an Equal Opportunity Business

In America, everyone has an opportunity to get rich and real estate investing is one method many good honest folks have used to become so, and sometimes, very much so.

Don’t think for a minute real estate investing is dishonest just because it is so potentially lucrative. It is not dishonest in any way. In fact, real estate investing is hard work!

Real Estate Investing is Also Speculation

There is a very high earning potential in real estate investing because real estate investing is speculation.

When someone puts money in a savings account in a bank, he/she will receive a low interest rate in return. This is because this person has done the safest thing he or she could do with his/her money.

There is no speculation in putting money in the bank. While the return a savings account brings may not be a high yielding one, it is a sure thing. You absolutely know in advance what this return will be.

When someone buys a solid, well-established stock, it is unlikely he/she will receive a great return over a long period of time, but the return will probably be better than the return a savings account would render. This is because there is some doubt this investment will make any money at all, or at least, it may take a long time to yield a fair return. In other words, there is some speculation involved when you buy a stock.

Real estate investing is much riskier than buying a blue chip stock or putting money in a savings account. This is why the returns can be so remarkable; there is a lot of speculation in real estate investing.

Great Returns and Great Risk Because of Leverage

How remarkable can the return on a real estate investment be? If you were to put a 20% down payment on a 0,000 dollar property and finance the remainder, or 80% of the price of the property, you would then be in a leveraged position where you would be controlling 0,000 with the ,000 you have invested.

So, if the price of the property shot up 20% in one year, your return would be 20% X 0,000, or ,000! In other words, you would have made ,000, less mortgage closing costs, on a ,000 investment in one year. This is a return of 100%!

Not every real estate investment scenario turns out to be so rosy. For instance, if the price of the 0,000 property went down 10% in one year, its worth would now be 0,000. Since you have an 80%, or 0,000 mortgage on the property, you would now be left with just ,000 equity in the property. So, you would have lost 50% of your money. This how it goes with leverage and real estate.

Real Estate Investing is More Than Just Luck

Real estate investors have to know the right time to buy and the best time to sell. They have to know a lot about mortgages and how to be a landlord or landlady. They have to know about home construction or be affiliated with someone who does know home construction.

Beyond all, a real estate investor has to be a true risk taker who is willing to take a loss every now and then. This is the attribute most people lack, but the successful real estate investor has. When most people take a loss, they give up, but the true real estate investor will find a way to keep in the game.

When a real estate investor hangs in there long enough, at some point he/she will start to realize 100% and even 200% yearly gains. Once, he/she does, this real estate investor will probably become very successful, and dare I say, rich and nobody will be the worse for it! The bottom line is; real estate investing is a very lucrative and very honest business.

Ed Lathrop is a successful Real Estate investor. He has developed EzCalculator, a Mortgage Calculator that calculates anything to do with mortgages, shows you how to pay off credit card debt and now includes a free student loan calculator. This Free Mortgage Calculator, is home to the famous “How to Make 0,000 on Your Mortgage” calculator. Come visit this free site at Mortgage Calculator!

Article Source: ArticleSpan

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A Word About ProAPOD’s Rental Property Reports

September 26, 2009

As many of you know, all ProAPOD real estate software solutions provide a wide-range of outstanding cash flow and rate of return reports.  ProAPOD Real Estate Investment Software 10.0 provides about 25 reports. It is not likely, however, that you would print out all reports pages at one time for any one situation because many of the reports might not apply to the type of presentation you want to make.

For example, if you’re meeting with a seller, you would probably include a Cover, APOD, Proforma, Sold Comparables, Sale Proceeds, maybe a Sales Proceeds Chart, and Marketing Package (just to show the seller how you plan to market his property).

If you’re meeting with a buyer, you would undoubtedly eliminate Sales Proceeds and replace it with Acquisition (and Acquisition Funds chart), probably add the Rent Roll, maybe the Rent Scenarios if the property had upside potential (so the investor could see potential returns based on higher rents), Return on Equity, Photo Page, and perhaps the NPV, IRR, and ROE charts.

During that meeting with the investor, if  you’re brainstorming the price or down payment options, you might want to create the Price and Down Payment Sensitivity reports so the investor could see how the returns might be affected by changes in the price or down payment. If the investor were concerned about monthly (not annual) cash flows, then you could create the Monthly Cash Flow report so he could see the property’s performance for the first 24-months of ownership.

When marketing the property, you would use the Marketing Package and perhaps the Executive Summary (if you wanted to describe in more detail the property’s type of construction, utilities, amenities, area and so on). This is an outstanding way to present your listings and provides enough information to determine whether there’s interest in the property; if there is interest, you can provide any other report requested.

So it’s not one-size-fits-all. It all depends on the requirements set by (and the experience level of) your buyers and sellers. I typically keep things as simple as possible then go from there. In any case, ProAPOD real estate investment software provides you with more than enough reports to make terrific rental property presentations, and because they’re created automatically when you complete the forms, they’ll be there when you need them.

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