How to Find Tenant Buyers for Real Estate Properties!

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

Real Estate Investing, An Honest Way to Make Money

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

A Word About ProAPOD’s Rental Property Reports

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.

New Training Video Added to ProAPOD’s Online Learning Center

ProAPOD Real Estate Investment Software just released a new training video and published it today on its online learning center under Video Tutorials.

The video, entitled “How to Make the Property Category and Type Selections”, explains how the first three entries in the property information form are made and how the software program uses the data collected from the Category selection to create key tax calculations and from the Type and Sub-type selections it posts an indepth property description to its reports to enhance your rental property analysis presentations.

The video applies only to our real estate software solution 10.0, so if you currently use this version and have questions about these form selections, be sure to watch the video. Those of you using our real estate agent software 6.0 or real estate investor software 4.0 might also consider watching the video and perhaps upgrading to 10.0. The video is just over 4 minutes long.

You can access this video along with other helpful real estate investing resources on our online Learning Center page, or from our Training Videos page.

Should Location Influence Your Property Investment Decision?

Surprising as it mean seem, though “location-location-location” certainly is true when purchasing a home, it may or may not always be true when purchasing investment real estate.

It makes perfect sense that a homeowner would be strongly influenced by the location of a property in which to live and raise a family over others. But this is not necessarily so with rental property investment. In fact, real estate investors commonly purchase properties in areas they might not otherwise want to live themselves.

This disparity over this golden rule of real estate between homeowners and investors has a simple explanation. Whereas, a homeowner has a natural regard for all things that affect the family’s well-being, an investor on the other hand doesn’t generally occupy the property. So they aren’t intimidated by the location of the property, especially in cases where the investor lives out of state and may not even see the property they purchase.

The most important fact about real estate investing is the bottom line. How does the rental property benefit the owner? Does it offer return on investment cash flow, tax shelter, and appreciation? In other words, will the real estate investor make money if he or she invests in the property, and how much will be made?

Of course, that’s not to say that location has no influence on investment decisions.

As a real estate investor, you must always examine general trends of the area and get a feel for the direction in which it is heading. You certainly would not want to purchase a rental property in the worst part of town (and for that matter, even in the best part of town) unless all indications are that the property will appreciate.

You might also have pause to invest in a location where there are excessively low occupancy levels or rents. It goes without saying that you do not to invest in a building that may, by its very location, remain mostly empty or never have the ability to demand substantial enough rents to make your cash flow requirements.

Here’s the point.

While location is still important in selecting investment real estate, it is rarely as critical to investors as location would be to homeowners.

In this case, your primary concern is in finding rental properties that meet your investment needs and goals. So don’t let the location steer you away from an otherwise sound investment. Remember, your purpose for investing is to make money, and any building you acquire is not intended to occupy your children, but to build your estate so you can care for them.

Why it’s Smart to Consider Various Types of Investment Real Estate

Real estate investors that decide that they only want one type of investment real estate and not the other could be losing incredible opportunities to make money in real estate investing.

Say, for instance, that an investor is given the opportunity to invest in an underpriced apartment complex with tremendous potential for rent increases and promising cash flows and rates of return but rejects the opportunity because he is steadfast to invest only in retail property. Or, likewise, an investor that turns down an investment opportunity to own a commercial office building that shows financial promise because he prefers to invest only in an industrial building.

Though this might be acceptable for the investor that has found his niche and has already made his fortune in investment property, it is not as forgiving for the person just beginning to invest in real estate.

Those who are new to real estate investing must understand that it is always about the bottom line. Regardless of what type of investment property it is, whether multifamily or commercial, the question every investor must ask is “What is my rate of return?”

Here’s the point. If you’re a new real estate investor just beginning to invest in investment real estate, you could be losing incredible investment opportunities that could make you money simply because you’re stuck on investing in just one type of real estate property.

The solution is straightforward.

Rather than limiting yourself to just one type of investment real estate, give yourself a choice. Consider at least two types of property that seem to meet your investment strategy. That way, when a property does come across your desk, you’ll be open to running the numbers. In cases where you’re presented with two types of properties you can compare them in detail to determine which makes you the most money and is the best for you.

Naturally, you’ll want to have some guidelines in place such as the maximum price you’re willing to pay and the most restrictive terms you can accept; do not compromise your position on these issues. Regardless how tantalizing an investment opportunity appears, if you can’t purchase it on terms you can live with, drop it and find another property.

Just be sure that your requirements are reasonable and conform to your local market area. Otherwise, you could find yourself holding out for a bargain property that doesn’t exist, and you may never start real estate investing.