ATTRACT REAL ESTATE NOW

Transcription

1 ATTRACT REAL ESTATE NOW TIPS FOR BEGINNING REAL ESTATE INVESTORS TO EXPERIENCED REAL ESTATE INVESTORS

2 You have giveaway rights to this ebook. That means you can give it away to anyone you like. Legal Notice The Authors, Publisher, and Distributor have strived to be as accurate and complete as possible in the creation of this ebook, notwithstanding the fact that he does not warrant or represent at any time that the contents within are accurate due to the rapidly changing nature of real estate. The Authors, Publisher, and Distributor will not be responsible for any losses or damages of any kind incurred by the reader whether directly or indirectly arising from the use of the information found in this ebook. This ebook is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to seek services of competent professionals in legal, business, accounting, and the finance field. No guarantees of success and/or income are made. Reader assumes responsibility for use of information contained herein. The author reserves the right to make changes without notice. The Authors, Publisher, and Distributor assume no responsibility or liability whatsoever on the behalf of the reader of this ebook.

3 TABLE OF CONTENTS TOPICS *Getting Started *How to Think & Act Creatively *Know Your Market *Your Team *Working with Real Estate Agents *Flipping Properties *Property Management *Win /Win Negotiating *Determining the Value of Income Property *Screening Tenants *1031 Exchanges *Tax Lien & Tax Deeds *Yank the Land

4 Hi, my name is Tony Scimeca, and I help real estate investors become knowledgeable in real estate, so that they can become more successful in their real estate business. Have you ever had challenges in understanding the real estate business? I know, I have had many and I want to help you to overcome them. In this new economy of real estate things have changed. *Getting Started Have a plan. When you first start out you have to know where you are, and where you are going. If you are going on a long distance trip for the first time, you need a map to where you are going. Take ten minutes, a half hour or an hour and write down where you are, and where you want to go. How will I get there? The how will come to you, as you move forward. A thought will just pop into your mind. In the beginning, you do not know how you will ever get there, but just take that first step. Most people are afraid to just take that first step. Take ACTION and you will be surprised at what happens to you. Look on the bright side of things, because that is where your biggest opportunity lies. Choose to focus on the positive, rather than the negative side. Focus on the solution rather than the problem. You need to look in the mirror and

5 determine if you are ready to experience new things, if you are, new things will happen to you. Make a commitment and say YES, and then figure out how. *How to Think & Act Creatively When we were in grammar school that is where it all began. We were told to think like everybody else. We were told there is only one right answer to a problem. We were told to do it this way. We were not taught how to be creative, in fact, we were discouraged from using our marvelous mind. We were told quit daydreaming and pay attention. We were not taught to think outside the box, and to think of different possibilities. *Know Your Market There are four types of single family houses to buy. Inexpensive-a poor neighborhood or usually this house needs some work or major work. This house might be in a poor neighborhood, but only needs cosmetic repairs. Moderately Expensive- a better neighborhood, but the house could use some repairs or cosmetic work. The average working guy or girl lives here. Expensive- a good neighborhood. Out of the average person s price range to buy.

6 Ultra Expensive- the best neighborhood. Where crime is very low, and only the people who can afford it, live there. The best place to be investing is where the majority of the people are. The bread & butter houses. The upper part of the Inexpensive houses and the middle to lower part of the Moderately Expensive houses. The other houses are for people who can afford to buy in this market. *Your Team Put a team together, because you can not do it alone no matter how hard you try. Use people who have expertise and experience in different areas of real estate. A good realtor, a real estate attorney, and a title company are a must. Always use a title company or an attorney to close your real estate deals to protect yourself. *Working with Real Estate Agents Use a good real estate agent or broker to be your eyes, ears, and legs. You might have to go through a few to find a good one in your area, but there are many out there. Real estate agents have resources you don t have available to you. *Flipping Properties Buy low, add value, and make a profit. It is the best way to invest in real

7 estate today. Always make sure you are adding value to a property. When you are first starting out, you should never purchase a property that needs a complete gut job. Although the profit could be huge, start out with minor repairs or cosmetic work to get your feet wet. *Property Management One of the most misunderstood parts of real estate is property management. Property management is also one of the most important parts of real estate. With good property management real estate is a great investment, with poor property management it could be a nightmare. You hear all the bad things about real estate, tenants, toilets, and trash, that is because of poor management. In the beginning you might want to do it yourself, to save the expense, and to get some on the job training, but after a few properties you will know if you like it or not. Owning real estate with good property management can be a very good thing. *Win /Win Negotiating The first goal in buying any piece of real estate is to establish trust and credibility with the other party. A good negotiator is a good listener for what the other party wants or needs. Avoid over criticizing the property hoping to get a

8 lower price, and never criticize the seller. This tactic usually never works, and makes the seller even more to not want to work with you. *Determining the Value of Income Property You also do not want to get emotionally involved with any property. Always take the position, I do not need this property. A piece of real estate is a vehicle to make money, usually a substantial amount. Or it can serve as a use for a business to occupy. Money is made when you buy, and realized when you refinanced or sell. *Screening Tenants When screening your potential tenants use a good rental application. You can find one at You must be smart and have your potential tenant prove to you why you should rent to them. Also match the information on the rental application to a drivers license or state ID. Get a copy of their drivers license or state ID with a completed rental application. Be smart and play detective. *1031 Exchanges Use a 1031 tax exchange to defer capital gain taxes on any intended to be sold or traded real estate property. You will be taxed as ordinary income if you do not use a 1031 exchange. Things you can not use for a 1031 exchange are your

9 personal residence, stocks or bonds, partnership interest, mortgages or notes, dealer properties, personal property, goodwill and domestic for foreign property. To see what rules are applied to a 1031 exchange and to learn more go to *Tax Lien & Tax Deeds Tax Liens and Tax Deeds are the last juncture of the process of collecting delinquent real estate taxes. Ordinary people like you and me, can purchase tax liens & tax deeds. Tax liens and tax deeds give the buyer a claim for money that is superior to almost all other liens, including mortgages, and is secured by the real estate. Nationwide, the approximate redeeming rate for residential properties is about 90% in most jurisdictions. *Yank the Land Separate the land from the improvements, and keep the land. The principle is that you retain the deed of ownership to every piece of land in real estate that you have ever been in title to. What I am saying is split up the land and the improvements when you deed it out. It constitutes a minor subdivision, which the title company attorney can easily handle for you at a nominal fee. HOW DOES IT ANY BETTER THAN THAT?

10 *FOR MORE INFORMATION You can purchase more detailed information and the FULL program on each real estate topic. Or each real estate topic can be individually purchased at My purpose is to help you provide and help all people and their families have shelter for all who live in the Chicagoland area. If you have a house, abandoned, vacant, dilapidated, needs major repair, or want to donate your resources please CLICK HERE.