Real Estate Bird Dog Training

There are a few things that you must learn in order to be successful at real estate investing. The fastest way to achieve maximum success in real estate is start from a level where you don't have to invest much cash into finding your way. Becoming a real estate bird dog teaches you how to find properties, locate buyers and put the whole process together.

In today's real estate market there is a huge opportunity for those new investors, property locators or real estate bird dogs. Homes are going into foreclosure and those owners need help to stop their foreclosure and there are plenty of buyers looking for great deals. That is why being a real estate bird dog is the perfect solution for new investors to learn the ropes.

A few things you must know to be successful at real estate bird dogging:

1. Find Buyers
2. Locate Sellers
3. Present the Information

Finding your Buyers

The first thing you should do is build your buyers list of investors that are currently looking for good deals. Your buyers equal the cash you need to close any good deal you may find. You should want at least 20 serious buyers to unload any properties you find. There are so many ways to find buyers for you deals and a few are to place your own ad in the newspaper, place an ad on craigslist to find some buyers as well as backpage.

You can find buyers by also linking up with an investor that can show you the ropes.

Locate Sellers

Once you have your buyers lined up you want to come up with some products to show them. Any good deal you find is your money so you need to get very good at finding deals for your buyers. There is an abundant of buyers in this market because now all the bargain hunters are out looking for killer deals.

A few ways to find your sellers are the newspaper, for sale signs in the yard, and placing your own ads in the newspaper and on craigslist. The best way to produce leads is from the use of the internet, if you don't have a good internet presence then you can work with someone that has already put in the grunt work.

Presenting your Deals

Now that you have your buyer and a property for your buyer, as an efficient real estate bird dog, you want to have everything laid out for your buyer. The reason you want to present your deals to your buyers is first and foremost you want to look professional. Professionals get paid more than those that shoot from the hip.

A few things you want to have together for your buyer to ensure more than $500 per deal are as followed:

1. Property Address
2. Asking Price
3. Location of city
4. Type of house
5. Pictures outside are ok (preferably inside as well)
6. Pictures of houses in the neighborhood
7. A brief assessment of the house
8. Email Account
9. Internet Access

Provide all of those into a package and you will ensure that your buyers will love it when you come around because all they have to do is research the numbers and tell you if there is a deal or not.

Summary

You can make some really good cash if you master how to place buyers and sellers in the same room so you can step in to make a quick profit. Once you learn everything you need to learn about your local real estate market, you can start to dictate how much money you make for the month.

Donte Mazyck is the acquistions manager for BofC a web based company that buys houses. BofC teaches and train new investors for free how to become real estate bird dogs or efficient property locators. The reason BofC provides free training is to eventually become joint venture partners with bird dogs so the bird dog can service leads for their local city. BofC only wants one partner per city. For more information you can go to Real Estate Bird Dog or by calling 888-219-8619 ex 750.

Article Source:http://www.articlesbase.com/real-estate-articles/become-a-real-estate-bird-dog-to-reach-success-in-no-money-down-investing-933756.html



To Our Success,
Mark

P.S. YOU *MUST* HAVE MULTIPLE STREAMS OF INCOME TO SURVIVE!
The new approach to home business that is revolutionizing the industry - GensPlan Success Systems

I get asked on a regular basis by new real estate investors, and real estate bird dogs looking for deals, if investing in HUD (Housing and Urban Development) repossessed homes is a good strategy. I will be review in this posting what my opinion is and what I tell them….

Most HUD owned homes are in my opinion priced too high. There seems to be a high demand for HUD homes because investors think they are getting a good deal. The increased demand drives up the price. New investors often buy based on emotion instead of logic because they “just want to get their first deal” and as a result will pay too much for the property. If you pay too much for a property, you will lose your rear-end on the deal. That’s why it important to not overpay for a property because you make your money on a real estate deal when you buy, not the day you sell.

This is one huge reason why it’s so important to have the right real estate investing training. You need to know how to spot the good deals from the bad and not overpay for a property. Your first deal can ruin you financially if you don’t structure it the right way. I see quite often in my local real estate investment association. The folks that don’t take the time to invest in their education are soon out of business because they try and figure it out on their own and fail.

Short Sales are a one of the best ways to guarantee that you won’t overpay for properties, if you have the patience. Remember that a Short Sale is when the lender accepts less than what is owed on a mortgage on the home mortgage, so you can buy the home at a discount.

Short Sales are easy to get because it doesn’t require you to do a lot of negotiating with the seller because they know they don’t have any equity and they’re just looking for a way out. You are their answer! I love working with short sale sellers because they are the most motivated sellers out there.

Special Note: If dealing in short sales make sure you are dealing in an honest and ethical manner. Also, check your local and state laws as many states have laws regarding short sales and dealing with distressed homeowners. And treat your distressed homeowners with respect.

Short Sales are the most profitable quick turn deals to do in residential real estate because you are making all of your profit on the discount that is negotiated with the lender(s).

One of the biggest benefits of the short sale business is that it works even better on high priced Homes. The banks are more flexible and more willing to negotiate on larger mortgages. Banks don’t want to take houses back and they definitely don’t want to take back Luxury homes.

It takes the same amount of work to do a deal on a luxury home than it does to do a starter home. The difference is A Luxury home pays 10 times as much profit. Its like doing 10 deals in one and when you combine the short sale strategy with luxury homes, you’ve got the golden ticket.

The fact is that Banks are in the money business. They are not in the Real Estate business. They don’t want to own any properties. Their only interest is making interest on their money. Foreclosing on homes is a nusiance they have to deal with because it’s a cost of doing business for them. The sooner you understand this the sooner you will realize how huge this opportunity is for you right now.

When banks lend out money – they have to keep a multiple of 5 times the amount of money they lend out in reserves. When a loan goes bad, it becomes a non-performing asset on their books and that limits the amount of money they can lend out.

It costs a bank a minimum of $30,000 to foreclose on a home. They would rather take a discount on the mortgage and get that bad debt off their books so they can lend out more money. (Unless you are the Bank of America, aka Bank of Evil. They would rather see a home go through to foreclosure because they like screwing people and ruining their lives.)

A short sale is often the best solution for lenders. Banks need help in getting rid of unwanted properties so they can get rid of their bad debt. You are doing them a great service (except for the Bank of Evil).

To Our Success,
Mark

P.S. YOU *MUST* HAVE MULTIPLE STREAMS OF INCOME TO SURVIVE!
The new approach to home business that is revolutionizing the industry - GensPlan Success Systems

I am frequently asked by people how to make their fortune in today’s difficult real estate environment. With the market’s decline due to the economic crisis there are once in a lifetime opportunities to be had. For those that really know what they are doing, a financial killing can be made in foreclosure, REO and Short Sale properties. But where do you start? Read this article and you’ll be on your way.

We need to begin with understanding the different distressed real estate types. There are primarily three distressed situations that exist in the residential property market. These are foreclosures, REO or ‘Real Estate Owned’, and Short Sale Properties. Once you understand the relationship and differences between these types you can then develop strategies to take advantage of various scenarios and situations.

Foreclosure Properties

The most commonly heard of distressed property type is the foreclosure. A foreclosure is a property in which the bank has initiated a process of taking back ownership of a property from a private party. This usually occurs when a home’s owner has fallen behind on his mortgage and can no longer afford to make payments yet has a balance left on his note.

The usual goal of a foreclosure is for a bank to take possession and then recover their liabilities by putting through an auction process held by the court. During the foreclosure process the bank’s name replaces the owner’s on the title of the property. Foreclosure is a specific legal process that has various stages and time periods.

At various times during the process the owner may maintain ownership of the property if they can continue making payments on the note. Due to the nature of this process there is also ample opportunity for savvy investors to come in and negotiate to take over the property. Techniques to do this and how best to approach it I’ll cover in another article.

REO Properties

An REO or ‘Real Estate Owned’ property is one that has been foreclosed upon and thus is owned by the bank. Typically this is because the property did not sell during the foreclosure auction because the value of the asset does not cover its liabilities. Sometimes it is simply not wanted by anyone because a variety of reasons including the physical condition or location of the property and other times the actual property is simply not worth enough to cover the existing note on the property. Usually this means that the property was not a great investment, otherwise someone would have found enough value in it to make a purchase during the Foreclosure Trustee Sale.

After a property becomes an REO, it is typically put back up for sale by a realtor just as if it were for sale by a private party. First, however, the bank goes through the work of clearing existing liens and other obligations to make a ‘clean title’. REO properties can be an opportunity to get a great value because often they can be purchased for less than if someone were to bid on the foreclosure auction where a minimum value is necessitated to cover the existing liability on the property.

In addition, the bank has gone through the process of making sure title is cleared which is something that is not done during foreclosure. Finally, banks are not in the business of ‘managing’ properties and are often eager to unload them for less so they can avoid the continuing maintenance and administrative costs. There are other reasons why REO properties can be great opportunities which you can read about on my site.

Short Sale Properties

Finally, there is another kind of distressed situation called a Short Sale Property. In a Short Sale situation the value of a property won’t cover the loan that is on the property. The property has not yet entered foreclosure and the seller is usually in a situation where they need to be ‘bailed out’. In a Short Sale, a lender or bank will agree to take less than the full amount to satisfy the debt. While it might seem counter-intuitive, the reason this sometimes happens is because it is often less trouble for a bank to take a slight loss on a property than to go through the entire process of foreclosure with the impending risks, complications and costs involved not to mention the time wasted.

Now that you understand the three primary distressed opportunities available for the savvy investor you can find much more detail about each and learn specific strategies needed to make a killing in these properties at my site www.PropertyWorkouts.com.

So these are the Different Types of Distressed Real Estate that Real Estate Bird Dogs Should Know about.

With Degrees in Film, Real Estate Finance and Development as well as Psychology, Robert Levin writes expert articles covering a broad range of issues. Some of his websites include: www.toptenmba.com,
www.MBAonline.me, www.lawdegree.me, www.selfawareness101.com and www.tvwriter.me

Article Source:http://www.articlesbase.com/real-estate-articles/distressed-real-estate-investing-101-926698.html

To Our Success,
Mark

P.S. YOU *MUST* HAVE MULTIPLE STREAMS OF INCOME TO SURVIVE!
The new approach to home business that is revolutionizing the industry - GensPlan Success Systems

In the last post we discussed the difference between an “as is” appraisal and a “subject to” appraisal. We also talked about why real estate bird dogs need to be familiar with them.

The question is: why would real estate investors want to get one type of appraisal versus another?

If a house you are buying is in move in ready or livable condition an investor may want to get a conventional loan. If the house needs some work they will have to fund the project a different way, that is, through non-conventional financing.

What is the difference?

A conventional lender will loan money based on the purchase price of the property. They will likely lend between 80% - 90% of the purchase price. In this real estate market it is typically 20% down and requires a credit score above 720-740. They would have to come up with additional cash to fund the down payment and any renovations.

Typically, if a lender is willing to give a person conventional financing any required repairs can only be cosmetic in nature. Conventional lenders will not lend on properties that are not in livable condition (for example, if the kitchen sink is missing or there is no carpeting). If things need repair or are missing, lenders will consider a property to be unlivable.

If you are obtaining a conventional type of loan, an “as is” appraisal is most often required.

If the property requires any major repair work and the property is not in livable condition, a buyer will have to find non-conventional financing, such as a private lender,hard money loan, rehab loan or construction loan. Typically, hard money or construction loans will lend 65% - 70% of the after rehab value. If you are still in a declining housing market they may only lend 50% - 65%. These types of loans cover the purchase price, rehab and loan costs.

Hard money or rehab loans require an ARV (after repair value) or “subject to” appraisal because the lenders are going to loan funds based on the value of the property AFTER it’s been repaired.

In the next post we will cover what happens when people are buying a property with cash or private money? Is an appraisal still needed?

If you are birddogging for real estate, it is important to know the types of buyers the real estate investors you are working with are. The more you know about property valuations AND your investors, the better you will be at finding deals they will want to buy from you.


To Our Success,
Mark

P.S. YOU *MUST* HAVE MULTIPLE STREAMS OF INCOME TO SURVIVE!
The new approach to home business that is revolutionizing the industry - GensPlan Success Systems