Realtors or real estate agents are either despised or loved, depending on how successful they are at serving their clients. A real estate agent is a go- between for the buyer and the seller. Real estate agents are professionals who work on your behalf and advocate for your interests. A real estate agent is a go- between for the buyer and the seller. Real estate agents are professionals who work on your behalf and advocate for your interests.
Done correctly, an agent’s job is to put the buyer’s interests ahead of himself. This means they must disclose all material facts, keep the buyer’s information confidential, provide them with sufficient information to purchase a home, and expertly negotiate on their behalf.
If you feel competent that you can handle a sale or purchase on your own, then you may choose to work without an agent. But you might always wonder whether you paid too much or accepted too low of a price. A real estate agent’s full-time job is to act as a liaison between buyers and sellers. This means that he or she will have easy access to all other properties listed by other agents. Real estate agents work full time and they know what needs to be done to get a deal together.
For example, if you are looking to buy a home, a realtor or a real estate agent will track down homes that meet your criteria, get in touch with sellers’ agents and make appointments for you to view the homes. If you are buying on your own, you will have to play this telephone tag yourself. This may be especially difficult if you’re shopping for homes that are for sale by owner.
Similarly, if you are looking to sell your home yourself, you will have to solicit calls from interested parties, answer questions and make appointments. Keep in mind that potential buyers are likely to move on if you tend to be busy or don’t respond quickly enough. Alternatively, you may find yourself making an appointment and rushing home, only to find that no one shows up.
In addition, most realtors rely on referrals and repeat business to build the kind of clientèle base they’ll need to survive in the business. This means that doing what’s best for their clients should be as important to them as any individual sale.
Working with a realtor or a real estate agent can bring a lot of peace of mind during a major transaction, whether you are buying or selling. And it can ultimately leave you with more cash in the bank. If you’re thinking about going it alone, make sure you thoroughly understand the work an agent does—and what you need to cover if you’re representing yourself.
There are several services you can expect to receive from your agent that you might not be able to obtain on your own. Apart from hearing about property listings before homes are available to the public, find out why you shouldn’t discard the notion of hiring an agent just yet.
Prepare a strong offer that presents the buyer in the best light based on market demands and agent interaction
Review documents for loopholes
Provide a buffer between the buyer and seller
Find homes that match your budget and needs. Property search sites give you a sampling of what’s available, but you’ll have to research whether asking prices are justified based on comparable home sales in the area.
Dig up facts on a neighborhood, including ones that a seller might not disclose that could be important to you.
Negotiate an offer, including the price and other clauses and contingencies in the purchase agreement.
Navigate the home inspection, and negotiate repairs
Explain paperwork that could be filled with complex jargon and terms you don’t understand.
While doing the work yourself can save you the significant commission rates many real estate agents command, for many, flying solo may not be the way to go–and could end up being more costly than a realtor’s commission in the long run. Buying or selling a home is a major financial (and emotional) undertaking that requires that the process should go smoothly.
An experienced realtor or a real estate agent deals with the same contracts and conditions on a regular basis, and is familiar with which conditions should be used, when they can safely be removed and how to use the contract to protect you, whether you’re buying or selling your home.
Henry Ford has a famous saying. In brief, it explains that if you are going to prove you are smarter than them, hire people who are smarter than you. You do not need to do the whole works on your own. Surround yourself with people who know more than you and the job is done. Find the right real estate agent if you want your money to be correctly spent on a house that matches your requirements, and you will land safely.
Finding success in real estate requires more than simply buying low and selling high.
At least 30 U.S. billionaires made their money from real estate; some say that it’s the greatest way to create real wealth and financial freedom.
These six tycoons and members of The Oracles suggest how you can invest $100,000 or start with nothing.
1. Start small.
Although I’m a businessman first, I’ve always been a part-time real-estate investor. You can do both, too. Have a business or career that creates positive cash flow, which you can diversify into part-time real estate investing. I’ve done it for many years.
If you’ve never invested in real estate, start small and don’t use all your money. No one’s ever looked back and said, “My first deal was my best.” You’ve got to learn how to read the contracts, build your network of specialists—for example, lawyers and realtors—and develop a good eye for it. This only comes from experience.
The beauty of real estate is that you can learn the ropes while starting small: find some cheap properties, like single-family homes, renovate-and-flips, multi units, or commercial properties. Try to commit as little as possible while you get some notches under your belt. Joel Salatin, my mentor, always said, “Make your mistakes as small as possible without catastrophic consequences.”
If you have zero cash, maybe do wholesale deals. A business partner, Cole Hatter, and I created a real-estate program teaching you how to put a property under contract for very little money down, sometimes less than $1,000; you sell that contract to another buyer before the contract expires. Worst case: you just lose under a grand. Best case: you make $5,000-15,000 positive cash flow that can be reinvested in long-term holdings. —Tai Lopez, investor and advisor to many multimillion-dollar businesses, who has built an eight-figure online empire.
2. Think big.
It’s easy to give up on the real-estate game because you don’t have any money, but it’s the deal that matters, not how much money you have. Chase the deal, not your budget.
I know a guy who saved $50,000 and started chasing $200,000 deals. First of all, you can’t buy more than four units with that budget. The problem with four units is that each can only produce maybe $1,000 or $2,000 per month. And that’s only after you’ve done thousands of dollars in work around the units to make them rentable in the first place. That math isn’t difficult—there’s just not enough money to make it worthwhile.
That’s why you’ve got to go big from the start—with 16 units, minimum. Don’t buy less. Without 16 units, you can’t have a manager, and if you can’t have a manager, you’re going to either dedicate all your attention to the property or to your full-time job. To get 16 units, you will need to wait and save more money or use other people’s money (but you’ll need to learn how to sell). —Grant Cardone, top sales expert who has built a $500-million real estate empire, and NYT-bestselling author of “Be Obsessed or Be Average”.
3. Understand the economics, then find a mentor.
The real-estate deals that look the prettiest and are easiest to find—such as buying a property that has a tenant and management in place, joining a crowdfunding website, or buying into a publicly-traded real estate investment trust—yield the lowest returns. The most profitable opportunities are the ones no one else knows about, which you find and create.
Due to a strong economy, high consumer confidence, historically low inventory levels, and extremely low interest rates, it’s the best time to flip houses in the past 40 years.
High consumer confidence and a strong economy give retail buyers the feeling that “now is a good time to buy” rather than retreat in fear and continue renting. Low interest rates allow retail buyers to purchase more of a home than if the rates were at historical average levels, like 6 percent. Low inventory levels create bidding wars by retail buyers, which increase the prices that investors sell their flipped houses for.
So, if you can find the deals before the competition, you can transform a little bit of money into a whole lot in a relatively short period by flipping houses.
If you’re seeking tax-advantaged passive income, thanks to the rise of the sharing economy and services like Airbnb and HomeAway, short-term renting of residential properties is producing the highest returns. (It’s not uncommon to obtain more than a 20 percent return on very nice properties in beautiful areas.) The majority of my real-estate holdings are now in short-term rentals.
Unfortunately, real estate is full of pitfalls. Getting educated through reputable online sources can help, but an article, book, or how-to video will be of little assistance in answering the most important questions you’ll have in the heat of a deal. That’s where the right real estate mentor becomes an invaluable resource. —Phil Pustejovsky, founder of Freedom Mentor, bestselling author of “How to be a Real Estate Investor”, and #1 YouTube channel on real estate investing with nearly 20 million views.
4. Learn, then earn.
Before throwing money away on the HGTV pipe dream, educate yourself! Don’t spend thousands of dollars on coaches and seminars. No matter how shiny they make it or how much you’re told you need an expensive education, you don’t. Information is inexpensive and plentiful. Find it or someone specializing in investment real estate, like me.
Holding assets is the way to build wealth through real estate. Shelter is a basic need. Dirt, in and around major metro areas, is a finite resource, and demand is constantly increasing. By owning a rental on that dirt, you have a small business that works to pay off your mortgage. Flipping is over glamorized, in my opinion. Rent and hold for the win.
Boomers and millennials want smaller housing, closer to cities. Additionally, real-estate investors commoditizing American suburbs and re-gentrification has pushed lower income families out. Because of this, America’s suburbs have seen a 57 percent increase of people living below the poverty level in the last 15 years. Buy your cities.
Don’t blow your budget. Most projects have surprises or overruns; it’s just part of the business. Keep a cushion for the unexpected. Lever your funds to increase returns and reduce risk. Start with one project. Get your model set, tweak, then buy two. Continue and progress until you build a solid portfolio.
Educate yourself, hustle, and create value. Take massive, determined action daily. Talk to brokers, call contractors, view open houses, and go to meetups. Learn! And when you’re ready, door knock! The best deal is the one that isn’t for sale. Find it, then find someone like me and close it down. —Mark Bloom, President at NetWorth Realty.
5. Start today.
In building over $100 million in real estate, I’ve personally used three strategies many times.
One: Purchase a low-income property, typically for $35,000 to $55,000. Costs are low but yields are consistent. Hand over all management to a third-party company, and collect your monthly rent passively, bringing in annual returns of 8 percent to 10 percent. If you purchase two to three properties like this per year, you will have a portfolio of 20 to 30 in a decade.
Two: If you can fix things yourself, do a “live-in flip.” Buy a house that needs a little work at a great deal; live in it for one or two years while you rehab it. Then flip the house for an appreciated value and profit. Doing this five times in 10 years could generate $300,000 to $500,000 net profit. That would let you buy your own house in cash! Or reinvest into rental properties, which would cover your cost of living anywhere in the world.
Three: Joint venture on a deal. People have money; they just need the right opportunity. Find a good deal and tie up the property with a contractual clause, pending financing approval within 30 days. Then find another investor to partner on the flip with you. Explain that you secured the property and just need the funds for a specific period, and the return will be split between you both.
Make enough calls, and you’ll find a joint venture partner easily. Just ensure you correctly calculate the cost of rehab and expected sale price. Most people mistakenly underestimate the rehab cost and overestimate the sale price, killing their margins. — Com Mirza, “The $500 Million Man” and CEO of Mirza Holdings; failed in eight companies back to back and today, runs a nine-figure empire with over 600 employees.
6. Profit is in the purchase.
Source transactions that contain some core elements: they take the shortest amount of time to complete, and provide the maximum amount of profit while minimizing risk and the amount of cash you invest initially.
Before really embarking, solidify your A Team (advisors whose opinions you trust) and B Team (associates who turn the gears).
Once you have a plan, pull the trigger. Don’t just have a backup plan—ensure that even the most airtight scheme has at least five exit strategies. Experience has taught me that the winds of a favorable real estate market can shift rapidly; the last thing you want is to be anchored to a dozen unsellable investments.
Finally, know the difference between buying, holding, and trading. Buying is a no brainer, but it’s what you do with a property that determines your success. My primary strategy has been holding onto commercial real estate for the long term and trading out residential pretty quickly. Know your market. —Roy McDonald, founder and CEO of OneLife.
If you’re in the process of shopping for a home, you likely
want to know how to make your offer stand out from the crowd. Today,
I’ve decided to go over four components that you can use to your
advantage when putting together a strong offer. Read on below to learn
how to put together an offer that will undoubtedly capture the sellers’
This is the one component of an offer that everyone knows about, even if they’ve never been through the pr0cess before. However, as the buyer, it might be less of a big deal than many people make it out to be. From the sellers’ perspective, the offer price makes a huge difference. The proceeds that they receive from at settlement are the only benefit that they get from the sale of their home. That money could be what they’re relying on in order to purchase their next home or to carry them through retirement. It’s likely that they have a firm bottom line that they need to meet. However, as the buyer, you’re a bit more protected from the impact of a higher offer price. Any increase in price will be rolled into your mortgage and you’ll pay for it over the life of the loan. It will likely only make a small difference in your monthly payment. Keep this in mind as put your offer together. While you ultimately have to be comfortable with the amount you agree to pay, if you love the home, it may be worth it to be more flexible on the offer price to put yourself in a better bargaining position.
Earnest Money Deposit
The next thing that you’ll have to decide is how much money you want to put towards your earnest money deposit. This money is essentially a downpayment on your downpayment. It shows the sellers that you’re serious about buying the home. This money is taken at the beginning of the transaction and held in escrow until you go to closing. If you meet the terms of the contract and follow through with the sale, that money will be applied to your downpayment. If, however, you break the contract, the seller can keep your deposit money in exchange for the loss of the deal. Typically, earnest money deposits range between 1% to 3% of the sale price. However, you’re able to put as much money down as you’d like. If you want to show the seller that you are particularly interested in buying the home, putting down a larger deposit can help get that point across.
As the buyer, contingencies are mostly for your benefit. In short, they account for anything that needs to happen in order for the transaction to continue moving forward. Though you can write your own into the contract, these usually account for things like conducting inspections or acquiring financing. Sellers are wary of offers with too many contingencies because each one offers the buyer an opportunity to exit the sale, so keep that in mind as you put your offer together. That said, contingencies are designed to help you move forward with the sale feeling as informed and prepared as possible. Make sure that you elect as many as you need in order to feel confident buying the home.
Closing date is the last piece of the offer to consider. You may have a specific date that you need to move, especially if you’ve already sold your old home. However, if you aren’t tethered to a particular date, it can be a good bargaining tool. You can make your offer stronger by matching the sellers’ desired timeline.
When one decides to start in real estate, their family and friends are typically ready to support them in their new venture by connecting with the new agent to help buy or sell. But, how does a new agent connect with locals in their area beyond friends and family? How does a new agent claim a territory?
Create New Content
“Been there, done that.” Many agents approach new business ideas with this mentality, stating that someone, somewhere has already thought of it — but, that leaves so much room for redesigning the proven. There are countless ways to create a new brand opportunity. Take a moment to research, try something new and achieve it in your area. Good: Send out social media posts to advertise properties in the area for sale. Even if you’re a new agent with no listings, there are ways to let people know you are working aside from clicking “share.” For instance, creating a flyer from professional photos taken, creating video slideshows of a home’s features or doing a Facebook Live video in a home are all ways to highlight that you are a new agent in the business without having your own opportunities immediately. Better: Work with the company marketing department to create proximity indicators. It may sound odd, but a consumer moving to an area would love to know how far away a grocery store is located, or if a hospital is nearby. The more proximity indicators that can be highlighted, the better luck you may have in selling a property. Best: Create relationships with local shops, vendors or businesses in the area, and film a quick video introducing the owners and highlighting the business. This makes opportunities to connect with people across social media, raise awareness of this local business and establish appreciation for your work in the community. As you continue to do this, your online followers are likely to come to see you as a powerhouse of deals and relationships, which helps build a rapport more quickly.
Create Lead Opportunities
Internet leads are great opportunities for new agents to build their businesses. What’s easier than showing someone a home they already found and liked online? The amount of time you spend showing many properties will decrease as the buyer searches online and then calls you to see a home of interest. Time is money — this truly is a great benefit. Good: Understand what’s coming on and off the market each day. Most MLS systems allow agents to search based on new inventory daily. Learn the types of homes that appear in each area, and study them. As you become a more skilled agent, choose a zip code on one of the major real estate sites that corresponds with the inventory being seen in the daily market updates. By choosing a zip code based on volume of inventory coming on market daily within an area, more lead opportunities will likely be created.
Better: If a new home comes on the market in an area listed by an agent in your firm, be the first to host an open house to buyers. Sell potential buyers on the great features of the home, and why the neighborhood is so welcoming and well-suited for the buyer’s needs. Become a true market expert by knowing the surrounding sales for the past six months, as well as the homes currently on the market. Make the client feel as though you are the local expert. Plus, remember there are no referral fees on buyers who walk in.
Best: Internet leads come in territories. You can claim an area by a zip code, as it may be far easier to be more familiar with a neighborhood than a city. Learn the neighborhoods in a zip code by driving through them often. Meet the neighbors, tour vacant properties and get a feel for the area. While volume of leads is important, even more important is knowing if a buyer’s needs can be even better met in another area based on their criteria. The more an agent can utilize all these lead methods, the better salesperson they will become.
Learn The Neighborhoods
Good: Shadow experienced agents as they show in these territories. Learning sales methods from a variety of agents allows you to build your own method to become a better salesperson.
Better: Attend all the local farmers markets and community events you can. Handing out a 15-cent business card is the best marketing available — most people are excited to attend the event, and happy to see someone who serves (and knows) the community doing so. Elevator pitches about how you’re a great agent to work with are great to have prepared. Best: Visit the local coffee shop to learn the neighborhood culture, especially in the mornings. I live in one of the more diverse cities in our area, which features retirement communities, single-family home communities, suburban communities and townhomes or condo associations. Every neighborhood has something completely different to offer, and by knowing the amenities and benefits of each, and making recommendations based on that, selling to clients becomes a much easier task as you become better informed.
Claiming your territory isn’t always easy in real estate, but it can be achieved. It doesn’t matter your age, background, education level or connections — each agent has an equal opportunity when stepping into the real estate business. So, claim your territory, and become the best agent you can be.
Why there is
no shortcut to actually make money or get rich quickly or to get regular
income, but you can become rich through successful real estate investing.
Investing in real estate stands out has a tried and true approach to make
money. In real estate investing, you can minimize the risks to an extreme low
and get high return on your investment.
is generally a great investment option. It can generate ongoing passive income
and can be a good long term investment if the value increase over time. For
one, you will need to put down a significant amount of money upfront to begin
real estate investing.
investment does not wildly fluctuate on a daily basis, unlike stock market
investment. It is a stable investment that provides you with an ongoing income.
collect your regular income known as Cash Return on a periodic basis and hope
to sell when the price appreciates substantially and the market is high. Real
estate is an investment which is safe and grows steadily in value.
primarily three ways to make regular income from your real estate investments
and they are:
in the property by value
income collected by the leasing out the property to tenants.
generated from business activity that depends upon the real estate.
a real estate millionaire is your goal, do not neglect these five processes:
job that pays you well first
15-20% of every paycheck, and pay yourself first
at least $5000 – $10000 and then stop renting
while you buy your first house
investment protects you from inflation as well as the portfolio diversification
benefits of owning a physical asset. Real estate is a tangible asset that can
always be monetized through renting or residing in the property purchased,
regardless of financial market conditions.
tangibility of real estate also affords property owners with a sense of
stability during bear markets or short-term stock sell-offs.
personal portfolio, it will be very much advisable that you should invest in
real estate which is undoubtedly a significant element of asset allocation.
about the diversification benefits of direct and indirect real estate
This is more
of you obtaining what is referred to as Asset Allocation.
What is an
basically an investment strategy that aims to balance risk and reward by
apportioning a portfolio’s assets according to an individual’s goals, risk
tolerance and investment horizon.
Do you know
that there are three main asset classes?
Yes and they
asset classes have different levels of risk and return so each will behave
differently over time.
Someone may ask, why is it very important?
because, there is no simple formula that can find the right asset allocation
for every individual. However, the consensus among most financial professionals
is that asset allocation is one of the most important decisions that investors
this, you can follow through life cycle funds. This is also known as target
date. These are attempts to provide investors with portfolio structures that
address an investor’s age, risk appetite and investment objectives.
on the other hand is a grouping of financial assets such as stocks, bonds,
commodities, currencies and cash equivalents as well as their fund
counterparts, including mutual, exchange-traded and closed funds. A portfolio
can also consist of non-publicly tradable securities, like real estate, art and
This is done
directly by investors and managed by financial professionals and money
investment portfolio can be thought of like a pie that is divided into pieces
of varying sizes, representing a variety of asset classes and or types of
investments to accomplish an appropriate risk-return portfolio allocation.
that a portfolio is a basket of assets.
are myriads of ways to position yourself to regularly earn from a onetime investment
via your physical asset(s).
Real estate can be an alternative medium for saving for a college education.
It’s a sure way to raise money through rental payment to sponsor any member of
the family or oneself in obtaining a diploma in higher institution. For
example, you can purchase a rental property so as to be able to sponsor your
children to the PHD level in terms of academy.
benefits of real estate exists, there seem to be an exceptional one among them.
given birth to your son or daughter and you can plan the child’s educational
expenses right from day one of the entrance to school and further. How would that be for you?
invest in real estate, you open yourself up for so many opportunities. Your
finances are best planned for and controlled. You won’t have to worry about
paying your children’s fee termly or quarterly. With an adequate plan of the
rentals. Income property scheme, your child’s education is secured.
Real estate is
not a do or die affair, but for he who knows that he wants to have less stress
when it comes to financing personal projects and paying bills, you might want
to consider that.
making money is not your taboo, this will be the best option I can guarantee
Is there a
way basically to get into the market without increase in net worth? It is
advisable to try to use LEVERAGE as an advantage.
the concept that you can pay for something without bearing the full cost. The
property allows you to use other people’s money to leverage your funds and
purchase larger investments. For Real Estate, you can use leverage by taking
out a mortgage to buy a property and only put down a fraction of the total cost
uses borrowed capital or debt to increase the potential return of an investment
estate, the most common way to leverage your investment is with your own money
or through a mortgage.
works to your advantage when real estate value rises.
a technique used by both people and companies to expand the potential for
returns, while equally expanding the downside of any risks involved if things
don’t work out.
is a potential for a good return as possible. Like when the real estate prices
rise, using leverage can be a double edged sword.
I know the
next question on your lips is, how do I access leverage?
way to access leverage is to use your own money. In the case of a mortgage, a
standard 20% down payment gets you 100% of the house in which you want to live.
however purchase the property as an investment, you may be in a position when
your partners finance some –or even all- of the money.
some sellers may be willing to finance some of the purchase price they want to
sell. Under such arrangement, you can purchase a property with little or no
money down and in some cases, no money done at all.
beauty of using leverages for your real estate. It works.
hedge typically involves investing in an asset expected to maintain or increase
its value over a specified period of time. That’s why real estate is considered
a hedge against inflation, since home values typically increase during the
times of inflation.
It is also
an investment that is considered to provide protection against the decreased
purchasing power of a currency that results from the loss of its value due to
money supply causes inflation hence the increase in house prices … when
interest rates are low however, buying homes can be more affordable and
increase the demand for homes. If the supply of homes remains constant and the
demand increases, then the price of homes will increase.
hard assets are investments with intrinsic value such as oil, natural gas,
gold, silver, farmland. Natural colored diamonds and commercial real estates.
Like oil or
gold, real estate is a commodity, meaning, there is a limited supply and
therefore it has an inherent value by serving a basic human need. On thinking
about a property in terms of the different commodities of which it is made… we
have, the building and the land with its constituents.
there is a limited amount of land in the world. The building itself is a
combination of different raw materials. If the price of those materials goes
up, the cost to build similar building increases, in turn making the existing
property more valuable.
ask why hard assets are considered a worthwhile investment/ typically, hard
assets are an excellent hedge against inflation., meaning their value rises as
the general price levels for goods and services increases. This is known as
Consumer Price Index or CPI)
Let me tell
you this: commercial property is a unique investment class when compared to
other hard assets in that not only does it typically preserve its value during
periods of inflation, but leased commercial property can also be an income
producing asset, paying dividends back to investors.
people do fear inflation but this is not the case with real estate investors as
this is a great advantage for them. Investing in properties is an excellent
hedge against inflation as the price level goes up, so does the rental income
you get from your property and your investment’s value. This implies that real
estate investors are always above the immediate and the long-term effects of