8 Best Markets for Flipping Houses

More investors are rehabilitating homes and looking to sell them for profit, a move known as flipping. RealtyTrac recently evaluated more than 600 metro areas to find where flipping single-family homes offers some of the highest returns based on the investor’s gross profit. The top eight metros for house-flipping are:

Orlando
Average purchase price: $103,701
Average flipped price: $168,677
Gross profit percent: 63 percent

Las Vegas
Average purchase price: $133,198
Average flipped price: $203,945
Gross profit percent: 53 percent

Phoenix
Average purchase price: $146,528
Average flipped price: $210,290
Gross profit percent: 44 percent

Tampa, Fla.
Average purchase price: $79,538
Average flipped price: $113,676
Gross profit percent: 43 percent

Memphis, Tenn.
Average purchase price: $68,318
Average flipped price: $96,870
Gross profit percent: 42 percent

Miami
Average purchase price: $138,064
Average flipped price: $189,291
Gross profit percent: 37 percent

Lakeland, Fla.
Average purchase price: $68,444
Average flipped price: $93,715
Gross profit percent: 37 percent

Nashville, Tenn.
Average purchase price: $108,851
Average flipped price: $146,872
Gross profit percent: 35 percent

PositionRealty.com
Office: 480-213-5251

How to Use Your Retirement Funds for Real Estate

In this articles, we will examine how one can use the tax-deferred money in their retirement plans to take advantage of real estate investing opportunities. This article explains how you can use your 401(k) funds to diversify your portfolio mix into real property.

The 401(k) Plan

First, it is important to understand some basic features of a 401(k) program. The 401(k) is a subsection of the Profit Sharing Plan section of the Internal Revenue Code. It allows for employee deferrals on a pre-tax basis. Employers may make this type of plan available to their employees by adopting an acceptable format forsuch a plan. There are limits of how much an employee can contribute. Adoption of such a plan also permits the employer to match employee contributions and to make profit sharing contributions (at the employer’s discretion).

An individual employee may contribute up to about 20% of annual compensation, to a maximum of $9,500 per year. Employers may make matching contributions (such as 25 cents on the dollar) up to 8% of total compensation for each employee. Sometimes profit sharing contributions may also be made and, under certain circumstances, one may have a combined package of 401(k), match and profit sharing/money purchase up to $30,000 in a given year. All of this is variable, and one rule does not apply for all cases.

If you are an employer, you can design the features of the plan and provide the investment alternatives for yourself and your employees. If you are an employee (not defined as an employer), you are permitted to operate your deferrals and investments as established by your employer. If some of the features we discuss here are not available to you as an employee, you may wish to discuss them with your employer to determine whether they can be adopted by your 401(k) plan. If your present plan does not permit the flexibility we are about to discuss, remember any plan may be amended and restated to make such capabilities available.

How to Use the 401(k) for Real Estate and Notes

After all this, how can the funds in your 401(k) plan be used for real estate transactions? Once you have found out that your 401(k) plan funds can be used for real self direction, and the trustee of the plan also permits such transactions, the rules are simple:

You can purchase assets into your plan which are not prohibited. Real estate is not prohibited. You may not deal with yourself or members of your family (other than siblings).

All Transactions Must Be Arm’s Length

This means that you can purchase mortgages with your plan assets. This means you may purchase real property in your plan for income purposes. While debt-financed properties may be subject to unrelated business income taxes, in almost all investment cases we are aware of this has not applied.

How It Works

How does it work? First, you find the property or note. These are self-directed plans, and no one is going to give you a list of real property to chose from. It’s all up to you. Remember, you take all of the risks and receive all the benefits. Neither the employer or the plan trustee has any obligation to you in a properly designed plan. Second, you request that the administrator of the plan ask the trustee of the plan to purchase the asset you have selected for your benefit in your plan. All this is performed through written documents. Third, the security interest in the asset you have asked to be purchased is perfected for the benefit of your plan account. Income and expenses are allocated to your account.

How Often Can You Do This?

As often as you like. Some people like to buy distressed properties, fix them up, and then sell them. Others buy discounted notes. Some purchase income streams. There are as many options as one can think of, provided you follow the rules.

Typically, employers will use the completely self-directed option for compliance with 404(c) of the code for self trusteeship safe harbor. Some combine the complete self direction along with a number of mutual fund choices, making complete self direction available on a non-discriminatory basis to all employees. There is a cost associated with this.

As can be imagined, the process of purchasing notes and real property is a labor intensive process; the process of purchasing mutual funds in a daily valuation environment is almost fully automated. Your 401(k) administrator can provide you with the costs. If your administrator doesn’t handle complete self direction, there are some that will. It’s up to you, as an employer or employee to ask. You may be surprised at the answer.

Position Realty
Office: 480-213-5251

Property Zoning Is The Second Most Important Component In Real Estate

After location, zoning is probably the most important characteristic of any type of real estate. It is the obvious starting point for evaluating a parcel’s potential for development because it spells out what you can do with the property. Zoning is a critical piece of the puzzle particularly if you want to be a land developer, an investor or work with a builder in some way. Save yourself much time, energy and frustration by checking out the zoning first, not last.

Local governments enact zoning ordinances and adopt the maps that show the physical boundaries of the zoning districts, and these are modified periodically. To determine the current zoning of a particular property, you would first look at the zoning map to see what district it falls in and then consult the current zoning ordinance. Both of these documents are available for review online or purchase at the municipal building. What will you find in the ordinance?

ZONING MAP EXAMPLE

It tells you what land uses are permitted in each district or classification. These classifications generally include residential, mixed residential, mobile home, commercial, shopping center industrial, office, and conservation. The ordinance also lays out other standards and requirements, such as the minimum lot size, minimum lot width, dimension of setbacks, height restrictions and building coverage. It contains definitions that help you understand the terminology used throughout the ordinance. There are general provisions that apply to every zoning district, and these deal with issues like non-conforming properties and uses, accessory structures and uses, flag lots, fencing, signage and minimum lot frontage requirements.

Provisions for a specific zoning district can often include both “by right” and “conditional” uses. For example, single-family detached dwellings, agricultural uses and governmental recreation areas may be permitted in a district. A privately-owned riding academy, stable for horses, public or private day schools, 18 hole golf courses, places of worship and day care facilities are permitted in that district only when authorized by the municipal Zoning Hearing Board as a special exception. This latter group of uses is not permitted automatically, and to get a special exception, you would have to demonstrate that your use falls within those defined in the ordinance and also complies with any requirements, such as minimum site area, building and paving coverage, and buffering, specific to that conditional use.

Key Points About Zoning

It would be helpful to remember some key points about zoning. Land use and regulation laws vary from state to state. Terminology and nomenclature vary from municipality to municipality, even within the same county in the same state. For instance, the “R-2” zoning classification in one municipality may mean that single-family detached housing is permitted on a minimum lot area of 35,000 sq. ft., with a lot width of at least 125 feet, and front, side and rear setbacks (yards measured from the parcel boundaries to define the area where a structure can be built) of 60, 20 and 80 feet, respectively. Go to another municipality, and you could find that the R-2 District permits single-family detached housing on 43,560 sq. ft. lots 150 ft. wide with front, side and rear setbacks of 60, 25 and 80 feet. You should not assume that the same name used for a classification in different municipalities means the same thing and when marketing land to potential buyers, be sure to include information on the permitted use and requirements for minimum lot size and width. Describing the zoning of the property only as “R-5”, “MR-1″ or “C-2″ is meaningless.

Finally, some words of caution. Zoning and other types of ordinances are available online. Do not, I repeat, do not rely exclusively on online ordinance information. Go to the primary source (the municipality that enacted the ordinance) and check it out to be sure you have the most current and accurate information. Always page through the entire ordinance because municipalities often enact amendments that can be printed in the back of the original ordinance (without cross-referencing the original provisions that have been amended). If the provision is somewhere in the ordinance, it applied. Just because you didn’t see it doesn’t mean that it doesn’t apply.

PositionRealty.com
Office: 480-213-5251

Making A Success Out of Commercial Fixer-Uppers

Are commercial fixer-uppers worth the time, expense and effort? My answer to that would be that the right fixer-upper with numbers that make sense can be the right strategy to use. In fact, these types of properties can be an easy way to see an instant value increase in the property but like with any deal, only if the costs to rehab the property make sense.

Commercial fixer-uppers employ one of my favorite value plays called “repositioning”. That means that either the tenant base changes, the appearance of the property changes or that both of these options are exercised on the properties.

In residential real estate investments, the idea of investing in a fixer-upper is to acquire the property at a significant discount due its condition. In commercial property, the same still holds true but in commercial properties it can account for greater cash-on-cash returns. Perhaps you’ve found a property that needs some cosmetic care. Maybe the exterior needs to be updated with a new look. You’ll be amazed at how a small investment can net a high return in value.

How To Make Money Investing in Apartments

Apartment buildings can be a great opportunity for repositioning. In strategies like these, the first thing I usually change is the exterior paying special attention to the parking lot, roofing and sidings. I do other simple things like updating the landscaping and putting new signage on the property which are quick ways to give a new appearance to an older building.

I might also consider repositioning the tenant base with this same apartment building. I’ll replace tenants who don’t pay or don’t fit the target tenant profile with ones that do. This may take months to accomplish, but the increase in value can put the worth of the property through the roof!

When repositioning a commercial property, make sure you keep on top of excessive rehab costs. Have a plan and get estimates upfront. The lack of a rehab plan can cost thousands of dollars to fix especially if the rehab doesn’t produce the results you desire. Remember to also use professionals to get the job done. Trying to be cheap by doing it yourself may mean that you don’t end up with the professional upgrading that your property needs. This will not only waste your time, it’ll cost you the tenants or your building.

A lot money in the deal to help cover the expenses of repositioning. Taking too long to get paid is one of the reasons a fixer-upper investment will fail. If you aren’t collecting the necessary rents to cover the mortgage because repositioning is taking longer than expected, you could have a disastrous situation on your hands. Set a plan that is realistic financially before you commit yourself to any fixer-upper deal.

Commercial fixer-uppers may also be candidates for using a value strategy called “forced appreciation’. This means that property appreciation occurred because rents were raised or expenses were lowered. Was the previous owner afraid to raise rents because he felt the property was in disrepair? Did the property have expenses on the higher side and what will it take to lower the costs? Simple fixes to problems like these can increase the net operating income and the overall property value.

Get rid of your fears about working with commercial fixer-upper properties. By using sound strategies such as repositioning or forced appreciation, you can ensure that your investment will be a success.

PositionRealty.com
Office: 480-213-5251

How To Buy Real Estate in Your IRA

Here’s the big question that confuses many: Can you have real estate investments in your IRA or Keogh? YES. You can. So that was easy, now what?

The next question arises about leveraged real estate and how is it done. Yes. You can leverage real estate in a retirement vehicle, but it is so important to do it right, and all too often it isn’t. So rather than go into the details of how it’s been done wrong, let’s just get it right.

Always Vest in the Name of the Trustee

IRA’s have custodians or trustees, as do Keogh’s and other qualified plans. Vesting must always be in the name of the custodian or trustee. IRA’s never have individuals as custodians or trustees, unless an individual is properly certified under IRC 401 12(n) as a person who qualifies as a non-bank trustee. If you are one of those, you already know all this. If you are not, read on.

If you decide to buy property for the benefit of your account, and somehow the title or escrow company got your name on it rather than the trustee, that needs to be changed, even if it means starting the title/escrow work over. If you are the trustee of your qualified plan, the title must be in your name as trustee for the appropriate type of plan you have. If you are a co-trustee, yes, everyone has to be on title.

The Plan Must Make the Payments

Now back to leveraging. Your IRA or plan makes the payments. The payments are made from your account or plan, from whatever available cash there is to pay for the underlying debt. Remember that the property that you bought is the collateral for the loan your plan is paying for. So if title is vested properly, and I now am sure no one will make the improper vesting mistake, who makes the payment? The owner.

Yes, many times third parties make the payments, many of us have been there, but in this case it’s serious. The plan has to make the payments. If that means making contributions, or selling other assets in the plan to make payments, so be it. If you don’t, you’re in default, and that means that the asset will be departing from your portfolio unless it’s cured.

Should Your Retirement Plan Invest in Real Estate?

So that was easy. Now the part that becomes a little more interesting: Should you have real estate in your IRA, SEP-IRA, Keogh, or other qualified plan? The answer is yes, no, maybe so. OK, it’s not a good answer as such, but let’s examine the real situation.

IRA’s

If it’s your IRA, it’s your retirement. You should be a savvy real estate investor, or really know your way around real estate and notes. Also, remember your beneficiaries. Many times we have seen beneficiaries holding notes and property that the spouse had not necessarily paid real close attention to. In some cases the information left behind was not in the condition it should have been in to leave behind to anyone. Our suggestion and opinion is that real estate investments in an IRA should be made by professionals. If you fit in this category, in our experience has been great for many as part of a balanced portfolio or investment strategy.

Keogh’s and Qualified Plans

Read IRA’s directly above. If you are alone it’s one thing, but when you affect the retirement and lives of others it becomes somewhat more complicated. If you are making decisions in a pool for your employees, the quality and type of deal you are making is significantly important. Your employees, (including spouses and children) will be impacted by the type of portfolio you put together. Usually a retirement portfolio is composed of stocks, bonds and money markets. If you use mutual funds, it works similarly, a stock fund, a bond fund and a money market fund. Within those classifications one can diversify. If you make the investment decisions, you need to be very careful about diversifying. If you want to include real estate, you certainly may, but balance it in terms of risk and proportion in your portfolio. Be certain that the investment is arms length, and well considered.

One thing that you should always consider is getting professional advice. This means all the advice, and be sure it’s documented. Real estate can be an excellent component to a retirement plan, it just has to be done properly. If your plan allows self direction, meaning that you permit your employees to direct their own investments, then you need to make sure that they (and you) receive the proper information about investments and make that information constantly available. Information and education are key to reducing your liability over the long term also.

So can you have real estate in your IRA and Qualified Plan? Yes. But please follow the rules and get good advice, and it will pay back big dividends in more ways than one.

PositionRealty.com
Office: 480-213-5251

7 Steps For A Successful 1031 Tax Deferred Exchange

A 1031 exchange is a tax-deferred exchange which allows an owner of business or investment property to exchange that property for new property without incurring income tax on the gain.

The 1031 Exchange Process

Prior to closing on the sale of the sold property:

Step 1: Consult with your tax advisor for a 1031 tax exchange

Step 2: The Agreement
Contact an 1031 exchange intermediary to reserve an account number to use on all the exchange documents. The owner of the property (“the Owner”) should complete both an Exchange Agreement and a Qualified Exchange Trust Agreement.

Step 3: Assigning the Sold Property Contract
The Owner assigns rights but not obligations under the Sale Contract to a Qualified Intermediary and provides notice of the assignment to the Buyer. At the closing, title for the sold property is transferred directly from the Owner to the Buyer (known as direct deeding). A copy of the completed Assignment of sold property Contract and a copy of the Sale Contract should be sent to your intermediary.

Step 4: Net Proceeds
Net proceeds from the sale must be payable to the Qualified Intermediary. Payment may be in the form of a check payable to them or a wire transfer. It is important that the Owner never have actual or constructive receipt of the funds from the sale. Once proceeds are received by them, they are invested for the benefit of the Owner.

Within 45 days following the sale and transfer of the sold property:

Step 5: Identifying Replacement Property
The Owner completes the Identification of Replacement Property form. Replacement property must be specifically and unambiguously identified. For real estate, this could be a valid street address or a legal description. Identification requirements for personal property may vary depending on the item, but make, model and year are usually sufficient. Delivery of the Notice to the intermediary may be by hand, fax, mail, or over-night courier and must be postmarked by or received by 11:59 p.m. on the 45th day. Prior to midnight on the 45th day, the Identification may be amended or revoked, but after the 45th day, no changes in the Identification will be accepted.

Within 180 days following the sale and transfer of the sold property:

Step 6: Assigning the Replacement Property Contract
The Owner assigns rights but not obligations under the Purchase Contract to the Qualified Intermediary and provides notice of the assignment to the Seller. A copy of the completed Assignment of Replacement Property Contract and a copy of the Purchase Contract should be sent to the intermediary.

Step 7: Disbursements
Owner sends a Direction to Disburse Funds from the Exchange Account. Funds are made payable to the Seller of the Replacement Property or to the Sellerâ€™s agent. At the closing, title to the replacement property is transferred directly from the Seller to the Owner (direct deeding).

You can always check out what the IRS says about 1031 Exchanges prior to entering into a 1031 Exchange.

PositionRealty.com
Office: 480-213-5251

The Truth About 4-Family Investment Properties

Many of 4-family properties sell at a price where the purchasers will not see a dime in positive cash flow for 10 years or more. Why? In my humble opinion, there are several reasons. First, 4-families are very much in demand among newer investors who, in all honesty, don’t have the first idea how to properly evaluate cash flow. These buyers fall into the trap of determining the value by looking at what other people have paid for comparable 4-families to determine value, rather than doing a cash flow analysis to see how much money they’ll make at a particular purchase price. As a result, they pay what everyone else is paying—which, as you’ve already seen, is often more than one can pay and make any money!

Compounding the problem is the fact that many 4-families are sold by agents who also have no investing expertise. I’ve had many an agent “prove” to me that a 4-family is a good deal because it has a positive cash flow after mortgage payment, taxes, insurance, utilities, vacancy loss, and maintenance fees are taken out. What they don’t seem to understand is that, as the owner, I would also have to pay for extermination, evictions, mileage and wear-and-tear on my car, bank fees on my business account, accounting fees to keep my taxes straight, turnover and advertising costs associated with those vacancies, and the all-important replacement reserves for items that wear out slowly, such as boilers, roofs, and so on. When I show an agent that my real, true-to-God expenses on a particular building will outstrip income by 25% or more, they invariably tell me that I’m exaggerating—after all, the CURRENT owner makes money hand over fist! (Sure he does—he paid $20,000 for the building in 1954!)

Another reason for the gap between selling price and price at which a buyer could make money is that 4-families seem to be a favorite of super-conservative investors, many of whom pay all cash or a very hefty down payment, and, as a result, are able to get cash flow out of even the most overpriced properties. Think about it: if you didn’t have a mortgage payment on these properties you’re looking at, would they make money? Of course! Would they make a decent return on your investment? Heck no! But some investors aren’t looking for double-digit returns; they’re looking for an attractive, easy-to-manage property where they can sink their money and get a (more-or-less) guaranteed return.

My suggestion is this: leave the 4-families to the under-educated and over-conservative, and focus on the slightly larger properties that small investors like yourself can both afford and actually make money on. Five to 12 unit buildings give you the benefits of size plus eliminate the competition from over-paying amateurs and the better-funded corporate investors (who want much larger properties. And as an added bonus, it’s much easier to negotiate owner financing on these properties!

PositionRealty.com
Office: 480-213-5251

How To Create Massive Passive Income Without Hassling With A Single Tenant

The true goal of every investor should be to create as much massive passive income as soon as possible.

Passive income means just that, money that comes into your house month in/ month out without you having to do a thing to get it. How can you accumulate massive passive income quickly?

Well, if you went out and bought a couple dozen single family houses and kept them, you would create a decent income. Good but not great.

Its’ going to take you a little time to find all of these deals and then you would have to manage all of those tenants.

What If You Put a Couple Dozen Units in the Same Property?

Then you would only have to find one deal and then a few more to create a great passive income.

I know what you’re thinking. Oh no, not apartments! I don’t want to deal with the tenant hassles! And I agree with you, you shouldn’t be dealing with any tenants, wouldn’t it be better if you could just sit back and collect checks while someone else deals with all of the management headaches?

Those people are called management companies and they make a living shielding investors from the day to day management of their properties so you can go out and continue to do what you do best, find more property and create more cash flow!

But Aren’t They Expensive?

It’s true that management companies are paid a percentage of the gross collected rents, somewhere between 6% and 10%, though if you factor this cost into the deal, as long as the property cash flows with these fees, you’ve got yourself a winner!

Not only have you found a property that will get you one step closer to true freedom, you don’t have to hassle with a single tenant.

PositionRealty.com
Office: 480-213-5251

Flipping Versus Holding – Which is Better?

Some investors focus on flipping—that is, turning properties over quickly, rather than keeping them long term. In some cases, holding property generates more long-term wealth for you than flipping. Therefore, you may consider flipping some properties and holding others. On the other hand, you may consider using the flipping strategy awhile, and then begin holding properties later. The big question is, “When should you hold versus when should you flip?”

The Advantages of Flipping

The main advantage of flipping is that you get your cash out immediately rather than later. Flipping in a competitive market will be like trying to drive up a 90 degree hill. If you are able to buy a property correctly, then you can receive a paycheck immediately but you will have to keep buying properties correctly to receive a consistent paycheck similar to a rental property.

The Advantages of Holding

Property holders can generate true wealth over the long term. Historically, property values appreciate at a rate greater than the rate of inflation in the United States. If you buy in the right neighborhoods, your annual appreciation may reach double digits. You can use properties with equity as collateral. You can provide rental income for your retirement years, and you can pass property down to the next generation. Once your rental properties are owned “free and clear,” you have passive income from rents paid that gives you an income even when you’re not working.

What’s Right for You?

The important question isn’t whether flipping is better or worse than holding, but which strategy is right for you. To discover the answer for yourself, ask these questions:

1) Do I need additional income now or in the future?

2) Am I in a high-income tax bracket that would be adversely affected by more income now?

3) Does my local real estate market present opportunities to acquire bargains, yet still command high rents that would cover my expenses if I need to hold on to the properties?

4) Do I have other income or savings that I could tap into in case my rental properties become vacant or need major repairs?

5) Is the local real estate market rising or falling at this time?

6) Does bringing in income now or later fit into my short-term and long-term financial goals?

Most investors start out flipping houses, and then gradually work into managing rental houses or becoming involved in larger, more complex real estate projects. Some people don’t have the temperament to deal with tenants and the headaches that come with rental properties. Some look for side income by flipping. Others want to quit their jobs and make flipping houses their full-time business.

As you can see, many investors were once in your shoes making these decisions. Be sure to consider all options, including a mixture of flipping and holding properties. Reevaluate your financial goals on a regular basis and adjust your real estate strategies to support these goals.

Why You Should Use A Buyer’s Agent

One of the biggest mistakes new and veteran real estate investors make is to purchase a listed property without the use of a buyers agent who is experienced in working with real estate investors. Now any agent can be a buyers agent but unless they understand how we buy and sell property they will not be able to guide you through the many pitfalls and will cause unnecessary paperwork and hassle.

Many investors incorrectly believe that if they don’t use a buyers’ agent they can get the seller to give “them” a 3% discount in-lieu of paying the full 6% to the listing agent. This is almost always wrong. A seller enters into a listing agreement with the listing broker for an agreed upon amount or percentage. Once the property is listed in MLS that fee is shared with the agent, if any, that sells the property. If the listing agent sells the property…they keep 100%. That means not only do you not get a discount equal to the shared fee, but you also are letting the seller have an advantage in the negotiations.

What Exactly is a Real Estate Investors Buyer Agent?

Buyers’ agents are agents who are experienced in and often times specialize in working on investment related transactions and retained by real estate investors to help them find the perfect house and are paid by the sellers / builders / listing agents.

Here’s an example. Lets say that you are in the market to buy a very specific car (i.e. a Black Chevrolet Suburban 4×4 with tan leather interior) and walk into a local Chevrolet dealership to find one. Guess who those “friendly” sales people work for? The dealer, of course. They’re all trying to get you to buy using every pressure tactic in the book. Do you feel comfortable? Of course not.

Now, what if you could hire an independent vehicle consultant to find you that exact vehicle from amongst all the regional Chevrolet dealerships. Someone to handle all of the negotiation, at your direction. Someone who knows the market and the costs associated with buying this vehicle as well as how long a dealer typically takes to sell this car. All of this info is vital to you getting the best deal To get all of this at no cost to you, you simply sign an agreement with that individual that outlines the following obligations:

* That the consultant is to look out for your best interest (The are legally bound to do so).

* You agree to allow your consultant to paid a pre determined finders fee from the dealer from whom you decide to buy.

* That the consultant will help you find the best deal. Performance based compensation. If they don’t find you what you want…they don’t get paid.

* You agree to work exclusively with that consultant. (This helps ensure that there is no pressure on you to buy because that consultant knows that he / she will eventually be rewarded for their effort to help you).

* You agree to only buy from dealerships that will pay your sales person a finders fee.

Now substitute the car for a house and the consultant person for a real estate investors buyer’s agent and you’ve accomplished the same thing, which in real estate is known as buyer agency.

Services That Buyers’ Agents Offer to Their Clients:

*Reliable advice and information is perhaps the key factor in making a “good decision”. As your buyer agent, they will provide you info such as, but not necessarily limited to the following:

* The original purchase price of the house.

* Evaluating improvements that the sellers may have made to the house.

* Comparative market analysis for similar houses in the neighborhood.

* The average closing help paid by sellers of other similar houses in the neighborhood.

* The average drop from list price to sold price.

* How many days the property has been on the market for sale.

* The co-relation between tax assessed value and market value.

* Computerized what if scenarios on spreadsheets to allow you to make sound financial decisions.

* Introduction to reliable mortgage lenders, home inspectors, settlement attorneys etc.

* You worry about finding the perfect house – they will help you take care of all the small details.

How Exactly Does a Real Estate Investors Buyer’s Agent Get Compensated?

Whenever a house is listed with a brokerage firm, the seller of that house (whether it is a new house or an existing resale house) agrees to pay the listing firm a set fee. The listing firm then enters that listing into the MLS database and agrees to pay a percentage of the final sales price to any other realtor from any other listing firm should they produce a buyer for that house. This way, brokerages get to share one another’s listings and can cross sell thus making it easier to sell the property. Only a very small portion of homes on the marketplace do not want to pay realtors. These include small or not so reputable builders who do not want realtors advising their buyer clients and for sale by owners (who’re typically priced too high). I can highly recommend the use of a real estate investors buyer’s agent for real estate investors of all experience levels. Be sure that you select one with experience in real estate investment transactions. There are many of these folks out there.

PositionRealty.com
Office: 480-213-5251

Results No Excuses

Category Archives: Investments

8 Best Markets for Flipping Houses

How to Use Your Retirement Funds for Real Estate

Property Zoning Is The Second Most Important Component In Real Estate

Making A Success Out of Commercial Fixer-Uppers

How To Buy Real Estate in Your IRA

7 Steps For A Successful 1031 Tax Deferred Exchange

The Truth About 4-Family Investment Properties

How To Create Massive Passive Income Without Hassling With A Single Tenant

Flipping Versus Holding – Which is Better?

Why You Should Use A Buyer’s Agent

Quick Navigation Panel