What Our Coaching Clients Have To Say!

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For more information on starting a career in real estate investing or to learn how to consistently do 5-7 deals each month contact me.

See you at the TOP!

Valerie Adams
Valerie@ConversionMarketingExpertz.com

http://www.GetRealEstateCoaching.com
http://www.QueensOfDamnRealEstate.com

How Does Real Estate Investing Work?

Introduction

Commerical REOs and Non Performing Notes-[No MBLs] in the USA Top 150 Markets

It’s  ironic how the economy seems to be going up and down right? Well. not.  It seems that it’s going almost going down, with just a few little blips of improvement along the way.  When entering our career in real estate and Bank Finance and my sister, Valerie Adams in Corporate Marketing and Business, our mentors gave imparted investing advice that surpasses all.  From my local Bank Financial Planning CFO, advice consisted of” If you can buy real estate of any kind, do it!” He would further add the belief that property always increased in value. But how does real estate investing work and is that true?   Let’s look at some of the basics.

The first thing to understand about real estate investing is that there is a fixed amount of land available.   After all, the earth is only so big. Thus, a lot of people believe that real estate will always increase in value, and while there is some logic to that, real estate can and does decrease in value. As to how real estate investing work, there are much similarities with any other type of investing. For example,  you will do best when you buy at a low price and sell at slightly modest price; generally speaking. The trick is to know where you are on the curve of the pricing of any real estate that you are looking at.

Does Real Estate Investing Work?

You need to invest some time before you invest your money.  You should look at the area where you are considering buying the real estate.  How is, the city or neighborhood doing economically; what the demographics of the recent  sales look like , and what exactly is the acquisition pricing associated with the property within the last 3 to 6 months are they in an upswing,  or a downturn; what about surrounding property; what industries drive the local economy’ and are there any other fractures that could have an impact on real estate prices?

Of course,  at best, you can ever only make an educated and calculated evaluation.  Real estate,;vesting is still investing, which means there is some level of investment risk. The fact, the more convinced you are that a certain piece of real estate is a sure thing, the more cautious you should be.  There is no sure thing.

With that being said,  besides the occasional housing bubble, real estate tends to make a very sound investment.  At the least, you will have something to show for it.  Namely, it’s not just a piece of paper with representation of stock in the company,  but rather a physical asset that will always have some value.

Perhaps,  the right answer to, “how does real estate investing work?”. The answer; It works well, as long as you take the time to consider each purchase before you make it; and you get a mentor you who inject you into a system and knowledge.

If this article was helpful please be sure to subscribe to my blog and get updates on future article and content and LEAVE a COMMENT below.

For more information on starting a career in real estate investing or to learn how to consistently do 5-7 deals each month contact me about our Affiliate PartnerProgram.

See you at the TOP!

Valerie Adams
Valerie@ConversionMarketingExpertz.com

http://www.GetRealEstateCoaching.com
http://www.QueensOfDamnRealEstate.com

Written by: Valerie Robinson, REI & CME & Valerie Adams, CMA., CME-Coach-Mentor

http://www.recruitlikeval.com

Em: valerie@conversionmarketingexpertz.com

Em: bigvalerie@conversionmarketingexpertz.com

CONVERSION MARKETING EXPERTS, LLC

April 12, 2019

CME-Copyrights 2019

Flipping Real Estate: Calculating Costs


If you been in the real estate investing business, or more specifically been flipping real estate, for more than a few days, you’ve inevitably gotten an email that reads something like this:

“Investor’s Dream. This property will go QUICK.

  • Property Address: 1234 Main Street
  • Asking Price: $100,000 (Add or subtract zeros!)
  • After Repair Value: $150,000
  • Repairs: $15,000
  • Profit: $35,000
  • Details: Needs paint, carpet, tile, new kitchen, update bathroom, some roof damage.
  • Tenant occupied. Need to evict!”

STOP! Before you read on… Take a guess at what you think the “real” profit’s going to be on this real estate investment…

If you haven’t ever gotten an email or text broadcast like this, then rest assured, you will! I’m about to probably tick off all of the late night infomercials and pitchmen out there! Sure, I understand that when you’ve got 30 minutes (or 90 minutes, for that matter), that you’ve have to sell what’s sexy… not what’s REAL!

Now it’s my turn to expose the real deal on real estate investing! This goes for flipping real estate itself (i.e. properties) or simply flipping the contract (also known as assigning the contract). When you’re flipping real estate, you need to be able to calculate the “real” bottom line and if your assigning the contract, you need to know your numbers so you don’t get blacklisted from investors! This one piece of information will keep you from getting into trouble because of any “real estate bubble”!

Purchase Costs
Here goes… Have you EVER purchased and sold a piece of real estate for FREE? If you’re not sure what the answer is… It’s an emphatic NO… You are going to have costs to buy, costs to hold and costs to sell. This holds true even if you are buying a property for all cash. (Think title fees, attorney’s fees, recording fees, etc.)

If you’re not getting a mortgage, your purchase costs are obviously much lower, but nonetheless, there are costs associated with any real estate transaction. Plus, more than likely, if you’re relatively new, you’re probably not paying all cash for property anyways. You’re probably going to be using a hard money investor for your initial real estate investing financing!

For a quick calculation, you can estimate anywhere between 3% – 5% for closing costs to just acquire the property. That’s 3%-5% of the purchase price.

Holding Costs
How much is it going to cost you each and every day to own this piece of real estate? See, if you’re making money in real estate, you’d better believe that there are a lot of other people that are going to expect to get paid and they get paid in the form of mortgage interest, property taxes, utilities, property insurance, etc. Each of these is an expense each and every day that you own the property. Here’s an example… A hard money loan on a bread and butter type piece of real estate might run you 15%. Let’s say you got the property for $100,000. Every month, you are paying $1250 in interest alone. Let’s say that taxes and insurance are another $200/month and then utilities at $100. Right there, the property is costing you $1550/month – or roughly $50/day. See, why it’s important to know your not only your holding costs on a real estate investment, but also how long it’s going to be on the market before you can flip the property.

Selling Costs
Here’s the third part of the real estate investing puzzle. When you want to turn around and sell this piece of real estate, it’s going to cost you yet again! Are you going to use a real estate agent and pay a commission or 3-4-5% or even more? On $150,000, that’s anywhere from $4500 to $7500 chopped of the top. Then, you can figure 2-3% in closing fees.

If you can remember this… and apply what you’ve just learned to each and every real estate deal that you do, you’ll be safe flipping real estate in any market. You see, if it’s a hot market, you can calculate less time for holding cost. But, in a slower market, make your offer based on 6 months or 9 months of holding costs. It’s really simple math! And real estate really is a numbers game…

Resources

If this article was helpful please be sure to subscribe to my blog and get updates on future article and content and LEAVE a COMMENT below.

For more information on starting a career in real estate investing or to learn how to consistently do 5-7 deals each month contact me.

See you at the TOP!

Valerie Adams
Valerie@ConversionMarketingExpertz.com

http://www.GetRealEstateCoaching.com
http://www.QueensOfDamnRealEstate.com

Become An Affiliate Partner & Do More Deals!

We have 10 Spots Left! PLEASE READ THIS ALL THE WAY THROUGH!!!

Increase your business in 2019 by doing more deals. We will set you up in the zip code of your choice and feed you ready to go SFR Deals.

Co-Wholesaling has never been better. In addition, if you are newer to the industry and want to work side by side with me my team message me asap. Besides, it’s February and we can still rock and roll and end the year with a bang.

(Well I have only flipped 1400 deals right), LOL; so I can help you close more deals using an automated system.

What I need from you:

1. Commitment!!

2. Be Coach-able!!

3. Provide me a zip code of your choosing!!!

What you get from our Team:

1. Access to my team to help you get questions answered. Never lose another deal because you don’t have support!

2. Mentorship

3. We will FEED you “already done deals” to co-wholesale; as many as you are willing to work.

4. An affiliate Partner Website.

5. An automated System so you can close multiple deals each month..

6. Help building your cash buyer database for the zip code of your choice.

7. CRM Software so you can manage Your contacts, properties & deals… Automated… this is KEY!!

We are KNEE DEEP in the trenches with our partners and have no time to waste.. ONLY RESPOND if you are serious and need more help securing more deals and ARE READY NOW……

Let’s GO to work Team!! Send me a text message with the following details..

FULL NAME, ZIP CODE OF YOUR CHOICE, EMAIL ADDRESS SO I CAN GET YOU GOING WITH PAPERWORK AND GET THE DEALS COMING IN OVER THE NEXT 1 BUSINESS DAY.  (951-268-4305)…

WE ARE ONLY TAKING ON 45 AFFILIATE PARTNERS AT THIS MOMENT SO PLEASE ACT FAST…(ONE FOR EACH STATE SO WE CAN KEEP YOU FLUSH WITH BUSINESS AND SEND OUR REFERRALS TO YOU.

I will see you at the top.

Valerie Adams
Valerie@ConversionMarketingExpertz.com

http://www.GetRealEstateCoaching.com