Whether you are a beginner or a professional real estate investor, this secret tool for real estate investors will help you find the best deals.
It’s said that there are two types of people who should invest in real estate. Those who want physical investments and those who are good with researching, as well as customer service. Hey, that’s three types, right!
So, if you are at least one of those types of people, and especially if you are a beginner, you will need to have access to this tool in your arsenal.
But first, let me first talk a bit about investing in real estate so that you know you are reading an article written by a knowledgeable person, when it comes to this topic.
Proven Ways to Make Money Investing in Real Estate
The oldest, and most basic way for investing in real estate is to simply buy rental properties.
Then you simply charge enough rent to cover the mortgages and other costs, such as hydro. The normal procedure is to charge only enough rent to cover the expenses, that is until the property mortgage is paid in full. Then, most of the rent charged will be your profit.
Another method for investing in real estate is to invest with a group. This is usually done through smaller mutual funds, notably for rental properties.This would be when a construction company would build several buildings of apartments or condos and then allow investor groups to buy them.
As one of those investors, you could technically own one or multiple units. However, the construction company manages the investment group for a monthly fee.
Some buyers purchase properties with the intention of flipping them in a very short period of time, sometimes as short as four months… and, they sell those properties at a profit.
This technique requires buyers to learn how to purchase undervalued real estate or flip properties during a hot real estate market.
Then there are real estate investment trusts (REITs). This is where a corporation or trust company uses an investor’s money to purchase and manage income properties.
These REITs are bought and sold on stock exchanges just like all other stocks are. In order to maintain their REIT status, a corporation has to pay out 90% of its taxable profits in the form of dividends.1
This gives real estate investors a lot of leverage. For example, when you buy stock, this typically requires you to pay full value at the time you place your order. But many mortgages now may require as little as 5% down. This would enable you as buyer the ability to control the property and its equity simply by paying a fraction of the real value.While rental properties could provide you with a regular income, and more importantly, the property may even go up in value, they could also provide investors with several tax-deductible expenses.
Though, you will need to know that actually managing tenants can become tedious, to say the least.
For example, they could damage your property and/or refuse to pay rent after the first few months. This would then require costly legal fees in order to evict them.
Plus, I would advise ANYONE new to investing in real estate to avoid the “no money down” technique, unless you have a very talented coach that you can trust. Done incorrectly, this type of investment could become costly, very quickly.
Once you have your first rental property, be it commercial or residential, I also recommend that you seek an agency to tend to managing that rental property for you.
Yes, it will dip into your profit margin, but this will also give you peace of mind, and you won’t be receiving calls at 3 AM, for such things as the furnace no longer working in the middle of the winter. Your manager will be fielding such calls for you, leaving you with a good night sleep.
And, management fees are tax-deductible.
Best Way to Find a Qualified Property Manager
- Ask other real estate investors (or the lawyers of real estate investors) for whom they would recommend to manage rental properties.
- Be sure to check online for a property manager’s reputation, once you have been given names to choose from.
- Apparently, most states require property managers to have a real estate broker’s license or property management license in order to be able to show vacant properties.2 Make sure the property manager you choose to use has a license and that it is up to date.
- Be sure the manager you choose knows how to properly screen and/or evict unruly tenants.
- Understand exactly any document that your chosen property manager asks you to sign, as well as all that your property manager will be responsible for.
Find Good Deals to Invest in, FAST!
Okay, for real estate investors (even those of you who are new to investing) and want to find a way to locate lots of great deals fast, then I have a great tool to introduce you to.
This tool is specifically designed for real estate investors and wholesalers, and it does a lot more than just find properties for sale in your price range.
Before you continue here, I am legally bound to let you know that if you click on the links below that I may earn enough money to buy a couple of cups of coffee.
So, please note that when you click links below, and if you make a purchase, I may receive a referral commission. That now said, please continue…
As I’m sure that most of you are aware, the headache with using real estate property listing websites is that you can only filter properties by a few basic descriptions of the property you may be looking for. Things like the number of bedrooms, bathrooms and the square footage of the building in question, for example.
And, that’s great for buyers who intend on living on the properties that are listed on such websites, but as a real estate investor, you will need a lot more information than that. For example, you will need to be able to run the actual numbers on a property in order to be able to determine if there is any potential of making a profit.
This tool takes the properties listed on property listing websites and passes them all through yet more filters that then passes them through the necessary numbers, in order to determine good deals only.
As any real estate investor will tell you, searching manually, you will have to look through hundreds of properties in order to find that one winner property. This tool can save you hours of running individual properties through spreadsheets.
If a magical spreadsheet will show you the profitability of one property every five minutes, then it will take you one hour to determine how profitable a previously found 12 properties are.
Can you imagine how many HOURS you will be looking through 100 different properties?
Courtesy of this tool, you can save time because with a simple click of a button, you will be able to go through thousands of properties in order to find a few properties that will meet your investing criteria.
There’s even a way of automating your results with this tool. It will search for properties, apply the magic numbers filter on them for you, and then it will send you an email of all that it finds… all on auto-pilot.
You simply tell this tool where you want your properties to be located, what you are looking for in the way of bedrooms, bathrooms, price range, and type of property. Then, you setup up how you want the tool to analyze those properties, and you can make those analysis as simple or as complicated as you want them to be.
Inside your account, you will even be able to setup multiple searches, with different types of filters. This will give you the ability of searching multiple counties or zip codes all at once, if you want, without having to constantly fill out forms.
This option allows you to save time by letting you search multiple areas all at once. And, the auto-pilot feature can be turned on for every search you setup, saving you from having to constantly sign into your account and run these searches manually.
You will also receive notices of ANY changes that this search engine notices in the list of properties that get mailed out to you.
In this way, you are kept updated as the information becomes available.
Such changes could be a change in the asking price, the market value… or any other information this tool has gathered on the properties for you, and then notices a change in the information.
There are even more features to this tool too.
You can upload a spreadsheet of properties that you have gathered and this tool will analyze the profitability of them for you.
It can also inform you of any classified ads of properties that are for sale that get posted on such websites as Craigslist. And, just like the other searches, it will only notify you of the types of properties you want to be notified about.
There are even pre-defined filters that you can use, in case you are not comfortable enough in setting up your own customized filters. Now, it’s time you visit the site for this tool and take a good look around before you make your decision to join.
There are four overview videos that you need to watch, so be sure NOT to skip over any of them.