Real Estate: What You Need To Know

People generally get confused with the term real state and real estate Business. Real estate itself is not related to business as it represents a property of land and building that too, including the natural sources, such as flora, fauna, crops, parks, pools etc. that are immovable and lies in the property’s premises. Whereas real estate business is the profession of selling, buying or renting these properties.

Real Estate Agents

It’s a tough task to match the needs of buyer and property sellers, as buyer may not get his dream property and at the same time the seller also may not get the price of his wish. To establish a good connection between buyer and seller and to find the right buyer for a seller and vice versa, Real Estate Agents can be hired that are easily available in the market. Real estate brokers or agents are the ones, who acts as an intermediate between property buyer and seller and tries his level best to match their demands. Buyers for buying and property owner for renting or selling their property get in contact with the agent. The agent listens to their demands and try hard to fulfill them, for a property sold or rented in his supervision, the agent charges some percent of the price of that property from both the parties, i.e. the owner and the buyer. Agents use websites to promote the sale of properties, often work at nights and weekends busy in showing properties to buyers.

Things you should know about Real Estate Agents

Although agents are such a bliss to those who are struggling to get a property or a price of their interest, but we have to be wise when it comes to choosing an agent. Agents are not bound to show you best properties or tell you all the things they know, they might get greedy sometime and show you properties that are going to profit them more than you. On the other hand, for property owners they might end up, leaving you with paying guest that can trouble you in future, in fact, as the general goal of an agent is to sell the property as soon as possible, they may excite you and ask you to sell your property at comparatively lower prices than that you expected, and would be getting after some days. It’s better recommended to choose your agent and the other party to buy or sell wisely, after taking your time, and not to get excited on every other offer you get.

New Real Estate Business Mediums in market

Now-a-days many online sites and applications have been developed to remove the work of agents. Both the parties contact with each other directly and choose the deals of their interest. Though, this move has increased the transparency between both the parties, but because of being fully online, may result in misleading each other. That’s why it is highly recommended to see the property in person before booking it. As the thing that seems to be good and satisfying online can be completely opposite from that what you will be getting in real.

Homes for Sale-Flipping

Everyone has either seen television shows or heard about flipping homes for sale. This real estate strategy involves buying homes for sales for a low price, renovate the homes, and then reselling them for a profit. Some of these professionals make their living by regularly buying and flipping homes for sale making a profit. They sometimes juggle several sales and several renovations at any given time. It is important to know that there is an art learning how to flip a house and make a profit instead of losing money. Make sure that you understand any restrictions and all applicable zoning laws on construction that may apply. From purchasing to flipping, many set a ninety-day time frame.

Step one

Before you even look at homes for sale to buy and flip, you need to determine how you will finance this venture. If you have a background in real estate or construction and have excellent credit, it may be possible to sure from your bank a line of credit. If you do not have these things, you may have to come up with a more creative way to finance a house for sale to flip. This can include finding a partner who will advance the cash that is needed.

Step two

Once you have the financing in place you can start to look for a likely house to flip. There are many characteristics in a house for sale to flip that you want to look for.

• It must be affordable so you can make a profit when you flip the house. You want to purchase the house for the lowest price you can. Check out houses that have been on the market for a while. Talk to the owners to see if they would accept a lower offer because they are tired of waiting for their home to be sold.
• Make sure that the home you are looking at is salvageable. When flipping a house for sale you should only deal with sound properties. Make sure that the foundation is in good shape and you only have to do minimal upgrades to the plumbing and wiring. The roof should also be sound. If any of these are a problem, you may spend more in repairs than you can get back when you try to flip it. Cosmetic renovations can usually be done without spending a lot of money.

Step three

The location of the property is also important. Avoid buying a house for sale in neighborhoods that no one would want to live in. Make sure that the neighborhood will attract many buyers. You want to make sure that when you flip the house you make a large profit or at least break even.

Big Money Mindset

“It is just another zero… ” I laugh. “What?” He asks. “Wait… your serious?” I reply. “Hell yes I am serious!! Are you afraid of a zero?” I could not respond.

He got me. I guess I was afraid of a zero. Big profits scared me. Was it the risk of the deal or the fact that I did not believe I could earn that kind of money? Up to that point I was doing deals making $10,000 to $20,000, which was decent money, but nowhere near my potential. I remember the first year I saw 6 figures on my tax return. I was very proud of that year. Now I wonder how I was able to live on that income. What changed? My mindset.

A few weeks ago a friend of mine and I went to a commercial real estate investing conference. I was blown away by the quality of the attendees. People at this conference are not seminar junkies. These people implement what they learn and take chances. I was hearing stories about profits on single deals of 2, 3 and 4 million dollars. Many people I spoke with started in the fix and flip business, but none of them were willing to look at a small deal like that again. What changed for them? Their mindset.

We shared a room and went out each night to network with other attendees, so we had a lot of time to chat. He mentioned to me several times that he is excited where his business is going and is excited to make the money he is finally making. He is making 7 figures a year. “I know I work hard,” he said to me “I can choose to work hard for $100,000 a year working for a company or I can work hard, take some chances, and make $1,000,000 a year doing deals.” I started working with him when he was fixing and flipping houses. Now he will not look at a deal without $200,000 in profits. What changed for my friend? His mindset.

To some this might sound arrogant. It is not arrogance at all. In fact, most of the wealthy people I meet, including everyone I met at that seminar, are extremely humble and open. The difference is they know their value. They put a value on their time and effort and will be paid for that. The mind will not allow them to accept less. That simple shift has allowed them to make big money. Here are a few mind shifts that have helped me turn $10,000 or $20,000 deals into $100,000 or $200,000 deals.

I deserve to be rich. There is no shortage of money to earn. There is no scarcity. Anyone that wants to be rich can be. Everyone deserves it but not everyone is willing to do what it takes. I understand that I deserve to be rich, with the understanding that it does not come free. I need to work hard and make smart decisions and then I can have anything I want. Look at it this way. Some people make 7 figures a year and drive their companies into bankruptcy. If they can earn 7 figures, why can’t you?

Think long term. This is not a race and not a get rich quick business. It is about building relationships and investing for the future. The quick profit game is played and lost all the time. I see it with investors, Realtors, lenders, and others on a regular basis. They are so interested in the commission or fee, that they forget to take care of people and add value. I focus on adding value and taking care of clients and partners. My reward for that over the years has been a steady growing company that pays me each and every month and a database of vendors, partners, and deal finders that want to work with me to make big deals happen.

Leverage is my friend. I have learned the hard way that financial leverage is a dangerous necessity. With that said, I would not be doing the big deals I am doing now without it. I have written articles about this topic because I believe it is extremely important. Leverage helps you accomplish more with less. It could be leveraging other people for their time, knowledge, and skills; or leveraging money in the form of partners or loans to get a deal done. Myself and several other people I know have built up a single family rental portfolio that is producing big time today because we leveraged hard money with bank financing. These are simple little deals that will produce big profits over time.

I can’t fail because I won’t give up. You only fail at something if you stop trying. I understand that I will be successful 100% of the time because I am not willing to waiver on my commitment. This has served me over the years, but has not been easy. I remember times I would be laying in bed wide awake at 3 am wondering how I was going to get out of a mess I got myself into. Thinking how easy it would be to let people down and stick my head in the sand. How my life, at that particular time, would be so much better if I just gave up. It was those trying times that made me who I am. Because I did not give in to the temptation of defeat, I made it through, learning the lessons necessary to become who I am.

Excuses are for losers. Harsh? I don’t think so. If you try and fail, great. The key is to take ownership of that result, learn from it and try again. The second time might have a better outcome. If you fail again, own the result, learn and try again. As so it goes. When you fail and make an excuse, you are shifting blame and not accepting the educational value of the failure. Losers do that. With that said, you have to try before you can fail, and so many people don’t even try. The reason? A bunch of excuses. No matter how broker you are, no matter how limited you are on time, no matter how unfair your life is, there is still a path to success. When I got started as a real estate investor, I was broke with no credit. I was in college full time and worked at night in a call center 30 hours a week. I was “unable” to work on my business except Saturday nights and Sundays. So I decided to make my calls as I walked between classes. I decided to use my lunch break to sit in my car and work on deals. I decided to give up every single weekend to hang signs and visit sellers. I decided to make it work.