Rei Resource Blog
GAIN AN ADVANTAGE IN YOUR
REI INVESTMENT BUSINESS
Rei Resource Blog
GAIN AN ADVANTAGE IN YOUR
REI INVESTMENT BUSINESS
Home sellers said that overpricing was the biggest mistake they made when listing their homes. Next worst mistake is dealing with the same real estate agent who represented the buyer.
Overpricing a home is the number one mistake sellers said they made when listing their homes, according to a new national real estate e-mail survey. The margin was nearly three-to-one over the second choice concerning homes for sale.
Survey respondents said their next biggest mistake was “dealing with the same real estate agent who represented the buyer,” thereby setting up a possible conflict of interest and possibly a perception that the buyer was getting a better deal with the home price.
Third biggest mistake was “failure to disclose known defects or problems.” Virtually tied for fourth place were: “under pricing their real estate properties” and “not utilizing Internet technology to market their homes.”
“With the rapid home price appreciation we’ve seen in many housing markets across the country, it’s not surprising that sellers expectations sometimes outran their local real estate market reality,” said Michael Bearden, president and CEO of HouseHunt, Inc.
Bearden expressed surprise over the negative response to agents representing both buyers and the sellers: “Usually it boils down to good communication with the consumer. The agent who communicates effectively and stays in touch throughout the real estate transaction usually has a positive experience with both the buyer and the seller.. With automated response systems customer communication should not be a problem.”
Writing down your real estate investment criteria means writing down your needs and wants in a real estate deal. It means outlining what you are looking for in a real estate opportunity. Having written criteria can help you grow as an investor and can make it easier for you to land the best real estate deals.
If you to join the ranks of real estate investors, you might want to have formal written investment criteria set out for yourself. Putting your investment criteria in writing allows you to see at once whether possible investment opportunities do or do not fit your future plans. This allows you to quickly sort through potential opportunities to pinpoint the right ones.
Writing down your investment criteria also hones your focus and ensures that you have an easier time finding the best possible deals. Having written criteria also allows you to share your criteria with other real estate investors, so that you can learn from them. If you haven't yet outlined exactly what your criteria are for selecting an investment property, now's the time to put pen to paper.
When developing your written criteria, consider when you do not want to make an investment. What is the bottom line? Do you not want to make an investment at any time if you don't understand it? Do you want to never make investments that you cannot pay for if everything goes wrong? Do you never want to make an investment where you cannot handle the worst-case scenario? Determine your comfort boundaries and the level of risk you are willing to accept or not accept, and put this in writing.
Next, when developing your written investment criteria, consider what your ideal investment would be like. What do you do to make sure that your investments are the best possible deals for you? Do you do a certain amount of research using specific sources? If so, write this down. Outline on paper the best real estate deal you ever put together. What were the steps you to that in to be an outstanding investor in that situation? What if you applied the same steps to every real estate deal you made? Would you generate more success from other opportunities? If so, outline exactly what you do when you are at your investment best, and add this to your written criteria. This will help ensure that every deal will at least have the opportunity of becoming as successful as your best deal ever.
Write down your money criteria. Where are you willing to go for financing? How much capital are you willing to put at risk? How comfortable do you feel taking risks with your money? What levels of risk are you willing to take? How are you going to secure your deals? Knowing how you will handle money is very important to you as an investor.
Finally, and maybe most importantly, outline the standards by which you wish to live as an investor. What are the ethical boundaries you're not willing to cross? What you want to stand for as an investor and what sort of person do you want to be as an investor? This may seem abstract and very much up in the air, but it will help you outline exactly the sort of investment opportunities you want to capitalize on. The best real estate investors have a code of conduct, so you should, too.
A power tip from Bruce W. Ford! Use these magic words and reap more profits from your rehab real estate investments!
Have you ever wanted just one phrase that you could say at the right time, and it save you hundreds, or thousands of dollars?
When it comes to getting the best price from contractors, plumbers, electricians, HVAC techs, you name it, there is a simple phrase that often works like magic in reducing your costs.
These specialties are always competing for work. However, if you ask any of them they will likely tell you that they are extremely busy!
They might be. They might not.
There's a game going on here. They need to appear very busy so their services are in demand and support the prices they will ask for. At the same time, you need to appear to be willing and able to get prices from many sources. (Don't just make it appear that way, get multiple bids whenever it's practical!) It's a balance that must be struck.
The good part is that now you know the game...so play both sides since you know what the other side's play.
How to turn the tables
* Have an idea of what the job will cost. Just a ball park idea will do.
* If you are told something that you think it high, ask why so high. There might be more to it than you know. The reason for the high price might be reasonable. Discuss alternatives.
(For example, if you electrician points out that the breakers you need are especially expensive, ask if he's got any used breakers that are still in good shape.)
* Then use the magic phrase...
Here it is...
"Is that your final and best price?"
Very often the person you are talking to will squirm a bit at this point. They are having to think...
"Is my price fair?"
"Am I over pricing something here?"
"Can I save this customer some money?"
"Does the customer know something I don't?"
While your contractor/laborer thinks about this, don't say a word.
I've experienced many reactions from "That's the best I can do" to "If you give me the job, I'll knock it down to..."
Often I've gotten a range of options that could save me money. More often than not, it saves my money!
It works like magic if:
* They understand that they aren't your sole source of the service they provide
* They know you are willing to wait for the best price
* They know you aren't a push over
* They know you might be a source of future income
But, it WILL work like magic when properly applied. In my own experience, I can point to many thousands of dollars of savings using this simple question.
We like to save money by keeping prices for services reasonable, true enough. At the same time, I advocate and approach of "don't let anyone get hurt." If you award a job to someone and it winds up costing them more than expected, I help that person out. I don't want someone to lose money on a job and leave with a bad taste in their mouth and never want to do work for me again. Be aware of when someone gets hurt. That said, watch out for those that claim to get hurt with each job.
Try out that phrase today. It works in many situations...not just rehab real estate, but in just about any competitive environment.
Benjamin. is experienced as a property Wholesaler, Fix & Flip and Turnkey Rental Property Sells throughout the United States.