Archive for April, 2014

How to Add Value to a House

As if there isn’t enough to do, real estate investor, contractor, business owner, host to my video blog and busy husband, father and grandfather, I’m adding new books to my list of activities.

Finding the time to write has been challenging with a wife in graduate school, five children and two grandchildren to keep up with. I figure my next full book will take me a good year to write.

For those of you already connected to REIAComps , the control and feeling of confidence you have over your deals is priceless. Using REIAComps to investigate the value of houses as they come to market, against other less reliable sources is a no brainer.

But back to the book, the title I am thinking of is something like “How to Add Value to a House, which will represent responses to repeated questions I’ve had over the years and is more of a “what to and why to” rather than a “how to”.

It will talk about the specific renovations you should target; it talks about why some areas of a house are valued more than other areas. It will actually be about how to maximize the potential of any house you are renovating.

Aimed at everyone from homeowners who want to renovate to those who want to sell and anyone thinking about buying a house and fixing it up, the book will be full of practical advice, some do-it-yourself instruction and tips I haven’t touted elsewhere.

It’s a natural extension of my core business InvestorCompsOnline, which is now in its ninth year and takes users through the process of identifying a solid acquisition value for income property and maximizing its potential after repair value through smart valuation to create real estate which makes money for its owners. You can practically do the same using REIAComps and access to its Online Valuation Support Desk. The Ticket System, Knowledgebase, On-Demand Training and helpful Paperwork are tools and resources you won’t find with any free comp tool. 

It’s a process which has been perfected over more than a decade and a half creating my own real estate portfolio. Through the years I’ve kept pretty careful records of everything I’ve done; making notes and tucking away tips I’ve discovered and tested. I actually have so many ideas left over there will be another book in the works if this one does well.

Why write a book now?

I think you gotta make good while the water is flowing. Literally of seizing the opportunity to get my voice out while people are listening, help as many people as I can while my talent and ability are helpful to others.

Take these musings in real estate valuation and turn some extra profit. Of course, use REIAComps to determine the best acquisition and ARV for every deal you look at. Don’t for one moment let someone tell you the value of a deal. Let REIAComps show you for yourself.

Mark JacksonMark Jackson is an appraiser, real estate investor and property valuation specialist who teaches others to get more out of their real estate investing business. In 1999, Mark founded an appraisal company and soon found his true gift was analyzing property values for real estate investors. Since 2000, has closed millions of dollars’ worth of his own domestic and international real estate transactions. Mark’s passions are: faith, family, golf and real estate.

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Finding All The Cash You Need To Fund Deals Without Going To The Bank – Part 1

I believe that one of the greatest challenges to any real estate investor is raising the money or finding creative ways to fund deals. Going to the bank for money can be a long and arduous task, and while you are waiting weeks for approval, another investor with ready funds just bought your deal. Plus, the bank is going to insist that you fund the deal in your own name which can be damaging to your credit. In fact, taking properties in your own name can be outright dangerous. In addition, in our current market, it’s nearly impossible to get funding from banks to purchase great deals. And if you already have more than three loans in your name, you won’t get the money at all. So, where do you get the money or what creative ways can you use to fund your deals?

I have several great ways for you to find money to fund deals and end up with all the money you will ever need. The fastest and easiest way to locate funds is to find hard money lenders. This is the easiest type of lender to find, especially if you are just starting out in the real estate investing business. So what is a hard money lender and where do we find them?

A hard money lender is a person who will not require a credit check or long drawn out approvals like a bank would. What they will require is that you pay them an interest rate of usually 12-18%. They may also charge points on the front of the deal, usually between 3 and 5 points. These fees are sometimes negotiable and will vary depending on what part of the country you live in. They will also probably charge a pre-payment penalty if you pay the loan off early.

A hard money lender will require that the loan be no more than 65-70% of the after repair value of the property. If there is enough room in the deal, they will also let you fund the repairs from the amount you are borrowing. Their interest is guaranteed by a first mortgage against the property and the insurance you carry on the property.

I believe that using hard money lenders in your business is an easy way to get the money you need quickly, especially if you are just starting out in the business. Using a hard money lender comes in handy when you are going to buy, rehab, and retail a property. Even though using a hard money lender is expensive, if there is enough profit in the deal for you, it is well worth the investment. Remember, it’s the availability of money that is important, not the cost of money, especially when there is a big profit check in it for you. You can use hard money lenders until you build relationships with the private lenders you will use in your business.

One of the questions I most often hear is “So how do you find these hard money lenders?” There are several ways to accomplish this. One way to find them is to simply check with your local real estate club. There are usually hard money lenders there waiting to loan you money for your deals. You can also run an ad in the real estate section of your local newspaper. You can talk to people you meet at real estate events or seminars you are attending. These are all good ways to find hard money lenders to fund your deals. Your Realtor may also be able to help you find sources for hard money. In addition many times you can find hard money lenders through local mortgage brokers. Mortgage brokers usually have some hard money lenders available when they can’t get deals funded any other way so they are a good resource for you to use to locate funds you need for your deals.

For more information on finding all the funding you need for your deals read part two next month.

Kathy KennebrookKathy Kennebrook is a speaker, author and has been actively investing in real estate since 1999, Kathy currently resides in Bradenton, FL and is known as the “Marketing Magic Lady” because she is the country’s leading real estate marketing expert on finding motivated sellers using direct mail.

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