Robert Allens concentric circle theory makes for intelligent hunting for hot properties. The circle has a small circle in the middle called the “center”
The circles around it are identified as A, B, C, and D A being closest to the center. The theory works this way: compare real estate to student housing. The nearer the student apartment is to campus, the higher the rent is and the lower the turnover is. That student apartment therefore being in circle A is a good investment. The same applies to houses. Which neighborhoods are nearer to centers of employment, education, shopping and conveniences? Try to hunt for properties in the A circle, and avoid those in the D area.
Introducing the Dont Wanter
Dont-wanters are people who will give anything to sell their property, to be rid of it completely, and who cross their fingers every minute hoping a seller will buy their property. Because of this, they can be flexible as you want them to be. How many of them are dont-wanters? “Even in extremely tight sellers markets, there are still plenty of dont-wanters. Perhaps 5% of all sellers are willing to be flexible enough to be called dont-wanters. Some new investors get discouraged early because they havent learned that 95% of the sellers are not flexible. They need to be dealing with the 5% who are dont-wanters.”
Lease with option to buy: a lease option has a longer term than a straight option, usually running for as long as one year or longer. Some will even stretch to three years, depending on the whim of the seller. While your lease is ongoing, you can rent out the property and be in a positive cash flow. The second advantage is, the property is appreciating in value. If you have a long lease option, you can then sell the property for the highest price you can obtain.
One last strategy for hot picks: be on the alert for long leases. Long leases will ensure that a property will be rented or leased for long periods of time, not just a year. Some commercial leases for example go for as long as 5 or 10 years. One example is the government. Take post offices as the best illustration. The government will usually rent space for post offices on a long term basis. If the property you are eyeing has government outlets like the post office, the automobile insurance board or the government-sponsored health centres, these buildings qualify as hot property!
Be on the lookout for re-negotiated real estate deals, what Tyler calls the “real estate workouts“. These are deals where lenders, so as not to foreclose on a property, extend the term of the mortgage loan so that monthly payments and terms are easier for individuals. This is how the real estate pros lay their hands on properties about to be foreclosed because the property is being sold below market price.
Want to have fun and get educated at the same time? Attend local property auctions. This is more for networking purposes and to get potential leads from others who make it a business to attend these auctions religiously. If one leading broker likes you, he/she may steer you to the right deals.
Keep a roving eye on government assistance programs, specifically those geared towards affordable housing programs for seniors and low income families. As governments become more sensitive to the needs of aging populations, they establish housing priorities for those in most need.
Remember that populations everywhere are aging! Seniors will be in a better position to demand more services, and housing is a top priority. Real estate professionals turn these opportunities into a gold mine because of easier financing terms.
Another technique for zeroing in on jackpot properties is to explore tax foreclosure certificates. This is a good way of making money from good properties without actually owning the real estate. These certificates can be bought from local tax authorities for properties on which owners have not paid property taxes.
Hicks points out, “Once you own one of these low-cost certificates, you have the right to wheel and deal to sell the property to others, take it over, or otherwise make money from it. Its another way to move in on jackpot properties with small cash outlays that can make you rich soon!”
Read your newspaper everyday and look for bargains. When sellers are on the point of giving up, they transfer their ad from the national paper to the community paper, as a last ditch effort. This is another area where you can tap
another hot shot.
Juli 1, 2010 | Tagged Real Estate, On The Prowl For Hot Properties, Separating the Good from the Bad, Hot shots, jackpot properties, jackpot property, real estate part time, buying the wrong real estate | Leave a Comment
“Hot shots” is the name given to jackpot properties that every person who dabbles in real estate part time or full time watches out for. They keep their eyes and ears open to potential deals and jump at the first opportunity as soon as they know that the jackpot property is in the market. Their gut instincts tell them that this property will generate handsome dividends if the deal is handled properly.
Separating the Good from the Bad
Being able to discern the difference between a good and bad piece of property usually comes with insider knowledge and long years of active duty in the real estate battlefield. One writer calls real estate an emotional business. One manifestation of this is that buyers are easily swayed by the appearance of the building or its fantastic location.
But Tyler Hicks says that “buying the wrong real estatecan be a mistake. You really wont be penalized for life. But you may have a few years of tight money. Thats why its important that every piece of real estate you buy be a good ‘fit’ for you.”
Free radicals are molecules that lose electrons, so that the molecule becomes unstable and is always trying to take electrons from other molecules or cells.
Free radicals can be generated from the metabolism of the body and external factors such as cigarette smoke, the result of ultraviolet radiation, chemicals in food and other pollutants.
At the time of infection, the radical needed to kill the infecting microorganisms. But excessive exposure to free radicals and continuously can cause cell damage, reduces the ability of cells to adapt to their environment, and can eventually cause cell death. Reactive free radicals, can cause cell damage, reduces the ability of adaptation to cell, that cell death that leads disorders / diseases.
Juni 28, 2010 | Tagged Real Estate, Real Estate Professional, The Steps to Being a Professional, taking the usual course and getting licensed, real estate professionals competence, Successful real estate selling, strategies of the trade | Leave a Comment
Successful real estate selling is based on being well-informed about the hidden strategies of the trade. If you do decide that you want to be a real estate professional a profession that will most likely bring you into the inner sanctum of the cult, how do you get started?
Apart from taking the usual course and getting licensed, Tom Hopkins believes you should take the following steps:
- Have a professional photograph taken. Clients like to put a face to the name, especially the person they picked to sell their house.
- Get a cell phone with voice mail. This is indispensable, if you want to return calls promptly.
- Purchase a good computer with a high processor capacity, and get your hands on software such as ACT!, Goldmine or Top Producer.
- Get email. Who doesnt need an email address these days? Surveys show that less than 6% of real estate agents with email check their mail twice a day. Be ahead of the pack.
- Get Internet be familiar with thousands of resources dedicated to the real estate industry: industry news, training opportunities, public records, lead generation, etc. Be sure you have Mapquest (you dont want to waste time figuring out how to get to a particular address).
- Have a digital camera handy. Youll want to produce quality photographs of the properties youre selling. And dont forget to have business cards printed.
Some individuals have doubts about a real estate professionals competence when theyre just starting out. Experience is, after all, the old reliable in any profession, not just in real estate.
But the true, beginning professionals dont let this long-held belief discourage them. They are usually able to demonstrate, quite skilfully, that they are the hungriest and the most willing to do whatever it takes to sell a house.
Enthusiasm and zeal go a long way two traits that older professionals sometimes take for granted because theyve been in the business long enough to develop a subtle smugness.
A positive attitude tops the list of characteristics that real estate professionals live by. When the world comes crumbling down, as in a depressed real estate cycle, they look at downturns as an opportunity and maximize on that opportunity.
Professionals make every effort to let their image speak for their success: The trappings of success must convey your competence in the field. Do your car, briefcase, desk and office communicate a successful business career?
Professionals have an organized and efficient follow-up system. Their success at closing deals depends on returning calls, prioritizing appointments, punctuality and integrity. This is the only way people will entrust the sale of their homes to them. The clients comfort level is important to a professional - an element he never takes for granted.
A real estate professional stays in tune. He reads the classified ads religiously, and makes it his business to know whats going on. His networking skills are above average, he attends the latest seminars, nurtures close relationships with people who are directly or indirectly connected to the real estate industry:
- Insurance companies
- Settlement agents
- other brokers
Reach out and see people. Hopkins says: “There are literally thousands of people in your area who need and deserve professional assistance with their real estate needs. If you dont take it to them, they might be short-changed by someone less professional. The more people you can meet, the more you can serve.”
If your goal is to sell your house at well over the price you asked for and for the whole transaction to be hassle-free from A to Z, then perhaps you should start thinking like a real estate broker or agent.
During times when the real market is rollicking to new, unimaginable heights, and you hear of brokers pocketing enormous amounts of commissions and fees making them millionaires overnight, youd like to know, deep down in your heart, what makes them tick. This new crop of wealth builders is making everyone envious, including you.
And here you are all you really want is to learn the tricks to sell your house successfully. Learn from the pros. What makes the pros stand out and the mediocre drop out later in the game? Get inside the mind of the real estate professional and think like him. Who knows, after you do sell your house successfully, you may decide to be a broker yourself, having learned the pitfalls and felt the glory of just this one deal.
Tom Hopkins talks about the true professionals:
“Professionals are highly goal-oriented. They strive for a certain number of homes listed and sold each month, a certain income, a trophy, or an award. They know exactly what theyre looking for and when they’ll achieve ityou see, the successful ones, the true professionals, begin where the failures stop. They do what the failures are afraid or too lazy to do.”
Never underestimate the intelligence of buyers even if they strike you as inexperienced, first time buyers. Since governments have stepped into the domain of real estate, they are now warning home buyers about potential environmental dangers lurking inside houses. So what aspects of home buying are governed by regulations? Ilyce Glink warns that most professional house inspectors are not qualified to do special tests for toxic substances, although more and more individuals are specializing in these types of home testing.
- Radon the US government reported in 1989 that radon was the cause of 22,000 deaths per year and that it is the second leading cause of lung cancer in the US after cigarette smoking. Radon is an odourless, natural gas that comes from the earth and seeps through cracks in the house or its foundation.
- Asbestos Glink says that if your home was built after 1980, there is no need to worry about asbestos. This is a microscopic fiber that escapes to the air and is ingested by humans through their noses and mouths. Buyers who have lingering fears about asbestos may demand a written report stating that the house is asbestos-free.
- Lead Paints and water can contain high levels of lead that are harmful, particularly to children. Their physical and mental development is affected when they are exposed to this substance. Lead paint and lead in water are usually found in older homes (pre 70s). Pipes in older homes for example that were soldered together with lead can transmit lead particles into the water system.
As you know, aside from food and clothing, shelter is a fundamental need. People need a roof over their heads, a place they can call home.
Now, this may seem like obvious information and not important for us to think about, but really, its a very important thing to be aware of as you sell your real estate. Why?
Because this awareness points to one essential fact that should give you an ENORMOUS amount of confidence; especially if this is going to be your very first (of many!) real estate sales transactions: there will always be people looking for houses, regardless of whether we live in good times or bad.
Knowing the types of buyers in the market will help your position as a seller!