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Informative Articles

Careers: Becoming A Real Estate Agent
If you are considering a career as a Real Estate Agent, there are some things you should know and think about before taking the plunge. There is a common misconception that becoming a licensed Real Estate Agent is like being given the keys to the...

Interest Rate Hikes Send Mixed Signals To Real Estate Investors
December 20, 2005 - Successive interest rate increases by the Fed have left everyone wondering what is going to happen next with Real Estate. Will the boom continue or is this the beginning of a gradual slow down? As Jim Jubak, writing in...

Negotiating Real Estate - Go Slow
Why should you sometimes go slow when negotiating real estate deals? It's all about the power of time investment. Let me explain with a story. One of my less-pleasant experiences selling real estate was when I sold a home for a real decent guy,...

Real Estate: Making a Perfect Sell
Each real estate agent or dealer comes up with salient options, prices and proposals. When you've decided to sell your home and have a fairly good idea of what you think it is worth. For selling home wisely, you schedule your meetings with few...

Virtual Real Estate
Virtual Real Estate--just what am I talking about here? If I look up "virtual" in the dictionary, it gives me words like near, practical, fundamental, or essential. It also lists actual as an antonym. Remember in school how we were required to...

 
Real Estate Deals - Ten Myths

Are high-profit real estate deals only for the wealthy? Is it possible to buy with no money down? Do you really have to know the "right" people? Let's answer by looking at some of the myths of real estate.
1. The good real estate deals are reserved for the wealthy. Of course money helps, but my first deal was a $3,500 lot - which I sold for a profit two weeks after I bought it. Smaller deals, using partners, low-down deals, or just putting aside $7 per day for a couple years until you have enough money for a downpayment - these are some of the ways to start with a little and invest in real estate.
2. "Zero down" isn't possible. I sold a rental property for $1,000 down because I trusted the buyer, and I wanted the 9% interest and higher price. A cash-advance on a credit card for the $1,000 ($30 per month payments) would have made it a "zero down" deal. "Zero down" means none of YOUR money down, and yes, it happens.
3. "No money down" is the best way. When you don't invest some of your own money, you have higher payments. You also spend more time finding suitable properties, and pay more for them (cooperative sellers naturally want more profit for their cooperation). There are zero-down deals out there - they just aren't always worth doing.
4. You need a lot of experience. It helps, but you get it by investing. Start with common sense, be willing to learn the numbers, and you can start where you are.
5. Good investors have a "knack" for making money. Well, sort of. But more accurately, they just took the time and risk to learn the market and to continue their education.
6. You have to know the "right" people. This is another partly true myth. It does help, so why not start the process? Talk to other investors, real estate agents, landlords, etc.
7. Great negotiating skills are necessary. Negotiating skills help with real estate deals? Of course, but learn to run the numbers and make offers based on them, and you can be the worst negotiator and still do okay.
8. You have to have insider knowledge. Insider, outsider, whatever. You do need knowledge, but understand one deal, and you are on your way. Study, and study more, but the best "insider" knowledge comes from experience.
9. Fixer-uppers are the safest way to go. Poorly planned "fix and flips" have bankrupted even experienced investors. Most poorly purchased rental properties will only eat a little money every month, and grow in value over time. Fixer uppers are for making money faster, not more safely.
10. You need to make lowball offers. Low offers may help, but the numbers have to work, and you need a plan. You can offer MORE than the market price and make money investing in real estate. Just learn how to run the numbers before you do any real estate deals.

About the Author
Steve Gillman has invested in real estate for years. To learn more, go get your free real estate investing course at: http://www.MakeThatOffer.com

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