http://www.REIClub.com – HUD Homes Are A Great Resource For Finding Below Market Real Estate. Here’s A Quick Explanation On Investing in HUD Properties…

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got a quick video on investing in HUD homes.

What are HUD homes? U.S. Department of Housing and Urban Development
A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. HUD offers these properties for sale to both owner-occupants and investors

– HUD homes are usually appraised, then priced at fair market value.
– List Price usually accounts for needed repairs
– Usually sold “As-Is”
– Bidding process – highest net accepted
– Special purchase programs for teachers and law enforcement

Where can you find HUD Properties?
– Hud.gov – hud home store – daily listings and monthly auctions
– general public
– agents
– mortgage agencies
– non-profit organizations
– MLS – Search HUD properties

HUD Home Qualifications
– Almost everyone
– Cash buyers – majority
– Be able to qualify for loan
– Private lender or Transactional funding in place

– Financing – Hud does not cover financing

– Earnest money – deposit towards purchase price – secures bid and contract – ~$500
– Accepted – escrow – closing
– Declined – returned
– Failure to fulfill – forfeited

– Inspections – Yes and No
– starting out – yes – get an idea of what you are buying, repairs, etc…
– more experienced – a quick glance at the pictures, market analysis, etc…

– 90-Title Seasoning
– Does not apply to accepted cash overs, or existing FHA insured loans
– Only applies to new FHA qualified loans

– Profit
– Flipping to an investor
– Renting – cash flow

There are thousands of highly affordable homes and apartments offered by HUD around the U.S. They create cheap opportunities for real estate investors to find real estate investments. The bidding process is rather simple, but competition can be fierce, so having a mentor with experience and connections can definitely make this process easier. When you start building relations with your bidding real estate agent and brokers, you will start to get insider info on properties before they even hit the auction floor. This is the end goal for most real estate investors seeking this strategy to find real estate.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.

Duration : 0:5:43

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http://www.REIClub.com – Who Should You Have On Your Real Estate Team? Here Are The Professionals You Want On Your Successful Real Estate Investing Team…

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on how to put together a real estate team.

Building Team

Introduction
– need knowledgeable, experienced professionals
– need those who understand investor needs
– prefer large % of their biz is investors
– talk to other real estate investors for referrals
– talk to closing agents (title co, attorney) for referrals
– ask referrals at local rei club meetings

Team Players (not in any particular order)

Closing Agent – title co, attorney
– must be quick, experienced
– familiar with investors, creative

Insurance Agent
– must work with investors
– diff policy types – vacant, landlord, tenant
– volume discounts
– affordable coverage with reasonable premiums

Real Estate Agent
– must work with investors regularly
– MLS access (Realtor)
– ok with making offers, running comps
– make sure they get paid frequently (per task, listings, etc.)

Buyers
– cash buyers
– foreclosure auction buyers
– rehabber landlords
– Section 8 landlords

Contractors
– general contractor or handyman
– free repair estimates for your offers and your buyers
– quality work to level needed for end buyer
– offer repair estimates to buyers so contractors get paid

Home Inspector
– fast, thorough inspections
– affordable
– can teach you basics (follow them around, ask questions
– volume discounts

Appraisers
– may be necessary last minute to fund deal for contingency
– fast, thorough, knowledgeable on “subject to” appraisals
– volume discounts

Lenders
– traditional – banks, credit unions, mortgage brokers, etc.
– hard money lenders – equity-based lenders low LTV’s and high fees
– private money lenders – loan terms negotiable

RE Attorney
– expert with investment issues
– reasonable fees
– possible closing agent

Tax Professional
– expert with investment issues
– knows how to save you money

In conclusion, it is very important who’s on your team. You absolutely need to qualify them and make sure that everyone’s goals are in-line with yours. This business is all about networking and maintaining relationships and one of the best ways to find quality players is through referrals. Over time, with more experience these team players WILL change, but that’s ok, it’s the name of the game. It’s also not completely necessary to have all these players in place in order to complete a real estate transaction. Remember, this is a process, and it will take some trial and error, but it will definitely pay off in the end.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.

Duration : 0:5:27

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http://www.REIClub.com – How to Analyze Your Flip Property – Consider These Points When Evaluating Your Potential Wholesale Property…

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on a checklist that every investor should follow before purchasing real estate.

It is very common for new real estate investors to jump into real estate without a plan, or without performing diligent property analysis. Unfortunately, these are the same types of investors that jump right back out in a few months when they lose money on their first deal. Let’s not have that happen for you.

The very first thing you need when you analyze real estate are

– Comps
– need good comps – several very similar props close by, within 1 mile
– beds/baths/parking/square footage/construction similar
– MLS access preferred – or ask agents, appraisers, online services
– what have buyers paid, what your buyers will pay

– Repairs
– need multiple estimates – can vary by quite a bit – mom and pop vs. professionals
– Other Costs
– landscaping – grass, flower bed, trees, bushes, etc…
– holding (monthly) – mortgage, property insurance, property tax, utilities, etc.

– Neighborhood
– owners vs renters – affects your end user, and value of your home
– school quality –
– amenities – pool, tennis courts, rec center, etc…
– proximity – downtown, transit

– Competition
– Other props for sale – what are their updates, newness, location
– popular area or not – how many other properties are being sold in the area
– days on market

– Determining Offer Amount
– After Repaired Value Less Buyer Discount Less Repairs Less Other Costs Less Profit
– need to come up with valuations based on buyer’s criteria
– first offer needs to have negotiation room for your profit

In summary, there are many varying factors in real estate investing, my advice to you, first determine if your end user will be a tenant or owner. This will affect your deal evaluations and how much you spend on repair costs. There will also be some deals that may work for some of your buyers and not others, but the key is to adapt to the market. Don’t pigeon hole yourself into a bad deal. Remember, make enough offers and you’ll get some deals that fit your criteria.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.

Duration : 0:5:38

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http://www.REIClub.com – Are Tax Sales a Good Investment For Real Estate Investors? Here Is A Quick Video On The Pros And Cons Of Investing in a Tax Sale

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on the Pros and Cons of Investing in Tax Sale Properties.

Tax Sale vs. Tax Lien

– Tax Lien:
A lien in general is a claim or security of interest placed on personal property to secure the repayment of debt. Therefore, a tax lien is a lien imposed by Federal or state law to secure payment of back taxes.

As the investor: You buy the rights to the money owed in taxes and the interest and penalties that have accrued.

– Tax Sale: (also known as a a ‘Tax Deed Sale’)
Refers to property, in this case real estate, being sold by a taxing authority or the court to recover delinquent taxes. This is commonly done by Auction.

As the investor: You are buying the rights to the property itself.

– Return on Investment

Tax Lien: Allow you to earn high interest rates on your investment
– When delinquent property owner “redeems” the lien you get your initial investment PLUS a guaranteed percentage interest. The interests vary by state.
– Average 12-24% interest per annum – as high as 50%

Tax Sale: Deed sales transfer full property rights to your name.
– Average Purchase Price 30-60 cents on the dollar
– Tax Value = Purchase Price

– Right of Redemption: Gives the right to the original homeowner to reclaim their property during a specified time. If they are unable to pay it, the current lien holder can start foreclosure proceedings

Tax Lien: 1 year to 3 years – redemption period
– Delinquent pays the lien plus interest and any other fees (accrues monthly)

Tax Sale:
– Delinquent pays back interest plus the costs incurred to foreclose

Tax Liens / Tax Sales Pros

– Pennies on the Dollar – Buy properties for a fraction of the cost
– State Authorized Returns – awarded to the investor at 16% – 25%
– Volume – auctions are typically held at the first of EVERY month – VARIES BY REGION
– First In Line – Tax liens have precedence over other liens or encumbrances, such as mortgages, judgments, trust deeds and different liens
– County collects the fees owed – not you
– No Maintenance Responsibility
– No Landowner Liability
– Free and Clear – possibility
– Guaranteed Return on Investment

Tax Sale /Lien Certificate Cons

– Specific Regulations – Failure to comply precisely with these rules could make the lien completely worthless.
– Homeowner Bankruptcy – IRS or other creditors may have other claims on the property, rendering your tax lien worthless.
– Worthless Property – you invest in a tax sale with no potential – uninhabitable, structurally unsound, previous owner tried to sell it and stayed on the market for a long time, etc…
– Additional Liens – must pay off all previous liens before you can clear the title
– Competition – public auction – lots of other interested investors
– Lien Laws – vary from state-to-state – strategies may not work in some states

Tax lien investing is a significant opportunity which also requires some specialized knowledge. Always remember, when investing in tax sales or tax lien certificates, almost all risks can be averted by doing minimal analysis before purchasing. Due diligence is the key to success in this niche of real estate investing.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.

Duration : 0:6:12

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http://www.REIClub.com – Working With Real Estate Agents Has Its Benefits.. Here’s A Quick Video On Why Real Estate Investors Should Work With A Real Estate Agent…

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on the many benefits of working with real estate agents, also known as listing agents, sellers agents, and buyers agents….

Please keep in mind that not all Real Estate Agents are Realtors. Although those two terms are often used interchangeably, a Realtor is someone who has paid fees to join their state organization. Some licensed real estate agents might not have the information you need, but the more experienced real estate agents or Realtors will. .

Licensed Real Estate Agents Should have….

1) Access to Professionals
– Lists of contractors
– Access to Real Estate Brokers
– Access to Title Companies
– Lenders
– Insurance companies
– Etc.

2) Access to Listings/Paperwork/Comparables
– MLS – set up search criteria to get daily reminders
– First In Line – before they hit the MLS – when you build a good reputation with your Realtor, it is common that these deals come to you first.
– Purchase/Sale Agreements
– Lease Agreements
– Comparables and Market Analysis

3) Experience
– Negotiations – Title fees, offers, selling price
– How to accommodate their clients – filtering mls searches
– Answer questions about the market
– What hot, what’s not
– Hand hold you through the closing process
– Protection – Laws and Code Regulations
– Pricing Expertise
– Filling out paperwork

4) How to keep Real Estate Agents on your side?
– Double commissions – Buy and Sell an investment for you
– Bonus Incentives – House sold in 30-days extra $1000
– Exclusivity – allowing them to represent you in a specific area

Note: If you happen to work with an inexperienced real estate agent, don’t throw them to the wolves just yet. Sit down with them and tell them your goals, your investing strategy, and your needs. Remember, this is a process, it takes time to build an effective team.

As a real estate investor, there are many ways to find real estate investments on your own, but honestly, it is not a good use of your time. Licensed Real Estate Agents have access to a large database of helpful information that will save you tons of time and headache. If you are looking to take real estate investing seriously, recruiting real estate agents to be a part of your team is essential.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.

Duration : 0:5:41

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