Make Money with these Real Estate Wholesaling Tips

One of the best ways to start making money in real estate is through wholesaling. The whole idea behind wholesaling is to make an offer on a property, get it accepted, then instead of buying the property yourself you will sell it ‘as is’ to another real estate investor. The investor will get the financing, buy the property and make all of the repairs.

This is a quick way to make money and you will have the benefit of:


  1. Not having to use your own credit.


  1. Only a small deposit ($10.00 to $100.00) of your own money will be used.


  1. You will not have to repair the property.


  1. You will not have to wait for the property to sell.


  1. It takes little training to get started.


What you are doing is making an offer on properties which are below market value and then reselling them to real estate investors before you even own the property.


There are a lot of real estate investors that are looking for properties that are below market value that they can repair and then sell or ‘flip’ and come out with a profit. They are looking at the after repair market value to determine if it is a good investment.


Investors are constantly on the look out for these types of properties. In essence, you will be doing the legwork in finding appropriate properties at the right price that will attract investors.


How much money can you make from these types of real estate deals? As an example, you find a house for sale for $70,000.00 with estimated cost of repairs of $10,000.00 and a market value of $100,000.00 after repairs. You get a written contract with an addendum that you have the right to assign this contract to someone else. Then you find an investor to assign the contract to. The investor will pay you a fee, anywhere from $1,000.00 to $10,000.00 and he will buy the property, make the repairs, and then flip it for a profit or rent it out. Your job is done by finding and assigning the property to the investor.


This is a quick in and out deal for you as you do not have to wait for mortgage processing or wait for repairs. Once you find an investor you collect your fee and go find another good investment property and do the same thing over and over.


Even if you are making only $1,000.00 to $5,000.00 per deal, you can turn these deals over fast and start building up some cash pretty quickly.


How to find the investors can be one of the easiest things to do. You see ads in the newspaper all of the time for just this type of real estate deal. You can place an ad for investors and you will probably get many calls. You will be saving them a lot of time by finding the properties for them.


Joining a real estate investment club is a great way to find investors for your wholesaling. These meetings are made up of investors, wholesalers, hard money lenders, real estate companies, and mortgage companies.


Do some research on real estate wholesaling if you want to get started in real estate investing but do not have the cash or credit to obtain properties. This is a great way for beginning investors to get their feet wet without having to invest a lot of money or time.


High-Rise Condominiums in the Las Vegas Real Estate Market

Some call it Sin City, others call it the Entertainment Capital of the World, but many people don’t really notice that Las Vegas actually has a booming and exciting real estate market. The city that never sleeps sure isn’t dull and it never has been. Even with it being a small railroad town in its early years, Las Vegas has been a popular real estate market for corporate entrepreneurs and for individual investors alike.

Like many other resort destinations, Las Vegas has recently seen a lot of development in the area of high-rise condominiums. What better place than Las Vegas? If you’ve ever flown into Vegas, you’ll have been able to see the beauty of the unique hotel and casinos that only Vegas has. Imagine this being your view from your high-rise condo. Many more people now aren’t having to imagine this, but are indeed enjoying these fantastic, one-of-a-kind views. In fact, in May 2007, almost 50 high-rise condos closed escrow in the Las Vegas real estate market. The exquisite detail and quality that defines these condos are what is drawing in investors and home buyers, coupled with the huge amount of growth that Las Vegas has always seen from its meager beginnings. One only needs to do a quick search on Google to see the feature and extra-rich condominiums that are currently available in the Las Vegas real estate market.


The condo developments are offering amazing incentives to get people moved into these high-rise condos. Some of those incentives are for the developments to pay the closing costs associated with purchasing one of the high-rise condos, or by adding free upgrades to many of the fantastic amenities already available in these luxurious condominiums. The Trump Organization, after quickly selling out their first tower of high-rise condominiums on the south end of the Las Vegas Strip, began to immediately build the second tower and that second tower will probably be sold out pretty quick also.


While Las Vegas may not strike you as a place to buy real estate, it is in fact a fantastic place to buy a condominium. Many people are under the assumption that prostitution is legal in all of Nevada, but in reality, in counties that have over 100,000 people (such as Clark County, where Las Vegas is) prostitution is illegal inside those county lines.


Luxury condos are popping up all over, but in many places the market is slowing down. Not in Las Vegas. The real estate market is extremely healthy and flourishing, and right now is a great time to get into a beautiful luxury high-rise condo in Las Vegas. They say “What happens in Vegas, stays in Vegas,” but when you realize what exactly is happening in the Las Vegas estate market, you’ll definitely want to stay in Vegas.


Real Estate Agents in Temecula

There are over 1500 “real estate agents in Temecula”. Now that the bubble has officially busted, finding a “real estate agent in Temecula” is difficult because the industry is saturated with real estate agents. A few years ago, the real estate market in Temecula was operating in its prime. Plenty of people from cities like San Diego and Los Angeles were flocking to the inland empire. The major selling points for ” real estate agents in Temecula”, was the price. The common problem a real estate agent in Temecula faced was not having enough inventory. Things have greatly changed in Temecula. Now if you ask a real estate agent in Temecula the greatest challenge they face the answer is unanimously too much inventory. One real estate agent in Temecula told me that she found that with such a large inventory many buyers are getting overwhelmed when it is time to make a decision about which property they should purchase.

Things look even more grim for sellers, with so much real estate in Temecula for sale, or being foreclosed on its taking much longer to sell a home.

That is why finding a knowledgeable real estate agent in Temecula is important. The real estate agent you choose should know Temecula very well. With the listings of real estate in Temecula being so dense, the real estate agent needs to identify the listings that are more suited for your needs. With the amount of new homes being built, your real estate agent should determine what suites your needs the most a pre existing home, or a new home.


Because of the mass building that occurred a few years ago, and the creative financing many homeowners have found themselves in a hard situation, owning a home with a mortgage that is more than the homes value. Because of the slowing of the housing boom, many new home builders are selling their homes for much less than they sold them a few years ago, and with many more incentives. A good real estate agent in Temecula, knows about this new pattern in the market place and would definitely make sure that they provided all the information that would serve you the best.

Because of the new housing market in Temecula, you want to be sure that you find a real estate agent that is committed in helping you. And not committed to selling a home that’s mortgage exceeds its worth.


New Trend in Real Estate May Save Sellers Money

In a hot housing market, sellers can make a profit on their property even after paying six percent commission to a real estate agent. But hot markets always cool down, and those who need to sell their properties in a declining market may hesitate to give up that six percent of the sale price to someone else.

What’s a seller to do? He can put a For Sale by Owner sign in his front yard, advertise in the local paper, list the property on the internet, show the property several times a week for several weeks, screen potential buyers, negotiate with a serious buyer, prepare all the necessary paperwork, arrange the closing, and hope the deal doesn’t fall apart because he just put a down payment on his new house.


Or he can hire a real estate agent to it for him.


Six percent, though, is still a good chunk of change to give up. But sellers need not despair. There is a new trend in the real estate industry that can save sellers money, and still provide assistance in the process.


The real estate industry refers to an un-agented property as a FSBO. FSBO means For Sale By Owner, and the slang is pronounced ‘fisbo’. Companies that provide select services to sellers are becoming known as FSBO companies, or FSBO services. Many of these are directed at the marketing piece of the selling process. For a flat fee, they will provide marketing venues, such as space on their website or in magazine distribution venues. But some go beyond that.


At, based in Virginia, a seller can advertise in the For Sale By Owner magazine, and so take advantage of such services as Advertiser Assistance Option. This package assists in the paperwork right through to closing, and for a flat fee of $475.00.


At, sellers can have a web page to advertise their listing, a for sale yard sign with an info tube, a template for a color brochure or flyer to print from any computer for the info tube, a How To Kit for do it yourself sellers, selling contracts and disclosure forms. This package is available for a flat rate of $299.


For those sellers who feel uncomfortable with the legal side of selling, there are numerous books available on the market, as well as an increasing number of real estate attorneys who will prepare and execute the paperwork for a flat fee.


Essentially, the service provided by a real estate agent has been broken down into a selection of services. Where the six percent commission is all-encompassing, the FSBO companies allow sellers to select which services they need, and to pay a flat fee for those services, up front, and so keep a larger portion of the proceeds from the sale of their homes.


Does this trend in selective services for home sellers spell the end of the real estate agent? No, it only means selling through an agent is not the only option. It means sellers who must get the optimum profit from his or her property do not need to overprice their homes to cover that commission, which usually results in extended time on the market.


Increasingly, real estate brokerage firms are offering flat fee services resembling the services offered by FSBO companies. The brokerage, and thus its agents, assemble a package from the array of services that best suit an individual seller’s needs. The do-it-yourself trend in home selling is galvanizing brokerages and real estate agencies to examine the long accepted practice of commissions paid by the seller.


Though using a FSBO company does not guarantee a sale, neither does using an agent. But being able to select specific services gives the seller control over the process, and this control is absent when using a commissioned agent. An agent may allow the listing to languish if the seller is reluctant to lower his or her price. Flat fees for selected services will obligate the agent to perform those duties he or she has been paid to do.


The trend toward selective service and flat fees is still a small part of the real estate industry, and their usage rate correlates to the state of the housing market. But as more homeowners become savvier in the ways of marketing and selling property, the FSBO companies will become increasingly popular.


Sellers want to maximize profits, and the real estate industry needs sellers. Clearly, the trend toward flat fee services will ultimately become typical in the buying and selling of homes, and the six percent commission will be a luxury item, and not the industry standard.


Real Estate Prices Slump While Property Taxes Rise

In all my years of property ownership, I have never seen a market like this one. Recently, Robin and Company (a CNN Broadcast) had a new report on the housing market. They mentioned that in February sales slumped 0.3%. Robin and Company also mentioned that the average median home sale value dropped to $217,000. The biggest point they mentioned was that whole house values slump tax assessed values are on the rise.

Personal Housing Prices Slump while Property Taxes Rise Impact


With my property, I’ve always used the real property search in MD to get a gage of my home’s value. In the past, the real property taxes’ assess value was about half of the real value. We would pay taxes on that small amount. We could get the property appraised and get access to the larger amount. Now that gap has narrowed significantly. I’ve seen the gap go from a few hundred thousand to 1/3 of that.


I recently had an appraisal of one property in January. I really haven’t doing anything new to it. I simply maintained the property. We do upkeep and make certain anything that needs to be addresses in addresses. We have a staff that can handle any and all issues. Roughly 4 months later, I get another appraisal. The homes value dropped 40,000 dollar. I was nearly chocked at the change. The appraiser told me that the values were simply not there right now. He continued to let me know that we all took a hit in the winter. He expected that the value would catch back up this summer.


Client’s Housing Prices Slump while Property Taxes Rise


I worked on a clients home and improved the value significantly. We gave her property an update kitchen, bathroom, and garage. She will have a tremendous increase in her value. She didn’t want to get a new appraisal from her bank. What was her reason. She didn’t want to have the property accessed rise. She didn’t want to pay more in taxes. He current tax assessed value was $420,000. The houses appraised value was only $400,000. In other words the goverment litteraly is charging her more money in taxes than her home is really worth.


I’m working with this client to fight the tax accessed value. However, I wonder how many other have this exact same issue.


Buyers Market as Housing Prices Slump while Property Taxes on Rise


I have another client that was going to purchase a house in baltimore. We went through a few chalenges to get the deal done. At the end of the day. The seller and their agent was unfreindly and not willing to work with the buyer. We ultimatley let the seller walk. There are so many additional homes on the market, we have no need to fight for one with and unfriendly seller.


As a buyer, this market is the best of bother worlds. If you choose to buy and older home, sellers will most likely want to work with you. If you choose to buy a newer home, the builders have insentives to give you a sweatheart deal. I know two investors that bought investment properties in my area with 10,000 down. They got $80,000 in builder incentives. Niether person put up another dime. The moved out of there older home and rented it out to new tenant.


All that said, this is a tough market. It can work to your advantage. You might fight to make it happen. Best of luck in your Real Estate chalenges.


What Real Estate Agents Won’t Tell You About Their Income

People have a misconception that real estate agents have a pipeline of money that flows into their pockets from helpless buyers and sellers.

While there are some very successful real estate agents out there, nothing could be the farthest from the truth in most cases.


Before you beat on your real estate agent, look at what I’ve outlined for you as to how much they actually make.


The National Association of Realtors has stated that the average agent does 7 closed transactions a year. We’ll stick with that for the sake of this article.


If you list your house for $200,000, with a 5% commission rate, the commission you’re paying out would equal $10,000. That’s a pretty hefty chunk of change! No wonder all the agents are driving nice cars!


Breaking that down further, we see that your agent has to split the commission with the selling agent, as over 90% of real estate transactions have two agents involved.


So, there goes $5,000.


Of the $5,000 left, your agent gets to split it with their broker. $2,500 left for your agent.


Since your real estate agent does not have taxes taken out, immediately a portion of that has to be accounted to Uncle Sam. Since I’m not very good at numbers, I have an accountant. Just for the sake of round numbers, I’m going to subtract $100 off to pay federal and state taxes.


We’re down to $2,400.


From that $2,400, since we have the privilege (?) of being self-employed, we have to pay out of pocket for things like health insurance. Personally, this is equal to $1,300 per month. This is a single deduction, in other words – no deductions here for any kind of 401K or retirement plan.


Down to $1,100.


Out of that $1,100, we can subtract the gas in our car driving back and forth to your listing, the postage for all those nifty mailers we did, and the cost of the virtual tours on your house, food for the open house and a whole host of “your house” related expenses. To keep this conservative, and for round numbers, I’m going to use $300.


Down to $800.


Now we get to keep this for ourselves! $800 can pay our own mortgage payment and household utilities, car payment and contribute towards our annual Realtor fees, which in this year run slightly over $800 annually.


If there’s anything left, that’s what we get to feed our family with.


Remember, this is one transaction. One a month and chances are we’re heading straight for the poorhouse. Remember, also, the National Association of Realtors reports an average agent sells 7 houses a year. Can anyone realistically live on that? Especially in a down market when houses aren’t selling like they used to?


So before you go beating your real estate agent up on their commission, ask yourself if you could, or would, walk into your boss’ office on a Friday afternoon and ask for a cut in pay. Real estate agents have families to feed as well.


Comparing Homes for Real Estate Leverage

A buyer has made an offer on the home that you are selling, and you now face the challenge of deciding whether or not to take the offer. You as a seller want to get the maximum dollar potential out of your home that is possible. But, do you know how to determine whether the offer is a fair offer that will reap the best possible benefits? Find out the true value of your home by comparing it to homes that are similar or just like yours in the area. Compare homes that offer some of the same comforts and square footage size as yours. By doing this you can make the best decision when an offer is made.

Take a look at the last few homes in your area that have sold. Compare their similarities to yours, and this is a great way to determine the true market value of your home. By checking in the local classified ads in your newspaper or by calling a realtor and finding out how much homes like yours have sold for is the best way to get started in this process. If the homes you compares yours too do not match up with the comforts that your home has to offer or vice-versa, it is a good idea to look at how much typical homes are selling by square foot.


To figure out how much a home is selling by the square foot is very easy. You simply take the square footage amount (let’s say 2000 sq. ft.) and divide it by the total sales price (for instance $100,000). By dividing the two numbers you will find out what a home is selling for by the square foot. You can make adjustments to this price as you see fit, and it is also important to note that you should include the entire square footage not just the heated and cooled square footage (i.e. garage or carport). There are also other factors like the number of bedrooms, living areas, bathrooms, and the location that can also affect the sales price on a home. That reason is why it is a good idea to also compare homes that are like yours to make sure that you find an average price that is best to compare your home to.


If a home has a market value of $150,000 it is good practice to make an offer that is about 10% less than the asking price, but in no case more than the asking price. If you want to make sure that you are getting the best possible price on your home take into consideration these tips and get the best dollar for your property.

Should You Offer a Lease Purchase Option to Sell Your Home?

In today’s real estate market, sellers are frantically searching for someone—anyone!—to purchase their homes for a reasonable price, and turning up empty in the end. It is definitely a buyer’s market, which means that sellers are having to rethink their strategoes for selling their homes.

One of the alternatives to keeping the house on the market is a lease-purchase option, which can be a life-saver for many sellers.


A lease-purchase option is an agreement that resides somewhere between a mortgage and a lease. As the seller, you will essentially be the landlord for the buyer, but the money he or she pays in rent will also be put toward the sale purchase of the home. This gives you a monthly income from rent, and also puts you one step closer to selling the house.


It isn’t a good idea to pursue a lease-purchase option if you need the cash from the sale of your home to buy a new one. Although you might be able to receive a modest down-payment before the lease terms begin, it won’t be sufficient to finance a new place to live. Instead, lease-purchase options are perfect for sellers who already have a new home or have sufficient financial resources to buy one without selling the old.


The most dangerous aspect of a lease-purchase option is the fact that most buyers who request this arrangement are unable to secure a traditional mortgage on their own. They might have defaulted on a mortgage in the past or perhaps they have blemished credit; whatever the case, you have to be careful about offering a lease-purchase option.


The major benefit of a lease-purchase option is that sellers usually make more from the sale of their home in this agreement.


Commercial Mortgage and Commercial Hire Purchase Terms

In commercial mortgage a commercial real estate is used as collateral to secure repayment. Though it is similar to a residential mortgage, here the collateral is a commercial building such as office, industrial building, medical buildings, shopping malls, instead of a residential property. The multfamily housing buildings also fall under commercial property. However, commercial mortgage is generally taken on by incorporated business, or limited company instead of individual borrowers.


The common applications loans include acquiring land or commercial properties or refinancing the already existing debt. Common commercial properties are generally mortgaged for office, retail,  amp; industrial purposes.Commercial Mortage is generally made with less than 10 years terms but can be much longer than this also.


A commercial real estate can be taken on for mortgage for a variety of purposes such as:


For purchasing the premises of the business


To extend the existing premises


For residential and commercial investment


In order to develop the property in other manners


Commercial loan broker acts as the intermediary between the borrowing business and the commercial lender. The broker is basically a middle man having information about all the lending criteria of the funding sources. The broker gets paid in commission for each deal made.


As the markets for mortgages have grown in recent times, the role of the mortgage broker has become very pivotal.


On the other hand in Commercial Hire Purchase (CHP) the customer hires a financial product from the financier. The product is generally hired over a set period of time for a fixed monthly repayment charge.In this case the customer generally hires a vehicle for a fixed period of time.


However, under (CHP), the financier agrees for purchasing the car on behalf of the customer, for hiring it back over afixed time period.


At this situation the customer is not the owner of the car. However, when the contract term gets over the total price of the vehicle including the interest charges have to be paid in full. After the full payment, the customer gets the ownership of the car.


Commercial Hire Purchase terms:


Time period ranges from two to five years.


The residual value is according to the contract and it is made on fixed interset rate


The monthly repayments are fixed for CHP and deposit (either cash or trade-in) can be used


If the vehicle is used for business purposes, a tax deduction is available


GST charges is not applicable on the residual payment


Commercial Hire Purchase (CHP) is helpful for organisations, partnerships and sole traders account ing for GST on Accruals basis.They can claim the GST to their next Business Activity Statement (BAS). When the hirer is registered for GST, Input Tax Credits can be applicable. However, individuals using vehicle for business purpose can also opt for CHP.Here the hirer is eligible to claim depreciation up to the limit .As a tax deduction method, the hirer can also claim the interest charges on the contract.


Strategies Required for Selling a Business

Selling a business is a much more complicated, tricky, and involving affair than selling a real estate. Some important steps are required but it is often highly recommended to use the services of a business brokers who might be equipped with the proper and specific sets of skills to getting fair value. The function of the broker during the sale is to facilitate buying and act as a go-between for the buyer and the seller.

As a summary of steps that are required, begin by listing the business that is on sale with the brokerage company. The broker should be from a reputable and well known firm to avoid mischief, fraud, or avoidable losses. They should be met and talked to about the sales process well in advance. This not only assists them in selling the business but also helps them to have it sold at the best price possible. It is recommended to list the business with a broker because when one wants to sell it confidentially. This is a wise step since one can use the resources of a professional intermediary to guide them throughout the selling process.


The second step should be determining the selling price. The very first thing potential buyers will require to know about a business is the price so that they can gauge and find out if they will purchase or even compare to other similar businesses that are on sale. The issue of pricing is one that a broker can easily assist with assuming that they have prices of other similar businesses and can make rough estimates on the costs.


For larger or more complicated businesses, get the services of a professional business evaluator who would be more accurate in determining the selling price. The cost is determined by some factors such as what is actually being sold such as assets, shares, and the work that is or was in progress before the decision for the sale was made so that it is transitioned to appropriate price, inventory, and accounts receivable. These minor and major details should be discussed with the chosen broker and the personal accountant. The process of determining the selling price of the business is an important step of the process.


The other critical thing would be the business information profile where buyers should be presented with a brief snapshot of what the business is all about. The description should be put in a way to leave the prospective buyers with the urge to know more. A good broker should come up with a brief and strong description of the business which should work as a selling point for the business as well. It should also give a brief financial statement indicating performance.


The broker should then qualify the potential business buyers who might have shown interest by responding. The buyer would then hold a conversation with the broker where the brokers have got to find important information such as the buyer’s objectives and what they are looking for. The broker’s responsibility at this stage is to qualify the buyers or fine tune the list according to their financial abilities, aptitude for the business, “seriousness” and other factors. The appropriate and potential buyers are then invited for the signing of a non-disclosure agreement, where the buyer is now presented with further information with regards to the premises. This would include information about the operations of the business, number of employees, a brief summary of the financial performance and any other pertinent “general” information about the business. The general description of the business is set under strict non-disclosure rules to help ensure confidentiality of the sale but at the same time help the potential buyer on deciding if they would want to take their interest to the next level.


The buyer is then shown the business. The business must be in line with any photographs that may have been supplied earlier. The experts recommend preparation at this point ought to be honesty. Presentation is one of the major steps on the selling process. The picture portrayed on its financial matters must be very accurate. It is quite clear to any risk-taker that any business will have some speed bumps and it is very important for them to know any that may be existence for the business. A good broker should remember that this is a precious time to showcase the business potentials and therefore they ought to emphasize on the strength and the hard work that has been done to make it a success other than dwell on its weaknesses. One should expect a lot of questions at this point from the buyer and the best procedure should be trying to answer everything. This is a point where potential buyers will make conditional offer to satisfy themselves through the due diligence process.


A good broker should be in a position to accept or make offers. Majority of these business offers are conditional offers concerning many different issues. During this process, one should confirm some of the facts such as assuring the buyer of getting financing, assuming leases successfully or obtaining franchise approval. In line with specialists, “A condition offer is usually made with a refundable deposit’, this is for the reason that when the deal does not go through, then the risk is partially if not fully catered for.


The conditional offer phase allows the potential buyers to conduct their due diligence were they confirm facts, go through the financial statements, or records and review the overall business operations carefully.


When the buyer is fully satisfied that everything is ok, they waive any other conditions and close the transaction by signing documents through respective lawyers and exchanging the agreed amount.