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How Can You Invest in a Foreclosure?

It is important to have a few guidelines when looking into flipping foreclosures. Although this practice can be very profitable it can also be something where you do not make money at all.

By purchasing foreclosures in a bad economy you are looking for a way to make a profit. It is unfortunate when someone loses their home to a foreclosure but why not take advantage of this situation and be able to make money for yourself.

Thanks to a sliding economy the rate of foreclosures is raising very quickly. There are on average 60% more homes in foreclosure than there were last year alone. This is huge as it means that it is a perfect time for investors to start making money. Remember when looking for properties to take note of the discounts, the shorter term that you are looking at holding onto the property the greater your discount needs to be to remain profitable.

Some basic guidelines in considering discounts would be based on what you are hoping to do with the property. This means that if you are hoping to flip the property that you are going to want to look at discounts that range in the 20-30% margin. If you are looking to give someone a rental property with the chance to purchase then you would want to get a discount between 10-20%. However if you are just considering renting your property then you would only need to find a 5-10% discount. This is important to keep in mind as if you do not get what you want in the way of discounts it will greatly cut into the profitability of the property.

There are three ways in which one can acquire a property that is in foreclosure. One way is that you might be able to find the property through dealing directly with the homeowner prior to the bank foreclosing on the property. A second way would be to purchase the home through an auction. The third way is to purchase the home as a REO (real estate owned) property. These properties are typically better properties than those that are auctioned and by dealing in this manner you could avoid the uncomfortable nature and awkward feelings that could accompany having to deal with the home owner one on one.

Remember that all foreclosure homes are sold as is. Hiring a home inspector to look at a home prior to purchase if looking into homes where the owners are willing to sell or are REO properties this is possible. Remember that this could be a great way for your estimate what the repairs will cost and how much investment would be needed as well as what the profitability of the property is.

Also keep in mind that there are many risks when buying a home from a foreclosure auction. This is because the individuals who are losing their home can be bad about vandalizing or tearing up the property. There have been times when someone will spray paint walls, steal wiring and all fixtures, tear up floors or even put holes in the walls and other major types of destruction to the property. Keep in mind that some of the repairs that are associated with these properties can be costly and could include having to hire an electrician or a plumber.

There are a number of ways in which you might be able to locate and find foreclosure listings. One way to find the listings is to read the local newspaper on a regular basis. Another way would be to look online and through government agencies.

Create a Greeting Card Business at Home

Starting a greeting card business…not something I would have thought about doing a few years ago but after graduating from college and entering the workforce I realize now that owning your own business and working for yourself is the surest way to financial freedom.

Starting a greeting card business involves first, determining your goals in starting one.

I’m sure you’re interested in making money with your business so let’s start there. To make money you’ll need to figure out the all the logistics. There’s the creation of the cards, the manufacturing of the cards in quantity, and then the distribution of the cards, all needing to be taken into account. Most businesses have a start up of $100,000 and don’t see a return on their investment until at least a couple years.

The type of greeting business I have started and want you to learn about has a start up of less than $400.The average person buys a greeting card a month. With the greeting card business I started, my clients send a greeting card a day. The reason for this is because instead of paying $5 a card, they pay less than $1 a card. They save time and money so they can send more cards. The reason they save time is because they send these cards online using their computer. They are not e-cards, they’re real physical greeting cards that arrive in the mail.The way I have my greeting card business set up is this way: I use a company called Send Out Cards.

Their website handles all of my clients orders. They handle of the shipping and charges and cut me checks. All I do is show people the system. I walk them through sending some cards, on my dime, and they all see the value in it. I don’t even have to worry about selling people anything because they either want to do it or they don’t.

On examination, most people will tell you they have to send greeting cards anyways, and a lot of them have a business or network of friends and family that they want to be in better contact with and Send Out Cards enables them to do this with ease.There are people making really great money being a distributor of Send Out Cards. People that used to be professionals, working 9 to 5 or longer hours and not seeing financial freedom, only stress.

This type of greeting card business is fun and quick to get started and like I said, it only takes a start up of $400 which is quite low compared to other business ventures.The best part about the greeting card business is that the product you are involved with actually changes people’s lives for the better. You get to help people communicate and acknowledge one another which is a great feeling.

Private Investment Money in Your Backyard

If you know where to look for it finding private funding for your real estate business is fairly easy to find. Potential lenders can be found anywhere that you go in your daily life. You may run into a potential investor while getting your tires rotated.

Potential Investors can even come in the form of friends or family. In the economy that we are living in these days it is beneficial for people to seek out funds from private investors. who are looking for opportunities that will bring them a return on their investment. The real estate market is in somewhat of a downturn and now is the time fore people to buy while prices are at the current rate.

It has been my experience that the best way to find these sources of income is to simply drop hints as you go about your day. If you are at the grocery store make small talk with the guy in line behind you, I have made more connections this way than send out flyer’s for potential clients. As you talk to your butcher make mention that you are on your way to look at a house for potentially buying. This is one way to drop a subtle hint.

The best part of doing this is that you and the other person don’t have any awkward moments that you two share. Now here is the one thing that most people will not tell you, more times than not they are looking for you at the same time. Even if they are not it never hurts as you can get the standard I know a guy routine.

The overall rule to remember that hard work equals success and if you work hard your efforts will bring in profit. so just work hard at trying to find you private investors and eventually they will find you.