No matter what your real estate business model is, motivated sellers remain the most profitable source of good deals.?? Efficiently locating good deals from motivated sellers and closing them must therefore be a part of successful real estate investing.
In this article, we point out important areas you must focus on in your business.
The key sources of attracting motivated sellers are covered in a separate article.?? As soon as you identify a good deal, you must then secure and close the deal.
In my business, all my deals come through my real estate investor website.? Approximately half of them are? submitted directly by the motivated sellers.?? The other half chooses to use the phone, and my virtual assistant pre-screens them for me and submits this information on my website.
All the deals I receive are therefore pre-screened and pre-negotiated.? I can therefore easily identity a good deal in a few minutes.
Once you find a good deal, you must set up an appointment to see the house. The main reason you need to see the house is to estimate repairs.? If you have bought a few houses, then you know you need about 10 minutes to come up with a fair ball-park repair estimate.
You do not have to get it detailed down to the nail, you just need a safe rough estimate, preferably higher than normal to be safe.
You must make sure you sign the contract when you go to see the house ? do not forget to take one with you.
You can always cancel the sale later if the numbers no longer look good.
If the deal works, fax the contract to the title company so they start title work.? Remember to deliver or mail the earnest money so the contract becomes binding. Make sure that you deposit any earnest money with the title company, not with the seller.
depending on your exit strategy, the next steps are determined by your business model:
1)?Wholesale the deal
If your exit strategy is to wholesale the deal to other real estate investors, this is when you market the deal to them.?? A good real estate investing website should also help you build a list of potential buyers automatically ? then you just email your deal to them.
If you plan do a simultaneous closing, you then sign a contract with you as the seller.? You can also assign the contract for an assignment fee.
The title company will then do the closing and disburse all the money as agreed.
2)?Lease option / Lease to own
If your exit strategy involves taking over existing payments, then your title company should conduct the closing.
This is why it is important that you select a title company that works with real estate investors and understands various real estate investing business models.
3)?Straight buy
If you plan to buy fix and sell, or keep as a rental property, then this is a straight traditional transaction that any title company can close.
Of course these are the main business models; others would follow similar steps.
When all is said and done, your success in real estate investing, largely depends on the efficiency with which you pre-screen your leads, follow up with them to tie up the deal, and efficiently close the deal.
Find out how you can run your real estate investing business from an interactive real estate investor website that automates most aspects of your business delivering pre-screened and pre-negotiated deals so you spend less money, time and effort while you close more deals.
Tags: real estate investing, real estate investing website, real estate investor, real estate investor website
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