Quick Flip Real Estate

Posted on July 30, 2007
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In today’s work of buying houses, condos, and other building the last thing you want to worry about is getting your hands on the deed. Deeds have multiple problems like exposing you to all kinds of risk, and make profiting harder, not easier.

How Do Quick Flips Work?

It’s all about finding a seller who needs to sell now. Being honest up front opens the door to doing business with the seller. Let them know you are an investor and would like to make a quick profit in order to even consider doing business with them, simply ask if that’s okay with them. Most sellers will agree and everything falls into place.

Now all you have to do is market the property. Now it’s your turn to show the property to perspective buyers with the agreement of the seller. Market the property with a sign in the front yard, a classified ad, or a listing in the MLS.

Make sure you have the seller sign off on the deal and you have his complete agreement, doing whatever it takes to get that property resold (and him paid) is pretty much green lighted from there on out.

When the right buyer shows up paying you way more than you’re paying since the entire process was disclosed up front professionally your seller objective was met. A quick sell.

The quick real estate flip is your objective and is becoming quickly one of the most popular ways for investors and rushed sellers to make a profit.

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Why Would A Property Seller Be Interested In A Rent Back?

Posted on July 27, 2007
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The ability to sell a house quickly and then rent it back for an extended period of time has become more and more popular. Hundreds of these transactions have taken place over the last year and many former homeowners are now happily continuing their lives while living in the same house that was theirs.

Why would a homeowner want to rent a home back? What is it that ties them to a place and discourages them from simply taking the money from the sale of their home and making a fresh start? There are many reasons that a home owner may wish to stay in their previous residence after they have made a sale. For a family that is preparing to relocate it may be a matter of time until their new residence is ready, others may have children still in school and they do not want them to have to change schools at that point in time. Many have parents that are too far into their elderly years to be expected to thrive in a new environment, and others may simply have become attached to the neighborhood. On the flip side, a home owner who chooses to sell to rent back will probably not get the full market value for his property.

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Mastering the Art of For Sale By Owner Negotiation

Posted on July 26, 2007
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There is much more involved in selling your home than presenting a beautiful and immaculate home for sale. Once you have a potential buyer, it is now time for what some people consider the most difficult part: the dreaded for for sale by owner negotiation process.

In reality, negotiating with a buyer is not really all that much different than the everyday negotiations you may go through with family members and co-workers. It only seems intimidating in this situation because of the high stress level associated with the sale of your own home.

It’s important to remember that in the process of FSBO negotiation, emotions can easily destroy a good deal. Unfortunately, many people will walk away from a deal if their offer is insulted in any way. For example, your potential buyer may have other plans for that beautiful garden you worked so hard to cultivate and you just can’t imagine a shed being erected on top of it. You must set aside your emotions you have about your home to allow the deal to go through.

In for sale by owner negotiation you’ve got to establish trust. Avoid any responses that may offend the buyer. Even though you may feel insulted when the buyer calls the wallpaper ugly or your favorite rosebush an eyesore, you’ve got to let things like that slide if you hope to sell your home. Being truthful in your FSBO negotiations is important too. If your potential buyer sees something wrong like a water stain on the attic ceiling, making false excuses will do nothing but damage your credibility and hinder your FSBO negotiation.

Fairly early on in your FSBO negotiation you want to make sure the buyer can qualify for a mortgage to cover the asking price of your home. Remember, too, your buyer is not the enemy and you don’t want to get defensive. Rather you are working with them to achieve a mutually beneficial result. If the buyer offers to pay far less than what you are asking, ask questions to determine how he got to that number.

When you make your counteroffer, be respectful and let the buyer know you have considered his position. Be willing to explain your counteroffer in a way that you would like to have the offer explained to you. You must remember above all else to be courteous and not to get defensive during any portion of the FSBO negotiation. Everyone is entitled to an opinion, but you are engaging in a transaction and it must be handled in a professional manner. Be willing to discuss any property defects and to allow an inspection of these defects. If after inspection, a price quote is given to fix the defects, be prepared to lower your asking price by a portion of the cost to repair.

Your FSBO negotiations don’t have to be an intimidating process if handled properly. They will only be another step in the process of selling your home. Things will flow allot smoother than you might expect if you will follow the above tips. In the end, it will produce a happy buyer and a happy seller.

Discover more for sale by owner strategies in the FSBO Files.

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The Art of Futures and Options Trading

Posted on July 23, 2007
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Options on currencies, Treasury bills, notes and bonds, stocks and bonds indexes, and futures contracts are currently being traded. Since they are derivatives of actual investments, they can be difficult for individuals to understand and use profitably. The fact is that options traders loose money 60% of the time. These types of options are appealing to traders that want to protect their investments against major swings in market prices, or speculate on the markets movements.

Buying put options on stock indexes is a way for investors to hedge their portfolios against sharp drops in the market. It gives them the right to sell their option and make a profit if the market falls. the money realized on a sale will hopefully cover the losses in their portfolios resulting from the falling market. In order for this technique to work, the options have to be on the index that most closely tracks the kind of stocks they own. Plus there has to be enough options to offset the total value of the portfolio. Because options cost money and they expire quickly, using this kind of insurance regularly can take a big bite out of any of the profits that the portfolio itself produces.

Speculators use index options to gamble on shifts in the market direction. like other methods of high risk investing, this one offers the chance of making a big killing if the investor gets it right. Otherwise there wouldn’t be any takers. However the risks of getting the price and the time right are magnified by the short life span of the index options. A complicated factor is that indexes don’t always move in the same direction as the markets they track. When indexes are out of kilter, there are big profits to be made by the arbitrage traders with computer programs that are fine-tuned enough to take advantage of the movements.

Options are traded through options trading firms on the futures exchanges on the Chicago Board Options Exchange, and on four other stock exchanges. like futures contracts, options contracts are traded exclusively on the exchange that makes, or originates, them. Trades are handled through the exchanges where they take place. buy and sell orders are matched anonymously, and can be canceled by using an offsetting contract.

The SEC has initiated a controversial program with stock options, they are allowing them to be listed, and made available for sale on all of the exchanges the way that stocks themselves are. Currently, the Chicago and American exchanges, which trade contracts in blue-chip stocks, controls more than 75% of the business, with Philadelphia and Pacific exchanges about 22%. One change that multiple listing means is a shift to the increased use of telephone and computer-generated trading, introducing opportunities for comparison shopping and for arbitrage.

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