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The Crucial Steps All New Investors Need To Take

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TheRealEstateDealer.com - Before you begin to invest in real estate, you must first make sure you have certain things in order.  Listen to this audio so that you may begin investing with a sound foundation.
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The Most Common Wholesaling Mistakes

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By: Omar Johnson
Certain mistakes are so commonly made by new wholesalers entering in the real estate business that they are worth mentioning and highlighting. I have listed them below for you in this article in a problem/solution format because what would be the point of highlighting the common mistakes and problems without offering relevant solutions?
Problem: You're buying in the wrong area.
Solution: Talk to your buyers, find out where they're buying, and try to find deals in those areas where buyers are active.
Problem: You're agreeing to pay too much for properties.
Solution: Lower your offers. A good rule of thumb when you are new at making offers is that if your all cash offer doesn't embarrass you at least a little it’s probably too high.
Problem: You're working with the wrong real estate agents.
Solution: Find others who are more reasonable. There's never a shortage of real estate agents in any given area, and they tend to try to make themselves easy to find.
Problem: You're worrying too much about repair costs.
Solution: Let your buyer worry about this if you are uncertain. Make sure your seller understands that your offer is contingent upon certain inspections to verify repair costs. That way if you have contracted at a price that is higher than the offers you are receiving from your buyers, or that doesn't leave enough room for you to make an acceptable profit, you won't lose face by renegotiating a lower price with your seller.
Problem: You're not making offers because you don't have money.
Solution: If you're wholesaling it doesn't matter how much money you have. You will have money because you are making offers, not the other way around. Make lots of offers, you won't be using your personal funds to close on any of them. The more offers you make and the more deals you get in the middle of the sooner you will see results from your business.
Problem: You're not prescreening prospects properly.
Solution: Whether you're dealing with buyers or sellers, there will be many more who are unqualified than who are qualified. You need to spend as little time as possible talking with the former and as much time as possible talking with the latter. This is the art of prescreening.
It involves asking the right questions to make a determination as quickly as possible if you are dealing with a prospect or a suspect.
Problem: You're not making enough offers.
Solution: Make lots of offers. Making offers and negotiating is where the main value comes from in a wholesaling business, and hence where you create the bulk of your profits. Generating leads to make offers on and realizing the profits you create are equally important of course, but assuming these aspects are tended to properly then the more time you spend making offers the greater your profit will be.
Problem: You don't have an organized follow up system.
Solution: Design a tickler file or similar file system to keep track of EVERYONE you talk with and follow up with them as appropriate. Most of the time you don't do business with a buyer or seller the first time you talk to them, but only after repeated contacts. So stay in touch!
Problem: Your investors are offering too low a price for you to profit.
Solution: Renegotiate your price with your seller. If they won’t accept a lower price let them know you won't be able to buy the house. This becomes less of a problem the better you get at everything.
Problem: You're not getting any offers because the house is in a war zone.
Solution: Find out if your buyers are interested at any price. Target your marketing towards landlords who buy in the war zone.
Problem: You're not getting any offers because the property is in too bad of shape.
Solution: Find out if your buyers are interested at any price. If the house is a teardown tell the seller that you won't be able to buy it, unless you can get it for a discount from lot value and have buyers who will take it. If the house is not a teardown target your marketing towards investors who like very heavy rehabs. There are some rehabbers who specialize and thrive in this niche.
Omar Johnson is a successful real estate investor and author of the home study course "Renegade Stealth Marketing For The Savvy Real Estate Entrepreneur" For more info visit http://www.renegadestealthmarketing.com
For the text version of this audio, go right now to TheRealEstateDealer.com's official blog.

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Wholesaling Properties: 7 Costly Mistakes Of Newbie Investors

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By: Iman Yusef-Yahya
How did you first learn about the business of wholesaling real estate? Did you read a book? Or hear it on a 2AM infomercial? Or perhaps you know someone in the business. No matter how you learned about it, you quickly caught on that there was money to be made in the business. You may have seen incredible examples of people who found bargain properties, purchased them for pennies on the dollar, turned around and made a nifty profit.
Of course all that is true. Wholesaling properties is a lucrative business, but there are a number of pitfalls and dangers to be aware of. Remember the old saying "To be forewarned is to be forearmed." The highway to real estate fortunes is littered with well-intentioned people those who did not heed good advice. Let that not be said of you. Here are seven of the most common newbie mistakes to avoid.
1. No Cash Reserve
To jump into real estate investing with no cash reserves is pretty much a ticket to quick failure. I know - you've listened to all the infomercials and heard the gurus say "no money down," "you need no cash," and similar amazing claims. It sounds great, but the truth is you will have to have access to some cash. This may be your great credit (and your credit cards), it may be a partner who has cash reserves, it may be someone who believes in you who is willing to invest in your business. Somehow, some way, there must be available cash. Think about it - you can't even buy a stack of bandit signs if you have no cash.
2. Lack of Knowledge and Expertise
Some people love to learn and soak up knowledge and instruction. Others feel that taking time to study (seminars, teaching CDs, books, webinars, etc.) is a waste of time. "Who needs it? I just want to jump in and get rolling." Can that person become successful? Perhaps. But the chances are slim. Do you want your car tuned up by someone who has never been trained? Not me. There is so much good instruction available, it would be foolish not to take advantage of it. Whatever knowledge and training you can acquire - your future clients will thank you for it.
3. Failure to Market
In order to succeed in real estate investing you will need sellers who want to sell and buyers who want to buy. The only way you can find these people is by marketing. Yes, you can hire bird dogs (people to scour neighborhoods to find properties for you), but that is not all sufficient. The lack of a marketing plan and a marketing budget is a mistake that can be fatal to your new business. You must let people know you are in business, and you must let them know what you can do for them.
4. Ignoring the Internet
Closely related to marketing is the use of the Internet. In this day and age, there is no excuse for not taking advantage of all that is available on the Net. You can find simple do-it-yourself website programs with which you can set up a website and feature your properties. Learn about such things as email campaigns and autoresponders. Use free ad services such as CraigsList. Much of what is offered on the Internet is free for the taking. Not using these tools leaves a gaping hole in your marketing plan.
5. Paying Too Much
Another mistake that often puts newbies out of the game is the lack of ability to make a clear price analysis. This is an art that is learned over time. If you are flipping to a rehabber, you must factor in such items as repairs and holding costs. Failure to understand how to price will equal out to slim or no profits. No profits means no business.
6. Falling in Love with the Property
If you latch on to a beautiful piece of real estate, it's difficult to keep emotions at bay. But that is the key to becoming a good investor. Emotions must not play a part in the decision making. If they do, it's likely that unwise decisions will be made. The best advice is to hold all properties at arm's length and remain as objective as possible.
7. Doing Nothing
Procrastination is a demon that will not only kill your enthusiasm; it will kill your entire business. If it is to become your source of income, treat it like a real business and not some hobby you've picked up. If you have determined that you want to make money in the real estate game, you must set up a work plan and follow it. If you do nothing - believe me, nothing is what will happen.
Conclusion
If you are new to the world of real estate and real estate investing, you will have enough of a learning curve without adding to your headaches. Any and all of the mistakes listed above can be easily avoided. Let these be seven headaches you will eliminate at the outset. Consider yourself forewarned!
Iman Yusef-Yahya prides herself on finding cheap, wholesale properties for real estate investors around the country. If you are a real estate investor, or want to be one, grab my FREE report on How to Buy Wholesale Properties WITHOUT Taking a Bath now at http://www.ImanAndJoesWholesaleProperties.com