"Learn to leverage your team." - Patrick Riddle, S.Carolina Investor

One of the biggest problems that I see especially in beginning investors is that they don’t have a defined and targeted niche. They’re interested in doing property analysis for single-family homes, multi-family property, commercial, mobile home and land.

Know Your Real Estate Niche

First, know what is the most important to you — generating quick cash or long-term wealth? If you go with generating quick cash, then you are going to be wholesaling or flipping.

If you already have some good cash reserve and you are looking to buy your property, then you are looking for long-term wealth-building, e.g., cashflow.

Second, know what type of properties you want to focus on. What type of properties do you feel most comfortable with right now?

Maybe you’ve got started and studied some different types. When I got started, I chose single family homes.

Some people decide to go into multi-family property.

Do whatever you think is right for you but just decide what that specific type is and stick with it, become an expert at it. Then and only then you can venture out to other types of real estate.

Determine Your Wholesale Real Estate Buying Criteria

Many experts and investors’ buying criteria for properties is to buy them at sixty-five percent of value or below. You find the after-repair value, you minus repairs, you multiply by sixty-five percent and that is the most that many of your wholesale buyers will pay for the property.

That would determine what you should be able to make on wholesale deal.

You definitely want to use conservative numbers or your deal analyzing. If you are planning to buy, renovate and sell to a retail buyer, to be on the safe side, buy sixty-five percent of value or below and the more that you can pad yourself there, the better it is going to be for all parties involved and for your profit at the end of the day.

Let’s say that you have good cash reserve and you are just looking to buy a wholesome property. Maybe you are looking to build your cashflow and cashflow is the number one important thing for your buying homes. Then your buying criteria will be determined by the cashflow the property will generate.

Know Your Property Analysis Numbers

We’ve talked about two specific numbers because when you are looking at a property, you want to be able to find the after-repair value.

So after doing repairs that are needed, what is the property going to be worth?

It is good to be conservative with your numbers. And then the next number that you’ll want to be able to determine is the amount of renovation repairs that the property needs.

Now if you’re just getting started, you might not know how to analyze how much the property is worth after repairing and how much repairing is needed. That is okay. You do not have to be the expert.

The coolest thing about real estate investing is that you can leverage your team that you build around you.  They have the ability to verify all the numbers with the deals.

So when coming up with a conservative after-repair value, you would want to start networking with Realtors, appraisers or other real estate investors to get multiple opinions in value.

When I was starting, we had a Realtor that we passed the property by and he gave ideas. Now I have an inspector to go look at the properties. Whether determining value or determining repairs that are needed, it should be safe to know and feel good about the numbers that are put together.

Is buying a rent-to-own a good option?

4 Reasons Why Rent to Own Home Properties Are Great Options:

• Get in a home and start making it yours
• Build equity
• Fix your credit
• Allow you to purchase in the next two years.

What is that magic ingredient that gets a private investor for real estate to say “YES?”

Patrick Riddle of Private Money Blueprint raised over $2 million during the recession.

Maybe you mentioned your private lending program to someone. They were enthusiastic about it.

They said, “Sure, I loved to hear about these opportunities.”

But when the time came and you called them up, what typically happens?

Did they find the deal?

Often time not.

Why not?

What is that magic ingredient that gets your prospects to “YES?”

Robert Cialdini  wrote in his classic book Influence the Psychology of Persuasion, “Human beings are far more motivated by the potential of lost than by potential the gain.”

What does this mean?

It is the principal of scarcity. So how can we use this information in our real estate investment businesses?

2 Ways To Use Scarcity with Sellers, Buyers, and Private Money Lenders

• Limit the time.
• Limit the number.

Any offer that you make with a seller, there is going to be certain time that your offer expires. Make sure to press during negotiations that once that time frame expires, the offer is no good and no longer on the table.

Make it scarce. Take it away.

With a seller you could say, “Mr. Seller, just want you to know that we are only going to be buying one or two more properties this month.

“So if you call back next week and we have made our goal, we may let you know that we can no longer buy your property. Just want you to know that, so the sooner you let us know, the better.”

How can you use the principal of scarcity with buyers?

You all have heard this before, but have you ever done it?

Have all potential buyers view the property at the same time. It isn’t easy thing to do. But that’s what we are doing here the principal of scarcity, because your house become the scarce resource.

Give it a try.

Put your marketing plan together and then as the leads come in for a week or two, however long you want to wait. Set up a time schedule. Tell all your leads that you can show the property between 9:30 and 10 am Saturday morning.  Have 10 people show up and watch the principal of scarcity do it’s magic.

What about a private investor for real estate?

Use a time limit.

When you are following up with your prospects, you could say, “Well Ms. Private Money Prospect I want you to know that this great investment opportunity here. We are going to have someone on this deal to find it. We are going to have an investor to line up to find this by next Wednesday. So if you interest you want it to let us soon.”

Use a number limit.

You could say, “Ms. Private Money Prospect, we’re only looking for less than five highly qualified private lenders to bring in our company. So once we have added them to our team we will close out this opportunity.”

So that is how you use the principal of scarcity with buyers, sellers, and private money lenders.

If your interested in multi-family investing check out my new video.

Here’s the link: http://www.InvestmentRealEstateCorner.com/go/irec-get2yespost-get-the-money/

Let me know it how works out for you.

About the Author: Patrick Riddle is co-founder of Private Money Blueprint. He explains that success is not typical becomes it involves hard work most people won’t do.

It is true that short selling your home is going to have a negative effect on your credit. Though the lender is not taking away your home, you are selling the home of your own after negotiating with the lender, it shows your inability to make the payments, and thus, your credit gets hurt after the short sale.

With a short sale, the credit score can lower by 200 to 300 points. It is deemed to have the same effect on your credit just as the foreclosure.

3 Way To Improve Average Credit Score After Short Sale

There are various ways in which you may be able to improve your credit after the short sale. You will have to follow some real strategic steps or tips in order to better your credit within few months or at least a year. The better you will be able to make your credit, the better will be your option to get new credit or to buy a new home.

However, recovering from the impact of the short sale is not that tough as it is from the impact of a foreclosure. So, what are the things that you need to follow in order to improve your credit after the short sale of your home.

1) You may be able to improve your credit by making the on-time payments on the credit accounts that you already have. The greatest part of your credit depends on the payment history. So, this is going to help you in improving your credit eventually.

2) You will have to obtain a secured credit card in order to improve your credit. A secured credit card is much easier to get as it is actually backed by collateral.

The prepaid credit cards and the secured credit cards are different and so it is important to not confuse these two types. You will have to use the secured credit card in the right way and then make the payments on time. However, before you take out a secured credit card, make sure that the creditor reports to all of the three credit bureaus, otherwise your credit may not improve even with the timely payments.

Don’t overuse the card and never miss payments on the card.

3) In addition to taking out a secured credit card, another thing that is extremely important for you to do is making on-time rental payments (if any), payments on electricity and so on. Though these do not get easily reported onto your credit reports, if you miss payments and if these are handed over to collection agencies they may eventually end up listed on your credit reports. You may not want to further hurt your credit, right? So, go on making the on-time payments on these too.

Furthermore it also becomes important for you to check your credit report from time to time in order to avoid any payment mistakes, or even any kind of wrong listings on your credit report.

About Author: Sophia Gaine is associated with the Creditmagic Community and making regular contributions as a member of the community.

Online public government records research is the easiest way to learn how to get investors. When I followed the step-by-step videos created by Patrick Riddle, my assistant and I identified over 65 private investors in Florida. Check out the video below.

 Watch Video Sneak-Peak on How To Get Investors Using Public Records

 What Is It Called?

Private Money on Demand

Who Created It?

Patrick Riddle of MustKnowInvesting.com

A Great Resource To Find Private Money Lenders?

Have you ever heard someone say? “You have to have money, to make money.”

That is absolutely false.

You need only one thing to get started…

Private Money on Demand will help you find potential “friends” who have private funds to lend in real estate. How will you know they want real estate?

1. Patrick Riddle’s private money on demand will show you how to get investors who have recorded mortgage deeds.
2. These deeds are uploaded to government websites by title companies.
3. These government websites are available to the public.

As a member of “the public,” you can access the records now. Private Money on Demand shows you the “how” and “where.”

Who Else Knows How To Get Investors?

I interviewed Shannon Bynes when she started full-time real estate investing.You can listen to my interview with her on how she stop relying on hard money lenders in Florida.