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Classified Ads Marketing Strategies For Investors

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Image from Pixabay

By Tamera Aragon

“Doing business without advertising is like winking at a girl in the dark. You know what you are doing, but nobody else does.” ~ Steuart Henderson Britt

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Classified ads are a good cost /effective way to reach property sellers in Pre-foreclosure, and Pre-default. Secondary niches who you will find contact you from your ads are Absentee Owners, Probate and bankruptcy. Classified ads are also good for selling any type of property.

Classified Real Estate Marketing Keys to Success:

  • Ensure that your headlines command attention and virtually DEMAND that your prospects take action.
  • You have to be UNIQUE. What do you have or do that makes you stand out from the chatter of the ever-increasing crowd?
  • Write as you speak rather than as a professional “Report Writer”.
  • Don’t sell the prevention, sell the cure. As Jay Abraham says, “Nobody wants the 1/4 inch drill. What they want is a 1/4 inch hole.”
  • Take all the risk away from a buying decision by making an IRON-CLAD guarantee & STICK to it.
  • Cover concerns and likely objections of your TARGET audience.
  • Test your copy and your advertisements before you start to roll them out on a large scale.

Remember…Suspect = Prospect = Customer = Client = Raving Fan…and maybe even a friend.

Classified Advertising Estimated Costs

Image from Pixabay

Print Ads: The costs for print classified ads are not cheap. But when we look are our ROI, (Return on Investment), this form of advertising makes us money. We spend about $800 a month which is also $10,000 a year on newspaper ads and we bring in an average of 4 deals a year netting us $100k annually. That is getting my money back 10 times!!!

Online Ads: There are many online classified ad spaces to place your ads and many are free. I always place my property on Craigslist.org and Backpage.com. To get your information out to many online advertising resources very quickly, I recommend a free service at www.postlets.com.

Print Classified Advertising Steps Involved

Here are the steps to follow in placing print classified ads:

  • Website searches: www.newspapers.com or Search the term “newspapers” by your city, state online via Google or Yahoo.
  • Personal Touch: Contact the Chamber for your niche city and ask for information on Main Newspapers and smaller Neighborhood Newspapers like the Penny Saver or Fickle Nickel; etc…and get the Name, Phone Number and Website address’s for each one.
  • Then look at the each newspaper under real estate wanted & Real Estate Finance/Services. Check out what other investors are doing.
  • Call all the newspapers and find out the following:
    • Circulation: where does the paper go and how many are delivered
    • Ask if they have any special days or sections catered to real estate. For instance, our paper is Wednesday and Sundays.
    • What is the cost for an ad you have created to run 1 week? You can work with them on making changes to the ad to get the price down.
    • Ask if they have any specials available right now. If so what?
    • Create your ad with the representative on the phone
    • Be sure and ask for proof prior to printing if at all possible.

Image from Pixabay

  • Run an ad for 1 month in the most popular print ad spaces. This will allow you to really understand what kind of response you get. You can do 1 at a time or do 2 to 3 at once (depending on how busy you want to be and your budget
  • When you get calls always do the following:
    • Answer the phone. Or if you can’t answer the phone, it would be best to use an answering service.
    • Keep track of your leads by asking where the seller saw your add
    • Also ask the seller: “What was it about my ad that made them want to call me.”
  • If you not receiving any calls it could be that the ad you placed is the reason. At this point it is best to tweak the ad a little and put it back out there.
  • Once you do the tracking for a month see which one brought in the most leads and stick with that one.
  • Repeat the process when necessary.

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Sample Classified Real Estate Ads

I bet you have these burning questions on your mind: So what actually do you advertise or How should my ad look? Here are a few sample ads that have worked for me!

SAMPLES: FOR RENT OR RENT TO OWN

*SW 215/Durango*
RENT or RENT-2-OWN
3bd/2.5ba + loft $1485mo.
Call 380-7848

Why rent when you can
RENT 2 OWN!
Bad Credit ok!
5 bedroom/2 bath
Newly Remodeled.
Granite Fireplace
Hardwood Floors
10% down/ $1495/mo.
Call Now! xxx-xxx

*SW 215/Durango*
Lease 2 Own
3bd/2.5ba + loft
$5000/down $1485/mo.
$200/mo credit towards
purchase Call 380-7848

AIRPORT *Brand New!
4/2, 1965sf, pool, park,
Tennis +upgrades, $7000
Down, $1695mo$200/mo

2725 Telegraph Ave
Lease 2 Own
3bd/1ba. Built-in pool.
$15K/down $1600/mo.
$300/mo credit towards
Purchase. Call 649-7586

2725 Telegraph Ave
Lease 2 Own
3bd/1ba. Built-in pool.
$15K/down $1600/mo.
$300/mo credit towards
purchase. Bad Credit ok.
Call 649-7586

SAMPLE: FOR SALE 100K and Under

ONLY $69K – CALL TODAY!
OWNER MUST SELL.
Fixer upper. Large Lot.
Hazelton and Fresno
in Stockton.
Make Offer. Xxx-xxxx

SAMPLE: FOR SALE 100-200K

Don’t Pass. It Won’t Last!
MUST SELL! Newly Remodeled.
4Bed 3Bath. 2 story
Covered Patio, Built in BBQ
Hardwood & Tile Floors
Otto & Estate Area
$189K or BO 209-957-6971

Don’t Pass. It Won’t Last!
MUST SELL! Newly Remodeled.
5 Bedrooms 2 Bathroom. Covered Patio.
Granite Fireplace. Hardwood Floors.
Lower Sacramento & Hammer Lane
$149K. Make an offer! Xxx-xxx

Need a home to call your Own?
4 bedroom/2 bath
Newly Remodeled.
Tile Floors, build in BBQ
Owner must sell! xxx-xxxx

SAMPLE: MARKETING YOUR BUSINESS

Image from Pixabay

Newspaper Section – Real Estate or Finance/Services

I’ll Buy or Lease Your House Within 48 Hours or Tell You Why No One Else Will
Ask for Marge xxx-xxx-xxxx
We’ll Buy Your Home Today!!!
Don’t Make Another Payment
Ask for Mark xxx-xxx-xxxx
Do You Own An Unwanted Home?
Free Consultation
Sell Today
Call Dave xxx-xxx-xxxx
Kristie Buys Houses
Immediate Debt Relief
Locally Owned and Operated
xxx-xxx-xxxx

Newspaper Section – Wanted Real Estate

Payment Assistance
We Buy and Lease Houses
Don’t Delay, Call Today
Bryson xxx-xxx-xxxx

Behind on Payments?
Need Immediate Help?
Call today for free consultation
xxx-xxx-xxxx
Area Specialist Buys Real Estate
Little or No Equity OK
Cash or Terms
Prices Quoted By Phone
Dana xxx-xxx-xxxx

Payment Assistance
We Buy and Lease Houses
Don’t Delay Call Today
Bryson xxx-xxx-xxxx

Can’t Sell Your House?
Behind on Payments
Little or No Equity?
I can Help!
Call Jordan xxx-xxx-xxxx
Free Report
How to Sell Your Home in 3 Days or Less
Any Area or Condition
AC xxx-xxx-xxxx
Real Estate Workouts
Problem Ownership is My Specialty
Call Roscoe xxx-xxx-xxxx

Corporate Leases Needed
Your Home May Qualify
Don’t Make Another Payment
Ask for Perry xxx-xxx-xxxx

Newspaper Section – Financial/Real Estate Services

Immediate Debt Relief

Stuck with a house payment you can’t afford?
Stuck with a house you no longer want?
Call Sue @ 777-444-1111

NEED TO SELL FAST?
I BUY HOUSES
CASH TERMS OR TAKE OVER PAYMENTS
RAPID DEBT RELIEF
CALL: xxx-xxxx

0 stress, 0 cost to you. Sell for cash in 72 hours.
Foreclosure OK. We can even help you move.
Husband/Wife team in CA since ’80.
Extensive references. Call John & Judy, xxx-xxxx

CASH FOR HOUSES
In 48 Hours!
Any area, price or condition
Call xxx-xxx-xxxx

Newspaper Section – Homes Wanted to Buy

Executive investor wants to buy a nice home
in a nice area on a lease purchase option.
Call Tom @ 777-444-1111

Want out? Give us a shout�
We buy houses
Phone number
Website address

Classified Ads Conclusion

These are just a few ideas that I hope will get you going in the right direction understanding the key to receiving any kind of leads is “advertising”. Important Real Estate Adverting Tip: Ads should be in the local newspaper everyday. (You cant catch any fish if your line is not in the water). Classified ads are a good inexpensive way to do just that. Spread the news!

TAMERA ARAGON

Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Tips For Flipping Commercial Real Estate Properties

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Image from Pixabay

By Vista Capital Solutions

Flipping commercial real estate properties can be expensive– there’s no doubt about that. From taking out loans to paying for repairs, it’s hard to say what a project’s final expenses will look like. Luckily, there are a few things that even first-time flippers can do to reduce their final expenses.

Image from Pixabay

Pay in Cash Whenever Possible

Did you know that you may be able to cut a deal if you are able to pay for something in cash or for a majority of the final cost in cash? This is true even at professional lending institutions and loan offices. The best way to find out if a business will give discounts for paying, in part, with cash is to simply ask.

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Even if a business or loan officer will not give discounts for paying in cash, you will still benefit from paying as much out of pocket, to begin with, rather than taking out the entire amount for repairs that you need in loans. This is because the less money you take out in loans, the lower the payments will be. As a bonus, interest will not compile as quickly, which will also help to save money.

Use Fix and Flip Financing Programs

There are financing programs designed specifically for property flippers, and cover the costs of acquisitions and renovations. Fix and flip lines of credit, and fix and flip loans, can be used by property investors to tackle individual projects, on up to hundreds of units simultaneously. Fix and flip financing programs are structured around the value of the property involved, and are very accessible to property flippers at all levels.

Image from Pixabay

Work With a Partner

Lastly, having a business partner can help to relieve the burden of some of your expenses. When you have a business partner, all of the expenses should be divided between the two (or more) of you. This option can work whether you can pay in cash or not and whether you can get a government-funded loan or not. Just make sure that you are working with someone you can trust, as you will also need to share your profits.

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When looking to fix and flip commercial real estate, try to pay in cash, take out loans with low-interest rates, and work with people who you trust. Doing all of these things can go a long way to saving you a lot of money.

Why Millennials Can’t Afford Homes in 2022

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Image from Pixabay

Special submission by Alyssa Evans with Clever Real Estate

Millennials are the largest cohort of home buyers in the United States, slightly edging baby boomers and Generation X. You might think that gives them a lot of buying power, but the opposite is true. As a generation, millennials struggle to afford homes because of inflated housing prices and expensive student debt.

With the largest group of home buyers unable to afford homes, that could affect the entire market. In the future, it’s possible that a small coterie of real estate investors could use an online investment property calculator to acquire property, claim home tax deductions, and even manage those rental properties remotely while the large majority of Americans remain permanent renters because they’ve been priced out of the market.

A new study from Anytime Estimate evaluates home prices versus inflation and examines the unique financial pressure millennials face, why homes are less affordable, and what that could mean for the housing market.

Inflation Has Been a Problem for Decades

Image from Pixabay

Inflation has been a hot-button topic over the past few months, but it’s been a problem for decades. Since 1970, home prices have increased more than 1,600%, while inflation has increased only 644%.

The problem seems to be accelerating. In 2021, home prices skyrocketed 20%, while inflation grew 7.5%. If home prices grew at the same rate as inflation, today’s median home price would be just under $178,000. In reality, the median home sale price is about $408,000.

Meanwhile, median U.S. household income has increased just 7% in total since 2000 — only 0.3% per year. In simple terms, homes are getting more expensive, minimizing income increases Americans receive.

The Home-Price-to-Income Ratio Is Higher for Millennials

The real estate market is historically hot right now. Sellers who once might have accepted a lowball offer from a company that buys houses for cash are now finding a real estate agent to list on the market and get multiple bids above asking price.

Some buyers are paying top dollar for a house, but that doesn’t mean they should. Financial experts say a healthy home-price-to-income ratio is around 2.6. In other words, buyers shouldn’t purchase a home that’s more than 2.6x their annual income.

Today, the average household income in the U.S. is around $68,000. To maintain a healthy price-to-income ratio of 2.6, the average American would need to buy a home priced at $177,000 or below. However, the average home in the U.S. costs almost twice that amount — $332,000. The average home-price-to-income ratio is 5.4, double what’s recommended.

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As millennials enter prime home buying age, they’re also entering a market that’s historically expensive. In 1985, when the average boomer turned 30, the median sale price of a home was about $83,000, and the median household income was just under $24,000. That’s a home-price-to-income ratio of 3.5.

For a baby boomer to meet the recommended 2.6 home-price-to-income ratio, they needed to make around $32,000 — 35% higher than the median income at that time.

Fast forward to 2019, when the average millennial turned 30. The median household income was just under $69,000, and the median home sale price was $313,000 — a 4.6 ratio. That’s 31% higher than the ratio for boomers, not to mention nearly twice the recommended ratio.

For the average millennial in 2019 to buy a house within the recommended home-price-to-income ratio of 2.6, they needed to earn a household income of around $120,000 — 75% higher than the 2019 median.

It’s clear millennials enter a much tougher housing market than baby boomers. Boomers were able to buy homes relatively cheaply, and they have enjoyed decades of appreciation. Many boomers have built their net worth through homeownership and real estate investments, using smart maneuvers like a 1031 exchange to defer their capital gains taxes.

Millennials, on the other hand, may not even be able to get their foot in the door because of the simple relationship between home prices and income.

The Cost of College Has Skyrocketed

Image from Pixabay

Adjusting for inflation, tuition costs have increased 143% since 1963 and 52% since boomers started college. For millennials, rising costs have translated into student debt.

Millennials carry about one-third (32%) of all student debt in the U.S. The average millenial has a student loan debt burden of nearly $41,000.

It’s not surprising that 60% of millennials say that student debt is holding them back from buying a home.

Low Supply Has Inflated Home Prices

Even for millennials who have money to buy a home, there aren’t that many homes on the market, and competition remains high.

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The pandemic snarled supply chains and paralyzed the labor market. Builders are just now recovering. Many experts say that today’s low housing supply can be traced back to the construction slowdown caused by the Great Recession. Others add that zoning restrictions have blocked high-density housing that could alleviate the shortage. All those factors have contributed to a historically tight housing market, with supply far lower than demand.

One further complication for millennials is that a lack of available housing has caused many boomers to stay in their homes when they might otherwise downsize. The homes that boomers would be selling would, in many cases, be starter homes for millennials. However, those homes aren’t making it to the market.

Realty411’s Real Estate Investor Summit – Learn to Invest LIVE at this Expo

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House Mortgage

Celebrate Real Estate Investing with Realty411 – Join Us for an In-Person Event in Orange County.

Realty411 is ready to help investors take their life, business and real estate portfolio to a NEW LEVEL in our “new world” of networking.

We have exciting news regarding our In-Person Event in Irvine, California. Our special one-day conference will host incredible educators from around the country, who are ready to share their valuable insight.

RESERVE YOUR COMPLIMENTARY TICKETS HERE!

Be sure to join us in PERSON, if you can. We will have wonderful resources, plus guests will have access to private capital, plus business and commercial funding as well. Now is the time to grow your real estate business to new levels.

Thanks to our generous sponsors, subscribers and VIP members, our event is complimentary for everyone. Our early-bird guests will also enjoy a catered breakfast and gourmet coffee, plus plenty of networking opportunities.

Now is the moment to grasp this opportunity — the chance to network with sophisticated investors from California and around the country.

RESERVE YOUR COMPLIMENTARY TICKETS HERE!

Be sure to pencil this date now and join us in-person to gain specialized insight and knowledge. The information shared on this day could catapult your portfolio to new levels. Broker/agents will receive valuable training on the latest technology available to close more transactions.

This one-day conference has something for everyone regardless of their experience level in real estate. Join this memorable day and receive knowledge for a lifetime.

Learn the Latest Niches in Real Estate + Connect with Influential Investors from across the nation right here in Irvine, California!

OUR COMPLIMENTARY CONFERENCE IS THE #1 SOURCE FOR REI 411

This is Your Chance to meet TOP Leaders in REI, Local & National Experts

  • Learn from Leaders & Industry Pros
  • Meet Local PLUS Out-of-Area Investors
  • NON-Stop Tips for Real Estate Success
  • Bring Lots of Business Cards

RESERVE YOUR COMPLIMENTARY TICKETS HERE!

This event is produced and hosted by Realty411.com. Our company is based in Central California. Since 2007, we have dedicated our time, resources and energy to help expand real estate investing knowledge and education by producing complimentary magazines, virtual conferences, webinars, podcasts, and live events.

We also produce REI Wealth magazine, which is the longest-running magazine for investors specifically developed for online readership. Our digital, interactive issue is designed to be read and viewed online.

We now also print copies of this fabulous publication as well. Learn more about this publication at: http://REIwealthmag.com

INVEST YOUR TIME HERE FOR ONE SPECIAL DAY OF NETWORKING & MOTIVATION – TAKE YOUR REAL ESTATE KNOWLEDGE TO A WHOLE NEW LEVEL.

Don’t miss our complimentary real estate investor summit. What can you expect?

Learn with PROVEN Leaders in the Industry:

  • Receive the latest REI knowledge from active investors
  • We feature the latest technology to expand your income
  • Meet other investors with common goals and mindsets
  • Develop relationships with leaders in the industry
  • Share your opportunities with potential clients
  • Learn how to save money with our Realty411VIP.com members’ network.
  • Realty411’s publisher has owned national rentals for many decades
  • We will share life-changing information unavailable anywhere else
  • We host complimentary events to meet our readers and to spread knowledge

Other events charge hundreds of dollars, but this day is PRICELESS

Realty411’s founder is local and has both media and real estate experience having graduated from California State University, Long Beach with a degree in journalism. Plus, her background includes17 years as a licensed California real estate sales agent. Currently, she is obtaining her MLS license as well.

Our mission is simple: To provide realty knowledge and resources so that everyone can learn about the benefits of investing.

OTHER SPECIAL BONUS PERKS INCLUDE:

  • Early-Bird Guests Receive Our Investment Magazines
  • Meet Local Leaders & Industry Giants – From Coast to Coast
  • Influential Real Estate People & Business Owners Are Attending
  • Learn How to Leverage and Meet Private Capital Lenders
  • Find Potential Partners, New Friends, Build Your Circle of Influence
  • Your Net Worth = Your Network — Don’t miss this event
  • Mingle with Leaders & Industry Professionals Here
  • Please bring LOTS OF BUSINESS CARDS, it’s time to Network!

For more information, please contact our office: 805.693.1497 – RESERVE YOUR COMPLIMENTARY TICKETS HERE!

Rates are Rising! What’s Ahead?

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Image from Pixabay

By Bruce Kellogg

The Reversing Interest Rate Trend

In 1980, only two years into real estate investing, I purchased two rental houses with 18% loans from Glendale Federal Savings, which is long gone. So are the two rentals, lost to foreclosure because I could not handle the resulting negative cash flow.

18% was the peak in mortgage rates at the time. In the subsequent 42 years, they have drifted down to the recent 3% range, largely due to fiscal and monetary actions taken by the U.S. government intended to manage the economy.

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Now, due to rampant inflation reaching 8.5% annually, the Federal Reserve Board has begun to raise rates rapidly. They never quantify their intentions, but reputable financial observers are predicting increases of 1.5% or more over the rest of 2022.

I believe that the long-term trend in interest rates is reversing now. I think this will change many aspects of the real estate industry in major ways. After 44 years in the business, I feel qualified to express what I envision happening in several areas. I’m thinking about what will be happening December 31, 2022 and beyond. Let’s see!

#1 – Mortgage rates have just reached 5.25% for conforming 30-year fixed rate loans. Adding in the Fed’s 1.5%, we get a conservative 6.75%. I say “conservative” because lenders will add 0.5% or so to protect themselves in the rising trend. So, 7.25% is also possible. Adjustable-Rate Mortgages (ARMs) will be cheaper for borrowers, but riskier in a rising rate environment.

#2 – Car loans are usually close to mortgage loans. Several years ago my son got one below 2% (barely). If these go to 7-8%, a lot fewer new cars will be bought. Vehicle, heavy equipment, and some consumer-financed goods will suffer sales declines. Production cuts and layoffs could result.

Image from Pixabay

#3 – The Federal Debt portfolio is huge and varied. But new, long-term federal bond issues could reach 5-5.5%. Recently in the 2% range, this will increasingly make it harder for the U.S. to service its debt. Additional borrowing, or tax increases, could be the result. Oh, oh!

#4 – SFR (Single-Family Residence) Listings will be low and will stay low. See the diagram (Source: Axios). 92% of homeowners say their home is affordable for them now. Houses are appreciating nicely so far. So, why list, find a new place, move, and pay more??? Some will list due to a job relocation, divorce, inheritance windfall, but not many for a “move up”. Homeowners are “set” at this time.

#5 – Buyers’ Offers will be fewer. With fewer listings, higher prices, and higher rates, the number of buyers will drop off. Prices could decline after a while. Some markets are “topping out” already. This is a local phenomenon, so pay attention!

#6 – Refinances were off 80% last week. This industry is destined to be hit hard. Loan agents will be leaving. Offices will be consolidating or closing. There’s no stopping it.

#7 – Real Estate Agents will thin out, also. Those with small clientele and/or high overhead (e.g., poor commission splits) will not make it. Some will downsize, prospect more, and further educate themselves. Grow professionally, and “hustle harder”!

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#8 – Real Estate Brokerages will also need to retrench. They have been on an “agent acquisition binge” for several years on the belief that more agents = more deals = more income. This has been true, but going forward many agents will add to costs, but not to revenues. Cull the flock. Get lean for the uncertain future.

#9 – “Flippers” are dropping out, and they should. Material costs are rising. There are supply shortages. Loans are more costly. Deep-discount acquisitions are scarce. Buyers are fewer and reluctant. I heard a speaker say 80% of “flippers” do one deal, then quit. In the coming times, that makes sense.

#10 – Syndicators will need to throttle back, also. Especially apartments, mini storage, industrial warehousing, and student housing, have been on a tear nationally this market cycle. “Gurus” have been teaching, and novices have been jumping in. The party is becoming more subdued. Lenders are raising rates and qualifying criteria. Investors are pulling in their horns. Opportunities are fewer and weaker. The bloom is off for syndication.

#11 – Ibuyers are companies, usually brokerages, who buy houses from homeowners as a service, refresh the home, then market it. They have abundant “Wall $treet money”, and they aim for a 7% margin or so. Most are losing money on this business model even in the current rising market. When the market turns, this will no longer be viable for them.

Image from Pixabay

#12 – Real Estate Technology Startups are a new model funded by venture capital and piloted by technology entrepreneurs. Their model involves combining real estate brokerage, lending, title work, and more, to make the process seamless for the consumer. This has been tried for 70 years already, but these people believe that the injection of technology is the key to it finally working. Two of them tried to recruit me. Amazingly, they offer a salary, bonus, health insurance, vacation, etc., in the traditional corporate mode. It was nothing like the old-style brokerage model! They have raised money in the $300-700 million range, so they can hold out a long time when the real estate industry inevitably contracts in the coming years. So, we’ll see.

#13. – Hedge Funds and other institutional investment vehicles have purchased tens of thousands of houses this market cycle. They have “crowded out” traditional homebuyers in many locations, and this has become upsetting to some. When this started, hedge finds targeted yields in the 6-8% range. Now that inflation is in the 8.5% range already and still rising, the yield to the investors is “walking backward”. Enough of this, and these funds might start liquidating their houses in substantial quantities. This could strongly impact SFR markets where it occurs. Some signs of this are starting to develop.

#14 – NNN Lease Properties are commercial properties that are sold to investors who want no involvement and just want a net check every month. Often they have a single tenant, like a Subway restaurant or a U.S. Post Office branch, which is very secure. During a real estate industry downturn, these properties become more risky. If the tenant vacates, or worse, files bankruptcy, things could become quite complicated. I had a client who owned six restaurant buildings during the 2008 Great Recession that a commercial broker had sold to him. Two stopped paying, and two went vacant. We saved them all, but only because he had cash reserves. That will be important in the days ahead.

Image from Pixabay

#15 – Homebuilders had ideal conditions until recently as they worked on the “housing shortage.” Since then: A) Materials prices went up. B) Supply chain delays got underway. C) Mortgage rates began increasing. D) Fewer buyers qualified, and more became reluctant. Fortunately, like farmers, homebuilders stay on top of their conditions. For now, many have gone to “building to order” rather than “building on speculation”. The future will dictate what else needs to be done.

Conclusion

Trends give rise to events, and the trend here is the increase in interest rates, probably over the long term. The foregoing discussions are presented to stimulate your anticipation and response to events as they unfold. Good luck, and I hope you enjoy the ride!

Bruce Kellogg

Bruce Kellogg has been a Realtor® and investor for 40 years. He has transacted about 800 properties in 12 California counties. These include 1-4 units, 5+ apartments, offices, mixed-use buildings, land, lots, mobile homes, cabins, and churches.

Mr. Kellogg is a contributor and copy editor for two national real estate wealth-building magazines: Realty411, and REI Wealth Magazine. He is a recipient of an Albert Nelson Marquis Lifetime Achievement Award, listed in Who’s Who in America– 2019.

He is available for consulting with syndication, turnkey, joint-venture, and other property purchasers and note investors nationally, and other consulting assignments. Reach him at [email protected], or (408) 489-0131.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

Probate Real Estate Investing Niche Secrets Unlocked

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Image from Pixabay

By Tamera Aragon

Are you scratching your head – Probate Real Estate Investing – What exactly is that? Probate is the court supervised legal process that includes determining the validity of your will, gathering assets (including real estate), paying debts, taxes, and the expenses of will administration, and then distributing the remaining assets to those persons entitled to them. This process commonly takes a few months to a year. “Probate” real estate investing provides opportunities for discounted properties because the person who is left to handle the assets often must sell the real estate they were left with.

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Benefits Of Investing In Probate Properties

There are many 5 main benefits for why this is a good niche to consider as a real estate investor.

Bargain Basement Prices: The probate market is full of tremendous properties you can snap up for 30% to 50% below market value. Resell quickly and capture a lifetime of gains within days. It’s the ultimate buy low/sell high scenario.

Huge Inventory: There are almost 6 million estates in probate, with assets worth trillions of dollars. Every type of real estate – from houses to beach front motels – are in probate.

Buyer’s Market: Purchasing property out of an estate assures you of a highly motivated seller. Most beneficiaries are anxious to sell the house (and other unwanted assets) so that they can pay off debts attached to the estate that must all be settled before the estate can be distributed.

Image from Pixabay

All Kinds of Treasures: in addition to real estate you’ll find, classic cars, fine jewelry, antiques, art, toys, collectibles, and much more enter into probate every day. Millions of items. And they can sit there for years unless you rescue them.

It’s a Investing Secret: Few people know how to find and purchase property from an estate. Even the beneficiaries don’t know how to sell. That means, you’ll be the first one on the scene because you have little or no competition from other buyer’s – plus you’re helping anxious sellers.

Disadvantages Of Investing In Probate Properties

No real estate investing niche or specialty is without its own set of unique risks. Probate investing does have a few cons I want to share with you. So what are downsides of this niche?

Finding Leads Is Time Consuming: Most counties you have to go to the court house and read through files to get probate leads and information this information is not available on line or from leads lists to purchase.

Executors Can Be Difficult To Talk With: The executor is usually a very close relative to the person that just died: wife, mother, father, sister and they are mourning their loss and can be difficult to talk with. One has to be very sensitive to the situation.

All Heirs Of The Will Need To Agree: Many times there are many heirs of a will and getting them to all agree to sell to you at the price you want may be challenging.

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Market Conditions For Probate Investing

Good Market Conditions

  • Property is located in a flat or declining market
  • Large City where there are more options
  • In a city where there is a good % of retired and elderly population

Bad Market Conditions

  • In an up market
  • Small town
  • In a city where there is a very small % of retired and elderly population

Steps Involved For Investing In Probate Properties

Image from Pixabay

  1. Get a newspaper and look at the legal notice section that lists the announcements of an estate. This is where the administrator, personal representative, executor is named (depending on the state you are in, the above will be one of the names for the person in charge of the estate).
  2. Get a file number on any probate case from the ad
  3. Contact govt office and find out where probates are filed in area where person lived.
  4. Take file number (s) and go to the county office where probates are filed.
  5. Go the office where probates are filed and ask, for example, “Where do I find information on case number 2454059i843” – The case number you took from the newspaper. They will direct you where to go and who to talk to.
  6. Go to the file room and ask to view the file in question.
    The above process is to get you to the file room and to get you talking with someone and building some type of rapport. Once you are directed to the files and know how to look through them, follow these next steps.
  7. You will need to look for aged files, at least 2 to 3 months old because these will be the files that have an inventory sheet that will tell you in one minute if the case has any real estate.
  8. Once you have a file with real estate you will need to get the contact information for the PR (PERSONAL REPRESENTATIVE), it is all in the file.
  9. You will next need to identify all the heirs of the estate and gather all their names and addresses in case you will need to contact them in the future.
  10. Once you have gathered this information, you will send personal hand written letters to the PR
  11. After one letter, wait 1 week and call the PR to see where they are at with the situation.
  12. If it is determined the seller is motivated, and if local, you will want to meet all heirs to finalize contract. If not local, mail the contract with a nice cover letter.
  13. Negotiate and Sign Contract
  14. Sell or Rent Property for profit

Image from Pixabay

Where To Find Probate Property Leads

  1. Probate Attorneys
  2. Newspaper
  3. Local Government Office

TAMERA ARAGON

Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.

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