Real Estate Investing – What You Qualify And Affordability Are Two Very Different Things

Real estate investors often fall into the trap of being too ambitious when they are looking at potential properties. Often, they think long and hard and try to calculate the maximum amount that they can borrow without really considering the affordability of this real estate venture.The real estate market is constantly changing and is currently undergoing its biggest change in a decade. Until now, real estate investors have been narrowing large sums of money to finance their real estate investment. Interest rates have been low and borrowing requirements have been unrestricting for a long time and so real estate investors have been encouraged to attempt to borrow a much as possible.Until recently, real estate in the United States has been appreciating at a very fast rate. If someone borrowed, too much on a piece of real estate then they could simply sell it at a profit a few months after they had first bought it.However, the real estate market has now reached its peak and few houses are appreciating to the same extent as they were five years ago. Interest rates are rising, mortgages becoming more expensive, and so the way a real estate investor is required to behave has changed.On the positive side, this means that there have been many foreclosures due to real estate investors finding that they can no longer pay the monthly mortgage dues. This means that it is increasingly possible for a real estate investor to profit from foreclosure lists if they budget carefully. Unlike the investors that went before you, I hope to teach you how to choose a real estate mortgage that suits your financial needs and therefore allow you to profit.They key this is to know this simple fact “What you qualify for and what you can afford are two very different things.”Just because you qualify for a mortgage of $200,000 does not mean that you should necessarily borrow that amount. Mortgage companies decide who qualifies for what loans formulaically and so they do not have the same knowledge on the matter as a real estate investor. In order to safely ensure that you can afford any mortgage you need to take into account your monthly earnings and how stable your income is.The trick to real estate investment is to never go beyond your means. Using budgeting you need to calculate the amount of money that you earn per month and the amount that you have to spend on necessities. From the amount that is left over you can draw funds for real estate investment or for home purchase.Firmly deciding not to invest above this number will require restraint but it will ensure that you do not finish by foreclosing on real estate and that your investment stays safe.

Wholesaling For Quick Cash – Real Estate Investing Strategies

Wholesaling for quick cash is rapidly becoming a popular real estate investment strategy. In essence, wholesaling involves locating properties under market value and quickly reselling them for profit.Wholesaling for quick cash is a relatively easy way to get started as a real estate investor. Anyone aged 18 and up can participate in wholesaling real estate. All that is required is to become educated about the process, develop a marketing strategy, and create a network of prospects.There are four basic steps involved with wholesaling real estate:
Locate property owners motivated to sell their real estate
Negotiate the purchase price
Place the property under contract
Resell the contract to a real estate rehabber or investor
Wholesaling real estate is similar to house flipping. When investors purchase distressed properties for flipping, they usually buy the property significantly under market value and invest money in making repairs or renovations.Oftentimes, repair costs go over budget and take longer than anticipated. Every missed deadline and added expense costs the investor money. With today’s housing and lending crisis, investors find themselves sitting on property they can’t sell.Wholesaling eliminates many of the headaches associated with house flipping. There is no need to invest money into repairs or wait to find a qualified buyer. Instead, you become a real estate matchmaker and locate sellers who have what buyers want.For Sale by Owner real estate is a perfect match for wholesaling real estate opportunities. Many homeowners engage in FSBO to avoid costly Realtor fees and commissions. Others place their homes up for sale to avoid foreclosure. Some FSBO homes are second homes which Sellers need to liquidate quickly. In other words, there are numerous properties to choose from.The cherry on top is when homeowners offer seller carry back financing. In this type of real estate transaction, Sellers carry all or part of the financing. When seller carry back financing is involved, the property can be sold to a rehabber or investor without owning the real estate.Homeowners facing foreclosure can benefit from engaging in wholesaling. Let’s say your home has an after-repair value of $190,000. You currently owe $120,000 on your mortgage note and are $3,500 behind on payments. You need $10,000 for moving expenses.You sell your home to a real estate wholesaler for $135,000. This pays off your mortgage deficiency, mortgage note balance, and provides you with funds to relocate. Although you have to move out of your home, you have saved your credit and have money in your pocket to make a fresh start.The real estate wholesaler now owns a home with $55,000 in equity. However, the house requires $10,000 in repairs in order to fetch the full purchase price of $190,000. Instead of spending money on repairs, the wholesaler locates a rehabber.If the wholesaler sells the property to a rehabber for $165,000, he earns a profit of $30,000 with no out-of-pocket expense. The rehabber owns a property with $15,000 instant equity. It’s a win-win-win situation.There are numerous resources available online which discuss wholesaling strategies. Although the real estate market is in a slump, there is a strong need for wholesaling. By learning the ropes, you can create a solid real estate investing business that offers much-needed relief to struggling homeowners.

QLD Real Estate Agent License Course – Are You Prepared?

One of the industries that is making most of the global economic progress is real estate. It has become a very lucrative profession and to become a real estate agent in Queensland, you must possess a license. There are many criteria that must be fulfilled in order to be able to get the license. This includes that the candidate must be 18 years or over, be a suitable person (there are specifications for this), have at least one place of business in Queensland and should have completed the required training units through a registered training organisation.**For getting the QLD real estate license, training from a recognized organisation is essential. Not only will it help in obtaining the license but will also help in shaping a successful career in the real estate industry. There are a lot of organisations that provide training to get a real estate license and they offer courses through various modes of education (including correspondence). Training centres have specific time tables and candidates can pick and choose the classes they have to attend accordingly. They have an instructor who can help them. The classroom courses and correspondence courses have their own advantages and disadvantages as compared to each other; and one or the other might be more suitable for you depending on your constraints.The QLD Real Estate Agent License Course includes 19 units in general. To get the full license, all the chapters/units need to be completed. If you have worked for twelve months or more in a real estate agency as a letting agent, property manager or salesperson, you would have most likely completed six to eight units. You will be eligible for Recognition of Prior Learning in this case and you can consult with your workplace on what units you can be judged to be competent on. Formal education in real estate will also provide the necessary evidence to Prior Learning and you will not have to repeat units you have already learnt.If the candidates have possessed a similar real estate agent license two years before applying for this one, then they do not need to complete the training requirements.**To qualify for this licence you must complete these subjects from the industry-recognised Property Development and Management Training Package:1.PRDRE09A Implement and monitor financial systems
2.PRDRE10A Manage agency risk
3.PRDRE11A Provide property appraisal
4.PRDRE12A Establish and expand client base
5.PRDRE13A Obtain property listings
6.PRDRE14A Market property
7.PRDRE15A Undertake property sale by private treaty
8.PRDRE16A Monitor sales process
9.PRDRE18A Lease property
10.PRDRE19A Provide property management services
11.PRDRE22A Present and explain property reports
12.PRDRE26A Conduct property sale by auction
13.PRDRE28A Maintain trust account
14.PRDRE30A Implement personal marketing plan
15.PRDRE37A Perform and record property management activities and transactions
16.PRDRE39A Prepare and execute documentation
17.PRDPOD62A Clarify and confirm property information requirements.**Alternatively, you can complete these units from the Property Services Training Package endorsed by the National Quality Council:1.BSBSBM406A Manage finances
2.CPPDSM4003A Appraise property
3.CPPDSM4005A Establish and build client-agency relationships
4.CPPDSM4006A Establish and manage agency trust accounts
5.CPPDSM4007A Identify legal and ethical requirements of property management to complete agency work
6.CPPDSM4008A Identify legal and ethical requirements of property sales to complete agency work
7.CPPDSM4009A Interpret legislation to complete agency work
8.CPPDSM4010A Lease property
9.CPPDSM4011A List property for lease
10.CPPDSM4012A List property for sale
11.CPPDSM4013A Market property for lease
12.CPPDSM4014A Market property for sale
13.CPPDSM4015A Minimise agency and consumer risk
14.CPPDSM4016A Monitor and manage lease or tenancy agreement
15.CPPDSM4018A Prepare and present property reports
16.CPPDSM4019A Prepare for auction and complete sale
17.CPPDSM4022A Sell and finalise the sale of property by private treaty
18.CPPDSM4046A Manage tenancy disputes
19.CPPDSM4080A Work in the real estate industry.The QLD Real Estate Agent License Course would give the candidate the opportunity to own and manage a real estate agency, either on their own or with someone else. If real estate interests you and you have the burning desire to explore new opportunities in this field then getting a license will help the dream become reality.** The information has been provided in http://www.fairtrading.qld.gov.au