“Mark Maupin” asks, What Kind of Properties are Investors Looking for?

Real Estate Investors Meetings on Third Thursday of Every Month in Livonia, Michigan

Livonia, Mi-- There are several categories of real estate available for an investor. The easiest for a beginning investor to understand and participate in is the single-family home.Why?1. Home ownership in America is approaching 70%.2. They are the highest demand type of property.3. They sell quicker than other kinds of property.4. Prospective purchasers have the widest range of financing programs available to them, making single-family homes the easiest to purchase.And, if the property does not sell in a reasonable amount of time, it can always be rented.UGLY PROPERTIES: WHY SHOULD YOU BUY THE UGLY DUCKLING?The best property to buy is an ugly one. Look for the property that has never been "updated" or improved or one that has been improved in a very tacky way. Don’t be deterred by the pet urine, feces, or mice droppings. Where some see damage and odor, you should see dollars and opportunity.Ugly ducklings are the properties that have the least competition, houses that can be fixed up by remodeling, not by rebuilding.Many people are scared-off by things like leaking roofs and broken windows. Be happy to see those things. They’ll discourage most inexperienced investors from purchasing the property. In many areas, you will be competing for some deals with “do-it-yourself” homeowners.They may outbid the investor simply because they figure they can buy a home for $50,000.00 that will be worth $70,000.00 when they’re done fixing it up. It never occurs to them that they will spend $10,000.00 for materials and professional labor, one to two years working on it, and live in a construction zone the whole time. The oddest thing about it is that most people will sell the home when they're done, thinking they did great (although they really broke even) and start the process againFind, fix and sell works best in a 90-120 day time frame, with professional contractors quickly completing the repairs, renovations and decoratingFor more information on Mark Maupin and Investor Club meeting go to:http://www.markmaupin.us/ Information web site

Contact Information: National Real Estate Network, LLCMark MaupinTel: 248-939-6232Email: Maupin.Mark@gmail.com

Mark Maupin asks “What does Style and Design have to do with investment Property?”

Questions get answered on the 3rd Thursday of each month for new and experience real estate investors in Livonia, Michigan

Livonia, Mi-- Obviously, what sells the best often depends on the area. Styles of architecture are different in different areas. However, there are certain things that always seem to increase the desirability of a home to a prospective purchaser.Among the most desirable things to look for is the style of a home. Brick seems to generate the greatest interest from buyers. If an investors have any experience in buying property, they probably already know that brick homes generally sell for as much as 20% more than their frame (wood, aluminum, or vinyl siding) counterparts.Historical features on older homes are things that should be taken care of and repaired to original condition whenever possible. This includes unpainted woodwork, wood floors, wood doors, fireplace mantels, leaded glass, etc. When working with an older home, keeping the character intact will always help you on resale. Keep this in mind when remodeling; drop ceilings NEVER go in Victorian houses.The most important factor to look for is size. One and two bedroom homes are difficult to sell. Never purchase any home with less than three bedrooms, with one exception. A two bedroom home with a large square footage may be a candidate for the addition of a third bedroom if they can convert some of the space into a third bedroom.A new investor should avoid houses that need major renovations, that have undesirable features that can’t be fixed cosmetically, or have an architectural style that does not fit into the neighborhood.Floor plans are very important. Bedrooms that have doors entering off the kitchen or living room, or have no hallways, will hurt you on resale. Renovations are expensive. Don’t go into a project with the intention of moving walls or doing structural changes.For more information on Mark Maupin and Investor Club meetings (look under resources) go to: http://www.MarkMaupin.info Information web site
Contact Information:National Real Estate Network, LLCMark MaupinTel: 248-939-6232
Email: Maupin.Mark@gmail.com

Mark Maupin, asks “Is it good to Work Realtor when buying Investment Property?”

How to Work With Buyer Broker for Your Best Interest as an Investor

Livonia, Mi -- One of the single best assets an investor can have when working with property is a good relationship with a seasoned, established real estate agent in the area you are buying in. Many investors feel some sort of resentment against real estate agents in general, when in reality, if they would follow some simple rules, they would find that a good agent will make them considerably more money than they could make on their own.A few points about Realtors: 1. They work with real estate values and markets every day. The average investor works with property in his spare time.2. They only get paid if they successfully perform a service for you.3. If you find a full-time agent that has been selling real estate for more than 3 years, he or she probably knows more about marketing your property than you ever will, unless you take up investing full time.Again, look for a quality agent, one who is full-time in real estate sales, not part-time.If new investors don't know the value of a particular piece of real estate, you can use an agent to help you locate comparable properties. An agent can also give them pointers on what helps a property sell, such as the latest color schemes and how to “stage” a house for sale. BUYER BROKERSUntil recently, very little concern was paid to who a Realtor truly represented in the purchase and sale of property. Realtors are now required to clearly state who they represent, the buyer or seller.Many Realtors now specialize in representing the purchasers of property. The commissions can still be charged to the seller of the property when the agent is representing you as the purchaser. There are many agents who have a keen ability to negotiate with sellers and can be an outstanding help in an investors search for property. If you are already working with a Realtor, or searching for a Realtor, it might be worthwhile to discuss buyer’s representation with them in depth.Realtors have access through the MLS (Multiple Listing Service) to every home that is listed for sale within a certain area. They can also obtain information about new properties coming on the market daily through the MLS computer network. Many good deals come up for sale and are sold by the agents reviewing the new listings each day. Ask their Realtor about running daily "hot sheets."Realtors also possess a thorough knowledge of what's hot in a certain area and what's making houses sell. Don't be afraid to tap the resources they have to offer. Also, it's a myth that Realtors may be your competition in buying the deals. The National Association of Realtors says that less than 2% of Realtors nationwide invest in real estate.For more information on Mark Maupin and buying investment homes go to: http://www.MarkMaupin.net

Contact Information:National Real Estate Network, LLCMark Maupin
Email: Maupin.Mark@gmail.com Phone: 248-939-6232

Mark Maupin Explains how Options Are Being In Used As a Sales Tool for Investors

A great way to find a buyer for your investment home

Livonia, Mi-- Options can give investors the "best of both worlds" between a land contract (called Contract for Deed in some States) and a rental. With an option, you are renting the house with the right for the tenant to buy it later at set price and terms. The tenant/purchaser pays an additional sum over and above the rent each month which is later applied to the down payment when the sale closes. The sale can be in the form of a land contract or mortgage.AN EXAMPLESomeone is planning to sell a house that would rent for $475.00 per month. The house is worth about $30,000.00 cash. They write an ad as follows: RENT WITH OPTION TO BUY3 bedroom house, quiet areaCALL: (313) 555-4546Investors will be amazed at the amount of responses any ad starting with "Rent with option to buy" will bring. Let's assume that you would like to sell the house for $38,000.00 with $4,000.00 down on a land contract.They pick one of the applicants who would like to buy the house, but they only have $1,600.00 to put down. This is where the option comes in. The investor will take the $1,600.00 as initial option consideration and tell the tenant that they must pay $475.00 per month plus $100.00 for one year in addition towards their down payment. The investor will match their contribution of $100.00 per month. The investor now has $1,600.00 in hand which is his to keep plus he is receiving $575.00 per month on a house that would rent for $475.00. Isn't this better than a regular rental?Assuming the tenants pay right along for the year, they close and they are now purchasing on a land contract. The tenant had a year to establish their payment track record and will probably have ended up with a good purchaser on the land contract.Think about it. Isn't the tenant/purchaser more likely to be willing to pay a little more than market price for the home? Of course they will. Where else can they get into a house with only $1600? Also, since they will be buying the house, the seller will make them responsible for all of the repairs while they are renting with the option. They will stop thinking of the home as his (or hers) and start thinking of it as theirs. They will start to show "pride of ownership".The end purchase can also be in the form of a mortgage. However, one should consult with a loan officer before completing the agreement as certain mortgage guidelines might prevent one from using option consideration for a down payment.For agreements and courses on lease options go to http://www.MrLeaseOption.com or go to http://MarkMaupin.biz for more information on Mark Maupin.
Contact Information:Mr. Lease Option LLCMark MaupinTel: 248-939-6232
Email: Maupin.Mark@gmail.com

Ralph Mark Maupin asks “What are you going to Offer when Buying Investment Property?

When you have found a property, there are a few things to determine before making your offer

Livonia, Mi –How Much Can Investor Pay? This determination is going to be made up from a number of factors, which include True Value (fair market value) of the property after repairs, the cost of repairs, and the cost of holding the property while you are waiting to sell it and the cost of the financing you use to purchase the property.On the topic of what margin to use to purchase the property, there are many different opinions. I will tell you mine and why I have formed it. I generally will not buy property for more than fifty cents on the dollar. I make many purchases for 40% or less than market value. I believe that the profits should be matched by the risks involved with purchasing property for re-sale. There are risks and there can be great rewards.As a rule, I figure that if I purchase a property at 50% of its market value, I will spend about 10% to 12% of its value in repairs and another 10% on holding costs and re-sale costs. That only leaves 30% for me. That's where I draw the line, but investor must decide where to draw their own.Terms and Conditions: We've all heard it many times before and it is still as true as ever, eat on your money and invest someone else's. The best way to structure the deal, when purchasing property, is to either obtain seller financing (such as a land contract) or to get the seller to carry back the mortgage. This, in my experience has always been the cheapest way to finance a purchase.When a seller enters into a land contract (contract for deed) agreement with a buyer, the seller holds title to the property until the buyer pays off the amount of money owed. The seller will deed the property to the buyer, once the seller is paid in full for the property. The buyer secures his interest in the property by recording a copy of the land contract or the “Memorandum of Land Contract” in the public records.When a seller “carries back a mortgage” (also called a private mortgage), the seller deeds the property to the buyer. The seller holds a mortgage note (a promise to pay by the buyer). The seller secures his interest in the property by recording the mortgage note in the public records.For information on Ralph Mark Maupin go to http://www.RalphMaupin.comEmail: Maupin.Mark@gmail.comPhone: 248-939-6232