Real estate investing – The average person sees this as a bad idea. We hear the news, read the papers and see how dramatically real estate values have declined. Why would anyone in their right mind invest in a product that everyone is struggling to sell and no one is willing or able to buy?
The experienced real estate investor sees a huge opportunity here. The market is saturated with bank-owned real estate, known as REO property, foreclosed homes, pre-foreclosed homes, motivated sellers and so much more. The demand for these homes is low; therefore, real estate values are down and houses can be bought cheap. According to simple economics, the laws of supply and demand, this is a great time to begin investing in real estate.
Real estate investing in a constantly shifting market makes it necessary to implement new or modified strategies of investing. This is a good reason for new or inexperienced real estate investors to work with an experienced real estate partner or mentor. A real estate partnership is a great way to get in the game and learn while you earn.
Finding a Real Estate Partner or Mentor
Successful realtors belong to a local REIA group which is a networking opportunity for real estate investors and companies who service the real estate industry, including title companies, lenders, insurance providers, rehab contractors, CPAs, real estate attorneys and more. Begin your real estate investing career with education; network with others in the industry and find a real estate partner or mentor to work with.
The most important thing you should look for is someone who you can work well with; someone who shares some of your interests and goals. Of course, you’re also looking for someone who is honest and trustworthy; someone you can communicate with. Begin a new real estate partnership with someone who has been successful with many years of active experience in real estate investing. Talk to local real estate investors about what they are doing and how it is working for them. You will be surprised to find that many real estate investors are looking for new partnerships.
Networking with real estate investors is just the beginning; there are many other people you will need to know, such as brokers, property managers, home inspectors, rehab contractors, lenders and insurance providers. A successful real estate investor already has these resources in place.
Questions to Ask and Answer about Your Real Estate Partnership
An experienced real estate investor knows how to structure each individual deal so that it works in everyone’s best interest. He will be able to show that he is experienced in various exit strategies, for example, short term transactions, like wholesaling; and long term transactions, like land contracts and lease purchases. He will be able to show you previous deals he has closed where he made a profit. He will be one who knows where we stand in today’s real estate market and how to take advantage of the current market conditions. Ask and answer the following questions:
What are you looking for in a real estate partnership?
How much do you want to be involved in specific areas, like financial investment and management responsibilities?
Do you want to be a silent partner or a very active partner?
Are you considering investing in commercial or residential real estate?
Do you wish to invest in rental property or would you rather find, fix and sell?
No matter what type of real estate transactions you’re doing or what your personal and financial investment is to be, you need to know what to expect in profit from the deal. Consider carefully:
Is it worth your investment?
How much time and money will be invested and how much is your return?
How safe is the investment?
What is your liability exposure?
How will the partnership be set up?
Will your personal assets be protected?
A good real estate partner or mentor will go over all the important issues so that you understand the real estate partnership, your financial and personal responsibilities, liability risk, financial risk and potential profit.
This is a great time for experienced investors to buy real estate; however, it is not the time for new or inexperienced people to go about it alone. Join a real estate investors association or a landlords’ club. Attend seminars and meetings; surround yourself with real estate investors and discover who is successful and begin to model your program after them.
Alan Faitel has been an active real estate investor since 1985. He has bought and sold over 300 homes in Oakland County using a variety of exit strategies including lease options, seller financing (land contract), short sales and conventional mortgages. Alan has spent a great deal of time analyzing the market and perfecting his investment strategies. He is currently looking for real estate partners with cash to invest in foreclosed homes and REO property in Oakland County.
A Win-Win Real Estate Partnership with Alan Faitel
It really couldn’t be easier!
You fund the deal and Alan does the work – Proceeds are split 50/50
Turn-around time is typically 3 – 6 months
Your investment is secured by a mortgage on the property
Contact Alan Faitel at 248-363-0100 to discuss a real estate partnership
Friday, December 18, 2009
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