FINDING GREAT DEALS DOT COM

How to find great deals on the internetOne of the biggest challenges for reale state investors is finding great deals to invest in. Prior to the information age, investors had no choice but to do some serious legwork to find the best deals. However, with the advent of the information age there are a number of great deals that you can find right on the internet.So how do you use the internet to find great deals to invest in?The first thing you need to do is determine your profit strategy. Depending on how you are looking to profit from your reale state investments, that is how you are going to find real estate deals that will meet your needs.There are two types of profit strategies with any real estate deal. You can invest for capital gains or you can invest for cash flow. Capitial gains is when you purchase a property for one price and make a profit as a result of the appreciation of the actual value of the property. Cash flow is when you purchase a property and create a monthly income stream by providing use of the property to a tenant in some way, shape or form.Once you determine your profit strategy you can now begin to look for deals online that you can capitalize and take advantage of. The key is to find properties that meet the requirements that you are looking for.One way you can find good properties is by visiting the various brokerage web sites that are available on the internet. Real estate brokers are one of the first places home owners go to when they are looking to sell off a property. There are a number of deals to be had by looking at broker web sites if you know what to look for.If you are looking for deals that you can earn cash flow from, it’s just a matter of finding properties that produce a positive cash flow. How easy or difficult this will be depends on the market that you are looking to invest in. In some markets, there are a lot of properties available that cash flow positively. In other markets, particularly markets that showed rapid rates of appreciation, finding a cash flow positive property is like finding a needle in a haystack. Even if you live in an area where there aren’t a lot of opportunities for cash flow positive investments, you can typically find other areas where the opposite is true anywhere from 1-3 hours away.If you are looking for deals where you can take advantage of increasing the values of properties real estate brokerage web sites can still help you. However, there are specific types of listings that you want to look for. Some examples include listings that indicate terms like “handyman’s special.” Even better, if you find deals that indicate the property is a “short sale candidate” that is even better. There are a lot of smart agents that are learning how to take properties and submit short sale requests to the banks. The banks pay the agents their commission fee so you don’t even have to worry about compensating the agents anything. You can literally purchase the property at a significant discount.Another great place to find properties on the internet is Ebay. There’s an incredible article that goes into the entire process of purchasing property on Ebay on page 1 of this newsletter.Craigslist.com is another excellent web site that you can use to find properties to purchase online. Craigs List is a classified ads web site that offers all types of items for sale. Sellers can create posts advertising whatever they have to offer absolutely free. You can search for properties for sale in any area just by looking for the real estate section on Craigs List and then searching the list of postings for the area that you want to invest in.Another source of excellent deals is to advertise for motivated sellers online. Two excellent programs for this purpose is the Google Adwords program and the Yahoo Sponsored Search program. Both programs work very similar to each other and can be used as lead generation tools for getting motivated sellers to contact you about their properties.Here’s how the system works… First, you will need a web site that is designed to market to motivated sellers. For instance, you can create a web site that markets to people in foreclosure. There are several companies online that already offer web site solutions to investors. Examples are realestatewebprofits.com and investorpro.comOnce you have a web site established, the next step is to identify keywords that would be appropriate to reach out to people who are looking to sell their house quickly. Examples of such keywords include “foreclosure”, “stop foreclosure” “prevent foreclosure”, “sell home for cash” etc.Once you set up your campaign you will be able to attract motivated sellers to your web site through several sources. Some will be people who are searching the search engines looking for a solution to sell their homes quickly. Others will be visiting other real estate related web sites and will click on your web site ad. You can even customize your campaign so that only prospects that live in a certain area will see your ad.The internet is an excellent source for finding great real estate investment deals for you to take advantage of. The key is to know which web sites to use and how to effectively use them. By mastering how to capitalize on the internet you can literally create a steady flow of deals that you will be able to work on a regular and consistent basis. Ebay has Motorcycle Goggles a real estate section on its web site located at realestate.ebay.com. On this section of the web site you can buy and sell a variety of different types of reale state property.So how does the property selling process work on Ebay?The seller creates a listing on the Ebay web site where he or she describes the property that is for sale. The listing includes a brief description of the property and includes some pictures and other related information.Properties are sold in auction format, similar to the format that many items are sold on Ebay. The seller determines the minimum price for the property and includes it in the auction listing.Once the auction is created, the auction starts and buyers are able to bid on the property. Potential buyers bid the maximum amount they wish to pay for the property. The system automatically increases your bid based on what other buyers have bided until your maximum bid amount is reached.For example, suppose the minimum bid is $1000. The maximum you wish to pay for the property is $10,000. You put in $10,000 as your maximum bid. The system will automatically submit a bid for $1000 for you since you are the first person that bided on the property. You would be the high bidder with a bid of $1000.If another purchaser comes along and places a maximum bid of $5000, you maximum bid of $10,000 exceeds their maximum bid of $5000. The system would automatically increase your bid to $5000 so that you can match the maximum bid of the purchaser that tried to outbid you. The auction continues for a certain fixed duration of time. During this time duration potential buyers may place bids on the property at any given point in time. If they place a bid that exceeds the highest bid made by the previous high bidder, the new purchaser takes over as the high bidder with a bid that equals the highest bid the other person was willing to pay.Once the auction has concluded, the purchaser with the highest bid at the end of the auction is declared the winner of the auction. The winner of the auction is now able to go into contract with the property owner to complete the sale.With the large majority of items that are sold on Ebay, once you bid on the item, if you win the auction you are now contractually obligated to complete the purchase. Failure to complete the purchase is considered a breech in contract on Ebay, which carries penalities that could include a loss of privilages when using the Ebay web site.Real Estate is different. Bidding on a property on Ebay is not considered a contractual obligation. The reason why Ebay handles real estate different from the sale of other iterms is because real estate purchases are highly regulated from state to state. Therefore a purchaser cannot be committed to the purchase of a real estate property until they execute a binding contract with the seller based on the laws and regulations of the state that the property is located in.Once the buyer wins the auction the next step is to make contact with the seller to executive the contract. The seller signs the contracts and sends the buyer the contracts. The buyer reviews the contracts, signs them and sends the contracts back to the seller.Once the contract is executed the next step is for the buyer to secure financing if necessary. Some property prices on Ebay are so low the seller can pay for them all cash, get a personal loan or pay for the property using a credit card. If the property is of a higher price where these types of financing tactics are not practical, the buyer has a certain amount of time to secure a mortgage for the property.It is also during this time that the seller may do all due diligence necessary prior to closing on the property. Some properties may require work to be done on the property. This is the opportunity for the buyer to bring contractors in for a work estimate, perform any type of inspections on the property and complete other forms of due diligence.When buying property on Ebay outside of your home state it is important that prior to bidding on property you do your research on market values in the area. You want to make sure that you are not overpaying for the property you purchase. One way you can do this is to contact a real estate agent in the area. An agent can tell you what the approximate after repair value is on the property. An agent can also tell you what type of rent you can expect per month from the property as well.As part of your due diligence on the property, you should also make sure that you have an appraisal done on the property. This will confirm your assumptions about the overall property value and make sure that you have enough value in the property to make the type of money you want to make on the property. The last thing you want to do is to go ahead and close on the property only to find out that the property isn’t worth what you thought the property was going to be worth. This will kill your overall profits and could potentially turn what you thought was a winning deal into a losing and unprofitable real estate transaction.Prior to completing the purchase you need to figure out what your exit strategy is going to be. Your strategy is going to be dependent on the price you are paying for the property and what needs to be done to maximize the profit potential.For example, if the property is purchased for significantly below market value and needs repairs, you need to identify how much it is going to cost to complete the repairs. This cost should be factored into your Wholesale China overall property analysis. You then need to figure out how you plan on realizing your profit afte the repairs are completed.One strategy you can take is to simply flip the property to an investor in the local area. Some of the property values on Ebay are so low that you can literally pay cash and close on the property. Once this is done, you simply turn around and aggressively market the property for a price above what you paid, but still low enough for the investor to realize profit. The investor purchases the property from you and you realize the difference between your price and their price. In some cases you can literally double your investment just by utilizing this strategy.A second strategy is to rehab the property and then sell it on the open market. You can hire the contractors to complete the work for you. You can then turn around and resell the property on the open market at a price much higher than what you paid for the property and your expenses. If you are able to secure the property for a price well below market value and secure a good bid from contractors for the work done, you can turn around and sell the property for significantly more than what you invested into the property. It is not unheard of for an investor to triple his or her investment utilizing a rehab strategy on Ebay.A third strategy is to rehab the property and then hold on to the property for cash flow. There are two ways you can turn the property into a cash flow producing property as part of your overall investing portfolio. Either one of these strategies will allow you to begin earning a monthly passive cash flow from your real estate investment.The first way you can hold on to the property is to simply become a landlord and rent the property out to tenants. Ideally the amount of rent you are able to collect on the property should be worth the amount of money you invested into the property.If you paid all cash for the property, I recommend that you stick to investing in properties in which the cash flow you are able to collect exceeds the amount you invested into the property after a maximum of 24 months. The cash flow is the profit you have left over after you collect rent and pay any expenses related to the property. Potential expenses include utilities if the tenant isn’t responsible for those, as well as potentially a management fee. If you are investing in properties out of state you will need to hire a property management company to mange the property for you. By sticking to this rule, his means after two years, you will make all of your money back and every month after that is completely profit.If you borrow money to secure the property, I recommend that you stick to investing in properties in which there is a positive cash flow. This means that after paying all cost related to holding the property and paying your monthly finance payments, there is still a profit left over to go into your pocket every month.What type of money can you make with a strategy like this? One investor purchased property in Ohio for $2000. The property was worth $40,000 after repaired and the estimates came in at $10,000. The property would rent for $500 a month. A successful rehab would yield $28,000 in equity. Financing the property and rented it out would yield a passive cash flow of $100 to $200 a month. This type of profit is waiting for you all by investing on Ebay!