Author Archive for Kim and Charles Petty

Short Sale Real Estate Investing

by Kim and Charles Petty

Short sale real estate investing has gathered momentum over the past year due to the high number of homeowners defaulting on their mortgage payments. In such cases, you can pick up a property from the lender at a discounted rate if the homeowner is unable to meet the mortgage payments. These deals are quite different from your normal sale-purchase deals and hence you will need to build up the right contacts and sharpen your negotiation skills in order to succeed.

Lenders are motivated into selling their property before it can reach the auctioneer’s block since an auction would most probably result in the property being sold off at a very low rate. Thus, if you approach a homeowner who is in financial doldrums and wishes to exit the deal, which anyway he or she is unable to complete and impress upon him or her to sell the property, then you could pick up the property at a cheap rate. The real problem, however, is to convince the lender to part with the property at your rate.

You may have to approach the lender with your offer, which in all probability might not be initially accepted. Therefore, do not place your final offer on the table at the first instance itself. The lender could also call you again to renegotiate the rate. There could also be other potential buyers who might want the same property and chances are that they could be quoting higher rates in order to bag the deal. You will first need to calculate the market rate of the property by determining the ongoing rates in that neighborhood. You will then need to squeeze in your profit margin into the deal before placing your offer on the table.

One thing you ought to bear in mind is that most short sale homes may require some maintenance work since the homeowner may not have been in a position financially to maintain the property. This important factor should also be calculated in your purchase price or it could wipe out your profits. In some cases, the homeowner might have mortgages from two lenders and in such cases the lenders might be even more motivated since the second mortgage would anyway get wiped out if the property went to the foreclosure auction. The problem is that you will need to convince even more people to agree to your figures. This could make your deal even more challenging.

In order to lay your hands on such juicy deals, you will need an efficient network of people to inform you when homeowners have defaulted on more than 3 payments to their lender or are in the 2nd stage of the pre-foreclosure process. This is when the homeowner could be ready to sign over the deed that you will require to negotiate directly with the lender. This network could include reliable brokers, or lenders themselves. Make sure that you have a list of willing buyers to buy that property even before you buy it so that you do not end up in a quandary over a property that no one wants.

Short sale real estate investing could be the perfect boost to enter into this niche market where the profit margins are quite high. Polish up your negotiation skills and get a source to supply you with regular short sale properties to rotate your properties on a profitable basis.

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Learning The Simple Skill Of Real Estate Investing Analysis

by Kim and Charles Petty

Once you set foot in the real estate market and enter into various deals, it is important to keep track of how much money you make out of those deals. Although, there might be certain factors that are clear and easy to calculate, there are also some hidden factors that need to be borne in mind in order to extract the maximum profit margins. Here are some points that make learning the skill of real estate investing analysis really simple.

During any single real estate deal, you may need to calculate the market value of the property according to your presumption. When you plan to purchase a property then it is essential that you calculate all the fixed costs that are involved in such property deals. These include the various taxes applicable on the purchase and sale of the property, your broker’s fees, if any, your attorney’s legal fees, etc. Before making an offer to the seller, you should also check the current rates of the neighboring properties. You will obviously need to factor your profit margin into the offer that you propose to put across to the seller. All these pointers will provide you with an indication as to how much you could quote to the seller.

If the property is in need of repairs then you first need to get an accurate estimate on the cost of repairs to it. Once you have the estimate, you need to subtract the cost of repairs from your proposed offer before you present it to the seller. Once you have procured the property then you ought to have a contingency plan handy, just in case you are unable to sell that property at your rate. You can either sell it after canceling your profit margin thereby selling at your cost value, or you could again decide to rent it out if you feel that it could generate a positive cash flow. All the above calculations are based on a single deal, but if you are executing multiple real estate deals, then your strategy may need to change.

In case you are in the market for long-term benefits, then you will need to calculate the average profit you have earned in all your deals instead of merely concentrating on your profits or losses from individual deals. This is where terms such as ‘Gross Operating Income’, ‘Net Operating Income’, ‘Capitalization Rate’, ‘Break Even Ratio’ and many other terms come into focus. You need not be alarmed by these terms since a little experience in the real estate market will enable you to not only understand, but also successfully calculate the answers, by using the various formulas that define these terms. You may also find ready-made programs online, to help with your real estate analysis. Be sure that your real estate broker and tax consultant are there to help you with any analysis. Once you get used to making an analysis to accurately price properties and factor in the related expenses, you could find yourself turning pro sooner than expected. What’s more, closing in on near perfect deals will become a habit.

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How to get the most out of your preconstruction investments

by Kim and Charles Petty

Investments in preconstruction properties are the building blocks for a solid portfolio in the real estate business. So once you are in the real estate business, investments like these need to be pursued, as they can reap sizeable profits. The preconstruction investment business is lucrative, as the tricks of the trade are fairly simple and easy to learn. However, in order to strike good deals and maximize your profits, let’s take a look at the approach you ought to take.

Strategize your preconstruction investment. This is the key to obtaining maximum returns. Nothing beats a well-organized plan of action, so here are a few points to be considered while following a strategy that can provide you with the best opportunity to make money.

The primary factor to be considered for a preconstruction investment would be to set the criteria of your investment objectives. Simply making a quick buck is not the professional approach to make profits in the preconstruction investment business. You need to scrutinize the investment objectives, only then can you determine the best way to clinch the deal. Once the criteria are set, you can narrow down on deals that meet your specifications. Thus you save a considerable amount of time rather than pursue deals that turn out futile.

Once you have zeroed in on the properties you want to invest, it’s time to make an analysis. A thorough inspection of the preconstruction property must be made. Find out the likely returns by conducting a property market research for that area. Take the help of a broker to evaluate the pre-construction as well as post construction attributes of the property. Make sure that all the documentation is legal and basic amenities like electricity, water supply, sewage facilities etc. are available. These are the factors that will affect the resale value and consequently your profit margin.

It is imperative that you check the credentials of the builder, as investment into preconstruction property relies on the builders blue prints and drawings for the proposed construction. Examine the source of finance of the builder, if there is any doubt then the property may prove to be risky. Another factor that is important is timing. If possible try to clinch the deal before it is out for sale to the public. This way you can get the property at a discounted price and then sell it for handsome returns. After the initial preconstruction sale is over, the builder usually raises the price of the real estate, which will bring in good returns for you as a preconstruction investor.

Networking plays a crucial role in making profitable investments into preconstruction properties. Join other investors in the same business. This will help you gather valuable information on any market fluctuations. Based on this knowledge you can make informed decisions in the appropriate place at the right time. Once the construction is complete, it is most likely that prices could be high enough to tempt you to sell. You still have the option to hold on and rent out your property, which will add to your monthly income.

While you set out in the preconstruction investment market, formulate the best plan to get the most out of the deal. Do keep in mind that this segment of real estate investment assumes a rising market, so analyze the market well and rake in the cash profits at the right time.

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Things you ought NOT to do if you want to stop foreclosure

by Kim and Charles Petty

Things you ought NOT to do if you want to stop foreclosure on your home

Life is full of uncertainties and any event such as job loss, divorce, relocation, prolonged sickness, etc. could adversely affect us. The financial repercussions of such unfortunate events may force you into a situation where you are unable to make your monthly homeloan repayments. If you are a victim of such unfortunate circumstances, and have already missed three or more months of homeloan repayment, you could be faced with a foreclosure on your home. Before things go this far, let’s take a look at a few precautions to help you prevent a foreclosure.

Don’t take a second mortgage or equity line of credit: If you have equity on your home you may qualify for a second mortgage or equity line of credit in order to consolidate bills. No doubt, this will momentarily improve your financial situation in an emergency, but don’t forget that you are foolishly incurring greater indebtedness. Never add to your existing debt unless you have an effective plan for meeting these new obligations during your depleted financial phase.

Don’t create a record of unexplained chronic late payments: Lenders foreclose only as a last resort to limiting further losses on a defaulted loan, as foreclosures cost them more than it can compensate. No wonder, when homeowners fall behind on payments, lenders take the initiative to work with them to bring the loan current. However, your lender’s willingness to help you out with your current problems will depend considerably on your past payment records. If you have been consistently making timely payments without any serious defaults your lender will be more than willing to cooperate and help your tide over your present crisis. Therefore, it is crucial that you don’t create a record of unexplained late payments. Always stay in communication with your lender about your financial situation.

Don’t think of leaving your home: The prospect of foreclosure is such a trauma that many homeowners overreact by deciding to just pack up and leave. Vow and resolve to face up to this problem head on rather than thinking of running away. Such determination is crucial to stop mortgage foreclosure before it happens. You must realize that there exists several effective ways to stop mortgage foreclosure. Remember, once you fail to stop mortgage foreclosure, this will always be reflected in your credit record. On the other hand, if you succeed in stopping mortgage foreclosure, not only will you be able to keep your home but also have a positive credit rating for future.

Don’t hide your financial facts from your lender: If you find it difficult to make your regular mortgage payments, communicate this to your lender at the earliest. With their cooperation you may qualify for assistance. For instance, there may be another loan better suited to your needs. They may help you out with a special repayment plans, temporary suspension of mortgage payments, mortgage modification, etc. All this will depend upon how transparent you are with your lender about your financial status, which you can substantiate by furnishing complete proof of your income, expenses, and debt.

It is never too late to start taking precautions. Your home is precious to you, so don’t let any opportunity slip by to improve your finances, rather than face the ugly prospect of a foreclosure.

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18 Reasons To Write An E-book And Then Give It Away For FREE

by Kim and Charles Petty

1. People will visit your web site to get the free valuable information.

2. Advertise your products or services in the e-book.

3. You will become known as an expert on the subject of the e-book.

4. Offer the e-book as a free bonus for purchasing one of your products or services.

5. Allow other people give away the e-book to increase visitors to your web site.

6. Gain new leads by having people sign up and give their contact information before they can download your e-book.

7. The word “FREE” is the most appealing word on the internet.

8. Conduct market research asking people to fill out a survey before getting the e-book.

9. Make money selling advertising space in the e-book.

10. Give away the e-book as a special gift to your current customers letting them know you appreciate their business.

11. Gain free advertising by submitting the e-book on freebie sites.

12. Make money selling the reprint rights to people who would like to sell the e-book.

13. You’ll gain valuable referrals from people telling others about your e-book.

14. Make money cross promoting the e-book as a free bonus with other people’s products or services.

15. Gain free publicity sending press releases announcing your ”Free E-book Giveaway.”

16. Increase subscribers to your e-zine by giving away the e-book as an incentive to subscribe.

17. Give away the e-book to people that join your affiliate program.

18. The biggest reason you should write an e-book and then give it away for free: you’ll feel good helping peopleimprove their lives.

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10 Scorching Ways To Heat Up Your Sales

by Kim and Charles Petty

1. Email each visitor a satisfaction questionnaire after they purchase. This will allow you to improve your order system, customer service, site, etc.

2. Give a percentage of your profits to a cause your customers would like. It could be a charity, school, environmental improvements, etc.

3. Take harsh criticism the right way and improve your online business. Don’t get down in the dumps, improve the situation so it doesn’t happen again.

4. Try bartering before you buy services, supplies and equipment for your business. You can use the extra money you save on advertising your business.

5. Give away a follow-up email course on an auto- responder. Include your ad with each lesson. People will buy quicker when they see your ad repeatedly.

6. Make sure your classified ads don’t sound like an ad. Don’t ask people to buy anything or they won’t click, give something away instead.

7. Give your free bonus products extra perceived value. Don’t use the phrase “free bonuses” use the phrase “you will also get”.

8. Keep your visitors on your web site longer. The longer they stay, the greater chance they will buy. Just hold a treasure hunt contest on your web site.

9. Make sure you’re always creating new products and services or improving old ones. Most products or services won’t stand the test of time online.

10. Split the cost of online advertising and marketing by sharing a web site with a similar, non-competing business. You would both put up half the cost.

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5 New And Lesser-Known Online Business Ideas

by Kim and Charles Petty

1. Ask people to find a hidden link in your ad copy. If they find the hidden link, tell them they will get a prize or freebie by clicking on it. This will increase the chance that they will buy your product or service because they will read your whole ad copy.

2. Start a members only web site. Tell visitors what’s in your members only site and what it costs to get access. Offer them a free membership, if, in exchange they link to your web site, post your banner on their home page or agree to advertise your web site in their e-zine for a set period of time. Usually they will agree to the free advertising to save money. This is a powerful way to get free advertising.

3. Want a popular discussion board? This technique is based on the number of postings made by any one person. You could give away a free product or service to any person that posts ten or more messages on your discussion in a month. It could be a free e-book, report, e-mail consulting etc. Just keep track of everyone’s postings each month. This could also work for e-mail discussion lists.

4. Give your visitors an instant article directory. Tell your visitors they can instantly add a free article directory to their web site by linking to yours. Just place your ad or banner ad on top of the article directory for your main product or service. All those links can add up to a large amount of traffic for your web site.

5. There a millions of web sites on the internet. Instead of marketing your web site as a web site. Market it as a free web book. Design your web site with a title page, table of contents, chapters, etc. Just place your ad or banner for your product or service on the top of each web page. —-

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20 Possible Reasons Why Your Business Is Failing

by Kim and Charles Petty

1. You don’t offer free original content.

2. You don’t use a signature file on your e-mails.

3. You don’t offer free software.

4. You don’t have your own domain name.

5. You don’t offer a free contest or sweepstakes.

6. You don’t test and improve your ad copy.

7. You don’t offer a free web site directory.

8. You don’t give people any urgency to buy now.

9. You don’t offer a free e-zine.

10. You don’t attract the target audience that would buy your product or service.

11. You don’t offer a free community.

12 You don’t let people read your ad before they get your freebie.

13. You don’t offer a free affiliate program.

14. You don’t make your web site look professional.

15. You don’t offer a free online service.

16. You don’t give people as many ordering options as possible.

17. You don’t offer free current information.

18. You don’t let people know anything about your business.

19. You don’t offer free samples of your product or service.

20. You don’t make people feel safe and secure when they order.

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10 Killer Ways To Jump Start Your Profits

by Kim and Charles Petty

1. Offer to write exclusive articles (that means you only submit them to one place) for high traffic web sites in exchange for a link back to your site.

2. Create a positive online image. Tell your visitors about fundraisers you have sponsored or that you donate a part of your profits to charity.

3. Improve your customer service on a regular basis. Try out new technologies that make it easier to communicate with your customers over the net.

4. Ask your customers what they would like to see offered by your business in the future. This type of information can boost your sales.

5. Make sure your web host isn’t losing your sales. If you get an e-mail from someone that told you that they couldn’t access your site, it might be your host.

6. Allow your visitors experience to be an enjoyable one at your web site. Provide easy navigation, good content, fast loading graphics, search options, etc.

7. Keep changing or adding freebies to your web site. If people see the same freebie in your ads they will say to themselves, “been there done that”.

8. Add a directory to your web site. When visitors submit their web site, e-mail them confirming their link has been added and remind them to revisit.

9. Organize your marketing and advertising into a plan. Create a list of daily, weekly, monthly and all other future promotional plans.

10. Trade links only with web sites that your target audience or yourself would visit. They should offer their visitors valuable content or freebies.

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The nuts and bolts of socialization

by Kim and Charles Petty

Socialization is not as easy as it sounds, and to completely understand and it is an on going process throughout life. There are a lot of different parts to socialization so we will try to cover them as brief as possible. The infamous psychologist Sigmund Freud stated that biology pays a significant part in human development. He believed that humans have two simple needs, and the first is the need to bond, and the second is the aggressive drive in which he coined as death instinct. Freud stated that these are two opposing forces that works in the unconscious level and causes some internal torment. The unconscious theory of psychology is both controversial and debatable because there is really no concrete proof that it exists. He also combined personality and the basic drives into three separate parts which are known as the id, ego, and superego. The id is an individual’s basic drives in the unconscious mind, and it demands attention from people.

A popular example for this is why a young child demands a bundle of attention and materialistic objects. However, this is usually neutralized that’s why one of the common words added to an individual’s dictionary is no. To avoid being angry and unsatisfied a child most come to think consciously and with rational abilities. It will be illogical and impractical if a child could get everything they want and this is known as the ego stage. The last part is known as superego and this happens when an individual use cultural norms to help make decisions. This happens during the conscious stage as well, and an example is study hard to get good grades and get accepted into college. The id and the superego will always have a battle with each other, but with a socially adjusted individual the ego helps balance these two out. The superego is an important stage because if an individual don’t have it then they will develop an attitude that center around themselves and would not be willing to make sacrifices in life. During his time, sex was a controversial topic and was not viewed as a basic drive for human beings. Now-a-days things have changed quite greatly but are still controversial because it shines women in a negative light.

Another psychologist that did great discoveries for the development of children around their environment is Jean Piaget. He was a Swiss psychologist that main concentration was in cognition or the mental processes of individuals. He put together four basic stages for cognitive maturing. The first stage was known as the senorimotor stage. During this stage an individual experiences things solely through their senses such as smelling, tasting, and listening. The second stage is called the preoperational stage and occurs around age 2. This is the stage when a person starts talking and use signals such as the classic “good bye” wave. In this stage an individual sill lacks abstract development. For example if you pull liquid into two separate containers and one is tall while the other is wide, then children in this stage will automatically assume that the taller glass contains more liquid even though it’s the same amount of fluid in both containers. The third or concrete operational stage is which individuals can experience a more logical connection to their surroundings. An example is when an individual can note that a day can have one the more significance. If it’s Sunday than not only do an individual go to church but they also have no school. The last stage is known as the formal operational stage and an individual has the ability to think very abstractly. They have a deeper understanding of things can solve some concrete math or logic problems. Even though Piaget based his theories on cognition he didn’t really consider the effect that society would have on an individual developing stages, and some individuals don’t go through all stages as a result of this. In some parts of the world especially in the very traditional cultures individuals don’t go through all stages. However don’t think that his only happens in the United States because it may surprise you that a large portion of Americans can’t read or write.

A sociologist that built on Piget’s discoveries was named Lawrence Kohlberg. What he studied is individual’s moral rationalizing capabilities or how they how they come to reason on what is right, and what is wrong. As young children we don’t rely on our guilt feelings but more like what feels good to us. What feels good is usually associated with what is right, and this is known as the pre-conventional stage. In the next stage or conventional stage, which usually happens in the teen years, individuals usually will become less selfish and try to adjust to society’s needs. In the final or post-conventional stage people look up and beyond their society’s norms and ethics to help make their decisions. An example of this is debating the law because the average person will not question it, but some people may think that just because something is not against the law doesn’t mean its right. Most individuals will not make it to this stage. However, there were some common errors in Kohlberg’s study and this was a very common one.

There was a gender bias because all of his subjects were male and he generalized female morality based on males and you can see the obvious flaw here. Luckily, Carol Gilligan fixed this error and compared the moral development of boys and girls. What she concluded that men were more by the rules. If they hear that someone broke into a hospital and stole medicine then they will view it as wrong. However, a woman may look into it deeper and consider why an individual would break into a hospital and steal medicine and would be more sympathetic to those that steal for a meaningful purpose such as Robin Hood. Perhaps it was to save his sickly life when he didn’t have the capital to pay for it.

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