DC Fawcett reviews various methods on real estate investment.Rehabbing is one of the easiest and profitable strategies for the investors. It is not advisable for beginners who may not be aware of rehabbing as they don’t have any experience. Instead they can try virtual rehabbing which doesn’t involve much risk which can be done with the help of your rehab partner ensuring that you approve the right property to rehab.
The rehab work should be done with utmost care and high quality work is required in order to attract buyers. The advantage of virtual rehabbing is that you need not shell out any money from your pocket and need not visit the property unless required and you can work in multiple markets at a time and virtual investments will fetch you great saving.
DC Fawcett reviews the strategies to be followed while rehabbing
Calculate the budget
Find a home which has to be rehabbed, calculate the cost for renovation work and amount to be spent on buying it. In case you run out of money, apply for mortgage which should not be too high as it is a bad strategy and ensure that you get good returns on the end ultimately. Keep in mind that you should bear the cost for plumbing, electrical, roofing and other structures in the house.
To know the current trends, do research on the market value and prepare comparative assessment before finalizing the deal. You can check the price with the real estate professionals who have profound knowledge in this art.
At the time of selling, do not overprice since you have rehabbed and under pricing is also not advisable since you have spent on repair work. Fix up 5 to 10% more than market value to gain profit.
Use MLS (multiple listing services) where all properties are advertised and looked upon by the real estate agents. This service will also provide information and statistics about the property like how long it’s been on sale etc. It is an authentic service since only licensed realtors can access your information, so make sure that your agents are part of MLS.
These investment groups offer seminars and it is a way to gain the experience in real estate marketing. If you part of this group, you will be first to know about new rehab homes that are on sale.
Wholesalers get to know about rehab properties and help in seeking buyers by putting them under the contract.
You can visit the home to be rehabbed before investing to know about the location and surroundings.
How to find a home to rehab?
Search through the listing which shows distressed properties, properties for short sale, fore closured properties.
Scams are very common in rehabbing. There are chances of real estate agents to access MLS and obtain information and copy on other rental sites.
DC Fawcett Real Estate Methods To Prevent From Real Estate Hazards
As a real estate professional, there are high chances of indulging in risk and you are prone to danger at any time. Meeting new clients, showing your properties, holding open house has all kinds of risk as everyone are strangers to you first. Even violating the marketing strategies will lead oneself to prison.DC Fawcett Real Estate
These two factors act as threats to the real estate world.
Real estate agents
There is no guarantee that the agent is reliable, there are situations where you blindly give your keys to conduct open houses and show the properties in the absence of the landlord (investor).
Fore closured properties
The condition of fore closured properties is so bad and you may expect any kind of visitor and at any location. There could be a chance of an abandoned wildlife area zone also, ex-home owners, so the situation is dreadful and unpleasant.
Dc Fawcett reviews on how to safeguard from the real estate hazards.
Visiting fore- closured properties /new properties /showing a property
- Check the windows and exteriors, if there is any damage or you find any suspicious activity, call the police and inform the same, require their assistance and leave the place.
- If you find squatters also, call the police, inform and leave the suspicious area immediately.
- Take a partner with you, when you visit properties it is always better to go with your friend or colleague or a person who can confront danger.
- Inform the people with whom you meet or talk or work often, so that if there is any danger you can call them for help immediately. The time can be saved in explaining the entire situation over phone when the person knows where you are and can reach out to you immediately.
- Visit the property in daytime, so even neighborhood people can reach out for help. Avoid night time visits or when it’s dark.
Meeting the client for the first time
- Meet them in a familiar location (like your workplace) first and get to know about them, learn what they do and other personal information. If you are fine, then you can show them your property.
- Identification is must, you can ask their driving license or Office ID, and say its company policy to check these essentials. You can also create form where your clients fill out all basic details about them.
- Introduce the person to your friend or colleague, if the person is criminal or suspicious in nature you can find out easily.
Conducting open houses
- Security: add video surveillance or identification at the doorstep. These will prevent suspicious guys entering or even showing up. When you advertise itself, add this point for prevention.
- Advertising : Use proper photos and don’t provide too much information
- Valuables: Don’t keep any valuable items in the house like wallet/ laptop /mobile.
DC Fawcett Real Estate Views On FSBO (For Sale By Owner)
If seller doesn’t take help of an agent in listing the property, then it is called FSBO (For Sale By Owner), it is preferred because you need not pay real estate commission.
DC Fawcett Reviews whether it is advisable to opt for FSBO or not.
Selling a property is quite like a nightmare for many sellers. Your property should be in a good location, you need to advertise and promote, find buyers, fix price, and legal formalities should go on smooth and sell the property to the buyer. So many would take help of agents, property management companies etc as the seller cannot do single handedly.
FSBO sign is kind of misleading to many buyers when they see on the MLS. They assume that the sign means price can be bargained or it is a distressed property. This leads to property being unsold. Many presume the FSBO as for sale by bargain.
DC Fawcett complaints that the amount charged by the agents gets rolled in to the sale deal and is paid by the buyers only indirectly.
The next complaint put forth by him is that the agents make false statements to sellers like the property will be sold at a price lesser than the expected price (asking price) but if they opt for an agent, they will be able to sell more than the expected price. This is actually scam. In this way the real estate agents get benefitted by asking more commission.
Benefits of FSBO
All the profits reach to the seller directly and he is the only one to get benefitted, it is a reward to his hard work as he does all the work by himself.
The seller fixes all the appointments, meets the potential buyers, screening and choose the one he finds to be genuine and responsible.
The negotiation is discussed between the seller and the buyer alone. You can show your apartment to the buyers from an owner point of view rather than agent showing with a different mindset. He may favor either of the sides. The other highlight is the seller knows to explain the positive features of the household and avoid talking about the drawbacks. These all cannot be expected from an agent.
It is an absolute freedom to quote the asking price as no agent is involved. You don’t get fumbled as there is no agent involving.
You can decide about advertising, where to post and promote. This can save you lots of money.
Drawbacks of FSBO
This is not suited for first time home sellers, people who don’t know to advertise, quote the asking price and sell their property on their own.
In case, you aren’t part of any network like REIT, investment groups etc the word of mouth is that your home is for sale is not spread like wildfire.
When you are out of reach / busy in a meeting, you miss many calls who might be one of the potential buyer.
Chances of getting betrayed are high.
If you are unaware of rules and regulations, you may violate many laws. You need to take care of the entire paper work.
The buyers who visit your home, take pictures of all the possessions, make documentation and post it online, these kinds of scams happen often. Beware.
The sellers who are interested to know more about FSBO can check out the blogs in DC Fawcett real estate virtual investing club.
DC Fawcett Real Estate Views On Selling Property Through Auction
Property is sold through auction for quick profit and to avoid lengthy procedures that happens with residential properties.
Auction , tender, private sale are 3 strategies.
DC Fawcett Reviews whether it is profitable or not. There are chances of property getting sold at higher price but there are situations where bidders don’t turn up or bidder quotes a less price and none to compete.
Get a valuation before you set a reserve price that is, the bidders should not ask for a price lesser than that. The reserve price is actually under value price.
Reserve price differs from guide price. Guide price is less than the property price. Reserve price is the minimum price that the bidder should ask for. It’s bad when bidding price is less than reserve price, it is loss.
You should find an agent with auction houses to bid. Choose the property only if it is at the right location. Browse through their websites to know more about their previous auction sales. There are several sites who exclusively list auction properties, have a look at them, make assessment of similar properties. Find your auctioneer and ensure he has license. Get mortgage approval for financing.
You can find online agents to market your property as they are affordable.
The costs you need to bear if you are selling your property through auction
Commission: it is around 2.5 percent but varies depending on auction house you choose.
Advertising: for promoting about your auction, you need to spend on various advertising agencies and you can choose how you want to advertise as well.
Hiring fee: The room you hire for auction to take place, you need to pay for the number of hours you have stayed. If it is online auction, its free
Admin fee: This is actually depressing, when property doesn’t sell, you need to pay.
Legal fee: for the paperwork, you ought to pay the concerned persons. It is usually 30 to 45 days process.
No contingency involved. The seller set all the terms and conditions
No home inspection. This can be done if the buyers really want to check the property.
No curb appeal improvements
No closing cost and realtor fee
Time for negotiation is very less.
Determining market value is difficult
DC Fawcett complaints about conducting an auction
People who have bargaining mind often visit auctions so the statistics prove that properties are sold forty percent lesser than the actual price usually.
When the reserve price is too high , the chances of bidding is less
Auctioneer fees may exceed realtor fee in some situations
Online auction scam is growing day by day as it is easy to find deals online, at the same time it has invited lot of problems.
If you want to know more about selling your home through auction, its benefits and drawbacks, check out DC Fawcett virtual real estate investing club where blogs are written for investors. You can get an idea about virtual wholesaling also through these blogs as many new investors find it comfortable as there is no risk involved.
Real estate agents are always not reliable. Enquire about the property and do assessment vigorously. The scam can happen through them, they may tell you it’s a new property, but it can be a distressed property /fore closured /property unsold for a long time.
To stay scam free, visit DC Fawcett virtual investing club which contains blogs on how to prevent yourself from hazards and dangers in real estate.Interested investors can make use of the blogs of DC Fawcett virtual real investing club which provides more information about virtual wholesaling and virtual rehabbing.