01 9 / 2012

I saw the ads in our small-town newspaper for years before I realized exactly what was going on. They were always the same: A house for sale with 5% down and payments of 1% of the purchase price. It might be a three bedroom home for $90,000, for example, with $4,500 down and $900 per month payments. 

A friend started doing the same thing and explained the process to me. It was a way to get a great return on capital. It was the opposite of buying with no money down. You bought for cash.

A Real Estate Investment Formula

It is simple, really. When you buy for cash, you often get a much better price. A house that needs a little work might be worth $75,000, for example. By offering $65,000 cash, you negotiate your way to a $68,000 purchase price. If not, you walk away - there are always others.

Then you put few thousand into high-return repairs and improvements. Paint, carpet, and maybe asphalt for the dirt driveway. For our example, we’ll say you put $5,000 into it.

Now it’s worth $85,000 perhaps, but you target those buyers who can’t get financing easily, and you finance it yourself. By making it easy for the buyer, you can get $90,000 for the home - and do it without a realtor’s commission. Whatever the sales price, you let the buyer put 5% down, and make monthly payments of 1% of the purchase price. Of course, you get higher than market interest too.

The buyer is thrilled that they can buy instead of renting, and you get a capital gain of perhaps $14,000 after expenses, plus good interest. Your total rate of return is somewhere over 25%!

The first to do this consistently in our town were a father and son. They were both lawyers, and saved money by doing their own foreclosures when necessary. After forclosing, they just raised the price and sold it all over again, of course. By the way, if you can get an average return of 18% on your money, you’ll turn $75,000 into more than one million dollars in about fifteen years.

Tim Ware is a valued real estate services provider in Bryan-College Station Real Estate. He is the owner of RE/MAX Bryan-College Station and is currently working with 20-50 other realtors.  He assists realtors, investors and buyers alike in real estate investment solutions and property purchases in the city.


30 8 / 2012

So you want to get into real estate, for personal or investment purposes, but you just do not have the cash to get you started.  Purchasing real estate is still possible even with out a down payment.  

Below are a few techniques, provided the seller is willing to negotiate and has a genuine interest in selling the property as soon as possible.

Buying with no money down.

The simplest method for real estate investment is to take over their mortgage payments.  This is called assuming the mortgage.  Naturally, you will need to be approved by the original lender to assume the mortgage.  If you cannot be approved for an assumable mortgage, you may also try a subject to assumption mortgage, which means that you make the monthly payments while the property remains in the seller’s name.

What if the seller asks more than what the balance is on the mortgage?

If the seller wants a higher price than what is owed on the mortgage, you can still assume the mortgage and then get a second mortgage with the seller for the remaining cost of the house.  Offer the seller a high interest-only payment for a short period, for example two or three years.

At the end of the term on the second mortgage, you should be able to refinance the property and pay off the seller.  Unless there has been a downward trend in real estate, your real estate investment should have gained value in a few years.

There is no mortgage to assume-then what?  

A majority of mortgage lenders want to make a good investment.  While your local bank may still shy away there are plenty of financial lenders that would love to make a deal and finance your loan.  

Finance companies like real estate.  The mortgage is usually based on 60-70% of the value of the property, so as long as they know they will get their money back in the value of the property if you default.  Complete the deal with a second mortgage created with the seller. 

As you can see, there are ways to invest in real estate as long as the buyer and seller work together.

Tim Ware is a valued real estate services provider in Bryan-College Station Real Estate. He is the owner of RE/MAX Bryan-College Station and is currently working with 20-50 other realtors.  He assists realtors, investors and buyers alike in real estate investment solutions and property purchases in the city.


29 8 / 2012

Demographics and population trends influence almost every decision in modern life, from business planning to healthcare provisions, from education needs to fashion and style.  Age, ethnicity, gender, income, mobility, employment, geography and other demographic factors determine the shape of our society.

Real estate is no less affected by the ebbs and flows of demographic trends, particularly income, aging, family situations and employment.  Consider a real estate broker, whose livelihood depends on people changing homes.  Economic mobility is a key determinant in the future of his business, as is the economic health of the region.

"I look to see how fast the economy is growing, and how many jobs are likely to be created as a result, to determine the resources my business will need over the next five years," says Terry Denoux, a Bend, Oregon, real estate broker. 

Development planning relies even more on demographic data to determine priorities.  The average age of the population is a major factor in the type of housing that will be required over the next couple decades.  

"A young population in an area will require more single family homes with multiple bedrooms and plenty of space for children to run," explains Wendy Cobrda of Catosphere, a demographic data reporting company.  "On the other hand, an aging population will need more hospitals, more medical clinics, more housing that requires minimal maintenance."

For investors, the stakes are just as high.  Investing in commercial real estate, for example requires the ability to forecast where there will be a growing population, and/or where the population’s average income will be increasing.

In fact, commercial property investment requires a deeper understanding of demographic data; it is not just the population trends that need to be considered, but the demographics of the competition.  And even those cannot follow a set formula.

For instance, an entrepreneur looking to set up a new car dealership needs to consider where established dealerships are located and set up shop nearby.  Car buyers wanting to compare similar models need to visit several dealerships, so they need to be close to one another.

On the other hand, an entrepreneur looking to set up a new hardware store, should look for an area underserved by the competition or where new residential developments will be opening up.  Hardware shoppers can compare brands of similar tools within the same store, so ease of access takes on a greater importance.

On the topic of ease-of-access, road traffic patterns can also make or break an investment, especially near busy intersections in competitive markets.  The demographics of traffic can add to the complexity of making a commercial real estate investment.

Understanding where to invest in retail properties is one of the main reasons that demographic mapping is such a popular service, Wendy Cobrda explains.  ”To visually see the movement of people and their spending dollars helps businesses ‘see’ where they should open their next store.”

Demographic data plays a role in vacation rental real estate, too.  ”Do you buy vacation rental properties, or do you sell the ones you have now?” asks Steve Curtis, owner of FabVillas, a website listing vacation rental properties in Florida.  ”Well, that depends on how much disposable income people have for vacations and, more importantly, on the age of the population.  A younger person is more likely to backpack through Europe, and stay at a hostel.  An older person in more interested in comfort and privacy, which is what vacation rental properties offer.”

It also depends on where populations are growing more, as well as where the affluence is growing.  If an economic boom is happening in England and France, but not in the USA and Canada, a vacation rental in Spain might prove more useful than on the Gulf Coast of Texas.

"Business planning is just a shot in the dark without solid market data," explains Ms. Cobrda.  "Demographic data reports and maps help businesses project market activity into the future, helping to avoid such catastrophes as building stores with no customers or storing a few million dollars of inventory that nobody wants."

Given the high stakes of real estate investment, whether in residential, commercial or vacation rental properties, demographic data reports and market segmentation data are even more important.

Tim Ware is a valued real estate services provider in Bryan-College Station Real Estate. He is the owner of RE/MAX Bryan-College Station and is currently working with 20-50 other realtors.  He assists realtors, investors and buyers alike in real estate investment solutions and property purchases in the city.

26 8 / 2012

For people who are just getting their feet wet in real estate investing it is usual for them to notice at the very outset that having a network of fellow investors as well as buyers can be a useful source for making their investment business flourish. Having a decent network of people to fall back on can help you locate the better properties and to also find out whom the more interesting investors are and who will want to buy real estate from you. In fact, it is not all that hard to build up your own business network provided you know how to go about this rather simple task.

REO Agents Are A Good Source

As far as real estate investing goes, it is also common that you won’t buy every property that comes your way though at the same time when you check out different properties it will bring you into close contact with others who have similar interests and thus you will have found a safe and assured means of building a business network. After you have made a few deals related to real estate investing you will also have come into close contact with REO agents who may be holding bank properties that are in post-foreclosure, and this too will help you to expand and build your business network.

Another way that your business network will flourish is when customers come to you for repeat business, which will help the network to widen even more. In fact, for every fifteen or twenty properties you check out, don’t be surprised if only one or two actually get completed and the rest will remain just a part of your business network. This in turn will then lead to your getting deals that fit in with your real estate investing profile because after a while agents as well as investors will begin to understand what exactly you are looking for and thus they will offer you only those deals that fit your needs and wants the best.

As this business network grows, so too will the chances of your landing more deals that would mean that you could then start making at least four or five new deals instead of the one that you were making at the beginning.

Since repeat clients can give you maximum business, when indulging in real estate investing, you should makes sure that you record all the information pertaining to everyone you meet in connection with your investment activities. This is a good way of finding more opportunities and because of late there have been many more foreclosures, it is also the right time to capitalize on the real estate investment business and grow your business network through checking out foreclosure lists.

To grow your business network when it concerns real estate investing you may also want to check out online sites that deal with investor networking opportunities and a good example is American Investors in Real Estate Online where you can find many like-minded investors and a lot of high quality facts and information dealing with real estate investing. In fact, if you also attend seminars and go to classes that deal with networking, you will find that your business network will expand considerably and that in turn should help you earn more out of real estate investing.

Another source worth tapping if you wish to build your business network to further your real estate investing goals is checking out the site biggerpockets.com which is a leading online community comprising of many real estate investors and homeowners as well as professionals dealing in real estate. It is an ideal place where you can further your real estate investing goals and also build your business network and also learn new things related to the real estate market.

Tim Ware owns the widest property listing in Bryan/College Station. Make contact or visit his homepage today for where shoul be advertized your home.


23 8 / 2012

It’s no secret that there is a mountain of money to be made in the real estate market. Some think it might even be the easiest way to become a millionaire! Contrary to popular belief, however, you don’t have to have a lot of money to start with. Hundreds of thousands of people across the country are making money without risking money or credit. There are three basic methods in use.

The first of these is to take over the debt load of homeowners. This can be done without risk by developing a “subject to” deal. Many people are under a huge load of debt and will transfer their ownership to you along with the equity they have in the house, simply to be relieved of the burden of the debt. These homes are beautiful and well maintained as a rule. You do not have to guarantee a note in order to do this. You can learn how to take on these deals when you pick up my free real estate investing course.

A second way to get into real estate investing with very little money risked is to wholesale houses that need “rehab.” These low end properties that are in very poor condition can be a veritable gold mine. You find the bargains and pass them along to the contractors and carpenters who earn money fixing up houses to sell. You never own the property, but you can make anywhere from $10,000 up on each sale. It’s possible to wholesale 3 or 4 houses every month. Just think of the income that could generate!

A third way of making money with real estate is to option high end houses. This means that you find a house that has a lot of equity already in it, such as a million dollar house with three or four hundred thousand in equity. You option this for one price and through the use of killer sales strategies, you sell it for much more. The seller gets the price they want, the buyer gets the price they want, and you get the difference, which could be several hundred thousand dollars!

Your only expenses are some marketing materials and about $100 for an option deposit.. If you’re wholesaling, Ten Bucks will suffice! You don’t have to make any monthly payments or repairs. You don’t have to borrow any money yourself. Furthermore, there has never been a better time than the present for making money on these high end houses.

One way to learn the tricks of the real estate investing trade is to find a mentor that already has had experience in Real Estate Investing. Another way to learn is to visit the website that I have listed below. These helpful sites contain information about many training options as well as hundreds of articles about every facet of real estate investing.

Is investing in real estate something that would work for you? There is no way to know for sure unless you check out the claims and testimonials of those who are making this business work for them.

Tim Ware owns the widest property listing in Bryan/College Station. Make contact or visit his homepage today for where shoul be advertized your home.


17 7 / 2012

One of the first things you may run into when thinking about selling your home is what to ask for it.  This can be a problem if you do not know anything about real estate.  A good real estate agent will be able to do a market analysis of the area to determine what the best selling price of your home would be.  You may think the price is too low, most people do. However, the price is based on many factors. 

The market analysis will look at your home and the other comparable homes in the neighborhood.  This means it will only compare properties which have the same features as yours.  If you have three bedrooms then the analysis will look at other three bedroom homes.  The market analysis will evaluate homes which have sold in the past six months to a year.  It will also look at homes which were listed and did not sell.  The last thing the analysis will include are homes currently on the market. 

By getting an average of the different prices, the real estate agent can give you a pretty good indication what your home should sell for in the present market.  You may feel the price is too low.  Many sellers feel this way.  However, the market analysis is extremely accurate.

The market analysis will show you the listing prices of the houses in your neighborhood for the last six months to a year.  You will then be able to see if they sold for that price.  It may shock you to learn many of them did not sell for the asking price.  If they did, then stipulations were probably made by the seller, buyer, or both.  These agreements could be things like the seller agreeing to pay closing costs or points.  Either way, the asking price the seller was hoping for was lower. 

Beware of the real estate agent who does not do a market analysis.  Steer clear from the ones who ask you want you want to sell your house for.  You want a professional who knows how to market your home and will get the best price for it.  In order to do this he or she must review the market to determine what is selling and what is not moving at all.  There is going to be a price range your home will fit into.  This is what a good real estate agent will explain to you.  He or she will usually list your home for the higher end of the price bracket. 

By setting the price a little higher, not a lot, you have a negotiating chip.  The buyer may ask you to pay the points or closing costs or both.  You may be asked to contribute the down payment.  When the buyer does this, sometimes the house actually can sell for more than the asking price. It is one of the ways buyers who are a credit risk can afford to buy a home.

 You should never ask more than the market will bare when setting the price for your home.  You need to carefully consider all the options when determining your price.  Things how how updated the kitchen is or how big the yard is can have a lot to do with what your price will be.  There are other things you can do to get top dollar for your house. 

Curb appeal is one of the most important things in selling a home.  If a buyer drives by, you want him or her to notice your house.  It must look neat and orderly.  If it appears run down and in need of repair people will just drive by.  It may be hidden by trees and shrubs.  Cut them down and let the neighborhood see how nice your house is.

 A good real estate agent will be able to list your home at a fair price.  He or she will be able to tell you what must be done to get the best possible price for your home.  They are the professional.  If you listen to them, your house will sell.   

Tim Ware owns the widest property listing in Bryan/College Station. Make contact or visit his homepage today for where shoul be advertized your home.


13 7 / 2012

The real estate sales contract may look like many pages of legal talk which only lawyers could understand.  It is actually not that complicated.  There are many terms listed which you may not understand.  We are going take a look at a few of them. 

As you can see, the obvious is stated, who is buying the property from whom.  It also lists the property address as well as the legal description.  This is for everyone’s protection.  There have been times when a property was offered for sale at a particular address.  The transaction took place and the deal was closed.  Later it was discovered the property sold was actually adjacent to the one on the contract.  This has actually happened quite often with vacant land.  By using the legal description on the real estate sales contract there is no doubt which property is involved in the transaction.  

The purchase offer is also listed along with any down payment, or earnest money, the buyer may have put down.  The terms are spelled out here as to when the buyer will obtain the loan and how much the loan will be for.  You will find a date for closing in this area as well. The closing date is given as an approximate.  This is because circumstances may arise which could delay the closing.  This is taken into consideration.   There could be a section about the appraisal of the property, depending on how your contract reads. 

You will find information on the sales agreement about inspections.  This is because every buyer has the right to have the home inspected before the contract is finalized.  This is encouraged because there could be hidden damage that no one knew about.  Things like termites and other infestations can be checked for with a quality inspection.  Many times the seller must have a termite inspection done before closing. 

The real estate sales contract will have a warning clause for the buyer.  This is the “As Is” terms the buyer is purchasing the property under.  He or she has the right to have the home inspected.  Any thing which is not addressed in the contract or during the inspection becomes an “as is” issue.  The seller can not be held responsible for any damages unless it was proven the problem was known and not disclosed to the buyer.  For instance, if the basement floods every year and no one said anything, the seller can be held responsible for taking care of the problem. 

The real estate sales contract will list any options the buyer wishes to add. For instance, they may ask the seller leave the appliances or other things.  They can also ask the seller to pay certain closing costs or hold a note for a set period of time.  There may be other terms the buyer may wish to add. 

The seller has the right to reject the contract completely, accept it as is, or counter with an offer of his own.  The seller can ask the purchase offer listed to be higher, if it is not the asking price.  This is where the negotiations come into play.  Not every real estate purchase contract is accepted the first time it is submitted.  Negotiating the deal is not unusual.  It is acceptable to ensure both parties are happy with the agreement.  This is why the real estate sales contract usually states at the top that it is a real estate purchase agreement.

Contact or visit  Tim Ware home page for more details.

13 7 / 2012

You may be very proud of the way you have decorated your home.  It may appear like a model home straight out of a “House Beautiful” magazine.  That would be wonderful if you were having company over for dinner.  It is not appropriate when you are getting ready for a showing. 

The real estate professional will tell you when he or she lists your home what you can do to help improve your chances of selling your home.  One of the things you will need to do is constantly keep the house clean.  First impressions are always important at a showing.  The other thing you should do is make your home as neutral as possible.  This can easily be accomplished with some simple solutions. 

The first thing you should do is pack up all the family photographs.  Many people get upset when this is suggested.  However, the new buyer does not want to see your home.  They want to see the house in which they may be living.  There is a difference.  It is hard for some people to look at a room and see their things when it already has personal items from someone else.  By removing the personal items and making the home neutral, the buyer can see how the home will look with their decorating style. 

Another thing to remember is to keep things simple.  You may think that getting your home ready to sell means updating to the latest appliances and other features.  This is not the case.  The best thing you can do is clear out everything you do not need in each room.  Put these things in storage.  Get them out of the way so the only thing people see when they come is the house it’s self.  You may have the most beautiful 17th century dining room suit, complete with a hutch, side table, and buffet.  This massive piece seats 12 when fully extended.  Move it.  You want people to see the expanse of the dining room, not the table. 

The best thing you can do when it comes to updating is a simple coat of paint.  Painting all the walls a neutral color, like off white or beige, greatly enhances how clean the home is. The lighter, neutral colors can actually make a smaller home appear larger.   It also will match what ever decor the buyer has.  This will let them imagine what their furniture will look like. 

You will know when you have done a good job with these tips.  The buyers will come in and stand in certain sections of the room.  Then they will go to another part of the room and stand there a while.  This is what someone does when they are deciding which piece of furniture is going to go where.  If you see someone wandering aimlessly, they can not see themselves in this home.  Those that stand and ponder are actually envisioning what it would be like to live there.  It is best at that time to just let them dream for a minute.

Tim Ware owns the widest property listing in Bryan/College Station. Make contact or visit his homepage 

11 7 / 2012


It can be an exciting time to move into a new home.  The new space to explore and decorate is like getting a breath of fresh air.  So many ideas come to mind when looking at the empty space.  Many new home owners are anxious to have the keys right away.  They can not wait to get started cleaning and unpacking.  Painting and putting up curtains seems like the best thing in the world.  Rearranging furniture in the new home all of a sudden is fun.

 When the buyer makes an offer on a property and it gets accepted, the planning begins.  People have actually had a calendar marked as a countdown to the big “M”.  Moving Day.  The question always comes up, “When can I move in?”.  The big day actually depends on your contract with the seller.

 Most of the time the buyer will be handed the keys to the new home on the day of closing.  This is when the property actually changes hands.  The seller has signed his rights away and the buyer has resumed them.  Sometimes things can happen a little differently.

 The seller may ask for a few extra days to make sure everything they want is out of the house. They may need some extra time to locate a property or even close on the new one they are buying.  

When a seller is having a home built, delays can occur which can stop the sellers moving on an expected date.  There may have to be concessions made to accommodate the sellers.

 It is possible the seller will agree to have the buyer move in prior to the closing.  This generally can be done if the house is vacant and it is a strong buyer.  If the buyer had difficulty obtaining the loan, or asked for certain concessions, the seller may not feel comfortable allowing the buyer to move in until the closing has been finalized.  This is just added protection against anything which could go wrong.  Either way the seller usually has a week to week lease with the buyer to allow occupancy prior to closing.  

You will find some real estate agencies have rental agreements on file which can be signed by the seller and buyer for either one to live in the home during the time prior to closing or shortly thereafter.  These forms are used to protect each party so there is no question about what is happening.  The seller may pay rent to the buyer in lieu of letting them stay longer.  The buyer may also be required to pay if he or she moves in prior to closing.  The agreements usually contain a clause concerning the utility usage during the times of occupancy. 

In all reality, very few times any more do the sellers need to stay in the home after closing.  It is only on rare occasions the buyer would need to move in before closing.  So the real answer to when you can move in is actually entirely up to the people involved in the sale

Make contact or visit his homepage today for where you can move in a home.

08 7 / 2012

r Everyone thinks that by planting a sign in the front yard a buyer will magically appear and give you exactly what you are asking for.  This is not true. Buyers are a much sought after commodity in the real estate world.  You need to advertise to find them.  Choosing where you advertise can be a bit tricky.

You can run an ad in the local paper.  This is a good start.  It will let the people in the neighborhood know you are selling your home.  You can take out an ad which is just a basic “House for sale” advertisement.  You can also get noticed by adding a picture to show people what you have to offer.  You are marketing a product.  What do you think would get a buyer’s attention?

 You do not need to stick to basics with advertising.  This is actually one of the fun parts of selling a home.  You get to be creative.  You can set up virtual tours on a local television station. Some of them have home showings on a Saturday or Sunday morning.  This would spot light your home to people who are truly interested in buying a home.  Although it may cost a little more to get the message out this way, in the long run, it could pay off.

 Do not limit yourself to the local area.  Many people are moving around the country these days because of jobs or other obligations.  By advertising on the Internet, you can reach an entirely new group of potential prospects from all over the globe.  Yes, I said globe.  Remember there are people outside the country who are getting ready to come back home from military bases or over seas jobs, who want to see what the market has to offer.  This may be thinking outside the box, however, conventional advertising will only bring you so many candidates.

 Local newsletters from groups and organizations are always looking for someone to buy advertising space.  You can offer to pay for an ad which will display your home.  Just a picture with the asking price and a phone number are all you really need.  Someone in the organization may just find it is exactly what they have been looking for.

Flyers are a big way to advertise in the local grocery stores and other public bulletin boards.  You can make up a flyer with a picture or pictures of your home.  Add a list of amenities, the price, and a phone number.  When you put on the address, people can drive by before they call to see if it is in a location they would be interested in living.

 Do not limit yourself in your advertising area.  The more people you tell that your home is for sale the more people you are attracting as buyers.  Real estate agents are constantly pointing out the network of agents across America they can offer your home to.  You can do it as well.  Realizing your potential market is the first key in deciding where to advertise your home for sale.

Tim Ware owns the widest property listing in Bryan/College Station. Make contact or visit hishomepage today for where shoul be advertized your home.