Following A Builder for Profits

As the real estate market begins to calm down, many worry about making a profit on their homes. Here’s an example of the “follow the builder” profit strategy.

Follow That Builder

In many areas of the country, there are builders who build hundreds of houses each year within a fifty mile radius of each other. They build entire communities, or are one of three to five builders who build entire communities around big employment centers. This is important. Hang with me and you’ll find out why.

Serendipity

The first couple I met who worked the pattern I’m talking about did it the first time almost by accident. They bought one of the first houses built in a neighborhood that took about two years to build out. Toward the end of the two year period, they were out for a walk and, on impulse, went into a house under construction that represented a bit of a “move up” from their home. The same builder who had built their home was building it.

The couple went to the sales office of the builder and found out that the house they’d walked through was already under contract. They were shocked to find out the price was $150,000 more than they’d paid for their home! The house was a little larger, but not enough to account for the difference. In fact, they found out their home had increased $100,000 in value.

A Repeatable Pattern

Builders usually have bright, attractive, cheerful, enthusiastic people on their sales forces. These people often have a wealth of knowledge. They know (or can usually find out) which communities the builder has built in, is building in, and maybe even where they’re going from there. They know a lot about the pattern of price increases for various models. They have some idea of the speed of build out.

It’s also possible to take walks in a builder’s neighborhoods and ask people how that builder is to work with, if construction and “punch list” completion are done reasonably and well, and if they’d choose that same builder again under similar circumstances.

If all the information you develop is favorable, you can start to “follow that builder.” Builders usually sell the first few houses in a neighborhood for less money than any of the homes subsequently built. They’re contracted for before the streets and amenities are complete, and it takes a lot more imagination to see a charming, pleasant neighborhood where now there’s only mud and bulldozers.

Follow the builder is a strategy that has been used. If you like a particular builder, you can use the strategy to put serious money in your pocket.

Discovering The Weak Link: Optimizing Your Commercial Real Estate Investment Strategy

Being an investor is a lot like owning your own business. You have money and people to manage, important financial decisions to make, and systems that represent your strategy. While these assets and operations result in successful and profitable deals, there are always problems arising, just like in a normal business, that can slow down productivity and progress of whatever activity is currently in motion.

A problem with many investors is that they do not view their process as a business. They do not have a company name or multiple teams working below them. They do not have business rules, regulations, checks and balances, or protocol for the people they work with. However, the truth is, commercial real estate investing, no matter how small, is a business all itself. In order to optimize this fact, one should follow proven business strategy that allows great companies to flourish with very little constraint or pain.

A very important theory that is used not only in business, but in science, politics, sports, and even everyday life is the Theory of Constraints. This theory literally transcends all boundaries as it is a scientific principle that can be applied to any relationship between two or more subjects. You have all heard of the expression, “You are only as strong as your weakest link.” This is in reference to the Theory of Constraints.

What is basically introduced is the concept that you can look at a process or relationship as a chain. One link to another, that chain is reliant on the strength of the relationship. If it is a process, and each link is a task, then each task must be working optimally so it does not weaken the chain. If one link becomes tired, lazy or behind, then the chain is all together weaker and ineffective at producing the result.

At any one time there can only be one constraint. You must tackle that constraint, and then another may appear. However, at that time, there is only one constraint to attend to. In order for a process or system to be working 100%, each link must be strong. If not, you suffer from inefficiencies; suboptimal performance and a complete slow down of the process.

Do you find areas in your business of commercial real estate investing that you are not pleased with? Are there areas you feel you and the people you work with and rely on could improve? Could wasted time be eliminated? What areas could you improve that would increase overall profitability of your commercial real estate strategies?

Within these questions you will uncover the areas where a streamlined process can greatly improve performance and decrease crisis and other problems. If your current strategy and processes are running at 100%- then there is no need to read this article. However, if you feel there could be considerable improvement, or even a small improvement that could increase your results exponentially, please read on!

Implementing processes and systems are the best way to optimize total performance. How this is done is you write down every single task within a certain boundary. For example, write down every task in creating the information packet to submit to a lender to get approval for a loan on a project. Write down every task for this specific process and then number them in how they follow in sequence.

Are there certain people involved who make this process happen? You may realize how you can cut out duplicated efforts, combine tasks into a single person who performs them, and completely streamline the process. What you do now is create a process map or flow chart showing the entire process from first step to last in the proper sequence. Identify who does what task and any time allotments or due dates if necessary. You know have a tangible, easy to learn, communicate and control process for submitting a proposal to a lender for a new project. Doing this alone will allow others to follow along with your process and have a clear understanding as to what is supposed to be done.

Do have protégés or other eager minds willing to help you in order to gain a valuable education from an experienced investor? Now you don’t have to worry about being the only one who “knows” the business. With a clear system and process map, you can now teach those around you the same, working, proven systems. With a process map individual tasks and relationships can be easily changed as continuous improvement is a benefit of process maps.

Discover Cary Illinois and Cary Real Estate

Summer Fun for Kids in Cary
While driving home after a long day last week I turned the corner onto my street and suddenly had to come to a quick stop. There were at least twenty kids under the age of twelve playing in front of my house. It struck me how lucky a kid is to grow up in Cary IL . There is so much for them to do here in the summer. Cary is surrounded by nature and McHenry County has been smart enough to put aside a huge amount of preserved land. The park district here is incredible. They have so many activities for kids it is hard to decide what to pick. Horse back riding, swimming, drama, dancing, and soccer are just a few. Also, they have play groups for the younger kids and Mommy and me activities. If you are looking for a summer camp you can go to RRR Felpro conserved land where they have a camp with a pool that is surrounded by walking trails through the woods and a lake for fishing. The park district has a community pool located next to the Village Hall. It is a very popular spot as things heat up. I have even seen people water skiing on the Fox River. Cary and the surrounding areas have many playgrounds which most of them have been added recently with the boom of new construction. I think that it is safe to say that as we head into Summer there will be some happy kids in Cary.

If you are thinking about moving away from the hectic pace of a big city but still enjoy the relatively close proximity to Chicago and the airports, Cary is exactly what the doctor ordered. Home prices range from the $150s to the $400s making them extremely affordable for the area. The homes tend to be 10 to 15 years in age but there is also a surge of new construction going on. The schools are excellent with small class sizes and plenty of after-school programs. The Cary IL real estate market moves quickly but at a much more reasonable pace than the nearby market of Chicago.

To get started on your home search or just learn more about Cary, you need to start looking at the Illinois MLS. You can search for all types of real estate not just in Cary but for such markets as Arlington real estate or Schaumburg or even the greater Chicago area. Enjoy all that Cary Illinios has to offer – make your move to Cary today!

Flipping Properties for Profit

So, you want to get into the flipping game and make money or possibly you had a bad experience with flipping a property and want to learn how to flip a property and actually make money? First of all, let me say that I don’t believe in expecting a large return on a flip if all you do is sign your name on a closing statement and expect to turn it around quickly. It’s just not that easy.

What can happen though is that if you follow some of my techniques you can expect to earn a nice profit for yourself. There are five keys to success that I would like to discuss in this article. They are: (1) you must buy the property right, (2) you should be willing to shop for good deals, (3) you must not be afraid to get your hands dirty, (4) you must be reasonably handy, and (5) you need to do most of the work yourself.

How to buy the property right. Here’s where you need to either be a real estate agent or work with one. Knowing the market area is essential to getting the right house at the right price. Are prices in this area increasing? Are others improving their homes? Is the home’s sale price consistent with the repairs needed? Does the listing allow for an easy out of the contract should you learn something during the home inspection stage? It is my opinion that you definitely need a home inspection because you want to know everything that is wrong with this house before you start.

You should be willing to shop for good deals. First thing I always do is set a budget. It’s not iron clad, but it is a starting point. You know what you bought the home for and you know roughly how much you want to get out of it, so now work backwards. What needs to be done and how much money can you allocate to it? Be methodical, make a list and try to stick to it. Shop hard for sales, closeouts, and alternatives. Many of the home improvement stores put closeouts out front early in the morning. Swing by on your way to work. Check garage sales, newspaper ads, and even the internet. While you certainly should buy quality materials, you need to resist the urge to buy the nicer faucet or the prettier cabinet pulls. Always buy with price and quality in mind with a close eye on the budget. Over-spending is a common pitfall.

You must not be afraid to get your hands dirty. If a home needs to be remodeled, chances are it is pretty dirty too. Hiring a cleaning person is expensive and not necessary. Anyone can scrub. It’s good exercise too. The yard most likely is a mess since the previous owners probably neglected it. Some of the hardest work is done in the yard. Having the right tools is key, but you don’t have to buy them, most of them can be rented.

You must be reasonably handy and you need to do most of the work yourself pretty much go hand in hand. You should consider finding another hobby if you cannot do average repairs yourself or if you don’t enjoy it. If you get stuck and have to bring the professionals in for a botched job, your profits will quickly go down the drain. Labor is very expensive to pay someone for and should be used sparingly.

Foreclosed home listings

For most people, finding the right property is only half of the goal of a real estate purchase. It’s also very important to most buyers to find homes that offer a big potential for savings and valuable investment. These days, the market is so competitive that finding really good deals can be extremely hard, which is why many people are turning to foreclosed properties and other non-traditional forms of real estate to find huge savings on a wide variety of properties. Unlike most open market properties these days, foreclosed homes offer the buyer the chance to win incredible properties for way below market prices, so getting huge initial savings and maximizing the value of an investment becomes easy!

There are all kinds of these great foreclosure properties and bank owned properties for sale out there, and they are available from very unique sources. The entire process begins when a homeowner can no longer make the payments necessary on their home mortgage loan. When this happens the lender will still have to find a way to collect the remaining loan debt, which usually is accomplished through the repossessions of the home and the subsequent sale of it to the public. The lender then keeps the proceeds of the foreclosure property sale to settle the debt.

However, when property foreclosures and ban owned properties are sold, the lender usually only needs to collect an amount that is much less than the full loan value, and thus the value of the home itself. In many cases, bank foreclosure homes and other foreclosed property is undersold at auction with no loss to the bank or lender. But the buyer and investor stands to gain greatly from this kind of sale, since many bank foreclosure properties and other kinds of for sale properties often go for between 10 and 50% below their actual value!

With the help of Foreclosure Connections, you’ll be able to find deals on all kinds of bank owned property and more, all from the comfort of your own home! Use our searchable database to locate thousands of bank foreclosure property and all kinds of federal homes for sale in every state. You’ll find that each listing for bank foreclosure properties has lots of information designed to help you assess values and pick the properties with the best investment potential! Our friendly staff is always there to help you buy the best properties in foreclosure by providing advice on everything form finding single families homes to how to go about pursuing bank owned property for sale on you area! So come visit us today. Buying foreclosed properties for big savings has never been easier!