The traditional strategy to purchase real estate is to put 20 percent down and get a mortgage for the balance owed. The only problem with this strategy is that you will eventually run out of money for the down payment. Savvy real estate investors have adopted a new strategy that allows them to purchase a property with no money down. This strategy is called purchasing a property subject-to the existing mortgage. There are some potential legal liability you can face if you purchase a property subject-to.

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The rule of thumb in real estate investing is that for every 100 offers you present to sellers, 10 will be interested in the offer but only 2 will sell to you. The other 8 sold to somebody else. How do you get the other 8 to sell to you? You have to manage their expectations when you make them an offer.

Have you ever spent an hour talking to a seller and getting their verbal ok to sell their property to you, only to find out they sold to someone else that talked to them after you? Why was that investor able to close your deal? The primary reason is that the other investor was able to better manage the seller’s expectations and for that reason they were able to close the deal.

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The first rule you learn when deciding to buy investment real estate is to protect your assets. No real estate investor will recommend that you operate your business as a sole proprietor. If you are a sole proprietor then your personal assets like your home, car and retirement accounts could be lost in a lawsuit. The best advice is to incorporate to limit your personal liability. The most common form of incorporation used by real estate investors is a Limited Liability Company or LLC. Some investors that flip properties will form a corporation. Now that you have your corporation, you decide to get financing to purchase properties and you find that banks will not let you get financing in the name of your corporation.

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How to Invest in Real Estate – 3 Steps to Learn Real Estate Investing

March 8, 2011

Have you ever wanted to know how to invest in real estate? It can be a challenge to learn real estate investing. There are hundreds of books that talk about different investing strategies. Sometimes it is too much information and you are not sure how to get started. This article will give you 3 steps that you can follow to get started investing in real estate.

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Landlords – Use Text Messaging to Collect Rents

February 18, 2011

Back in the olden days landlords use to send out invoices to tenants each and every month to let them know that their rent was due on the first. These invoices were very similar to the bills you and I would receive for our phone, mortgage, electricity or cable bills. The top part of the invoice would include the amount that was due and the date that it was due. If payment was made after the due date, the invoice would show the amount that you would have to pay including the late fee. The bottom part of the invoice would have a portion that could be ripped off as the payment coupon. The payment coupon could be included in an envelope with your payment.

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What a Landlord Can and Cannot Deduct from Security Deposits

February 12, 2011

Every time a landlord rents one of their investment properties, they will collect a security deposit from the tenant. This security deposit is collected to protect the landlord in case the tenant damages their property. When the tenant moves out the landlord is able to deduct the cost of repairing any damages and then return the remainder of the deposit to the tenant. The law dictates what a landlord can and cannot deduct from the security deposit. Make sure you understand what you can legally deduct from the security deposit.

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Landlords – What Should You do with an abandoned or non working car on your Property?

February 8, 2011

If you own rental property long enough, you will face the day that a tenant has a non-working car on your property. Or you might drive by your property one day and find someone decided to abandon their car on your property. If this happens to you, here is what you should do with an abandoned car or a non working car that is on your property.

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