Real Estate Investing

Investor Strategy Proposal

The market has many great investments for real estate investors. With the market values in decline over the last couple years there comes a time when things will change and those values will start to go back up. As we speak right now the values have declined on average 30% in the West Michigan area. The prediction is that the market will turn around in the next 1 to 1 ½ years. That’s not to say that values will go up, but sales should be more favorable.

Real Estate Proposal

My proposal to investors is this:

1) Search for investments with equity of $30,000.00 or more with a focus on higher end homes. Higher end homes will need less work to put back on the market for a quick resale.
2) Set up a web site through GRAR for all investors with the criteria they are looking for.
3) Market the investment through email drips, cable TV, personal web site, and the local media channels.
4) Do personal inspections with a photo library built for the investor.
5) Calculate all costs required to purchase the property including repairs.
6) Finalize a report and overnight it or send it through email or fax.
7) Once property is acquired then a series of steps will be followed:
a) Lock changes
b) Trash outs
c) Repair work
d) Winterize (seasonal)
e) Maintain property: Landscaping
f) Gas & electric turned on if warranted.

These steps are similar to what a bank would require. This I see as a hassle free way for the investor with less to worry about. What the investor will see is a monthly report on the subject property. That report will include, but not limited to:

1) Monthly activity on the subject property for showings.
2) A calendar showing ad’s run and in what media channel.
3) A weekly statistics report through GRAR on listing activity.
4) A monthly cost statement for electric and gas. (If applicable)
5) A detailed progress report on any sale and the steps taken for a quick close.




Purpose

The purpose is to minimize the time the investor will need to put in looking for homes.

My Requirement

My requirement from the investor would be to sell and buy properties for the investor at a commission rate that would be determined based on the cost of the property.

Investment Craze

The real estate investment craze is on in West Michigan. Most homes that are good investments are being sold with in a few days and then being re-listed at a later date. Remember when you said “I wish I would have bought that property year’s ago as it’s tripled in its price today”. Demand is what drives price. The population isn’t getting smaller in our country and that demand will be back at some point. The prices that are being seen now are prices of what homes were costing 10 years ago.

Banking News

Some brief news of the banking industry today and the mortgage crisis. We have seen a different attitude from banks. They are now more than ever willing to negotiate a short sale rather that let homes go into foreclosure. Homes in foreclosure are bad news on the books and technically banks can’t own properties other than what they do business out of. So they need to sell these properties. They are attempting to renegotiate loans through loss mitigation and refinancing. So needless to say the investment properties are here now, but may be gone tomorrow.



Thanks,


Jeff Newberg

Exit Success Realty
1009 44th St. SW
Wyoming, MI 49509
Office: 616-534-4480 x278
Fax: 616-828-5616
Cell: 231-740-6775
Email: jnewberg@comcast.net
Web: http://www.jnewberg.com/