Ali Safavi Real Estate Training

For over a decade Ali Safavi Real Estate has been training investor and potential investors in the art of real estate investing.  Like the Stockmarket, there are dozens of variables that go into each decision. However, unlike Wall Street the volatility is much lowers. So whether you are a seasoned veteran or just dipping your toe, here are some Ali Safavi Real Estate training tips to keep you on the right track.

Location

The old adage that “location matters” is most accurate when it comes to real estate investing. Before you fork over a down payment and put yourself in a significant amount of debt over a property, ensure that it’s in a good location. HOWEVER, there is something to be said for buying real estate in an “up and coming” neighborhood. We’ve written about this numerous times at Ali Safavi Real Estate. Sometimes there are cheap deals to be had in less than perfect areas. Five to ten years from now that could end up being the new hottest spot in real estate and you got yourself a bargain.

Real Estate Taxes

Unless you live under a rock (or have given up watching the news) you know that there is a new tax system underway. One of the major sticking points was property taxes. With the new GOP tax bill in place, anyone who takes out a mortgage between December 15, 2017, and December 31, 2025, can only deduct interest on a mortgage of up to $750,000, or $375,000 for married taxpayers filing separately (learn more). This may slow down real estate buying in some areas like California and New York. Whether you are a company like Ali Safavi Real Estate or a first time homebuyer, it’s super important to understand the tax burden you will face with a new property.

Credit is Key

Most of us will have to borrow money to buy a property.  One way to get around using your own money is to do a double-close deal. Short of that, you will need a bank. If you are investing in a second property, banks are less likely to loan money if your credit is less than great. At Ali Safavi Real Estate we recommend fixing your credit before jumping into real estate. You’ll save more in interest and the whole processes will just prove a lot easier.

Ali Safavi Real Estate has a number of blogs to help you in your investment journey. Visit Ali Safavi Real Estate, Ali Safavi News, Ali Safavi Real Estate News, and Ali Safavi Reviews.

How to Find an Investment Property

The real estate market is an intricate and diverse arena. It can be quite confusing to find a great investment property; especially for inexperienced buyers and sellers, given the different ways properties are made available in the market. And if that isn’t enough, with so many investment properties to choose from, investors may find it difficult to sift through the clutter.

Properties can be priced too high, or they can be lost among the thousands of other adverts. The information regarding the properties can also be hard to find. These are some of the most common problems that delay, if not totally hinder, a real estate transaction.

Investment Property

To counter these challenges, allow me to share with you 3 methods that you can use to efficiently weave your way through all the real estate properties available in the market and find the perfect investment property. Remember that each has its own defined niche, and matching it to the needs of the buyer and seller is the important thing.

52 Properties

investment property52 Properties gives investors a wide range of access to different investment properties. Although they only send out one deal each week, they have access to over 25,000 properties in 43 different states.

Each state has a team assigned to it, thus getting information on the properties won’t be a problem.

Investor-friendly realtors

investor-friendlyThis category can be subdivided into two. First, we explore off market or pocket listings. These are properties that are not actively advertised in formal platforms (online, periodicals, etc.). Some brokers leave out these properties so they can offer them to specific investors.
The other group belongs to other investors. These are individuals who look to sell their investment property directly to buyers.

Multiple Listing Services

Multiple Listing Services (MLS) are services that allow brokers to make offers for compensation, promote mutual cooperation among fellow brokers, and distribute accumulated information regarding property appraisals. MLS are also an ideal source for all vital information regarding a certain investment property.
property-checklist

Real estate brokers are the primary users of Multiple Listing Services. Some of the deals in the MLS expire and do not get sold, some even reaching three months without any successful transaction.
Thus, sellers become even more highly motivated to sell their property. Ultimately, their motivation influences their judgment, and they are now more than willing to accept aggressively priced offers. This would not have been possible if the properties posted in MLS did not expire.
As a final thought, we can say that there are three underlying factors in making a successful real estate transaction. All of methods that we discussed above are greatly influenced by these three factors:

  • Cash – This allows the buyers and the sellers to instantly close the deal and settle payment.
  • Networks – As in any aspect of business, real estate is also about “who you know.” Specifically, these are people who directly or indirectly help complete the transaction. Among these home repair personnel, property managers, real estate brokers, and the investors themselves.
  • The right people – A competent team who has the technical knowledge and the motivation to help sell the property is needed. 52 Properties provides such a team.

Conclusion

While the options available to finding an investment property is close to being limitless, there are a select few that can give you the best results in the least amount of time while spending the least amount of resources – that’s what the tips that we shared above can do for you.

If you need more help with finding the best investment property, you can contact Ali Safavi so we can have our associates help you with your needs.

Want To Find Good Real Estate Investments? Here’s How.

The real estate market is an intricate and diverse arena. It can be quite confusing to find a great investment property; especially for inexperienced buyers and sellers, given the different ways properties are made available in the market. And if that isn’t enough, with so many investment properties to choose from, investors may find it difficult to sift through the clutter.

Properties can be priced too high, or they can be lost among the thousands of other adverts. The information regarding the properties can also be hard to find. These are some of the most common problems that delay, if not totally hinder, a real estate transaction.

Investment Property

To counter these challenges, allow me to share with you 3 methods that you can use to efficiently weave your way through all the real estate properties available in the market and find the perfect investment property. Remember that each has its own defined niche, and matching it to the needs of the buyer and seller is the important thing.

52 Properties

investment property52 Properties gives investors a wide range of access to different investment properties. Although they only send out one deal each week, they have access to over 25,000 properties in 43 different states.

Each state has a team assigned to it, thus getting information on the properties won’t be a problem.

Investor-friendly realtors

investor-friendlyThis category can be subdivided into two. First, we explore off market or pocket listings. These are properties that are not actively advertised in formal platforms (online, periodicals, etc.). Some brokers leave out these properties so they can offer them to specific investors.
The other group belongs to other investors. These are individuals who look to sell their investment property directly to buyers.

Multiple Listing Services

Multiple Listing Services (MLS) are services that allow brokers to make offers for compensation, promote mutual cooperation among fellow brokers, and distribute accumulated information regarding property appraisals. MLS are also an ideal source for all vital information regarding a certain investment property.
property-checklist

Real estate brokers are the primary users of Multiple Listing Services. Some of the deals in the MLS expire and do not get sold, some even reaching three months without any successful transaction.
Thus, sellers become even more highly motivated to sell their property. Ultimately, their motivation influences their judgment, and they are now more than willing to accept aggressively priced offers. This would not have been possible if the properties posted in MLS did not expire.
As a final thought, we can say that there are three underlying factors in making a successful real estate transaction. All of methods that we discussed above are greatly influenced by these three factors:

  • Cash – This allows the buyers and the sellers to instantly close the deal and settle payment.
  • Networks – As in any aspect of business, real estate is also about “who you know.” Specifically, these are people who directly or indirectly help complete the transaction. Among these home repair personnel, property managers, real estate brokers, and the investors themselves.
  • The right people – A competent team who has the technical knowledge and the motivation to help sell the property is needed. 52 Properties provides such a team.

 

Five Ingredients of a Highly Motivated Seller

by Ali Safavi Real Estate on August 8, 2017

For a plethora of reasons, getting sellers to bite on aggressive offers is becoming exceedingly challenging these days. If the investors are clueless about the things that motivate the sellers, getting their offers accepted becomes nearly impossible.

In most cases, sellers have unrealistic beliefs and outrageous standards, and these are the things that investors need to hurdle with in order to succeed.

Knowing the 5 ingredients of a highly motivated seller is a crucial step in achieving the ideal purchase agreement. Investors need to get inside the minds of the sellers, and through these 5 ingredients, they can subtly, yet strategically dictate the pace of the negotiation to their favor.

Whether it’s a house, a condominium property, or simply a bare lot, the name of the game is to tap into the things that make the sellers “tick”. This is a powerful springboard that Investors can use to be successful in this industry.

These are the 5 ingredients of a highly motivated seller:

    1. Financial Distress

      debtSellers are pushed by the stress of not having enough to get by. The reasons vary – financial hardship, job loss, divorce, or anything that requires a huge expense in repairs. Any one of these instances can cause a seller to be extra motivated to sell his property.

    2. Eyesores

      eye_soreWhenever there is something in the property that needs repairing, owners would rather dispose property by selling it outright. They are more susceptible to accepting lower offers due to postponed maintenance in the roof, walls, windows, or any part of the property.
      Another angle to this second ingredient is when the property becomes the source of complaints from neighbors and the authorities. Any aspect of the property that poses some kind of hazard or danger will provide inconvenience to the owner. This can ultimately make him want to sell his property instead.

    3. Multiple price reductions

      When properties are put up for sale, some sellers become too optimistic and place outrageous selling prices. Or, banks who foreclose properties want to get rid of these properties the soonest time, since they are not really built to keep the properties.
      It is important here to hold your initial offer, so the agreed price goes down multiple times to your desired level.

    4. High CDOM/DOM (Days On Market)

      buy_sell_holdSellers want to get rid of their properties ASAP, and they start to worry if their properties do not get sold in 90 days. Thus, at this time, they are more than willing to take much cheaper offers just to cut these properties loose.

    5. Life occurrences

      life_occurencesLife occurrences affect a seller’s motivation level. It could be a job transfer, a new family member, or perhaps a death in the family etc… These events can help push the owners to sell their properties for financial and emotional reasons. Maintaining these properties will only be a challenge for them since they have a lot of things in their life that they need to contend with. Hence, they tend to just want to sell their properties to interested buyers.

Conclusion
These 5 ingredients can aid in strengthening an investor’s battle plan in securing properties with their ideal offers. So if you’re having a hard time finding great deals, then you ought to look out for these 5 ingredients now.

Top Eight Reasons Real Estate Buyers Want Off-Market Properties

In the world of real estate investing, we know you have many different options to acquire real estate properties. The markets have heated up again and so has the desire for off-market properties. Why off-market properties? What is the basis of the desire for these listings? We asked a couple high-end real estate investors why they love to buy off-market properties and here is what they told us.

Off-market properties are desirable for cash buyers for the following six reasons:

  1. There is presumably less competition because the property is not on the open marketplace like Multiple Listing Service (MLS). They don’t have to worry about getting outbid by several other investors.
  2. off-market-propertiesThe property is exclusive and therefore, based on who you know, you will have access to different types. Some higher end properties never get publicly listed; and so if your broker isn’t well connected, you’re going to miss out.
  3. The buyer can use the perception value of a property as off market to monetize it to other buyers.
  4. There are fewer broker fees since usually two realtors will split them.
  5. off-market-propertyThere is more time to make a decision. Since there are fewer buyers who know about the property, it could take the seller longer to sell it. This means you might be able to take more time making such a big decision.
  6. Avoid looking at tons of homes. We can get overwhelmed by the amount of homes on the market. When shopping off-market, you don’t have to look at so many properties.
  7. Banks and private lenders tend to be more lenient and excited about these deals. The lower degree of competition involved improves the chances to close escrow.
  8. Finally, these deals are good candidates to cross-collateralize against other deals.