Tag Archives: estate
The Importance Of Adding To Your Real Estate Investment Group (Page 1 of 2)
But teacher, the computer gremlins ate my homework!!!!! Unfortunately, that is what happened to my well crafted article for last week, right before I left to teach classes at the Learning Annex in New York.
The good news is that after being in NYC, I can now give a really strong example about todays topic which covers what to do once you have found ( or created) a great real estate investment group. What MOST people do from human is exactly opposite of what it takes to be a part of a real estate investment group that yields outstanding investments time after time.
It is human nature to believe that if you have something good, you dont share it with others for fear of not having enough to go around. Psychologists call this a “SCARCITY” model were people believe that there is only a finite supply of anything worthwhile. Coming from a very conservative background, where I grew up the son of a college professor, I was cursed with this scarcity belief.
As I started to gain more and more success, the more I realized that many successful people believed exactly the opposite of me: that is, they believed that by working together and sharing, you could produce an INFINITE supply of whatever was wanted. This is what experts refer to as an ABUNDANCE model.
So how does that apply to us? Let me give you the example from the Learning Annex. During our last night, we had a person in attendance that has been with our group for some time and has participated in multiple projects. This person is a full time real estate investor, is very savvy in her choices, and its a big believer in the power of real estate investment groups.
Afterwards, we got talking about how she might be interested in purchasing multiple units in our N. Tampa project and probably would also know others that were interested. To her credit, she did not want to “hog” too many units for either herself or others outside of the GetPreconstructionDeals.com real estate investment group.
In my opinion, this person could SUBSTANTIALLY INCREASE the ability of others in our real estate investment group by telling others now. Yes, we may run out on “this project” but now lets look complete the chain of events:
1. Some people cannot get into the project because it is sold out;
2. Because it is sold out, several developers take notice and want to offer special incentives to the real estate investment group;
3. Another good project is offered and because of more people are around, a substantial number of properties are consumed, some of them by people who could not get in last time.
4. In turn, this continued activity attracts even better opportunities by developers
5. Because the opportunities are continuing to flow, more and more people are attracted to the real estate investment group;
6. The process simply continues providing an ABUNDANCE of opportunities for all.
Now, suppose you do the opposite and individuals decide that it is a bad idea to grow the real estate investment group. Now what happens?
The Real Estate Purchase Agreement
Buying any piece of real estate property whether it be a home, condominium or building requires a written agreement. This is known as the real estate purchase agreement or a sales contract. It is called for in the U.S. Statute of Frauds that all financial transactions involving real estate be put in writing to be enforceable.
A purchase agreement is entered into by two parties the buyer and the seller. Being the principals in the transaction, both of their names and signatures should appear on the document.
Other important details that need to be specified in the contract include the following:
* Legal description and address of the property. This should state the physical condition of the home and its specific location.
* The purchase price the buyer is offering.
* The amount of down payment also referred to as earnest money or deposit and who will keep it during the transaction. Usually, a lawyer acts as the escrow agent. A condition may be included as well stipulating the return of the deposit if the sale does not push through due to the buyers failure to secure a loan.
* The time frame needed to respond to the offer such as 24 hours or 48 hours. The buyer may specify this to keep the seller from accepting additional bids from other buyers.
* The party in charge to keep the deposit and to close the transaction. The closing may be handled by either the attorney or the real estate agent whichever may be agreed upon by the two parties.
* Items included or excluded in the sale. These refer to the appliances and furniture that the buyer may want to keep or discard in the property concerned such as carpeting and lighting fixtures.
* Home warranty. This guarantees the buyer that the seller will provide a clear title to the property at the time of closing. The document may either be an abstract of title, certificate of title or a title insurance policy.
* The party to pay for the closing costs. Many sellers shoulder the closing costs as an incentive to buyers. Depending on both parties, though, the costs can also be split.
* Clause for inspection and appraisal. Buyers normally ask for a home inspection to ensure that the property they are buying is in good condition. The inspection also aims to find out defects and the presence of pests, if any. The appraisal, meanwhile, is meant to determine the actual market value of the residential property.
* Mortgage contingency. This may be specified by the buyer as a guarantee that the buyer obtains a mortgage loan before closing. This may also release the buyer from the offer in the event he or she fails to get a loan.
The real estate purchase agreement is initiated by the buyer. However, its not all the time that the seller accepts the offer in its totality right away. What usually happens is that a seller will respond by submitting a counter offer that proposes some changes to the buyers conditions. Negotiations will begin only after the buyer and seller agree to the contracts terms and conditions.