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Investing Easy
Want to Invest in Real Estate? It Pays to Be "Investor Wise"
Author: KevinDavid
Are you interested in real estate investing?Want to Invest in Real Estate?.
Our Real Estate Investment Professionals Save You Time and Money.
Are you interested in real estate investing? Do you know the steps it takes to purchase a real estate investment property? Can you figure out the Maximum Allowable Cash Offer (MAO) on a real estate investment deal? Continue reading to become “investor wise” and be on your way to creating wealth through purchasing real estate.
The MAO is the most money you should ever offer for a property, even if your offer is not accepted. Knowing terms like MAO is important for ensuring you make the best offers and create the most profitable deals in any real estate transaction.MAO is the formula used when a buyer wants to rehab or wholesale properties to other end buyers. As a rule, you should never exceed MAO so you do not overpay for a property.
Being “investor wise” means understanding pertinent real estate terms and processes so that you can make the most profit on every deal. Take for instance the term, “flipping.” Flipping a property occurs when an investor takes a fixer-upper property and renovates the home in order to increase the value of the property so the investor can realize a return on his/her investment.
Investors who flip rehabbed properties and/or wholesale properties typically use the MAO formula when considering how to price offers on properties to get the best return. It’s important for a buyer to understand how the MAO formula is calculated in order to be prepared to offer an appropriate price for a property they want, or risk losing it to another bidder; or even worse –losing money on the deal because he/she overpaid for the home.
The MAO Formula in Action
Real estate investment companies can lead the way to successful real estate transactions. These professionals are equipped to help you evaluate a property you plan to flip as well as determine its market value using the After Repair Value (ARV). The ARV is the fair market value of a home once repairs are complete. ARV is an essential component in calculating MAO.
ARV x .70 – cost of repairs = MAO
For example, let’s say the ARV of a home is $200K. This amount is then multiplied by 70%, to give us 140K. Next you must get an estimate of the repairs needed for the home. Keep in mind the quality of the repairs may impact your ARV. If your estimate of repairs turns out to be 20K then the most you would want to offer to pay for the home would be 120K.
The good thing is aknowledgeable real estate investment professional can help you structure these deals and realize the strong potential profits that real estate investing can generate.
Real Estate Investment Professionals Save You Time and Money
Becoming investor wise is the key to building wealth through real estate. Real estate investment companies with experience and expertise are instrumental in helping people accomplish their investment goals. With their guidance, buyers can use MAO and other acquisition methods to purchasebank owned properties (know as REOs),
Additional expertise that a real estate investment company can provide is:
- Renovation of fixer-uppers
- Identifying good deals on foreclosures and cash flow properties
- Managing cash flow rental properties
- Assisting with short sales
With so many avenues to explore, it’s good to seek the advice of a real estate investment company that can provide a turn-key real estate investing process to help you accomplish your investment goals.
Article Source: http://www.articlesbase.com/ask-an-expert-articles/want-to-invest-in-real-estate-it-pays-to-be-investor-wise-5952044.html
About the Author
I bought shares in Lloyds at 50 p and RBS at 41 p, and both have dropped to way below this but recently have been going up, I was planning on selling both when they make 12% profit for me, is this a good strategy? And also is it important to have a plan with all companies you buy then follow through with it? e.g. only selling at 12% increase?
Is earning 9% annual interest rate in bank FD better than to buying a property?
I live in california and I want to invest in AloStar but there are no AloStar banks in California. Am I still able to invest in AloStar. even though it is out of state?
simple question: Will i be able to invest in out of state banks?
[i want to invest in CD’s]
Forget banks and CD’s all are paper . Buy Gold and Silver coins to hold in hand .
was it worth it?
the “investment” cost us the end of the finest medical system in the world, the lost of allies in the mid-east, the worst unemployment since the great depression, the return to race problems and a national monetary crisis.
I am 13 and have decided I want to invest my money.
I only have $50 so not that much but what can i invest in?
I am from Canada, there are not Tesco stores here. The closest thing is Fresh and Easy in the U.S. which I have been couple times. Do you think their market share domination in the UK is stable? What about in other countries like Thailand, Korea and Czech Republic?
Hi, Is it a good time to invest in gold? current price is 31924 rupees. how much rise one can expect end of the year in gold price?
but there is no returns Nav is 10.80, so i change to any other fund kindly advice
I thinh you have opted growth fund,due volatility in share market the profit is not visible in value.you cal1.surrender policy,and invest in assured return policy like bima bachat,jeewan tarang.
2.switch your growth fund to balance or income fund to reduce your share exposure risk.
the stocks i plan to invest in are peix..cur…pphm…or biof…i know that the lower end stocks are more volatile but i like it that way…also…what type of stock chart should i use…any suggestions?…brokerages? and do stock charts that have the buy and sell alerts really work?
My close relative of mine wants to invest a third of his money in gold to hedge against inflation. I’m talking like $200,000. Where does one go in the Tri-state area to make a purchase of Gold that large at the closest to best market price, without risking getting scammed?
I understand that you can not invest directly into gold as you can with many other commodities, so I figure the only way to do it is to actually purchase the concrete metal.