There is so much going on in the real estate business. People everywhere are really starting to come out of there shells and

take a risk. After all, this is like a gamble. You can’t always tell if the land or home you’re investing in is going to come through for you and make a profit. That’s just the way the old ball bounces. With great earning potential can come great risk. So, are you up-to-par when it comes to the modern-day real estate business? If the answer is no, but you truly want to be, then simply take advantage of your Internet service. Do a little recon work regarding the contemporary real estate business.

It’s crucial to attain all the statistics and facts when it comes to purchasing real-estate. Imagine the kind of investment you’re making. How much capital can you afford to invest? This naturally varies from person to person. While I may only be able to afford 160 grand, you may be able to deal with 500 grand. Ponder what you’re willing to spend and what you’re hoping to make. One good resource to take advantage of now days is television. There are several reality shows that touch on the current real estate business. Just for a little insight, I will tell you about a show I recently watched. It was basically about a husband and wife who had saved up some extra cash. They wanted to try out the real estate business. Of course there intention was to purchase a home and flip it. It was in California, but the area wasn’t the greatest. Sadly it cost them more than they anticipated to flip the home. They had to completely gut the house and re-do the entire yard. In all honesty it looked terrible when they bought it. Now, once it was completed and they were anxious to put it on the market, this is when the real heartache began. It didn’t sell for what they hoped for. In fact, it wouldn’t sell at all at first. They ended up bringing the price way down, and only broke even in the end. Yikes, that’s a lot of hard work and effort for nothing.

The Wholesale Real Estate business has been around as long as people have bought and sold real estate. In good times and in bad, there is always money to be made buying real estate at a discount and selling it for more than what it’s paid for.

A true Real Estate Wholesaler purchases real estate as low as possible and resells it at a higher price to other investors. Typically, the investors that purchase from a wholesaler are in either the retail or rental business. This means that once the investor purchases the property from the wholesaler, they will make necessary improvements to the property and then either rent it out, or sell to those who wish to live in it.

Most Wholesale Investment companies hire what’s known as a Property Locator to identify, locate, evaluate, and secure discounted real estate. Once the Property Locator secures a deal that meets the investors buying criteria, the investor quickly purchases and resells the property for more than what he/she paid.

Commissions are generally paid in one of two ways. The Property Locator is paid a flat commission when the wholesale investor purchases the property, or the Property Locator gets paid a percentage of profit based on the resell of the property.

Whether you’re a Property Locator or a Real Estate Wholesaler, there’s a lot of money to be made in the real estate investment industry.

What Is A Property Locator?

A Property Locator identifies, locates, evaluates, negotiates and secures discounted real estate for an investor to purchase. Property Locators use the following three factors to evaluate a piece of property.

After Repair Value (ARV)
Cost of Repairs
Wholesale Property Price

All properties are evaluated and offers made based on the above factors. A property is only a “good deal” if it can be bought for the “right price.” Successful property locators know how to arrive at the right price for a property by determining its

After Repair Value, estimating the Cost of Repairs, and using these two figures in a simple formula to derive the Wholesale Property Price.

Determining After Repair Value (ARV)

The method commonly used by real estate agents and appraisers to determine the market value of a property is called Comparable Market Analysis, or CMA, the appraisal being more complicated and detailed. We use here the simpler method preferred by agents. Comparable Market Analysis is based on the assumption that houses in the same area of similar size, number of rooms and other features will have similar market values.

When the comparable properties are all the same size, finding the ARV is easy. The more alike the comparable properties are the better. When the “comps” are not identical to those of the subject property, there is a method for determining the approximate After Repair Value based upon the average price per square foot of the comparables.

To calculate the average price per square foot of your comparables, divide the selling price of each comparable property by its square footage to derive the price per square foot. Add the prices per square foot of all your comparables together and divide by six (the number of comparables) to get the average square footage of your comparables Although the average price per square foot method of estimating the ARV is not as accurate as a good appraisal, it is reliable enough for our purposes.

Commercial real estate is a hot commodity right now. Many investors are seeing the massive potential for income associated with this type of property. It is not always clear, however, what type of commercial real estate to invest in or what part of the country to choose. With a little research, you can find the perfect location to purchase.

Columbus, Ohio is a great location for commercial real estate. Columbus is the capital city of Ohio and also one of the fastest growing. All over Columbus, new businesses are popping up and with them the need for commercial spaces. There are several notable commercial real estate companies working in the Columbus area to help people find the perfect space for them.

Another great area is Greensboro, NC. It is a growing community with great historical roots. It was once known as the Frontier Town for those looking to go west. With it’s temperate climate and friendly southern atmosphere, Greensboro is a town that attracts people from all walks of life. There are also many great commercial real estate companies, such as Kotis Properties, to help clients find their dream location. And with the attractive cost of living compared to many other parts of the country, this area will continue to flourish.

Austin, Texas also is a good investment for those interested in commercial real estate. Austin is a hot spot for families and singles. There is a growing economy and a great location. This makes Austin a good investment commercially. There are many good real estate companies in Austin. The Austin based COMMREX is one of the top commercial real estate firms. There are also some major national companies headquartered in and around Austin.

Los Angeles is one of the greatest markets for commercial real estate investors. Although it is one of the most expensive, the property values are ever increasing. Owning property in LA is like having money in the bank. There are significant advantages to owning in LA. One of the great tax benefits is that if you sell your home, you can take a profit exemption as long as you live in your commercial property for at least two of the five years following the sale of your property. This, along with the potential for income, is a great drawing card for LA commercial real estate.

Commercial real estate is a great investment. It appreciates significantly year over year, so the resale is excellent. If you decide not to sell or use it yourself, you can lease it and gather continuous income. Whether you use a firm in person or over the internet, be sure to do some research about the area first. When purchasing property, look for location. This is truly the key to finding the perfect commercial real estate investment.