Prosper Newsletter: May 2006 > Real Estate

You understand that the following information is educational in nature and is not intended to be legal, accounting, or tax advice. You are responsible for your own financial decisions and should consult your own legal, accounting, and tax advisors before making your financial decisions.

Investor Learns Competition Was Looking To Be His Tenant!!!

Well, I went with my realtor to look at a house last Wednesday. When we arrived, there was another couple taking a look at the house too. The owner showed up soon after us to show them around. The house is completely remodeled; the owner buys low, fixes up and sells. The house was still priced below market value (Worth 60K, priced at 54.9K). As I was looking the house over and talking with the other couple that was there, I found out that they were looking to rent it! I couldn't believe it; I had the owner to negotiate a price with, and potential renters willing to pay enough rent to make the property cash flow. I was able to determine that the owner would be a little flexible because the house hadn't sold yet and he was trying to rent it out to cover his expenses. I could get it below value and have renters willing to move into the place in a month! I went back to my realtor's office that day and wrote up a purchase contract for 50K and he accepted. I purchased the house for 5K less than his asking price, an even better deal. I am renting it out and will have a $100 monthly cash flow nearly 2 weeks after closing when my renters move in. Absolutely no cost for advertising and no waiting for renters to come calling. Being persistent and consistently looking at potential houses found me this property. It was just a matter of time if I kept looking hard enough. And it all worked out great having the owner and potential renters right there to deal with.

Thanks for your help!

- Carl R.
Murray, KY


Tip of the Month

Contingency clauses are often placed in contracts to protect us and allow us to get out of bad situations should a worst case scenario arise. It's important that we don't go overboard with adding these protective clauses, however, because it can substantially lessen our chances of getting our offers accepted.

If you turn in an offer to purchase a home for $275,000, for example, but you have 5 contingency clauses in your offer and someone else offers $255,000 for the same home with no contingencies ... a seller may view the lower offer as the more serious offer and may accept it instead. Your primary aim should be to protect your self without being redundant in that protection. If, for example, you added a clause that made the sale contingent on your inspection and approval within 2 weeks of the offer's acceptance and you also added a clause stating that the offer is subject to approval by your partner within 2 weeks of the offer's acceptance you are being redundant in you clauses and coverage. One of those clauses would have done the job well and there was no extra benefit gained by including both. When you see redundancies in your clauses try to eliminate and consolidate them so you have good protection but fewer clauses in the offer to cause sellers undue concern.

My Property Pro

***FORMERLY REAL ESTATE PORTFOLIO MANAGER***

My Property Pro is a software application that you can install on your PC to manage your real estate prospects and properties. With this application, you can track prospects, purchased properties, manage your expenses and store vital accounting information for tax purposes. In addition, you can manage media associated with your properties including; pictures, videos, appraisals, rental agreements and other important investment documents. The files can easily be exported to an interactive CD-ROM which can be given to prospective buyers, tenants or lenders if necessary.

The software was designed and built around four important aspects of your investment business: Business Management, Time Management, Contact Management and Media Management. We feel this program will help you be more effective and keep you on that course that leads to success. Listed below are the features and benefits you will have at your disposal.

Information at a Glance

Management Tools

Marketing Tools

Create a Web File containing media you select from within the Media Manager

For more info