How To Buy Houses At A Discount

finding houses at a discount

finding houses at a discount

When trying to get into the real estate investment world, there are actually several ways to get involved and make money from properties.

What people unfamiliar with the industry might not realize, however, is the importance of buying houses under its market value, and just how much under the market value they need to pay.

Investments in real estate really need to be treated like a business, so that means the numbers have to make sense.

That means purchasing a home at the right price — knowing what the value is, what the repairs are going to cost, and negotiating a purchase price that will account for everything and leave room for profit.

What we’re going to do is go over some of the methods that will let you find houses that will match the right numbers.

Purchasing a house that’s going through foreclosure

On average, houses in foreclosure sell for about 28 percent less than houses that are not in foreclosure. The bank holding the mortgage often auctions a foreclosed home(wikihow.com)

What this means is that there are actually two ways to purchase a home that’s facing foreclosure.

The first is by attending the auction and bidding against others to purchase the property.

This involves doing your research and really knowing the area, the property’s value, it’s estimated repair costs, and what you can do with it (remember, it needs to fit the numbers).

The second is by finding homeowners that are facing foreclosure but the home hasn’t gone through the auction yet.

These homeowners are financially struggling and need to get out from under the mortgage debt.

The incentive for them is to salvage their credit (they don’t want to have a foreclosure or bankruptcy on their record for multiple years), and, depending on the amount of equity available, they might even be able to walk away with cash in their pocket.

If the home is worth about $100,000, and they owe $20,000 left, then you can offer $50,000 and they’ll still walk away with $30,000.

This is a lot better than walking away with absolutely nothing when the home is foreclosed and auctioned off.

The challenge with foreclosure homes is that everyone knows about them, since they are publicly listed on foreclosure lists for the county.

Purchasing homes that have been inherited

When a family suffers a loss of a loved one, they inherit their assets.

Children often inherit the homes of their parents, which means they have to figure out what to do with it.

In many cases, holding on to that home is more of a hassle than anything, so they want to get it sold.

But if the home wasn’t already in good condition, then they’d have to spend more money out of pocket to get it up to selling-par.

That’s where you come in —

Approaching inheritors and offering to buy the inherited home with cash is one excellent way to get a discounted home.

Legally, buying an inherited home isn’t that different from buying any piece of real estate(sapling.com)

You’re also doing them a favor, since they don’t want to spend the time or money on the home, you’re taking off their hands and they’re liquidating the property into cash that they can use for either themselves or settling things for the family member they lost.

Inherited, or probate, homes aren‘t as public as foreclosure lists, so there are fewer people that go after them.

In fact, there’s usually a lawyer involved that’s handling the inheritance case for the family, and they often refer their clients to someone that can help them out with their homes when the clients are already prepared to sell it.

So, it would be beneficial to start networking and building relationships with probate lawyers so that you can be their go-to when they refer out properties that need to be sold quickly.

Looking for vacancies

Here’s the traditional method of finding discounted homes —

Finding homes that appear to be vacant, whether they are boarded up, it’s a severely damaged house, or it just looks like no one has lived there in a decade.

Generally, you’ll do the good ‘ole tried and true method of Driving for Dollars.

You drive around town, or certain neighborhoods where they are likely to have vacant or abandoned houses, and you make a note of the address or whatever damage you suspect to be present.

From there you can access county records to find out the name of the owner and any supplemental information.

Once you have that, you’ll be able to do what’s called a Skip Trace, where the owner’s contact information is found and that will give you the ability to get in touch and see if they’re willing to let go of the property.

This is a numbers game

You’re going to have to go through many homes before you find deals, but the benefit is that these are homes that sometimes no one else is pursuing simply because they haven’t found out about it yet.

In many scenarios, it’s all about who gets to the homeowner first.

Finding a vacant home can get you an opportunity to purchase the property at a steep discount, and you’ll have fun turning it into a project home.

One thing to keep in mind is that these are likely to have more repair costs associated with them.

You can get to a house that’s worth $200,000, but the repair costs are easily estimated to be about $50,000-$60,000.

That means you’re going to need to purchase it around $100,000 to make it worth your while.

With houses like this, you also don’t want to skip out on getting a home inspection so that you’re very clear on what issues it has.

The last thing you need is some unexpected surprises that make your costs go multiple thousands over budget.

If you don’t want to look for discount houses yourself

You can always go through a wholesaling company.

These guys are basically people who act as the middleman between buyers and sellers.

Their job is to find the deals and then find a buyer who is looking to purchase it.

They trade their time and money for an assignment fee, and they pair up the buyers and sellers to make a deal, getting their payday at closing with the title company.

What they do is specifically make sure that the numbers work and they will be appropriate for someone who is looking to invest in a rehab project.

Because of that, they’re almost always a discount house and they have already contracted the seller to sell the property, and they’re simply looking to pair up a buyer with it.

If you’re interested in going this route, we have some information on how to find a good we buy houses San Diego company that may be able to help you.

Otherwise, you can look at employing one of the other methods mentioned above.

Just expect to spend a lot of time looking through lists, driving around, and talking to homeowners.

If this is something that you’re interested in doing as a real estate investor, you might have a lot of fun with it.

But if you just want one project house, then you may be better off looking to get something at auction or going through a wholesale company.

Check back for more news on real estate tips, tricks, and investment strategies on our homepage!

PPC Pros and Cons for Real Estate Marketing

For real estate investors and agents alike, marketing is one of the most important aspects of your business.

In one of our previous articles, we outlined the top strategies to use for real estate investors, although the methods can be used for many different industries within real estate as well as outside of it.

Realistically, the only way to find new sellers and buyers without having a super strong referral base already in place is by using marketing channels to get in front of them.

Traditionally, this might include things like billboards, bandit signs, ads, and cold outreach like calling or emailing.

Today, the strategies are slightly different because there are a lot of really easy methods at our disposal with the online market and platforms that people are all over, including Facebook, Google’s ad network, and other social platforms.

The challenge, however, is finding the right audience for the right platform and putting yourself in front of them in a way that gets you to stand out.

Here, we’re going to talk about PPC (pay-per-click), what it means and how you use it to get in front of your audience.

While the target audience and tactics may differ between the different types of professional in real estate, the methods are largely the same for each.

First, what is pay-per-click (PPC) and how does it differ from other ad methods?

When we talk about PPC, the standard is to think about Google’s advertising network, including AdWords (now called Google Ads), and the display network.

Google Ads, or AdWords, is most commonly seen as the ads on the top or bottom of the search results page when searching for something using Google:

San Diego PPC Google Ad Listing

The Google display network is ads that are on other people’s websites, like when you’re searching the web and you see banner ads on the top or the sides of the website, as if Google is tracking you.

The most effective form of advertising generally comes from the ads that are displaying on the search results, so we’re going to focus on that.

When a user searches for something, let’s say “houses for sale in San Diego”, the ads will be shown in multiple places, most commonly above and below the organic search results.

When a user clicks on the ad, you pay a dollar amount for that click.

The amount is determined based on an auction system, meaning whoever is willing to spend the most per click will have their ad placed in a higher position, thus letting them be seen first.

At that point, its up to you, or the person in charge of your marketing, to use the right attention grabbing words to attract users to click your ad.

Sometimes Google will report the cost per click at a certain dollar amount, but when multiple ads compete for the same ad space at peak hours, that cost per click can rise significantly.

For example, in the real estate investment world, many investors are looking to show up first for terms like “we buy houses San Diego”, “sell my house fast San Diego”, or “buy my house for cash San Diego”.

Because this particular niche is super competitive, that initial CPC (cost-per-click) might be around $80, but then in peak hours it rises above $150.

That means, for every 10 clicks, you might pay anywhere from $800 to $1500, and possibly get 1-2 leads (10-20% conversion rate would be pretty excellent, and it’s usually lower than that).

The difference between this and other advertising methods like, say, Facebook advertising, is that people who may click your ads on Google are clearly searching for a particular keyword when they see them.

That means that are higher qualified buyers/sellers, since they are searching for what you’re offering.

In other types of campaigns like on Facebook, you’re putting yourself in front of customers that aren’t necessarily looking for anything at all, which makes them cold traffic, whereas Google’s users are more warm traffic.

That all sounds good, but what is the downside to PPC

As with all things that sound awesome, there are some cons to them — it’s never too easy!

So, what are the issues with PPC campaigns?

1) It can be really costly.

Because real estate is a competitive niche, you’re competing against many many others for the same user clicks.

That means the CPC is going drive up as more and more are willing to budget more into their campaigns for peak hours.

In the investor market, the top performers tend to spend anywhere from $20,000 to $50,000 per month in Google ads in order to capture as much of the market as they can.

2) You’re only going to capture a maximum of 30% of the total traffic with Google Ads.

Many people are naturally trained to skip the ads in Google search results.

Think about it, when you Google something, do you tend to skip right over the ads without even thinking about it so you can get to the most relevant listings?

We’re so used to seeing things show up in at the top of Google as ads that aren’t even related to what we’re looking for that we tend to not even look at it anymore.

If the total traffic that comes into a particular keyword sits around, say, 480/mo, the you’re likely going to be competing for about 144 of that.

3) There’s a lot of bot or dud traffic that hits Google ads.

One of the issues we find with PPC ads is that a significant portion of the traffic is actually just bots that click through them.

It’s unclear exactly what these bots are for and what their function is, and it could be several different things, but when a bot clicks the ad, lands on your page, and spends any amount of time on it, you’re getting charged for that click.

Additionally, there are some clicks that are going to be competitors looking at your landing page or people that click the ad accidentally.

In most cases, that’s going to cost you, and that’s part of the risk when using PPC ads.

Google tries to implement methods to reduce spend on BS traffic like that, but it’s inevitably going to happen, so just make sure you’re budgeting a buffer for it.

Getting started with PPC

Whether you’re a real estate investor, agent, lender, all of the above, none of the above, or something else entirely, PPC definitely have some value to you.

The next steps would be to do some keyword research and figure out what might be some viable terms as well as the potential costs that it’ll run you.

Google has a Keyword Planner tool that lets you enter in some values and get the search volume for each as well as the CPC.

It’ll also let you find some similar keywords that you might also be able to go with.

One important thing to keep in mind when you’re starting to target certain keywords is to think about what might be some queries or search questions users type in that don’t necessarily have a lot of search volume.

For instance, if you’re an investor and your highest converting keyword might be “we buy houses San Diego”, you might still look at queries like “What do I do if I can’t afford repairs on my house San Diego”.

The competition is likely to be extremely low while also bringing you maybe one or two visitors a month for pennies on the dollar.

Each one of those visitors can actually become a seller lead for you.

Now multiply that by, say, 100 different search queries that people might look up, and you’re potentially bringing in another 50-100 visits per month for pennies that might convert into deals.

In order to find some of these longer-tail keywords/queries, you can use Google’s autocomplete and related searches:

San diego best housse for

And you can even use the related searches at the bottom of the page to get some more ideas:

san diego related searches for housing

All of these autocomplete and related searches show that other people have looked for these same things.

In the end, remember, Google likes to promote what is popular because they believe that it is useful for people searching similar things.

The fact that these are listed means that there is search volume, and the longer the query, the higher the probably of it being a cheaper cost-per-click and easier to convert for your website.

That’s PPC in a nutshell

Now you can dive into Google Ads (previously AdWords) and start exploring options with your campaigns.

In a future article we’ll have an over-the-shoulder on how to set up an ad with the proper targeting and campaign, but you should start getting familiar with it on your own now.

At the very least you can understand where the value in PPC lies so that if you’re going to outsource it, you’ll know what to look for when you’re choosing an online marketing company for your business.

Be sure to check back on our homepage (http://www.sandiegoareahouses.com) to get more tips and tricks related to real estate marketing and other topics related to San Diego’s real estate industry.

The Homeowner Migration To Houston

home with lots of land

One of the challenges with real estate in California is the fact that property values continue to rise. Especially in cities like San Diego where it continues to be an attraction city for tourists, locals are finding that it’s harder and harder to maintain their quality of life without requiring higher levels of expense. While this holds true for many people in the middle and lower class, it’s also a significant source of stress for people in the upper class as well.

Everyone has to pay taxes, but the more income you make the more you have to give up. Additionally, California’s state tax is among the highest in the country. Couple that with federal income tax and other states begin to look very appealing. One particular state that looks especially appealing is Texas because it has no state income taxes, although they compensate with higher property taxes. Despite the property taxes being higher, the bang for the buck on property is much larger.

In San Diego, a 3 bedroom home might cost around $400,000 or more, while in Texas that same property may be around $200,000, and still have a much larger plot of land around it. Even with the property taxes, the amount of land and living space will be significantly higher in comparison to its California counterpart. Because of this, many people are moving from San Diego to a Texas city such as Houston. Houston in particular is attracting residents from many other cities and states because of its booming economy, industries, and real estate. Because so many new transplants come into the city, the real estate market is quite different in that it’s much easier to buy and sell. The methods for selling a home in Houston is a lot different and far easier thanks to the demand and price points than in California.

Maintaining a home is a lot easier as well since many of the homes consistently go through new development or restoration phases. But because these homes have lower total property value, ancillary services such as home insurance is much cheaper. The only downside is that flooding can become frequent, so homes in the flood plains must carry flood insurance (note that flood plains may have changed due to recent events revolving around Hurricane Harvey).

It appears that there are a lot of homes that are being developed within the major cities in southeastern Texas (Houston, Austin, San Antonio, and Dallas), and many Californians are making the move because of the cheaper economy while maintaining a high quality of life. One of the advantages of living in a place with higher affordability is the option to travel back and forth as needed while saving a lot of money. Many of the airports in Texas have direct flights back to California with cheap airfare. One must consider how much time they really spend in California that requires being local before making this kind of decision.

For those that are having a difficult time maintaining their lifestyle in California, this might be a seriously good alternative. Many people in California are consistently going through issues like foreclosure that force them out of their homes and they have to find other places to live and other jobs in order to accommodate. By going to a cheaper state that requires less annual expenses, although the minimum wage will be lower, the amount of money kept in pocket will be significantly higher to justify the move.

You can check out some videos like this one on others that have made the move and how it has affected their lives:

The move may not be for everyone, but we’re finding that there’s a big migration occurring from the west coast to the gulf coast. It’s important to weigh the pros and cons before committing to something like this because it’s a huge lifestyle change (from perfect spring weather every day to humid hot weather almost all year round, for example). And while there are other places as options, Texas has been known to be one of the best economically. It had the least affected economy after the 2008 recession and was the quickest to bounce back. On the other hand, California simply hasn’t really recovered from its economic downturns and droughts.

If you were a transplant from California to Texas or vice versa, we’d like to hear from you! Drop a comment down below and let us know what the experience has been like and why you decided to make the decision. Head back over to our homepage to learn more about San Diego houses and the general real estate market (http://www.sandiegoareahouses.com).

Don’t Get Sucked Into Foreclosure

San Diego real estate market can have its ups and downs, but when homeowners are unable to make payments on their properties, they let themselves go through foreclosures. This is often because they simply don’t know what other options they have.

To learn about selling to a real estate investor, check out this video: https://www.youtube.com/watch?v=uKMtA504nYw. You can also check out the channel at https://www.youtube.com/channel/UC2Vvx_tpj0xIHERQDQ6ex1Q.

When You’re Looking For A Real Estate Investor

San Diego real estate

California’s real estate market is extremely competitive and pricey. As such, finding the best value for properties can be a real challenge. It’s worth working with a real estate investor when trying to find a new property just because of the fact that they can wholesale houses. That means they can find houses that will be severely discounted, sometimes 30% or more, that you otherwise would not find through any sort of MLS system or real estate agent. That’s because by the time a property like that reaches the MLS or an agent, it’s already been found and put under contract by an investor.

If you’re looking to see what kind of options you can get with an investor, check out this home buyer company. They’re working directly with homeowners who need to get rid of their houses and usually buy them in cash. This might afford you the best opportunity to find a prime project house!

The Top Marketing Strategy For Real Estate Investors

Among the many marketing tactics that real estate agents and investors employ, one stands out that allows leads to come to you instead of you have to scour lists and door-knock. Organic traffic is one of the best ways to put yourself in front of people already looking for your service. In this article, we talk about the best way to bring in traffic through organic means. Check out the most frequently asked questions for real estate marketing.

How To Find A Good We Buy Houses San Diego Company

A we buy houses San Diego company is only good to work with if you know they are giving you a good deal. Do a lot of work on your research, and when all is said and done you should be happy with the results.

The shape your home is in is going to make the price go up or down depending on what’s going on with it. If there are a lot of problems like a leaky roof and plumbing issues, then you’ll get less than if the home is move in ready as soon as you sell it. They are going to need to flip the house, so they will take money off of the deal if they have to do a bunch of work. There are, thankfully, ways to improve a home that aren’t that expensive if you want to get more.

When you’re doing work on a home, make sure that you’re going to make more on it than you put into the improvements. For instance, if you can put new carpet in because yours is bad and make a few extra hundred, make sure you pay less than that to get the work done. The goal is to make more money than you put in from the we buy houses company. You may want to ask them to come out to inspect the home so they can tell you what’s wrong with it and what needs to be fixed. Just don’t make the mistake of fixing the problems that don’t give any return.

You need to know that the company you’re working with is going to give you a good deal no matter what. One good way to find out more about this kind of thing is to read up on the company through reviews. For instance, you can find a review or two that are detailed and teach you all you need to know about what other people went through when working with the company. You need to know that they are not going to give you a bad deal on this because if that’s the case it’s best to go elsewhere.

The house you’re selling may have a lot of problems, but there are still people out there that will buy it. You have to think about whether it’s really a good idea to spend your money on improving the home because if you don’t get your investment back and then some, it’s not worth your time. If there are small improvements you can do like repainting part of the home or doing something else that’s not too tough, you may be able to get more than you put in so try to think of what will get you the best deal possible. But if you’re dealing with something like foundation issues, then that’s a different story and you’ll likely not want to put money into that.

Hiring a good we buy houses San Diego service to buy a home from you is in your best interests. You can always find the best place if you take your time. Don’t rush through this too fast and the deal you get will be very much worth it.

Information in this article provided by Sell My House Easy Fast

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Hey there! We’ll be adding some more details on san diego houses soon, so check back. We’ll be going over some specific housing techniques, investments, and marketing strategies for your home or purchasing new real estate investment properties.

Stay tuned!