One might have come across advertisements showing how making money through real estate is a very easy task. One might also have come heard seminars in radio which guarantee flipping of houses without one’s own money. Also, there are sponsored posts in the Facebook which say that it is very easy to flip house with no money at all. DC Fawcett says When one comes across the word ‘Easy’, one needs to be very cautious. One who is well-versed in realty might know that real estate is not that easy as one thinks. As a matter of fact, if one has to become wealthy, and successful, it is not an easy task.
One might have acquired millions of dollars, but it demands work to manage the wealth and retain it. That is the reason why majority of people who acquire huge wealth turn bankrupt in a matter of years. One might be waiting for the easy way to succeed, but you will just keep waiting for a long time to achieve the success. Investing in real estate provides wonderful opportunities for people to acquire wealth, but it is not an easy task.
Variety of real estate investing techniques – How easy is it to make money -DC Fawcett
There are umpteen ways to make money in real estate. There are some very easy methods to put money into real estate, but those methods will not make one rich. They can give you a decent value in return for the money that is already saved.
Real Estate Crowd Funding:
One of the most noted ways to invest is through crowd funding. One can put in small amounts of money via crowd funding companies. These companies then pool the money with other investors to make a larger investment. This investment changes hands to flippers or other developers in real estate. One may be able to get huge amount with crowd funding, but there would be a lot of money to get affluent via that return. For those who are starting up, crowd funding can be comparatively easy.
Putting money into REIT:
There are the turn-key rental properties. These are rentals that can be purchased and are already rehabbed, managed and rented by a property manager. These are particularly situated in high cash flowing areas and demand less work. However, there are difficulties with occupants, repairs and bad turn-key companies. One might own a turnkey property. Purchasing a turnkey property could be easy, but one should be intelligent enough in selecting the company.
Being partner with other real estate investors:
Yet another option to put money into real estate is to partner with active investor. One among the partners may lend money for a particular deal, while the other partner fixes the deal, completes the rehab and disposes the property. One could lend money or retain equity position also. Partnering can be an easy way to put money if one is just into providing the money. One has to be discreet enough in choosing the right partner and the appropriate properties to lend on.
One has to be very careful when he or she hears that flipping houses is very easy. Usually, there is the possibility of high priced sales pitch arriving soon. One has to be realistic and rational as much as possible, and steer clear of cunning marketing techniques that take people for a ride. Flipping is extremely difficult, and making huge money is difficult. Also, running a business is a herculean task. Performing things that are difficult and coming with results is the best prestige that could be accorded to a person. It makes life a lot easier. As flipping houses may not be very easy, it does not mean that you cannot carry it out. It takes some amount of time and arduous work from the individual.
Dc Fawcett , the founder of the Virtual Real Estate Investing Club, provides a fair idea on how easy it is to make money flipping houses. One can go through the blogs by him to understand the real estate scenario better.
Though discounted cash flow formula is popular and widely used, there are lots of misconceptions about it. In this topic, DC Fawcett intends to clear some of the misunderstandings about this concept and educates the people with some of the facts.
Discounted cash flow formula for real estate
To understand the discounted cash flow concept, you need to know the basic real estate cash flow. You need to analyze some of the factors before you go for it. These factors are
How much amount goes for the investment?
When does the amount go into the investment?
How much amount we get in this investment and
When do we get that amount?
To answer these questions, you need to do more analysis so you can arrive at the right figures. They are
Holding period –
is generally assumed as the timing of cash flows occurred at the end of the year. In commercial real estate, the holding period has a standard variation from 5 to 15 years for the financial analysis.
Initial investment –
is normally shown as nil but it includes the acquisition costs required to buy an asset, deducting the mortgage proceeds if any. It can also be called as total cash out of hand required to buy the property.
Annual Cash flow –
Is taken as annual cash flows before tax for a real estate property. In other words, it is gross profit minus all the expenses and debt service. Negative cash flow means the money is going on investment. Positive cash flow means the amount is coming out of the investment.
Sale Proceeds –
represents the cash flow received after the property disposition. It shows the last period of the holding period in real estate cash flow.
What is discounted cash flow analysis?
Discounted cash flow analysis is a technique that is used in finance and real estate to discount the future cash flows to the present. Following are the steps for real estate valuation.
Visualize the cash flows that occur in future.
Establish the total return that is required.
Discount the cash flows to the present at the required rate of return.
Forecasting the expected future cash flows enables you to create its projection, known as real estate proforma. It puts all the elements in place which gives you the answer to the 4 basic questions of the real estate cash flow model, mentioned above. The investors will get the information about their total return for the project. In the case of an individual investor, it is the rate of return they want. The requited return for a corporate investor is the weighted average cost of capital (WACC). Ascertaining the discounted rate has always been a discounted cash flow. It includes accounting for the risks taken for the project compared to other alternative investment opportunities.
DC Fawcett says that Once you forecast the cash flows and establish a discount rate, the discounted cash flow analysis for the real estate project can be used to derive the internal rate of return and net present value.
Your Real Estate Partner is an important criterion in the entrepreneurial career. Choosing the appropriate real estate partner should be done with much discretion. Else, you might be in for trouble. There are some people who have had the opportunity to get the appropriate real estate partner.DC Fawcett says Many people might wonder as to how these people got such lifelong partners and friends.
Some Tips To Get the Appropriate Real Estate Partner
Underlying strengths beyond weaknesses
The above title may sound less interesting and frequently used. But you have to know how skill-sets and characteristic traits outweigh each other. If there is already an existing partnership, make out who is better at certain things and allocate duties suitably. One of the partners might be in the internet world, and yet another may be in call centers. The one holding expertise in the internet may maintain e-commerce, SEO, and ad words. The one in the call center may go in for Customer Relationship and Management. Some people will have a good personality in handling customers. The other might hold expertise in Business to Business negotiations.
What have you actually succeeded in?
There are certain things that could be put in the entrepreneurial resume. But, you cannot list out things that you possibly can do. Although it might be the first entrepreneurial venture, one might show interest in getting promotion in their works by being dedicated. This adds to the value in the entrepreneurial resume.
See who has sustained more scars in the real estate business
One should go exactly for those who are weather beaten and who have borne the brunt in the market. Instead of choosing a fresher who has done MBA, it would be advisable to choose one who has failed at least once in the market.
Standard Practices that could be adapted:
Smash your ego:
Be it realty or real life, the biggest hindrance will come in the form of ego. When one thinks he does not have ego, then it means that he is getting drenched in it. One cannot ever smash his ego, but one could be cautious of it. When one cannot control his ego, communicating with others becomes extremely difficult. When there is no proper communication, failure would follow in no matter of time.
You cannot automatically communicate from somewhere else. It requires your presence in the place. When there is a lingering trouble, you need to go for discussion with utmost care. Fights and heated conversations could be avoided with discreet communication. Being right or wrong does not matter; it is actually about developing in the market scenario. You have to stay focused and you should have a clear objective.
Taking time to develop acquaintances:
One needs to maintain acquaintances beyond the work scenario. You might be sharing work with an acquaintance in an office alone. But that is just not enough, and you should carry the friendship outside the office. Developing acquaintances could be fun and it prevents split in relationship with the acquaintance.
Going for counterbalance:
We develop a habit of playing the role of devil’s advocate, even when we are in the same standpoint. One should be able to criticize at the right moment. You might have entertained the idea of purchasing a property in a place. Even your partners might be ready to be part of the deal. But suddenly, during the day when the property is bought, decisions might change. Also, all of the partners might have gone for a change of mind. After reflecting for a period of time, one would know that playing the devil’s advocate was just the right option.
As a final note, one should take time with the acquaintances to assist in reminiscing of the good times together and common interests that are entertained. One does not need to be very close with the other. But developing an acquaintance really matters.
Dc Fawcett , the founder of the Virtual Real Estate Investing Club, has shared many advises on his blog. He has given tips on how to develop acquaintances and one may get sound knowledge after reading those blogs. These blogs also provide knowledge on real estate investment.
If you are a smart investor, thinking about the innovative ways to invest your money, then what are youwaiting for? All that you need to do is to take a right decision at the right time.
If you are looking for the smart and quick investment, your search ends here. The answer for your query is virtual cash flow real estate. DC Fawcett has explained about the virtual real estate investing in real estate and how does it work.
Virtual real estate investing – Dc Fawcett
DC Fawcett an expert in Real estate investing helps people to grow in real estate business. Get a free virtual real estate investing advice now!
Being a leading real estate investing advisor, DC Fawcett knows each and every part of it and simplifies the approach to others. He knows what current trends are and what works with this industry and how to approach it in a profitable way.
DC Fawcett’s virtual real estate investing club helps people to invest in multiple markets.He has mastered the art of wholesaling and contracts the home with home seller. His efficient marketing tactics drags the potential buyers and he successfully assigns them the contract.
D C Fawcett real estate guide for beginners
Real estate investment is becoming increasingly popular and it is considered to be a safe option when it comes to investments. But buying and owning the real estate is considered to be a complex process than other investment options.
Internet is loaded with lot of blogs, books and training classes to train the beginners and make them start investing in real estate.
Old method of real estate investing – Rental properties
This is an old method of investment where a person will buy a house or any Property and rent it to another. Charging a rent from the tenant earns him a hefty profit. But there are lot of disadvantage in this method of investing. This is basically a long term process, you need to invest a large amount of money to buy a property and wait for long time for returns from the rent.
Eventually you may end up with a bad tenant who damages your house and create problems with your agreements etc. Permanent maintenance is also required in rental properties and you need to spend more money in such things.
Repairing and Renovating the house for profit – Dc Fawcett Reviews
Some house sellers might don’t have money to invest on major renovation or repairs of their houses. At such cases they might sell their house for low price since it needs lot of repair work to be done. You can buy such houses and with efficient sources repair and renovate them for reasonable price. After a pleasant renovation it can be sold for higher price than that of buying price which also includes the repair and renovation charges.
You need to precautious about choosing a renovation company which can work efficiently. Renovating a house for profit value is really easy and all it needs is little bit of effort.
Flipping houses for profit
Buying low and selling high is the only way where profit flows in flipping houses. Location and condition of houses is very important criteria to be noted while flipping the houses for profit. While looking for houses, do a research on rising real estate sales, employment opportunities and other available options which boost up the sale.
While buying the houses for flipping you need to be sure that it is structurally good. Houses near excellent education institutions sell more quickly than others. A thorough inspection is needed before the decision of buying a house or property in an area.
The value of the house should be lower than the market value which makes a huge profit. But its hard to find such a house since everyone needs a profit. But by analysing the market with long term goal you can search for a property in any developing area and flip it for huge profit.
If you are a new flippers then probably the biggest mistake you would ever make is buying a property without seeing it. Do not buy house or any other property without a thorough inspection.
Dc Fawcett – What is virtual cash flow investing in real estate?
Cash flow analysis is very important for companies and the investors. It is a complicated process which can leave the investors with the feeling of delegating security analysis. If you wish to make money without involving too many risks, virtual cash flow investing is the solution.
Virtual cash flow investing in real estate is an art of making money by buying and selling virtual real estate using real money. In this, the investors start investing in the virtual real estate market. This is an online game in which you can start practicing with virtual cash without any investment. The game’s version is purely for fun, practice and education. Once you become an expert in trading with virtual money, you can start investing real money in which you can buy and sell virtual estate earning real cash. It is similar to online stock trading. When you buy virtual real estate, the structure does not need re-shingling, re-sidling, new furnace, water heater or foundation. The appliances are unbreakable.
The advantages of Virtual cash flow real estate investment
Risk- free- When you use virtual money, you get a good amount of practice while investing in real estate. Even if you lose the game, you don’t lose anything.
Ownership – When you buy a virtual real estate, you become the owner without any legal formalities. You can sell the virtual property to other players and still earn real cash if you put real cash in it.
No Money – The investor can manage the balances, deposit and withdraw the money at their convenience.
Low cost – The virtual real estate cost is low. There is no need to surf for refinance rates and mortgage. At the same time it is not a deal either wherein it is too good to be true.
Practice – Although the real estate technically does not exist, the entrepreneurs get the practice and education to deal with different situations.
Dc Fawcett – Virtual Real Estate Wholesale Investing Tips
DC Fawcett has years of expertise in virtual real estate investing business. He implements virtual investing strategies in his own markets in and around Tampa bay. He also outsources 100% of the work and through virtual real estate market he earns a hefty profit without investing a single penny of his own.
On achieving a great success with his virtual real estate wholesale investing strategies, Fawcett feels proud to share his experiences and his extremely successful real estate strategies with you. To gain more knowledge you can easily download one of our free virtual investing cheat sheets and get started.
Tips to invest in Virtual Real estate
Real estate investments are profitable, no doubt in that! But can a beginner start investing in real estate with large amount of capital. What are the risks involved in that? You may lose your money if it is not done properly.
To start investing in real estate, there is no need to have thousands of dollars in hand. You can start doing it without buying any physical property.
Virtual real estate investing has several important aspects. One of the important aspects is thorough research on property before buying. To estimate the market value price of the property and understand the local market, you can refer to leading property websites. These websites has a database of comparable properties which helps you to gather knowledge on investing
You can ask for a loan if you cannot afford to buy a home and by this way you can easily negotiate the purchase of the property. The lending companies and mortgage lenders will easily accept the deal if the size of your loan is big. You can avail the loan easily since the interest rate throughout the country is low. But you need to very careful while selecting the mortgage or lending companies and do a proper research on their reputation.
You can search for a seller who needs to sell his house fast due to his urgency. There may be lot of personal issues like relocation, bankruptcy, divorce, financial problems due to which a seller may be open to fund the selling process. You need to find such a person who asks you to close the deal quickly.
Seller financing is the quick and easy way to virtual real estate investment. The seller may be interested in funding a loan to close on the deal quickly due to urgent need for money.
DC Fawcett’s guide on how to become virtual wholesaling expert
DC Fawcett learnt and mastered the art of virtual real estate wholesaling, rehabbing and cash flow investing. His proprietary real estate investing system techniques helps even novice people to grow in real estate business tremendously
Come and experience the house flipping revolution just by spending 32 minutes. No need to look at a house and search for it! You can easily generate real estate deals just by sitting at home. Forget the traditional old methods of real estate investing and switch on to new method of virtual real estate investment.
We assure that you will get 100% working strategies through which motivated sellers will beg you to take their properties of 50% more equity and your secret buyer contact you to get an early access of next deal. You would know how to find hidden deals in any market which your competition can’t find. You can find the best deals in your town and beat the wholesalers with D C Fawcett’s advice.
He leads you to generate 100% autopilot virtual wholesaling machine depositing money into your bank account.
If you are short of virtual cash, then you have to wait till you get it. As such, it can only be used for practice, but it won’t be accepted in real life.
There is a possibility of winning with virtual cash, but you may lose after putting the real cash.
DC Fawcett advice on how to get rid of your house quickly
Have you got a house which doesn’t sell for months? Follow the real estate expert DC Fawcett advice and get rid of your old house quickly for best resale value.
Selling a home doesn’t always have to be a tedious process. With proper guidance you can do it easily without spending much time and effort. DC Fawcett, a real estate expert, with over years of expertise in the field of real estate, he knows the unique, different and efficient approach to sell a home quickly. These few tactics are the ones which determine the success of the speed house sale.
First step in selling your home
The very first process in selling your home would be, making it ready for sale. Remove all the unwanted clutter before showing it to someone. Nobody wants to see the house as yours, they want to see it as their own future residence. Hence you need to depersonalize the house before putting it up on sale. You can find a temporary place for all your belongings and shift them and make your house ready for sale.
Best time in the year to sell your home
You can get a fair deal when you know how and when to sell your home in a year? Does it make any sense? It surely does. In certain period of time you can get a right deal by putting your house on market. As reports say mid spring is said to be such season where you can attract many potential buyers and get market value price. Parents of school children often move to a new area during the beginning of an academic year. The soothing climatic condition from March to June also provides a great opportunity to sell a house faster. Selling a house can be a lot easier in this period than others and it pays more fruitful results.
General suggestion to sell your house faster – Dc Fawcett Real Estate Tips
Fixing the right price for your home
Overpricing the house should be avoided at any cost since it may affect the speed sale of the house. Keep the price as low as possible since it attracts more buyers. The buyer may move on to next house in your neighbourhood if you are overpricing the home. Compare the prices of houses in your neighbourhood by referring to multiple listing websites and fix the best deal for your house.
Make your home look appealing
Enhancing the appearance of your home helps to boost up the house sale. Depersonalize the home and make it look like someone else place. You don’t have to invest in major renovation since it may or may not return back while selling. But you can do some repairs and renovations and make your house look appealing. Give a fresh coat of paint, change the torn carpets and repair the door knobs.
Inspect the house
Inspect the house thoroughly and get rid of minor flaws before selling. Make some small improvement needed while putting your house up for sale. Remove or replace the old furniture since it speaks the volume of the house. You can also use some space widening or an illusion technique which helps your home to look bigger than actually it is.
Painting your house with light colours like white and pink, makes your home look bigger. To add value to your house you can provide some leisure features like kitchen garden, furnished wardrobes etc. The real estate market might be slow when you are in a hurry to sell your home. But, these simple yet effective tips enables you to sell your home easily.
There are pros and cons for everything.DC FawcettVirtual cash flow may not be suited all the investors as you would have to buy the virtual real estate by paying the real cash. However, you can accumulate real profits in your pocket.