CLEVELAND OHIO REAL ESTATE INVESTORS ONLINE NEWSLETTER
"Investing in the local community and in each other."
http://www.coreio.net
Vol.1 Issue #1 - Friday, September 6, 2002
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- "Are You an Investor?"
- Today's Quote
- ?? Question Section ??
- Investing Tip - "Investor Beware"
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- Landlord tip of the day! - Save $$$ on paint
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Are You An Investor?
Copyright by Barbara Meyer
A “real estate investor” is someone who puts money into
real estate with the intention of earning an income or profit. That simple
definition covers a lot of territory. Why? Because there are a whole lot of
ways to make money by investing in real estate!
As with the stock market, each individual investor needs
to determine their level of “risk aversion” (a.k.a. “fear”). Let’s face it –
some people are simply not cut out to be real estate investors because they lack
the necessary fortitude to take the risk. And yes, there *is* risk involved,
even with “no money down” techniques. But there’s a certain level of risk
involved in any investment you might make. In my opinion, real estate is one of
the safest places to invest your money and time -- IF you invest it wisely.
There are probably almost as many investment strategies
as there are investors. Here are a few:
Buy & Hold: Buy with the intention of selling after the
property appreciates in value. Almost all real estate increases in value over
time, including your own home.
“Situation” Seekers: Buy low by locating motivated
sellers, then sell at market value. Investors seek sellers to sell quickly due
to divorce, foreclosure, relocation, etc. and help them solve their problem.
Fix & Flippers: Find houses in deteriorated or run-down
condition, buy low, fix them up and sell at market value.
Landlords: Buy with the intention of earning long term
income from tenants.
Problem Solvers: Find buyers who are willing to pay
above market rates for properties, either in terms of purchase price or interest
rate. These buyers may be people with no down-payment money, poor credit
histories, or other difficulties with conventional financing options.
That’s it off the top of my head, but may have missed a
few. And these are general categories – most investors mix and match among the
strategies that suit their skills and personalities best. Add creative
financing into the mix, and you’ve got a whole smorgasbord of investment
techniques to choose from.
So, as you can see, there are a lot of different types
of investors and they make their money in a lot of different ways. What makes
us investors is not the type of property we buy. The reason that we buy it, the
way we buy it, and what we intend to do with it are what allow us to wear the
title “real estate investor.”
I wear that title proudly.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Barbara Meyer has been investing in real estate
for 11 years and is the founder of Cleveland Ohio
Real Estate Investors Online .Network
http://www.coreio.net
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
"Goodness is the only investment that never fails."
-- Henry David Thoreau
In each issue we take one question submitted to
COREIO.net and put it to our readers. The reader who comes up with the most
useful answer has their answer posted in the next issue along with a tag line
promoting their business. You MUST be a member to submit answers. Not a member
yet? Go to http://www.coreio.net/Members.htm to sign up today! It's free and
it's fun!
* * * * * * * * * * * * * * * * * * *
Donald asked: "I am in the process of buying a first
home. I looked and found the home of my dreams. I went to Ohio Savings and got
pre-approved for my mortgage but to my surprise the house that I fell in love
with is a bank owned property first of all and second it has been vacant for a
while. People have broken in the back door and left debris of beer cans, etc.
in the house. The kitchen ceiling has fallen in. Just the drywall part and
someone took the copper pipes off of the hot water tank.
"What I am looking for and in need of is some kind of
assistance with my mortgage ... with a little extra for the repairs to make this
home livable.
"I know the bank will consider a lower bid on the house.
I was wondering if you deal with any of that or know of anyone I can contact to
assist me with this. I am in a lower income so that may cause a problem but am
taking a roommate with me who will be paying rent and helping me with some of
the repairs.
"Would you know of any grants that I could get? I so
wish to have this house.
"Any ideas or suggestions or a referral of anyone that
can help me. Anything would help at this point."
* * * * * * * * * * * * * * * * * * *
If you have a solution for Donald, please post it on our
discussion list. The best answer will be published in the next edition of the
newsletter. I'm sure Donald would appreciate your help!
* * * * * * * * * * * * * * * * * * *
--> Would you like FREE answers to your real estate
questions?
Become a full member of COREIO.net! We welcome members
with any level of experience. You'll be able to ask questions and share your
knowledge about real estate investing. You probably already know more than you
realize!
http://www.coreio.net/Members.htm
by Barbara Meyer
Investor Beware
I know, I know, this is obvious, right? That's what I
thought, too, but you'd be amazed at the stories I've heard where people have
been scammed by someone who could "talk a good game."
For instance, I called on a property the other day where
the seller had this fabulous deal for me. I could buy his recently renovated
property for $10,000 more than the market value, but he'd set the payments for
the first 3 years of the note very low. The payments he proposed were
considerably less than what I could earn in rent, so every month I'd have money
in my pocket.
Great deal, huh? -- NOT!!
Those payments I'd be paying would take almost nothing
off the principle and at the end of the 3 years I'd be stuck with a balloon
payment for more than the house is worth!
Refinancing would be out of the question because I'd
never find a rate as low as this guy was willing to give me... for the first 3
years.
And meanwhile, what if I should want to sell the house
for some reason? There's little chance of finding another fool to take it off
my hands for more than it's worth. I'd be stuck with a loss, guaranteed!
NEVER pay more than a property is worth. Whenever
possible, pay less. The adage, "buy low, sell high" is a rule-of-thumb for a
reason -- it makes sense!
******************
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******************
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We're here to inform you about the real estate investing
topics that are important to you, the local investor.
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And storage space, too. Here's how:
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which paint you used in which property, because it's the same color in all of
them! You also won't get stuck storing a bunch of paint cans with just a little
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If you plan well, you'll only need 4 types of paint:
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A good quality, white, all-purpose primer.
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A flat white for ceilings.
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A flat or eggshell neutral for the walls (basic beige is
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Ezine Publisher: Barbara Meyer
Cleveland Ohio Real Estate Investors Online .Network
http://www.coreio.net
440-546-1554
"Investing in local investors so that we can profit from
each other."
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Copyright (c) 2002 Cleveland Ohio Real Estate Investors
Online .Network
Articles in this newsletter may be available for reprint.
Contact the listed author to obtain written permission in advance.
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