One rate real estate is an exceptional investment opportunity for individuals seeking a fixed rate of return. The process is simple and can yield a decent return on investment. However, in order to be successful with this type of real estate investing, it is crucial to work with a professional property rehabber.

Four steps are involved with one rate real estate investing. The first requires locating a seasoned investor who possesses a solid track record in flipping houses. Ask friends, family, neighbors or co-workers for referrals or conduct research online.

Most real estate investors have established an online presence and offer their portfolios via a professional website. Investors can be located by typing in your state or city and the words “real estate investors.” For example, if you are looking for investors in Los Angeles, California type in “Los Angeles+California+real estate investors” at your favorite search engine.

Take time to research each investor and make a list of potential contacts. Next, contact each investor to discuss investment options. Ask for referrals and a list of successful real estate transactions. Be certain to contact each referral and ask if they were satisfied or encountered any problems.

Check with the Better Business Bureau or your state’s Attorney General office to see if any complaints have been filed. The Internet provides a wealth of knowledge. Before providing investment funds to any investor, take time to investigate them and make certain you are dealing with an honest and ethical person.

Once you locate a real estate investor arrange a meeting to discuss your needs and expectations. Most investors engaging in one rate real estate investments seek out distressed properties such as foreclosure and bank owned homes. Some specialize in short sale properties while others seek out probate real estate. Each type of property has its own set of pros and cons, so take time to discuss all options.

Foreclosure real estate is sold through public auctions. Rehabbers will scout out potential properties and advise investors of which properties will yield the best return on investment. Although foreclosed properties are sold below market value they generally require substantial repairs to return them to livable condition.

Bank owned properties are foreclosure homes that did not sell through auction. Most bank owned real estate is priced higher than foreclosed homes. Oftentimes, foreclosure real estate has second mortgages, tax or creditor liens. When the property is returned to the bank, the lender negotiates with creditors to remove liens. These properties come with a clean title and require less paperwork.

Short sale real estate can be a good choice for one rate real estate investing. When borrowers become delinquent on their mortgage note and enter the pre-foreclosure stage, some lenders will allow them to sell the property for less than is owed on the loan. Short sale properties can sometimes be purchased as low as 70-cents on the dollar; particularly if the buyer offers cash.

Probate properties involve real estate which belonged to a person who has died. Probate is the legal process used to assess value of the decedent’s estate. During the probate process the decedent’s estate must pay all expenses related to the property. If the estate does not have sufficient funds to care for the property the estate administrator can elect to sell the home.

Most probate real estate is in good condition. By purchasing the home through the estate administrator, the buyer obtains a great deal and the estate obtains much-needed financial relief.

Once real estate is located, investors provide funding to the rehabber. Buying houses with cash is preferred over obtaining a traditional mortgage loan. Banks typically include prepayment penalties if the home is sold less than five years after obtaining financing. This can result in considerable loss in profits.

Investors who provide cash loans to rehabbers usually yield a return of about 1-percent per month of the total mortgage note. For example, a cash loan of $100,000 will yield a monthly payment of $1000 per month until the property is sold. Once the property sells the rehabber returns the initial investment money and retains additional profits.

Author Bio: One rate real estate investing is just one way to profit in this ever-changing market. Simon Volkov has written numerous articles on various types of real estate investments. Visit his website at www.SimonVolkov.com to discover investment opportunities, financing options and tips for working with investors.

Category: Real Estate
Keywords: one rate real estate, investment,real estate, distressed properties,bank owned,foreclosure