ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
11.10.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


A Plan for Calculating Discounts on a Real Estate Investment

Author: Judson Voss Author Ranking Bronze | Posted: 29-03-2008 | Comments: 0 | Views: 10 | Rating:  (52) Article Popularity - Blue (?) Got a Question? Ask.
Sign Up Now!

Property investment is a numbers business. As a real estate investor you’ll need to pay close attention to your numbers when purchasing a property in order to make money. Every investor develops their own basic plan for purchasing property to make a profit.

Those just starting out can get confused with all the suggested rates of return that you need to aim for, but each property purchase needs its own specific discount for you to make a good profit.

Start with the Minimum
A basic plan is to start by taking 10% off the asking price or the mortgage of a property you are working with the homeowner to purchase. This can be called your profits or your basic earnings.

From there you’ll continue to lower the amount of money you are willing to pay for that property based on certain negative factors associated with the home. This can be fact that the property doesn’t have a basement or it needs a new roof. You can negotiate a discount for many different problem areas with the bank. Just calculate the costs of these repairs or how much less a buyer would be willing to pay for it and you’ll get the additional discount you need to ask for on the sale price of this property.

Examples of negative issues associated with a property;

• Disrepair; needs new roof, new heater, etc.
• No appliances or old appliances
• No basement
• Only one bathroom for multi-bedroom house
• Economically depressed area
• Lot of other properties for sale around the home
• General shabby look, needs lawn care, new paint job, etc.

When you finish the calculations on discounts you’ll ask for, you’ll have your minimum discount, your additional discount and your total discount. That determines what you’ll be willing to pay for a property. As long as you approach the seller or the bank with proof of these negative issues, you stand a good chance of getting your discounted price.

This method of calculating will allow you to remain true to your financial plan for real estate investing, and also not end up getting into trouble by paying too much for a property.

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Source: http://www.articlesbase.com/real-estate-articles/a-plan-for-calculating-discounts-on-a-real-estate-investment-372837.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:

Isn’t it time you learned how to capitalize on one of the best markets for real estate investing that this country has ever seen? With the recent flood of foreclosures now is the time to learn to invest correctly in real estate from the hosts of the nation’s leading show on real estate investing, Judson and Lynn Voss. Visit http://www.yourrealestatefortunes.com and learn for free, the no-hype truth about choosing the right real estate investing strategy to start making you money, today.

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

Where can I order discount horse medicines ...
By: ampmranch | 25-08-2008
Where can I order discount horse medicines online?

How do I know what I am receiving is the real ...
By: Linda | 22-08-2008
How do I know what I am receiving is the real thing? I have heard of this happening with drugs ordered from other overseas companies, and if this should happen sometimes it could be lifethreatening. Do you have like our FDA which approves drugs or any guarantee?

Sand?
By: Kathy | 20-08-2008
We manage a small resort on Islamorada.  Tropical Storm Fay eroded our beach front at the sea wall.  We will have to replenish the beach by hand.  We are looking for a good price on sand to accomplish this.  Who has the best price?

Mattresses from Roberts Discount Bedding
By: Laura | 20-08-2008
Even though the mattresses are so cheap...........will they hold up at least for a couple of years for my 15 year old son?

Large discount clothing store near grand central ...
By: sandyatnewport | 17-08-2008
Large discount clothing store near grand central station. What is the name of it??

Looking for discount coupons for dining with the ...
By: Les | 17-08-2008
Looking for discount coupons for dining with the characters at Sesame Place

Q&A Powered by:
Powered by Yedda 

Latest Real Estate Articles

Investment in Dubai
By: Editor-123 | 11/10/2008
Now, even the foreigners can easily invest and can take active participation in the capital investment in this ever-growing market of the Dubai properties. Amidst the glasslike towers along the vast sea, Dubai promises increasing returns for its investors.

Profit From the Foreclosure Boom Through Powerful Foreclosure Training
By: DCFawcett | 11/10/2008
When real estate investors evaluate their options for what types of properties to invest in, some of the first things that come to mind are preforeclosure, real estate short sales, and other types of foreclosure properties. This tendency is a natural one. After all, sellers facing foreclosures are naturally going to be more motivated and that is what most investors are looking for.

Historical City of Apulia
By: Priya Singh | 11/10/2008
Apulia is "mare e terra", sea and land, a world of rich contrasts. The varied coastline and the hinterland with its cultivated farmland; the tranquil small towns and its cultural treasures.

Hawaii Homes and Volcanoes for Sale
By: Hedin Johan | 11/10/2008
Volcanoes can be found it most parts of the world and Hawaii is no exception-the beauty and lush landscape that comes with volcanoes is literally out of this world. When I suggested a few friends of mine to go visit the islands, I didn’t realize they’d come back with more than they’d bargained for.

Find Hawaii Homes for Closure and Profit
By: Hedin Johan | 11/10/2008
When we talk about the homes that are up for foreclosure, it really does seem like these homes and their families are closing down for good.

Find Great Investments From a Professional Real Estate Company in Hawaii
By: Hedin Johan | 11/10/2008
Real estate in Hawaii is what dreams are made of. Some would love to live there, some would just simply invest there but for others, it’s a place to die for.

Tips to be a Property Buyer
By: Editor-123 | 11/10/2008
Are you planning to buy a retail property? You can own your dream property by following some simple steps. Don’t worry about the long period for the planning and preparation. Usually it may take many months or even a few years. Don’t worry or get discouraged. The time taken is worthy of pursuing your goals.

Using an Agency to List Your Orem Real Estate
By: Art Gib | 10/10/2008
When people decide to sell their home, they often turn to an agency or a brokerage for help.

More from Judson Voss

Building Up a Network in Real Estate Investment
By: Judson Voss | 10/04/2008 | Real Estate
Networks help out real estate investors a lot by plugging them into good property deals. It’s very easy to build your own network when you are just starting out as an investor.

The Art of Negotiation in a Short Sale
By: Judson Voss | 10/04/2008 | Real Estate
You can’t just approach the bank with your best offer and expect to close the deal. You need to persuade them to accept the short sale first with a little negotiation.

Is Renting Smart?
By: Judson Voss | 10/04/2008 | Real Estate
Every now and then a real estate investor will think about becoming a landlord. Is it worth it?

How to Get Those Lease Tenants
By: Judson Voss | 08/04/2008 | Real Estate
You’ve got a property available for lease, but aren’t sure how to find the tenants to get into the lease property. It’s not too hard as long as you have the local newspaper!

How to Pick the Tenant for Your Lease Rental Property
By: Judson Voss | 08/04/2008 | Real Estate
Picking out the perfect lease tenant for your lease property is a cinch if you know what to look for. Someone who is turning a corner financially is always best.

Undesirable Property in Post-foreclosure Can be Your Most Profitable Sale
By: Judson Voss | 08/04/2008 | Real Estate
There are all kinds of deals to be made in the real estate business. Three deals in particular on the least desirable properties can bring you profits.

Can You Get Good Discounts on Properties Out West?
By: Judson Voss | 08/04/2008 | Real Estate
You can make money real estate investing in a high-priced area. All it takes is a little more effort and a willingness to hold onto property until it appreciates.

Using Auctions as Your Real Estate Investment Exit Strategy
By: Judson Voss | 29/03/2008 | Real Estate
Probably one of the biggest advantages to using a real estate auction as your exit strategy is that it removes you, the seller, from the negotiating process which usually happens when a property is put on the market for sale.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below