kenvanliew.com » Real Estate http://kenvanliew.com/blog Real Estate, Business and Life Success Systems! Mon, 26 Sep 2011 00:31:24 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Real Estate Development 2 http://kenvanliew.com/blog/2010/01/28/real-estate-development-2/ http://kenvanliew.com/blog/2010/01/28/real-estate-development-2/#comments Thu, 28 Jan 2010 19:52:25 +0000 Admin http://kenvanliew.com/blog/?p=134

Once you’ve written your business plan the way you would want to develop your real estate project, let’s talk about the people you want involved in the process.

While pursuing your development projects, you are going to work with many different kinds of people in a wide variety of occupations. Some of these people are attorneys, city planners, architects, surveyors, inspectors, contractors, and many more. Real estate development is a team accomplishment, and these people are going to become your team on that project. Include them in your vision, create open and professional relationships with them, and these contacts can help you become as successful as you wish to be.

Probably the people you will be working closest with are your investors. Investors are the people who front the money necessary to pay for your plan. They will want to see your business plan, and will want to be kept up to date on how the project is proceeding. Be sure to keep in contact with your investors, give them the information they need to make the right decision to invest with you, and then give them continual updates. By being open with your investors, you are paving the way for a long and profitable relationship.

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]]> http://kenvanliew.com/blog/2010/01/28/real-estate-development-2/feed/ 0 Real Estate Development 1 http://kenvanliew.com/blog/2010/01/26/real-estate-development-1/ http://kenvanliew.com/blog/2010/01/26/real-estate-development-1/#comments Tue, 26 Jan 2010 20:10:23 +0000 Admin http://kenvanliew.com/blog/?p=148

Real estate development is a broadly defined concept in the real estate industry. It is different from being a real estate agent or even purchasing real estate for resale.

Development means that changes are done to the property to increase its value on some level; whether upgrading the utilities, correcting cosmetic flaws, changing the buildings usage, or even purchasing raw property with the plan to turn it into the next shopping center, apartment complex, or skyscraper full of office space in your neighborhood or city.

For me to be successful in real estate development, it helps to have a business plan. A business plan is a document that has details on how you operate. The plan defines the properties looked for, who you work with, what is done in property, what is contracted out, how different properties are given a facelift, and so on. Many developers work on several projects at once, so having a detailed plan for each project, may be helpful to ensure that each one is on the right track.

]]> http://kenvanliew.com/blog/2010/01/26/real-estate-development-1/feed/ 0 Short Sale and Foreclosure Opportunities 2 http://kenvanliew.com/blog/2010/01/21/short-sale-and-foreclosure-opportunities-2/ http://kenvanliew.com/blog/2010/01/21/short-sale-and-foreclosure-opportunities-2/#comments Thu, 21 Jan 2010 20:54:22 +0000 Admin http://kenvanliew.com/blog/?p=159

How can this pose as an opportunity to you? If you find a foreclosed property that is for sale for the amount of the lien, the sale is pretty straight forward. Just pay what is owed and the property becomes yours, which can be resold for current property values. If the property is sold at auction, you must do your homework. At auction, the property is put up for sale at a minimum bid, and then bid upon until the person willing to pay the most for it wins the property. By doing your homework, you will understand what the property is worth and avoid over paying for a property that looks great, but is in a low value neighborhood.

A short sale property is when the bank has taken possession of the home and is willing to resell it for less than its value or the amount due on it, to keep its loss to a minimum. This opens up another opportunity for the investor to buy a property at a low price and resell it at current value. Contacting banks and asking them for short sale lists, is an option to buy property this way and another is to contact a real estate agent specializing in short sale properties.

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]]> http://kenvanliew.com/blog/2010/01/21/short-sale-and-foreclosure-opportunities-2/feed/ 3 Short Sale and Foreclosure Opportunities 1 http://kenvanliew.com/blog/2010/01/18/short-sale-and-foreclosure-opportunities-1/ http://kenvanliew.com/blog/2010/01/18/short-sale-and-foreclosure-opportunities-1/#comments Mon, 18 Jan 2010 20:51:46 +0000 Admin http://kenvanliew.com/blog/?p=156

It is no secret that many people have defaulted on their home loans. Personally this sad story is one of the major reasons that the economy is in so much trouble, but this story can have a happy ending for you. With all the foreclosed homes across the country, that means a ton of opportunity for you to get in there and buy low and sell high. The trick is to understand what is a short sale or foreclosure opportunity and how to take advantage of it.

A foreclosure is where a person or company with a lien on the house forces the ownership of the house from the listed owners to its possession for sale to cover the existing debt. Most commonly this is the bank holding the promissory note on the home, but can also be a government agency seeking taxes owed or private company seeking to be repaid for a debt.

When these properties are found they may be purchased at auction or for the amount owed on the lien, which is generally significantly less that the property is worth.

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]]> http://kenvanliew.com/blog/2010/01/18/short-sale-and-foreclosure-opportunities-1/feed/ 1 A Heartfelt Message! http://kenvanliew.com/blog/2010/01/17/a-heartfelt-message/ http://kenvanliew.com/blog/2010/01/17/a-heartfelt-message/#comments Sun, 17 Jan 2010 09:09:43 +0000 Kenneth J. Van Liew http://kenvanliew.com/blog/?p=263

KJV_pic3 Dear Friends:

As you all know, the crippling earthquake in Haiti has left a city in ruins, insurmountable death and people around the world shocked by the havoc of nature and the great need.

I asked myself this question today, “what can I do to make a special difference”? My answer was, anything you do is appreciated, as crippling devastation is worsening in Haiti.

From governments, to you and me, together we can help, we can mobilize our troops, combine efforts to help the living and make sense of this natural disaster.

The stories being told of heroism, grace and valor, amid the rubble of tragedy are awe-inspiring!

Contribute to your local reputable charity, assist one another, as our world is small and each and every one of us has a uniqueness that is special to help someone in need!

What prompted me to write this note for you to share, was me over hearing a small child at the supermarket this evening say, “Mom, can I give all the money in my bank account to help the young children in Haiti.” This child had learned at this early age, we are a small global community, which is instantaneously connected!

Let us all connect, let us all pray and let us all be grateful for all we have!

Please share your goodness on our wall at ONE GOOD DEED DAILY for you will inspire the world!

Sincerely yours,
Ken Van Liew

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]]> http://kenvanliew.com/blog/2010/01/17/a-heartfelt-message/feed/ 0 Renovating Homes- Construction 101 (part 2) http://kenvanliew.com/blog/2009/12/17/renovating-homes-construction-101-part-2/ http://kenvanliew.com/blog/2009/12/17/renovating-homes-construction-101-part-2/#comments Thu, 17 Dec 2009 20:10:38 +0000 Admin http://kenvanliew.com/blog/?p=132

Once your home is structurally sound and you have the go ahead from inspectors, seal up your walls with drywall. To do it yourself, hang the drywall on the studs of the walls and ceiling, then tape and spackle seams and nail holes. Wait to dry and sand smooth. This may take several layers of spackle and then sanding to create a seamless finish, but it is well worth the effort to do it right for the finished product.

Finally, you can do the cosmetic work in the home. Paint the walls in the finish of your choice or wallpaper them. Install the flooring of your choice: carpet, linoleum, parquet, hardwood, or ceramic flooring are a few choices. Then put up the fine woodwork like floor boards, trim, and interior doors. Now stand back and admire your work.

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]]> http://kenvanliew.com/blog/2009/12/17/renovating-homes-construction-101-part-2/feed/ 0 Renovating Homes- Construction 101 part 1 http://kenvanliew.com/blog/2009/12/15/renovating-homes-construction-101-part-1/ http://kenvanliew.com/blog/2009/12/15/renovating-homes-construction-101-part-1/#comments Tue, 15 Dec 2009 19:41:34 +0000 Admin http://kenvanliew.com/blog/?p=128

The idea of home renovation as a do-it-yourself sounds intimidating. Re-construction is an exact procedure as actual construction, cutting corners and sub-standard materials always spell disaster in the long run.

As an experienced contractor, here are some tips about home renovation.

Renovating a home can be a mind boggling project and there are no hard and fast rules on how to go about renovating a home properly. Rewire first, then fix the plumbing, or fix the plumbing first and then rewire? Assuming that both are in equal shape, there is no hard and fast answer of what should be done first, but here is a checklist to get you started, especially if this is your first home renovation project.

Firstly, ensure that the home is structurally sound. Make sure that the foundation is solid, the walls are stable, the floors support significant weight, the roof and the windows will not leak, the insulation is sufficient, and the siding is protecting the home from the elements. If any of these things need work, start there. It would be a shame to have created a beautiful home only to have it destroyed by water damage or to collapse under its own weight.

Secondly, check the utilities and how they are performing in the home. Replace damaged ducting, damaged or malfunctioning air conditioning and heating, old or faulty wiring or plumbing. These areas are easily updated while the walls are open, and will avoid damaging the work you are about to undertake.

]]> http://kenvanliew.com/blog/2009/12/15/renovating-homes-construction-101-part-1/feed/ 1 Commercial Real Estate Investing 2 http://kenvanliew.com/blog/2009/12/10/commercial-real-estate-investing-2/ http://kenvanliew.com/blog/2009/12/10/commercial-real-estate-investing-2/#comments Thu, 10 Dec 2009 10:36:22 +0000 Admin http://kenvanliew.com/blog/?p=125

After defining the type of property you would want to invest in, the next thing to do is look for the right real estate property.

There are 2 ways to do this, you can either find a real estate agent who understands investment real estate or do the research yourself and find those properties on your own. Finding the right real estate agent is probably the easiest, but there is no reason why you cannot save a few dollars, do the research and the work yourself. Doing it yourself is a bit more time consuming and a bit of networking is involved, once those contacts have been made (with a bit of maintenance), they are there for a lifetime.

Depending on your goals and the property purchased, you are either going to rent out the space purchased or place it back on the market to sell at a higher price. If renting it out, advertising and showing the spaces is necessary, along with rental agreements. If you are inexperienced in this area, hiring a real estate management company may be necessary until you learn the ropes, or you can depend on your contacts within the real estate industry to give you the right direction. Either way, you are going to need a real estate attorney that specializes in commercial real estate to finalize any deal; the original purchase, renting, and or resale of the property.

]]> http://kenvanliew.com/blog/2009/12/10/commercial-real-estate-investing-2/feed/ 0 Commercial Real Estate Investing 1 http://kenvanliew.com/blog/2009/12/08/commercial-real-estate-investing-1/ http://kenvanliew.com/blog/2009/12/08/commercial-real-estate-investing-1/#comments Tue, 08 Dec 2009 04:28:39 +0000 Admin http://kenvanliew.com/blog/?p=174

Today’s real estate market may not seem like a good idea to start buying up commercial properties, but when a fundamental principle of business is applied, buy low and sell high, this is the perfect time to put money into properties. Property values all over are at a low, and all those properties are just waiting to be snapped up and turned from a weight around the seller’s neck, into a jewel on your crown. Let me tell you how it’s done.

First define the type of property you are looking for. Different properties are going to be “hot” in different areas, depending on the type of growth areas they are going through. When you do research on these trends and find which properties are desired, this will give you leverage. When doing research, make lists of the different attributes being sought out, in your area: office or retail, vacant or rented, and of course, the location.

]]> http://kenvanliew.com/blog/2009/12/08/commercial-real-estate-investing-1/feed/ 0 How To Raise Funds For Real Estate Part 3 http://kenvanliew.com/blog/2009/12/03/how-to-raise-funds-for-real-estate-part-3/ http://kenvanliew.com/blog/2009/12/03/how-to-raise-funds-for-real-estate-part-3/#comments Thu, 03 Dec 2009 00:59:00 +0000 Admin http://kenvanliew.com/blog/?p=117

This is the third helping on how you can raise real estate funds through private investors.

Why would a Private Lender want to invest with you?
Private lenders have many benefits, when they lend money as a private investor.
1) Flexibility – They get to negotiate their own rules and loan terms, giving them the flexibility they want in the investment.
2) Higher Return – They can demand higher interest rates and return on investment, due to the demand and timing requirements, which they can meet differently than large institutional lenders.
3) Fixed Income – Most transactions of this nature result in fixed mortgages, which are attractive when stocks are volatile.
4) Security – Loan and/or mortgage is secured by real estate.
5) Tangibility – Investment is tangible, limited liability and requires minimal effort.
When you consider the benefits private investors have, compared to rigidly structured investments, they choose an investment in real estate. Your services provide them with a hands-off investment with flexibility, higher rate of return and secured by real estate. With these factors, you are easily recognized as a legitimate vehicle to earn money.
What are the sources of private lending?
1) Personal Savings – people have long term savings tucked away and not working for them.
2) Home Equity Lines – money borrowed at 5% and earning 15% gives investors a unique opportunity to use credit to gain return. Remember the 50% of all real estate is free and clear.
3) Self-directed retirement accounts – this is a huge source most retirees are losing money on their IRA’s. There are companies that will facilitate this process for you.
4) Groups of partners – many professionals form groups such as Doctors and Lawyers to invest in real estate.
What is the market for Private Lenders?
There is a great demand for private money especially, in today’s market and surprisingly enough, there are numerous private lenders looking for safe secured investment, collateralized by real estate. It has become so popular, you are now seeing private lending, where groups of people have partnered to lend money or in some events, wealthy families provide full-time private funding services. In these cases, it is a full time business, lending money, similar to the bank, with the benefits outlined herein.

Should I establish term of the money?
As we discussed in Lesson 5, when you establish your investment criteria, you will also establish the rate of return estimated for your investor. Along with these criteria, the investor wants to know the term of loan, payment terms and marketing information to support the investment. There will also be first and second mortgages, loans for repairs and possibly other needs for funding. Therefore, you should establish a basis of return for each of these scenarios, because in some cases, savvy private lenders will play with the rates. Typically a 2nd mortgage pays a higher return on investment due to less security. Short term loans may have a higher rate of return due to length of the period. If the property is fully leveraged at 100% they may require a higher interest rate. When you have a basis for these types of lending, the private lender will see that you have attempted to organize and streamline the returns and would prefer not to negotiate, however you must always be open to negotiations. Your goal is to get the money.
What do private investors look for?
1) Experience – the private investor would like to see a seasoned support “Dream Team”.
2) References – have a reference list of people like me help you bridge the gap if it’s your first deal.
3) Adequate Information to Make a Decision – provide an executive summary of the key elements of the investment such as investment, term, interest rate and ownership interest.
4) Profitable Investments – be sure that your investment presentation is attractive, meets your criteria and profits for the investors.
This is where you put on your game face and make it happen. Investors like to see organization and structure. Your executive summary must outline the investment and nature of the project. You should include a brief market and demographic paragraph, duration of investment and financial summary that indicates cash-on-cash return, equity required and total investment. This will most likely answer 90% of all major questions, which will allow the investor the ability to focus on confirming information and performing due diligence on market concerns.
Understanding the documentation
It is typically an open-end mortgage, where you pay profits based on each investment for this individual, while you keep their equity at work. The concept is to roll-over the equity after the conclusion of each investment term, after satisfaction to your investor with fixed income and profits. Once this cycle is accomplished you repeat it over and over again. It’s that easy!
Here are two documents that will save you over $5,000 dollars in time and money. These two simple documents allow you to borrow money secured by real estate. The last piece is the operating agreement for the Limited Liability Company which was given to you in the bonuses. You will form an LLC for each investment to minimize liability. It also protects other investments, when you structure each deal separately. If you have any questions, please send them to me by email. The first document is the mortgage agreement which outlines all the specifics.
A) Commercial Mortgage Agreement

This document reinforces the mortgage with a promissory note.
B) Commercial Note

Conclusion
Private lending is easy. You simply have to ask for the order. The principles outlined herein apply to all of the methods of private lending, which will be broken down for you in future lessons. If you want to accelerate please give us a call. Whether you are seeking individuals, forming a partnership or leaning towards securitized investments in the form of private placement memorandums, all of the principles apply across the board. Take the time to implement this process into your daily life, because having private lenders in real estate investing, is the key to success.

Wisdom and wealth are what you truly want in your life and the ability to contribute to others, with either money or knowledge. The ability to invest in real estate and to earn a boat load of money, gives you this opportunity to help the big picture. Consider yourself a leader who can provide the vehicle to wisdom and wealth. This is your chance to make a difference in the world.
“Your Financial Future is Based on The Decisions You Make Today!”

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