Here we present Some of the most frequent question: and you can Ask More
Arabist Group agent is licensed and thoroughly trained to assist investors in many of the aspects of their real estate transactions. Our agents witness a multitude of transactions and can be a valuable resource at times in sharing the experiences they have had with other successful real estate investors to provide support. Although keep in mind that real estate investing can be a high risk, high reward proposition that must be properly managed to prove successful.
There is no guarantee that purchasing a discounted investment property will provide positive results even if you follow the guidance of agents, mentors, other successful real estate investors, or New Western. We provide properties that you can purchase on-the-spot at a reasonably discounted price without having to spend countless hours viewing, making offers, and negotiating in the general real estate market to buy houses. The information above should be used as a guide on what we simply think are best practices. We do not claim to offer education, training, or additional resources that will guarantee your success.
The first step to getting started in real estate investing is to determine your financing. How much can you afford to spend on your first property? You should have, at least, a minimum of $30,000 to make a responsible real estate investment, along with authentic sources of financing that ensure your closing capability for any properties put under contract.
Many people think that to get started in real estate investing they need to attend a bunch of seminars to gain some sort of expensive and secretive education. While, admittedly, there are some excellent real estate education providers available, it’s advisable for you to consider whether the money should be used as a down payment for your first investment property. The knowledge gained through personally conducting this transaction could prove more valuable than education received at seminars. Often, the lessons in these seminars revolve around hypothetical investment techniques that, while they may sound fantastic on stage, they are not proven.
Many people go through education because they feel unprepared and afraid to take the first step. Overcoming that fear should be one of your first priorities and jumping right into your first investment is the only way to do this. Keep in mind that if you’ve invested in an education of any kind, this investment should be considered a 100% loss if it is never applied.
- Wholesale properties are the type of property purchased by investors often to rehab and add value. Wholesale properties are sold by real estate wholesalers that do not sell to retail homeowners. New Western Acquisitions operates specifically in a wholesale market and does not provide properties to retail buyers.
- After acquiring an investment home from the wholesaler, the investor then rehabs the property with the intention to resell it to a homeowner in the retail market or to rent it out. Buying a property at wholesale can be thought of as the risk/reward middle ground between the purchase of a property directly on the MLS and buying a property at a foreclosure auction. In most instances, buying a wholesale property is a higher risk than purchasing from the retail MLS since there is no inspection period. However, the property takes much less effort to sell and earns a much better price through a more efficient process. ]
- At the other end of the spectrum is the foreclosure auction. Which, although these may represent the largest returns, auctions are usually beneficial for only heavily experienced investors. Unlike wholesale properties, bidders do not have access to the interior of the property before the auction and must pay cash within minutes of the sale.
A distressed property is a home that is typically sold under fair market value. Most distressed properties need some type of repair but could also need to be sold fast due to the seller facing a situation such as a foreclosure or a divorce, and they are willing to accept a discount.
Traditional financing is typically a bad fit for distressed sales due to the speed at which the seller is interested in selling and the condition of the property.
Arabist Group Acquisitions understands that the investment home market fluctuates often, and we do our best to offer the best discount possible at the time.
Like any business in the wholesale trade, our goal is to provide a product at a price where the customer will be financially successful at their value-add business. We offer investors investment homes at a set price through a sales process that cannot be bid up past the point of profitability by less experienced investors. The discounts that we offer are dependent on the property, location, and the current market but can range anywhere from 10% to 50%.
No. Banks are often unreliable and can take more than 30 days to
Often banks require contingencies that the property is repaired before they will do a loan, which is not possible for wholesale properties since they usually need rehab.
close, and transactions for wholesale properties require a closing time that is much faster than that.
The first step in the buying process begins with coming into our offices for a meeting with one of our experienced agents. The in-office meeting is a great place to start because, not only will you learn about the process of buying a house and what to expect from us, but you will also be given the opportunity to ask questions and tell us your preferences as well as build a relationship with us.
Once the in-office meeting has taken place, and we feel we have a strong idea of the type of house you are looking for, we will begin distributing the properties to you. All the properties that we have are sold on a first come, first serve basis, which will save you time and effort. Unlike buying a house on the retail market, closings here at ARABIST GROUP typically only take a matter of days or weeks and are straightforward, simple transactions.
The buy/fix/sell strategy is when you buy a property on the wholesale market, perform repairs on it to improve the value, and then quickly resell the property on the retail market.
When repairing and reselling a property, just like every other matter in real estate, there are always risks involved. These risks are just like those found in any other investment, and, of course, cannot be fully encompassed here.
One of the biggest risks involved in a buy/fix/sell is a potential loss on the investment. Some risks, such as neighborhood changes, are out of your control. With proper planning, you can help to protect yourself against the risk of improperly estimating repairs. Other risks include not being able to resell the property, or the contractor running off with your money. The latter is an example why it is always a good idea to qualify your contractors, never pay for a job until it is complete, and have multiple backup contractors in your network. All types of real estate investing are risky, but the buy/fix/sell is one investment that is a higher risk but comes with higher rewards.
What is determines a good return on investment differs between investors. Experienced investors are better able to assess the risk and have learned how to manage their business exceptionally well. These investors are sometimes willing to accept smaller returns to tackle a higher volume of transactions, while other sophisticated real estate funds are ready to accept return margins as low as 5%. Such a thin margin may seem petty to an investor who has the goal to buy one home per quarter, but if a fund may purchase one-thousand homes per year and turn them every ninety days, then it represents a hugely successful business that can out-compete a huge segment of the smaller market.
On the other end of the spectrum are investors who refuse to look at anything that doesn’t have a margin greater than 30%. Generally, investors who only look at properties with large margins don’t find many properties that suit their needs and, therefore, don’t do as much business or receive the types of gain brought by a large volume of transactions. The discounts that you’re willing to accept are proportionate to the margin that you’re also willing to accept. Successful investors are, of course, pay attention to margins when they look for properties, but they are realistic enough to know they must complete transactions to achieve results and gain experience.
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Our main principle is to build a mutual and trustful relationship with our customers.
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