In order to buy and sell Real Estate most states require that an applicant take a minimum number of classes before taking the state licensing exam.

Real estate brokers and their agents typically do not provide title service such as title search or title insurance and do not conduct surveys or formal appraisals of the property such as those required by lenders. Further, they do not act as lawyers for the parties, although they may “coordinate” these activities with the appropriate specialists.

The good news is that there is a way for you to buy and sell Real Estate without becoming a licensed real estate agent or Broker. This would include but would not be limited to Real Estate Foreclosures.

Real Estate Foreclosures is one of the HOTTEST INCOME producing streams of all time using LITTLE or NO MONEY of your own. One market in particular is tax sales. Real Estate agents won’t tell you about tax sales because they earn no commissions on these properties. Real Estate Tax Sales are a little known but potentially lucrative way to expand your portfolio.

John Beck’s proven Amazing Profits tax deed and tax lien education teaches people how to buy properties for just pennies on the dollar. The Free and Clear Program Course is a must have for anyone looking to get ahead in real estate investing. John Beck is a guaranteed name for real estate business consultancy.

His program is primarily advertised via infomercials and primarily runs on late night and cable channels in the United States and Canada. You have no doubt seen his late night infomercials!

On his infomercials he repeatedly holds up color photos of houses and states the price at which they sold via delinquent-property-tax procedures. He is well known for his expertise in the real estate business.

He has also been a real estate broker, syndicator and real estate consultant who has been listed in Who’s Who in Creative Real Estate. He is a much sought after speaker who regularly conducts real estate investment seminars in both Northern and Southern California and who has spoken extensively throughout the United States and has appeared on numerous radio and television shows as a guest expert on foreclosures.

John Beck is constantly sifting through the tax lien and foreclosure information on the Internet to find the most valuable and profitable research available which he puts on his site as a benefit to his students.

John Beck’s unique system of researching tax lien and tax foreclosure properties and his long history of studying the foreclosure market gives him insights into properties that others simply do not have and cannot provide.

His proven tax lien and tax deed system teaches you exactly how to get your share of the profits this section of the real estate market represents and again, you don’t even need to get a real estate license.

The course has a lot to offer to those who come with the pure intentions of growing their business community. John Beck’s, Buy Real Estate Free and Clear for Pennies on the Dollar is a popular website and TV campaign that basically advocates purchasing taxed out properties. He shows you how real estate investors can profit from his free and clear real estate system.

John Beck has personally attended thousands of tax auctions around the country and has personally invested in nearly every state. His current experience and his vast knowledge of the tax foreclosure and tax lien market has been developed into an easy-to-read format to make it easy for you to learn John Beck’s incredible method of finding, buying and profiting from tax auctioned properties you buy for just pennies on the dollar.

He has been working with real estate for over 20 years and has helped many people just like you accumulate wealth through real estate investment.

John Beck’s Property Vault tool has been designed to make finding deals like this easy because you can download the information in Excel format making it a snap to screen for the best deals matching your investment criteria.

John Beck’s Amazing Profits Tax Deed and Tax Lien Real Estate Investment System has been created to make it easy to understand what to do in real estate to make big money now. He continues to make unbelievable tools available to his students that makes it even easier to find profits in your investing today.

Property management is a business that is regulated and requires a real estate license in many states. This first step requirement means that the potential buyer of an existing business would need to be qualified to run the business. They would also need to meet the same requirements to start one from the ground up.

One way to get experience in the business is go to work for a large management company and learn the ropes. At the same time you could be completing any educational requirements and prepare for taking the license required to professionally manage properties. Starting a company of your own will take some strong detective work to find a property that is looking for management or looking to replace the current management firm. This will entail a great deal of cold calling and phone work to come up with possible clients.

At the same time you could get a web site built so you will have something to point people to when you are speaking with them on the phone. You would also mention the website in all communications or advertisements. All of this would come after you have decided on a company name and have a phone number and address for your business.

Knowledge and preparation are requirements for success. Whether you buy an existing business or start one up, you will need to gain experience and first hand knowledge of the business from some source. The best way to gain real experience is to work in the business for a year or so for a management company. The requirements in your state should be checked also to see what licenses are needed. There could also be educational requirements that you would have to obtain. A smart person would make sure they have all of these ducks out of the way while working for someone else. The real estate department of your state will be able to give you the information you need to know. There also could be an association of property managers in your area. Both of these sources are a place to start to find the information you need.

Finding property management companies that are for sale The Internet will quickly give you and idea of what is for sale and where they are located. Business brokers are another solid place to find listings of businesses that are currently on the market. You can also get questions answered about the way to buy one of these businesses. One important facet of the businesses for sale is the asking prices. This may be eye opening for you. You might also check out local newspapers and the local real estate association. Lawyers that specialize in real estate transactions may also know of management companies that are looking for a partner or are for sale. Once you have an idea of the capital needed to pursue a purchase you can begin to figure if you can make a deal. If you are going to need help with the money you will have to resolve that common problem also. The business brokers will have a good idea if the listed business is cash only or the current owner would consider terms. This type of information will speed up the process of finding a deal that you may be able to pull off.

Another aspect of property management is the properties handled. Are you going to only deal with large apartment complexes or single-family residences? The type of properties you wish to handle could determine the price of a management company.



Money makes the deal



Money talks when buying a business. The seller is usually anxious to sell and if a real money offer is made, they may bite even if it requires terms to complete. The point here is make an offer and see what the seller responds with. You never know what kind of help you may get from a motivated seller. Other ways to make up a short fall is a loan from the bank, a business lender found on the Internet, a partner and family or friends. Some deals take a great deal of creative financing to pull off. If the existing business has long-term contracts with their clients it may be easier to get a loan from a disinterested third party. The most common way to handle the short fall is to get the seller to take back paper to be paid in full by a set date in the future. Maybe they would remain a silent partner for a short length of time. The answer to this problem is how much you can put down and how long you would need to pay off the balance.

The only way you will ever know if a deal is possible is to make an offer and see what the counter offer looks like. The business broker in a deal can help in the negotiations and in many cases make it happen through their deal making skills.

If you come to a point in any deal that the final terms are too difficult for you to live with, then it is time to take a walk. Knowing when to walk a way in also part of good deal making. The wrong terms could make the deal a failure from the beginning. The last thing any buyer wants is to put a large down payment into a business and then watch it fail. The loss of this money could be the end of any possibility to own your own business. The thought process should go like this, this deal is not possible and there will be another chance down the road. Some times in the heat of negotiation the making the sale happen becomes the end in itself. This should never be the reason to make a bad purchase. This is a serious situation that needs to be well thought out.



Conclusions



Once you have the experience, education and licenses, the ownership of a property management company is possible. You can either start one up or buy an existing firm. The expense of buying one will be much higher than starting one from the ground up. Finding one you can buy will take effort and the willingness to commit a sizeable amount of money. The obvious way to start is through a business broker, as they will have a current list of business for sale. They should have a very good idea of what you will need to pay to buy a property management company Coming up with the money may be a problem for some buyers as the price of an existing successful firm will be higher than a startup. An existing management company’s current customers will be a large asset, as they will supply immediate cash flow to the company. So the higher price is offset by the constant cash flow from contracted customers.

If you start a company from scratch, you will need to plan on a significant amount of cold calling, phoning and face-to-face meetings to find customers that need your help. This is a slow start but can be a reasonable way to get into the business

If you are interested in buying a property management company, check out businesses for sale at http://www.acquireo.com/tag/property-management.aspx

Robert Kiyosaki likes real estate investing is because real estate touches each part of his financial statement.  Starting with his best-selling book Rich Dad Poor Dad and continued in many of his subsequent books, Robert explains how real estate gives cash flow to his income statement and on the expense side of the income statement he’s able to deduct the property’s depreciation as an expense. 

When seen from the balance sheet, he’s able to gain appreciation on the asset side and the leverage provided by the bank rounds out the liability side of the balance sheet.      

Through a property management company you can also access the four parts of the financial statement.  Here’s how:

Balance Sheet:  Asset-side

Every property producing monthly rent is an asset.  It is possible to sell the rights to manage the property to another property manager for a lump sum of money. 

Balance Sheet:  Liability-side

Robert uses his banker’s money aka leverage in order to purchase a large property with only a small percentage as a down payment.  When the property goes up in value he is able to keep the entire appreciation amount without having to share it with the bank.  He can use leverage and still get the benefit of 100% of the appreciation.

In the property management business, leverage is achieved through controlling the income of a property.  A property that is producing $500/month in rent gives a property manager $50 in income.  If the property manager feels that $500 is too low for the area, the manager can increase the rents by 10% to  $550 and the management company’s income will go up 10% accordingly.  How many companies can increase their income by 10% without a causing uproar among its clients?

Income Statement:  Income Column

As a property manager, you take your 10% management fee directly off the top after the rents have been collected.  Here again, if the manager feels that rents are too low, the manager simply raises the rent and increases the income to both the manager and the property owner.  It’s win-win!

Income Statement:  Expense Column

While Robert Kiyosaki is able to depreciate the building as an expense, a property manager cannot take this tax advantage because a property manager doesn’t own the building-the owner does, however, a property manager is able to make money off the expenses incurred by the owner of the property. 

Let’s say that a tenant calls to say that the plumbing underneath the sink is leaking.  The property manager sends out his repairman to fix the leak.  The repairman sends a bill to the property manager for the $12.00 plumbing parts plus $30.00 for his hourly rate. 

The property manager now marks up the bill by lets say $10.00 and now charges the property owner $12.00 for the parts and $40.00 for the repair time.  The $10.00 is for the property manager’s orchestration of taking the call from the tenant and sending out the repairman.

Now multiply this scenario by the management of 200 properties and you’ll find that expense mark-up is a significant source of a property manager’s income.  

As you can see real estate allows an investor to utilize all four parts of a financial statement.  As a property manager, you can piggyback on the owner’s shoulders and receive some of the same benefits of cash flow and leverage and you can actually profit from the property in ways an investor cannot i.e. expense mark-up. 

And here’s the best part and the prime example of a property manager’s ultimate leverage:  the manager isn’t responsible to the bank for making the payments on the mortgage.  The owner is responsible!  The property manager is able to make money off the property without being personally responsible to the bank for the asset that creates all the money in the first place. 

What a concept!

Grants are generally given by the government to non-profit businesses or those who are looking to help improve the economy with whatever services they have to offer. However, the Real Estate Apprenticeship Grant is one of the grants that are actually allowed for those looking for a profit. If you are looking into getting into the world of real estate then you should look into getting this real estate grant.

The Real Estate Apprenticeship Grant program involves giving training and help to those who are interesting in getting into the real estate world. Grants that total a million dollars in worth are given out every six months. With the assistance that these real estate grants give to people they will be able to get the training and education that they need in order to get into the world of real estate and be more successful in it.

A real estate grant like this can greatly help you out with getting the money that you are looking for. Depending on the type of real estate grant you will be getting as a finalist for a real estate grant you can get about seven thousand dollars worth in assistance that include various different items. Your licensing fee will be compensated, for instance. You will also get a provision to attend classes from RealtyU School for a year. You will also receive online access to real estate mentoring services.

With a real estate grant you will also be provided with Transaction Manager. This is a software program that stores information on each transaction that you make and calculates all of the due dates that you will need to have for your business and all of its transactions. This can help to make your business more effective and organized.

You will receive free counseling from McLean International Counseling with your real estate grant. This will help you out with finding the business system technology that you need for your business.

There are various other things that you will also get with your real estate grant. A marketing startup package will be provided to help you with your marketing goals for your business. You’ll receive various real estate books and demographic information books on various markets. Express Copy will give you free printing services, and you can get a mortgage calculator too. You’ll also get a membership to the Real Estate Cyberspace Society and a subscription to Broker Agent News and National Real Estate Magazine.

In order to get your real estate grant you must be a graduate of a pre-licensing course at a real estate school that is accredited. You should have taken the class during the application season for the real estate grant. If you have passed examination you can be eligible for a real estate grant if you have passed a license test within those six months for grant awarding.

You can apply for a real estate grant today online at realestateapprentice.com/apply.cfm. This application will assess your skills and motives to be a real estate entrepreneur. Remember to bring proof of eligibility, and don’t forget that you will be interviewed if you are a finalist for a real estate grant. Also, a real estate grant is not tax-free and cannot be given to those who work for financial institutions, title companies or insurance companies as a full-time employee.