10 Things to Do Right Now if you are a New Real Estate Investor

By: Loreal Loftus

1. Learn Creative Financing

• Study subject-to, seller financing, lease-options, and innovations.
• These tools help you create deals even when sellers owe too much or rates are high.

2. Build Your Buyers List

• For wholesalers and agents, cash buyers are your lifeline.
• Network at REIA meetings, Facebook investor groups, and auctions.
• Collect contact info and buying criteria (price range, location, property type).

3. Master Deal Analysis

• Practice running comps, calculating ARV, and estimating repairs.
• Use simple formulas: 70% Rule (ARV × 70% – Repairs = Max Offer).
• Confidence in numbers makes you faster than your competition.

4. Track Local Inventory

• Watch for listings that sit 90+ days — motivated sellers hide here.
• Set up MLS alerts or Zillow/Redfin searches for your ZIP codes.
• More days on market = more negotiation power.

5. Get Comfortable Talking to Distressed Selle
   Read More...

Don’t Be Scared to Be a New Real Estate Investor: Let MnREIA Guide You

Starting out in real estate can feel like a giant leap into the unknown. Whether you're attracted to the idea of flipping homes, owning rental properties, or finding creative financing solutions, it’s normal to feel overwhelmed by the sheer number of things you need to learn. But guess what? You don’t have to navigate this journey alone.

At MnREIA (Minnesota Real Estate Investors Association), we believe in empowering new investors and helping you overcome the fear that can often come with stepping into real estate. The good news is that you can be successful in real estate, even as a beginner—and MnREIA is here to help you find your passion, learn the ropes, and make smart decisions along the way.

Why It’s Okay to Be Scared

First off, it’s okay to be scared. Everyone starts somewhere, and fear is a natural part of the process. You may be questioning, “What if I make a mistake? What if I lose Money?” The truth is, every investor—whether experienced or brand new—has faced these same fears.

The key is not letting fear paralyze you. Instead of avoiding challenges, embrace them as part of your learning journey. Remember, the most successful investors didn’t get there by avoiding mistakes; they got
Read More...

How to Become a Self-Employed Real Estate Investor

Becoming a self-employed real estate investor is an exciting and potentially lucrative career path that combines entrepreneurship with property investment. By actively purchasing and managing properties to generate income through rent or property appreciation, you can build a business that offers financial independence and long-term wealth. Here’s a step-by-step guide to help you launch your journey.

1. Educate Yourself

Success in real estate investing starts with knowledge. Gain a solid understanding of:

• Local real estate markets and regulations.
• Investment strategies like rental properties, flipping, or REITs.
• Property management best practices.
• Financial analysis, including calculating ROI, cash flow, and property valuation.

Leverage books, online courses, podcasts, and mentorship opportunities to build your expertise.

2. Create a Business Plan

A well-defined business plan is your roadmap to success. Include:

• Investment Goals: Specify short- and long-term objectives.
• Target Market: Choose specific locations or property types.
• Funding Sources: Detail how you’ll finance property purchases.
• Profit Projections: Esti
  Read More...

How Sweat Equity Can Boost Your Property’s Market Value

Introduction

When it comes to determining a property’s market value, factors like location, size, features, and age come into play. While you can’t change some of these aspects, others are within your control – and that’s where sweat equity comes in. Instead of paying for costly upgrades, you can increase your property’s value through hard work and hands-on improvements. In this post, we’ll explore what sweat equity is, how it works, and how you can leverage it to build real estate value.

What Is Sweat Equity in Real Estate?

Sweat equity is the increase in property value generated by your own physical labor and improvements. Unlike hiring contractors, sweat equity involves taking on tasks yourself, from small fixes to major renovations. Not only does this approach save Money, but it also creates a tangible investment in the property’s overall worth.

All About Multi-Unit Properties

A two-to-four-unit property is a multi-family home, which is a single building that houses multiple families. Examples of multi-family homes include duplexes, apartment buildings, and condominiums. 

Multi-family homes can be a good investment for first-time homebuyers because they can be affordable, generate income, and offer tax breaks. However, they can also require more time, Money, and overhead than single-family homes. Here are some things to consider when investing in a multi-family home: 

• Financing
  The rules for financing a multi-family home depend on whether the owner plans to live in one of the units. If the owner doesn't plan to live in the property, they may be able to use projected rental income to qualify for a mortgage. 
• Income
  Multi-family homes can generate multiple streams of income because they have multiple units to rent out. 
• Maintenance
  Read More...

Understanding Title Deeds: Types, Importance, and the Registration Process

In real estate, a title deed is a legal document that serves as official proof of ownership for a property. It outlines who legally owns the property and provides details about the property itself, such as its location, dimensions, and any rights associated with it. Title deeds are essential in property transactions because they confirm the seller's legal right to sell the property and transfer ownership to the buyer. They are typically registered with the local Sub-Registrar Office, ensuring that ownership transfers are legally recognized and documented.

Key Aspects of a Title Deed

1. Proof of Ownership: A title deed certifies that the person named in the document is the lawful owner of the property.<
   Read More...

 How Does the Truth in Lending Act Work?

Lenders must provide borrowers with a Truth in Lending disclosure statement. It has handy information like the loan amount, the annual percentage rate (APR), finance charges, late fees, prepayment penalties, payment schedule and the total amount you’ll pay.

The law also established a “right of recession” for certain types of home loans. It’s basically a cooling-off period that gives consumers three days to cancel their loans without any financial penalty.

TILA does not require institutions to loan Money to specific applicants or regulate the interest rates they can charge. It just requires banks, credit unions and other lenders to clearly lay out what the terms of the loan will be.

Applying the Truth in Lending Act

The law covers most forms of consumer loans, whether they are closed end or open-end credit. Closed-end loans mean you get a set amount of Money when the loan closes and must pay it back (with interest, of course). Think of mortgages or auto loans.

Open-end is Money you can draw repeatedly
Read More...

Yah… Your mortgages are going to cost you more to help offset the cost of people who have bad credit, isn’t that wonderful?  Yes, it’s true, beginning May 1, 2023, upfront fees for loans backed by Fannie Mae and Freddie Mac will be adjusted because of changes in the Loan Level Price Adjustments (LLPAs).

Example, beginning May 1, 2023, a buyer with a good credit score of 750 who puts down 25% on a $400,000 home would now pay 0.375% in fees on a 30-year loan, or $1,125, compared to 0.250%, or $750, under the previous fee rules, which is an increase of $375.

Meanwhile, a buyer with a credit score of 650 putting a 25% down payment on a $400,000 home would now pay 1.5% in fees on a 30-year loan, or $4,500. That compares with 2.75%, or $8,250, under the previous rules, which is a decrease of $3,750.

It is true that the increase to buyers with good credit is a small percentage of the overall loan and the borrowers with poor credit are still paying more, albeit less than before.  However, why should those of us who have worked hard and shown prudent Money management and done without some things to build up good credit have to pay to lower the costs of those who have not suffered as much as those of us that have built good credit.

Andi is a homeowner who is unfortunately behind on her mortgage payments. As a result, she is at risk of losing her home. This is a terrifying prospect for anyone, but it can be especially scary for someone like Andi who has put so much time, effort, and Money into building a life in her home.

One fear that Andi may have is the fear of the unknown. She may be worried about where she will go if she loses her home, and how she will be able to afford a new place to live. She may also be worried about the logistics of moving, and the burden it will place on her and her family.

Another fear that Andi may have is the fear of failure. Owning a home is often seen as a symbol of financial stability and success, and losing her home may feel like a personal failure for Andi. She may worry about the judgement of others and how this situation will reflect on her.

Andi may also have a fear of the future. Losing her home could have a cascading effect on other areas of her life, leading to financial instability and insecurity. She may be worried about how she will make ends meet and provide for her family without the equity and stability that her home has provided.

It is natural for Andi to have these fears, but it is important for her to remember that there are resources available to help her through this difficult time. There may be options for modifying her mortgage or finding other forms of financial assistance. It is also important for Andi to reach out to friends and family for support and to remind herself that this situation, while difficult, is temporary and that she has the strength and resilience to get through it.  This is typical for a lot of homeowners. Can you guess how Andi got out of her situation?

“There is no victory at bargain basement prices.” – Dwight Eisenhower

Prices are on the rise everywhere right now. What about yours? 

From just a few pennies to outright sticker shock, hiking prices is one of the quickest paths to losing customers. But you’ve got ends to make meet, too. 

Our inflation series continues with one of the most pressing problems for businesses today: How much you need to increase your pricing models – and what to think about before you do. 

Worry and response

Current inflation is 8.6% year over year, a seemingly endless upward direction that worries most businesses. Almost nine out of 10 have told surveys that they’re also already seeing the hit in higher expenses such as supplies and services, some by as much as 50%. Throw in employees probably wanting above-average raises and you’ve got a compound problem. 
Read More...