Hunter Estess - How to Raise Money for Your Real Estate Investments

Hunter Estess is a successful real estate investor in Louisiana. Like many real estate investors, the idea of raising capital to increase his ability to purchase properties is an irresistible allure. However, he knows that without the proper knowledge and understanding of the process, there can be long-term ramifications. You need to be sure you are setup correctly when you are dealing with other people’s money. Here are some things to consider if you are planning on raising money for your real estate investments.

• If you are planning on raising money through a Limited Liability Corporation, LLC, then you have to start by registering your LLC in the state where you will be working. Many investors make the mistake of raising money through a state where they are not properly registered.
• Be sure to draft an operating agreement that details everything. This includes how the funds will be invested, distributed, and managed, as well as any fees that will be paid for the management of the investment.
• Try and work with a partner that is an accredited investor. This means that they have an annual income of no more than $200,000, has a net worth exceeding one million, and who is a general partner, executive officer, director, or other combination for the issuer of the security being offered.

These are just a few of the things you need to address prior to raising money for your investment. Hunter Estess has been successfully raising money for his real estate investments for more than ten years.
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Hunter Estess - A Guide to Solo 401k Plans

When you own your own business or work as a sole proprietor, you don’t have the luxury of participating in an employee run retirement plan. For Hunter Estess, owner of Dash Development and Holdings, this means investing in an individual 401(k) plan, also known as the solo 401(k). These plans work much like the traditional 401(k) plans that are offered by large companies but is strictly designated for sole proprietors who don't have any employees. 

Just like the traditional 401(k) retirement plan, solo 401(k) plans can be either designated as a traditional or Roth IRA. A traditional plan, you are able to save money on a pre-tax basis, meaning that it grows tax-deferred until you withdraw it. At the time of withdraw, you are required to pay taxes on the money. A Roth IRA allows you to invest after-tax dollars and your money grows tax-free, meaning you aren’t taxed when you withdraw the funds. 

If you are planning on investing large sums of money, these types of plans are ideal. Individual 401(k) plans allow you to save for your retirement as both an employer and an employee. This means you are able to contribute more to your plan than you would with other retirement plans. As an employee, you are able to contribute up to $18,000 every year, and as the boss, you can contribute an additional twenty-five percent of your income, with a maximum of $53,000, which includes your employee compensation. 

These types of plans are appealing if you plan on socking away large sums of money. For Hunter Estess, a Solo 401(k) plan is the perfect investment option for his retirement as a sole proprietor and business owner.

Hunter Estess - Advantages of Investing in Real Estate Syndicates

Many investors are still looking for ways to invest in real estate while minimizing their risks. One way to do this and still take advantage of the increasing real estate values is by using real estate syndicates to invest in larger properties, a strategy Hunter Estess is familiar with. A real estate syndicate is essentially a pooled real estate investment group, where capital is combined from a group of investors in order to purchase real estate. In essence, real estate syndicates are just a smaller version of Real Estate Investment Trusts. Here are some distinct advantages to investing in real estate syndicates. 

                                                   

Superior Expertise, Discount Price

The main advantage of this kind of real estate investing strategy is the ability to leverage the expertise of many investors. A syndicate can bank on the collective knowledge and skills of the investors in the group. 

Cost Savings

By pooling funds, real estate syndicates can achieve cost savings, compared to an individual investor. A substantial down-payment can be made with a well-funded syndicate, allowing the investors to leverage their capital to create improvements and increase their return.

Diversification

Syndication allows individual investors with limited funds to diversify their investment among a number of different properties or to purchase a large investment. This can help to safeguard against significant losses in real estate. 

Real estate syndicate investing can be a great way to make your money grow. As with any investment, however, it is best to proceed with caution and do your due diligence before jumping in. Hunter Estess is a successful real estate investor in New Orleans, Louisiana who has utilized this technique to grow his real estate portfolio. 

Hunter Estess - Make the Invested Time Principle Work in Your Favor

Hunter Estess of New Orleans is a major player in the real estate market in the Gulf South region. He knows how to negotiate successful real estate deals.

The invested time principle states that the more time a person spends on a negotiation, the less likely he or she will get out of the negotiation without making a deal.

When you are looking to buy a real estate property and make an offer, the sellers immediately start spending the money in their heads. The longer the negotiation lasts, the harder it is for them to back out of the deal, because they see the money as if it were already theirs.

When you are selling a property, the buyers usually start envisioning what they will do with the property as if it is theirs before they buy it.
You can use this principle to your advantage by making the other party spend a significant amount of time on the deal. Get the buyer or seller to review or submit financial statements. Ask them to make projections of cash flow, expenses, and profits. Get engineers to take a look at the property. Do a title search.  Discuss the concerns with the other side. Send requests for more information.

Most people hate the idea of wasting time. After they spend enough time on something, they really want to make it work.

This being said, you shouldn’t forget that spending a significant amount of time on a deal will most likely have an impact on your decisions as well. Try to keep your work to the minimum and have the other party spend as much time, money, and other resources as possible. That is what smart real estate investors like Hunter Estess do when it is appropriate and beneficial for the negotiation.

Hunter Estess - Think through Your Behavior During a Negotiation

Hunter Estess of New Orleans has been investing in real estate properties for many years.

The principle of least effort says that people will spend the least amount of effort required to get through a process. This principle also works with real estate transactions. Most people have no idea how to prepare for a real estate negotiation, and even when they do, they are often too lazy to do it. This is always a big mistake that can cost thousands of dollars. If you can anticipate the questions that you will be asked, you should think about what answers you will give. 

                                         

In the beginning of a negotiation, you can tailor almost anything you say, and the way you say it, for a favorable effect. For example, giving a quick, decisive, and detailed answer to a sensitive question will show the other party that you are confident and prepared. 

However, in some cases you want your answers to look as if you just spontaneously thought of them. In such instances you can say that you just thought of something that may work or throw an idea as if it just came to you in the moment. 

Such behavior can create an atmosphere of comfort and a sense of trust in the other party because it will look as if you are quickly thinking on your feet to come up with a solution that will satisfy all parties involved in the negotiation. This is what seasoned entrepreneurs like Hunter Estess do to increase their chances of success.

Hunter Estess - Land Banking Explained

Hunter Estess of New Orleans has a proven record of accomplishment in the real estate industry.

Before getting on any deal, every serious investor in real estate should ask and answer a number of questions not only about the property, but also about the surrounding area. Do rent prices in the area keep up with inflation? Is the area stable, changing for the better, or deteriorating?

One of the best places to look for great real estate deals is the areas that are not very successful themselves, but are located close to very successful properties and areas. 

 The strategy of investing in land or properties with the assumption that they will significantly go up in value in the future is called land banking. Land banking is a smart approach in many cases, especially with areas that have strategic locations. It can bring exponential returns if the investment is made in the right project.

However, before the property goes up in value, you will still need to pay taxes and other charges on it. If the property brings in no income, taxes and charges need to be added to the investment amount. This is why it makes sense to keep using the property as currently intended while you wait for opportunities to arise.

For example, in New York City land banking may include an investment in an existing parking lot. The goal may be to build something on the property, but in the short term it may make sense to continue using the property as a parking lot to have incoming revenue. That is what many experienced real estate investors like Hunter Estess do with their projects.

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Hunter Estess - The Importance of Views and Area Reputation in Real Estate Investing

Hunter Estess has been in the real estate industry since early 2000s and has accomplished great successes.

Great views are important to the value of a property no matter the size of a real estate investment. If a modest apartment building has a view of trees in the back of the property, you could turn the trees into a small park and increase the value of the building. You could also choose to increase the size of the windows to allow for better views. The importance of the views depends on the vision you have for a property. If you are working on a small residential building, a quiet street may be a great view for it. You always want to look for a view that corresponds to the lifestyle of your tenants.

Another important factor to consider when choosing real estate investments is reputation. Does the building have a prestigious address? Is it located close to a landmark, a convention center, a beach, or some other place that people visit a lot? A small real estate investor needs to consider whether the location is good for people that will be interested in it. If you are targeting affluent buyers, then you want to look in an area that has luxury residences and trendy restaurants. If you are thinking of selling or renting to middle-income families, choose an area that is desirable for members of this market segment. This is what Hunter Estess always strives to do.
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Hunter Estess - Asset Management in Real Estate

Hunter Estess, president of Estess Contractors, and many other real estate developers and investors work on their asset management skills to continue to be successful in their businesses. Investment assets are purchased every day by investors, governments, private companies, and corporations. These entities can purchase real estate to improve and resell, or to rent or lease out.

Real estate investment can be tricky because of the nature of the field. Properties can become devalued, damaged, and deteriorated over time. Asset management also means working within the parameters of the government’s complicated tax and legal rules. Investors can also use asset management in regards to investment portfolios. IN this scenario, diversification is key to success. Investors like Estess will purchase and control multiple real estate properties in many different locations, thereby avoiding the placement of all eggs in one basket. Asset managers will specialize in particular aspects of property, such as operations or regions. This manager works on rental and lease agreements in ways to attract customers, eliminate vacancies, and limit and liabilities.

Real estate investors and developers like Hunter Estess are familiar with all aspects of real estate asset management. The main goal of asset management is to maximize investment returns and property values. The asset manager must work to reduce liability, find high and reliable sources of revenue, and reduce expenses. Asset managers must be entrepreneurs as well, overseeing multiple facets of investment properties. Those managers who are successful are rewarded with the largest portfolios and the highest profits.

Source: http://www.investopedia.com/ask/answers/040815/what-does-asset-management-mean-regards-real-estate.asp

Hunter Estess - Raising Capital in Real Estate

Hunter Estess, president of Estess Contractors and Dash Development, and other renowned real estate investors and developers, know that raising capital is essential to becoming successful in the real estate field. This can be a challenge for many new investors, but raising capital is about much more than a message, marketing image, or website. Personal relationships, return of capital, and reasonable returns are important cornerstones of raising capital in real estate.

A personal relationship between the investor and the potential money partner is of utmost importance. The real estate investor must get out and network at local functions to build, and then maintain, a relationship. A return of capital is the next important consideration, especially for the investor. An investor’s primary concern is protecting the money that has been lent to the investor, and many will look for collateral should their investment not pan out. An investor has to be ready to share a thorough backup plan with the money partner so that partner does not lose his contribution.

Many real estate investors like Hunter Estess steer clear of promising what may not be delivered, namely overly large and impossible returns. Overconfidence on the part of the investor can translate into mistrust in the eyes of the money partner. It is best to underestimate the goals of the project rather than over estimate and lose the money partner’s trust. That said, the investor must still make the investment sound appealing. Chasing the big win is why many money partners got into the business to begin with. Real estate investors should not overestimate or promise the impossible, but they should make clear the potential for their deal.
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Hunter Estess - Creative Financing

Successful real estate investors, like Hunter Estess of Dash Development and Estess Contractors, have made lucrative real estate deals with creative financing methods. Creative financing means using approaches other than standard mortgages to finance a property. Three creative financial  tactics that investors use involve seller-financing, otherwise known as seller-carryback.

                                          

Investors like Estess may look to the seller as a financier for a desired property. This can be a consideration but the investors need to define what the seller’s needs are, how much the seller owes on the property in question, and whether the seller’s payments are current. Assessing these three qualities will help the purchaser take the next steps in securing the seller’s financial backing in the purchase of the property. If the seller’s property is free and clear, it could be to the seller’s benefit to work with the purchaser. A seller may not want to pay taxes on the whole property at once, or he may be nearing retirement age and want to have some added income but not in one large sum.

Hunter Estess and other real estate developers and investors may also work with the seller in the other two scenarios. If there is a loan current on the property, the purchaser can enact a “subject to” deal wherein he takes ownership of the seller’s loan, with the title in the purchaser’s name but the loan still belonging to the seller. If the seller still has a loan but wants money back on the deal, the buyer can offer the seller a carryback loan. Third party providers can easily manage all of this into one quick, tidy loan.

Source: http://epicrealestate.com/3-scenarios-for-tapping-into-creative-financing/

Hunter Estess - Residential Construction

Successful real estate investors and contractors, such as Hunter Estess, owner of Dash Development and Estess Contractors, achieved their financial security in part by investing in residential construction. This area of real estate investment involves the building and sales of single family residences. Like other types of real estate investment, residential construction can involve myriad aspects and, if an investor is not educated and careful, can lead to negative cash flow.

Residential construction can be a profitable venture if the investor has researched and planned accordingly before purchase. Necessary components for residential construction are elements like: capital for labor supplies and living expenses; reliable suppliers and skilled laborers; a smart plan for marketing new builds; and a steady source of land for development. Financing is an important consideration as well. The investor and builder needs to honestly assess his ability to finance multiple construction builds even when interest rates change or the housing market weakens. Otherwise, the residential construction investor can find himself in significant financial stress.

Hunter Estess and other renowned real estate gurus have successfully ventured into residential construction and that has helped them achieve the financial independence they enjoy today. Smart investors need to keep a steady balance of construction sites under control, pay their obligations to financial institutions on time, and plan for delays at points in the construction schedule. Quality is also necessary for investing success, as constructing properly the first time means avoiding paying more to do it right the second time. Finally, construction investors should be experts at communication to keep all components of the project together and on time.

Source: http://itsallaboutbusiness.com/Residential.htm