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 - 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 - 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 - 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