Friday, July 31, 2009
Tuesday, May 27, 2008
Investing in real estate can be rewarding. If you have been viewing any late night television, you must have probably seen the infomercials about investing in real estate. Those commercials make it seem very easy just to go out the next day and start making deals. Evictions, re-investment into the property and time management all need careful consideration. Make sure you have the right agent – it is like having a good insurance policy against overlooking all the seemingly insignificant but very important details. Ask the tenants about pest problems, structural damage or reoccurring problems. Don’t overlook anything! Take the time to check references. Property that eats cash every month can drain your working capital. When investing your hard earned money be sure and use sound business judgment! Be sure to consult with an insurance professional and protect your hard earned assets. If there are any questions do a thorough investigation. Be sure to re-invest your cash flow back into the property payment and speed up the amortization schedule. A little work up front can save tremendous problems later.
Saturday, May 24, 2008
Real estate Investment property brings liability. For example, lets say properties are selling in approximately 6 months, so you want to calculate 6 months of costs for holding that property. By aligning yourself with the right professional you can avoid common mistakes and you’ll ensure an excellent return on your investment. These costs include the mortgage on the property, the taxes and insurance, the utilities, basic upkeep of the property, like mowing the yard. Check everything: rents, payment history, taxes, expenses, deposits, future modifications... everything. Some people do the repairs themselves and others use a contractor. Either way get a good estimate of what these repairs are going to cost. Predicting constant appreciation is extremely difficult if not impossible for the unseasoned investor. This can create stress, frustration and become quite painful. Consult with a professional real estate agent and protect yourself from the hidden troubles that can plague first time investors.
Thursday, May 22, 2008
Cash flow, capital appreciation, tax benefits, loss of management, equity pay down and pride of ownership are just some of the things that need to be addressed before you make real estate investment. Most of successful investors have free and clear properties. Once you have taken your after repair value and deducted expenses and your profit this will give you the maximum amount that you can offer for the property. Unbelievably many first time investors are willing to part with their hard earned cash without taking the time to study their investment. Owning investment property carries with it a great potential for creating wealth and some potentially difficult decisions. Security is based on the fact that property rarely goes down in value. A service minded real estate professional can be a tremendous asset by taking the time to evaluate your needs and making sure you’ve got all your bases covered.
Tuesday, May 20, 2008
Like any investment however, real estate has intricate nuances and market trends that when ignored can cause an investor tremendous heart ache. It isn't that easy, but you will find deals no matter where you live and what market you are looking at. And the really great thing is numbers take emotion completely out of the equation and you can make a rational, logical decision about investing in a property. Real estate investment has provided many investors with positive cash flow, tax benefits and satisfaction of making an impact in others lives. The key is to apply multiple methods to get leads. You can get a feel for this length of time based on what is going on in the market. Before you risk your investment take the time to learn all you can about your market. Not only will it help you financially, but you can also help others in need of assistance. So get out there and find those deals!
Saturday, May 17, 2008
When viewing the property, take notes regarding all the things that need to be repaired or improved, taking pictures is also a good idea. You find the bargains and pass them along to the contractors and carpenters who earn money fixing up houses to sell. The first of these is to take over the debt load of homeowners. Appreciation gives you the full value of the property, not just what you have invested in that property. Some think it might even be the easiest way to become a millionaire! Income is realized when flipping a property, or you can create passive income with rental properties and your tenants will help to pay down your loan. Check with a real estate agent and determine how fast properties are selling in your particular area. It's possible to wholesale 3 or 4 houses every month. Just think of the income that could generate! You never own the property, but you can make anywhere from $10,000 up on each sale. This is a number that you determine yourself. The seller gets the price they want, the buyer gets the price they want, and you get the difference, which could be several hundred thousand dollars!
Thursday, May 15, 2008
. Doing an analysis of the deal is more efficient and it lets you know what your profit is going to be before you go into the deal. An analysis will show you what your maximum offer price for a property should be. Know what the asking price is for the real estate property. Determine what your after repair value will be for the property. This is the value of the property after you have made all repairs and improvements. After you determine your after repair value you then need to deduct all of the expenses that are going to be associated with acquiring that real estate property. These expenses are Acquisition Costs like lender fees, discount points, appraisal fees, mortgage broker fees, title insurance, attorney fees, process fees, recording fees, etc; Holding Costs like costs to hold the property until it sells; Repairs or Improvements, Selling Costs that will include the real estate agents commission or advertising costs if you are going to sell it yourself, and Closing Costs that will include closing fees and document preparation. You can learn how to take on these real estate deals when you pick up my free real estate investing course.