Tuesday, May 27, 2008

Investing in real estate can be rewarding

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

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

Successful investors have free and clear properties

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

Real estate investment has provided many investors with positive cash flow

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

Appreciation gives you the full value of the property

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 real estate deal

. 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.

Tuesday, May 13, 2008

Making money on high end houses

Another way of making money with real estate is to option high end houses. You do not have to guarantee a note in order to do this. Leverage gives you the ability to have ownership of a large asset without using a large portion of your money. Depreciation allows you to lessen the value of the property and use this amount as a business expense for tax purposes. If you are honest when putting the numbers together, they will never lie to you. This can be done without risk by developing a subject to deal. This means that you find a house that has a lot of equity already in it, such as a million dollar house with three or four hundred thousand in equity. You option this for one price and through the use of killer sales strategies, you sell it for much more. You don't have to borrow any money yourself. Furthermore, there has never been a better time than the present for making money on these high end houses.

Sunday, May 11, 2008

Investing in real estate is always a good income

Many people are under a huge load of debt and will transfer their ownership to you along with the equity they have in the house, simply to be relieved of the burden of the debt. Now due to circumstances beyond their control, things have been thrown out of whack and they need someone to get everything reorganized for them. These homes are beautiful and well maintained as a rule. They at one time had the cash to pay for their mortgage and the expenses associated with it. Solve their problem and you'll get a good deal. Another way to get into real estate investing with very little money risked is to wholesale houses that need rehab. These low end properties that are in very poor condition can be a veritable gold mine. Investing in real estate is always a good income stream strategy no matter what the market is doing. The key is being smart about your investments.

Friday, May 9, 2008

Making money in the real estate market

It's no secret that there is a mountain of money to be made in the real estate market. Hundreds of thousands of people across the country are making money without risking money or credit. Contrary to popular belief, however, you don't have to have a lot of money to start with. If the property you are eyeing has government outlets like the post office, the automobile insurance board or the government-sponsored health centres, these buildings qualify as hot property. Long leases will ensure that a property will be rented or leased for long periods of time, not just a year. Some commercial leases for example go for as long as 5 or 10 years. Your only expenses are some marketing materials and about $100 for an option deposit.. If you're wholesaling, Ten Bucks will suffice.

Wednesday, May 7, 2008

Depending on the location, most details are available online

Below are a few things that will lead you to the good deals that you're looking for:
1. Divorce , 2. Imprisonment or Court Costs, 3. Loss of Job – Foreclosures, 4. Bankruptcy, 5. Death
6. Job Transfer, 7. Bad Tenants (Contact Landlords who have filed evictions). Most of the above types of people can be found by looking through the public information in your local court-house records. Depending on the location you prefer, most of these details are available online. Situations such as Loss Of Job can be found by looking through the foreclosures and knocking on such person’s door. You need to focus your attention on people with these types of situations.

Sunday, May 4, 2008

Real estate investment and barriers

As a real estate investor there are some barriers which keep you from being successful. You want to be a Real Estate Investing Millionaire, but for some reason you can't seem to find good deals on houses. This is a natural enough reaction from people who are asked to take a risk with their investments on a daily, almost, basis. Going around with a Realtor, driving around nice neighborhoods, looking for Sale signs, looking on the web, telling a few people that you buy houses, etc are the most common ways that people adopt. These are a major waste of time. What you are doing is looking for deals on houses and not looking around for people who need to get their problems solved. Spend time knocking on the doors of homeowners in foreclosure. These people usually have serious issues that need to be solved. No one sells their house at a serious discount unless they have to. You should be ready to put in all that hard work that will free you from the daily wage-slavery you are in. If you think you have understood this, feel that the time has come and you are prepared to learn, then this should be the first step in a journey that will take you to the rest of your life.

Thursday, May 1, 2008

Avoid dealing with Realtors

As real estate investors, we buy houses from people that we need to sell, not that people want to sell. When you are dealing with a Realtor, 9 times out of 10 they will show to you are nice houses, owned by people that have no urgency to sell. Avoid dealing with Realtors. Not saying to completely alienate yourself from them - that can be foolish. Just network with them, and let them know if some killer deal comes along, and you can close with cash quickly. Detail about what you are looking for, and that's when they will call you. Don’t go around looking at houses with them. Many realtors are not trained to look for the types of deals that we are looking for. Actually, they will probably tell you that it is not possible to find the kinds of deals that we do.

Tuesday, April 29, 2008

There are many courses which purport to show how to invest in real estate

While there are many courses which purport to show how to invest in real estate, only a few actually tackle emerging markets in our country precisely because there is a lot of skill required to correctly identify them and then take advantage of them. If you are not yet ready to leave the rat race behind and embrace a future where your hard work allows you to enjoy anything you really want then maybe you are not ready to take advantage of any kind of real estate investing, never mind investing in the tough environment of an emerging market. The first thing to tackle of course is your own motivation. In order to be successful in any kind of real estate investment in an emerging market you need to do some careful analysis, you need a lot of drive and the vision to see what few others can see clearly at that stage.

Sunday, April 27, 2008

With a long lease option, you can then sell the property for high price

A lease option has more longer term than a straight option - usually for a period for as long as one year or longer. Some lease option will even stretch to three years, depending on the whim of the seller. While your lease is ongoing, you can rent out the property and be in a positive cash flow. The second advantage is that the property is appreciating in value. If you have a longer lease option, you can then sell the property for the highest price you can get. Most new investors, and plenty of more experienced ones too, like to stick to what - and where - they know when it comes to investing their hard-earned cash in equities.

Thursday, April 24, 2008

Emerging markets

Emerging markets are which are in the grip of a sudden growth or are in receipt of government incentives which help spur growth. A savvy real estate investor will be able to understand what makes the emerging market attractive - by learning the trends right from the start. In this perceived simplicity hides a world of some complexity on how you correctly identify an emerging market, how you go about finding the right real estate investment opportunities in it for you and how you then go about taking advantage of these while minimizing the risks, as much as possible, for yourself. A savvy real estate investor identifies the opportunities in real estate properties that he should invest in and makes the maximum amount of money in the shortest time possible.

Tuesday, April 22, 2008

Seller financing

If the seller does not need immediate cash, they may consider to finance you. You can write a mortgage contract, agreeing to pay the seller a fixed percentage rate, and set monthly payments. After you sell the property, you can then pay off the mortgage note to the seller. Whatever way you look to finance your real estate investments, make sure your cash flow calculations work. The financing will be easy to find if you have good cash flow numbers on your deal. Money is required to do a deal, and no-money-down means that you do not put any of your own out of pocket funds into the investment.

Sunday, April 20, 2008

Hard money lenders

Hard money lenders are those who specialize in real estate investing. They will normally lend up to 70% of the after- repair- value (usually said as ARV), on your property. Hard money lending is only a short term financing, and the interest rates are very high. It is sometimes 14% or more, but unlike with normal banks and their financing, Hard money lenders will get your funds to you fast. Normally this is sanctioned in installments as work is completed. Hard money is good for those who need to get funds fast to do a deal.

Friday, April 18, 2008

Private investors

Private investors are the ones’ who have the cash readily available, but do not have interest to actually work for themselves. They are ready to spend the money and harvest a certain percentage of the deal. If we find a property to invest in, these private investors will offer you the funds that is needed to finish the deal, or they will undertake financing of the property. The terms and conditions we will have with the private investor would vary as per mutual agreement. Exactly as you will deal with a bank application, learn that you have sound fundamentals on the property and how much expected profit there would be on the deal. The better these figures, the more likely you will find a private investor.

Tuesday, April 15, 2008

Conventional bank mortgages

Some investors forget that banks are willing to lend money for investing. If you have a good credit record, conventional bank mortgages may be the best option. You can get good and favorable interest rates with a good credit record - the higher the credit score, the lower will be the interest rates. While planning on a single family house, we can apply for residential mortgage, and this automatically has lower interest rates than any other sorts of loans. Some banks will not be willing to lend more than the actual value of the home. In this case, if the home needs major repairs, speak with them about another loan for the balance money you need for this purpose. You should make sure that you shop around – because the rates, fees and terms will vary from lender to lender. The suitable way to do this is to consult with a mortgage broker, who can find the best rates.

Sunday, March 30, 2008

Real Estate Investment - buying and selling

In the buying of the real estate investment property you need to decide to what you need out of the real estate property. There are some questions that need to be answered like what is the purpose of the property, how long will you stay with the property, what is being bought - a land, a house or a farm? There might be the need to buy investment property and many online sites and other sources of information provide the requisite information. The rates are to be decided and you have to ensure the right rates. Isn’t it? That is a most important task.

Friday, March 28, 2008

Real Estate Investment – making money

Does not every one want to make money and lead a comfortable life? Real estate investment provides many advantages. The real estate investment units do not move with the market. There is not much of volatility in the real estate investment scenario. You can buy a run down property in a good area and then make a makeover of the property and then sell it. You can find areas with good or high rentals. The money can be made from the rentals. These are some of the methods that you can use to make money in real estate easily. You will find it very beneficial.

Wednesday, March 26, 2008

Real Estate investment – adverse circumstances

What is the right scenario if the right circumstances are present in buying and selling of real estate? The question requires thought, isn’t it? Modifications or alternations in the property require a lot of money and effort. If the property owner wants a huge profit on the property very often small repairs will not fetch the required price .In the field of real estate property the most desirable owner is the one who wants to sell his property quickly. Often you will find that the case is that the real estate owner is not able to provide the fair price. So, the real estate investment should be done with alacrity.

Monday, March 24, 2008

Real estate investing – getting the money

Most people have the conception that the real estate investment is only for the rich. But you can buy a home without using much money and you can buy an investment property with out using too much of money. The real estate investment loans can help in this manner. The real estate properties are available with a lot of options now a days. The real estate loans reduce the burden on you. There are certain rules to be followed in the real estate buying and selling .If those rules are followed the real estate investment is a cakewalk. You should consider the paths you follow in real estate investing.

Friday, March 21, 2008

Importance of agents in real estate investing

You must have heard of real estate agents or brokers. Real estate agents or real estate brokers deal with all the transactions of real estate. The real estate agent finds sellers for buyers and buyers for sellers in real estate deals. The real estate agents can be a person or a firm. The real estate agent or broker performs all the essential activities in the transaction. The agent can provide help for any kind of real estate. The broker provides the suggestion to the sellers to raise the cost of assets. The real estate agent can provide the best piece of land to the buyer.

Wednesday, March 19, 2008

Real estate investing – the pros and cons

You must be aware that like all other forms of investment real estate investments has its own pros and cons. Real Estate investing is a type of investment that can give you life long returns. The investor can use a lot of leverage to get real estate. There are many ways an investor can invest in real estate without using your own money. Sometimes the investor can rent the property out and it can give him long term income. The disadvantage of real estate is that there is a huge cost to maintain and fix up a property. These are the pros and cons of investing in real estate.

Monday, March 17, 2008

What actually is real estate investing all about?

We all know that real estate investment involves buying/selling of buildings, pieces of lands, renting, etc. It, however, is not simply restricted to these. The real estate investing is one of the profitable investments. The real estate investor can buy commercial buildings, residential homes and then sell it at the right time. The real estate investor can buy and sell lands and property at the right time and maximize his profit. The real estate prices move in tandem and the the prices in an area will move together. The real estate investments are not uncertain like some other modes of investment.

Friday, March 14, 2008

Real estate investing – Why opt for it?

I hope you are aware that there are various types of investment opportunities open to us these days. Real estate investment is one such that definitely ensures good returns. Real estate investing at one stage was the pastime of wealthy businessmen and the like, but it has become the common financial motion for people from all avenues today because it provides good long tem returns. The right real estate investing can give you the required income for the rest of your life. Good real estate investing is also the forte because it does not lose value. The right real estate investment is always a good bargain. So, don’t you feel it is just the right thing for you?

Thursday, March 13, 2008

US realtors say commercial real estate investment waning

WASHINGTON (Thomson Financial) - Investment in commercial real estate appears to have peaked and turned down although vacancies and rents have not changed significantly, the National Association of Realtors (NAR) said today.

"The credit crunch has hit the commercial real estate market," was the explanation from NAR chief economist Lawrence Yun.

Investment rose 39 pct in 2007 to a record 427 bln usd, up from the previous record 306.8 bln in 2006. The NAR forecast for 2008 expects a 30-40 pct investment drop, erasing all of last year's increase.

The investment cycle is turning, said realtor Patricia Nooney of St. Louis. "It appears investor confidence has declined, and some private investors have had problems obtaining financing." With economic uncertainty growing, "transaction volume is likely to decline," she said.

Walnut Creek investment consulting firm renamed Inverness Real Estate Investments

A Walnut Creek real estate investment consulting firm has changed its name to Inverness Real Estate Investments.

The name change for the company, formerly known as 1031 Exchange Options, reflects its expanded roster of investment opportunities, said Cary Losson, Inverness founder and president.

Inverness offers consulting on co-ownership structured real estate, including tenants-in-common and Delaware statutory trust properties, real estate investment trusts and real estate fund investments. Its clients have completed more than 3,000 transactions, with a total value of more than $3 billion, according to a company news release.

The rebranding and additional investment offerings will help the company reach a broader market, Losson said.

"While much of our past business came from clients seeking investment properties to complete a 1031 exchange, we have seen over the past three years that our broad selection of real estate investment opportunities is drawing increased interest from direct investors," Losson said.

Tuesday, March 11, 2008

Real Estate Cold; Real Estate TV Hot

NEW YORK (AP) -- Real estate may have cooled considerably as an investment, but not real estate television.

House flipping and home renovation programs are still big hits on cable. While "for sale" signs sprout on lawns across the country, TV programmers are like developers who plow ahead with new housing projects anyway.

A new season of the A&E Network's "Flip This House" - one of a troika with TLC's "Flip That House" and Bravo's "Flipping Out" - premieres Saturday night.

A&E has several new programs in development. At least six new ones are beginning on TLC in the next year, starting with "Date My House," where former "Bachelor" Bob Guiney hosts a program where potential buyers spend a night in a home on the market.

HGTV had its highest prime-time ratings ever in January.

Real-estate programs defy market slowdown

NEW YORK -- Real estate might have cooled as an investment -- but not as fodder for television.

House-flipping and home-

renovating programs are still big hits on cable. While "For sale" signs sprout on lawns nationwide, TV programmers are like developers who plow ahead with new housing projects anyway.

A new season of Flip This House on A&E -- one of a troika, with Flip That House on TLC and Flipping Out on Bravo -- is to begin Saturday.

A&E has several new programs in development, and at least six new ones are beginning on TLC during the next year, starting with Date My House -- in which host Bob Guiney, the former Bachelor, has potential buyers spend a night in a home on the market.

HGTV had its highest prime-time ratings in January.

Monday, March 10, 2008

Real Estate Investing in a Troubled Market

Real Estate Investing in a Troubled Market can be made successfully. learn how in my real estate blog.