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.