Investment Property Advice For Real Estate Investors

Wednesday, December 12, 2012
Author of the Rich Dad book series, Robert Kiyosaki, says his “Rich Dad” asserts that investing in real estate isn’t rocket-science. He said it’s simply a matter of using sound judgment. But it’s common knowledge that common-sense isn’t, in fact, all that typical.

Kiyosaki also says, the ”worst” investors are those who have simply not studied the things that produce positive results. They adopt the viewpoint that investing in real estate is either too much of a risk or a rip off. Others leap before they look and end up losing money.

The best advice anyone can give you having to do with investing is simply to educate oneself. If, in your haste to make money, you take action without an education, you will be doing yourself a great disservice. One of your most valuable resources is time and if you squander that, you will often find that your money will follow - money you have that you wind up losing, equity you would have made if you’d just taken the time to figure out the techniques of successful investors.

“That is great,” you may say. You probably accede that getting a good education is invariably a good thing. At the end of the day, knowledge is power. But “what education should I get?” may be your 1st question. Your 2nd is probably going to be, “How do I go about getting it?”

The first thing you should do is study some essential accounting, which is not as ambiguous as it sounds. Accounting is the language of business. If you’re investing in a company or a piece of property or what have you, you will want to be willing to check up on it and see if it will be a benefit (earn you money) or a liability (lose your money). It sounds like common wisdom when you think about it, doesn't it? But if you want to be able to determine those things, you will want to be able to evaluate your financial-statements.

There are 4 basic types of financial statements: cash flow statements, income statements, balance sheets, and statements that express changes in a share holder’s equity. The last is pretty self explanatory, and deals with the characteristics that lie surrounded by equity at two opposing points in time. Shareholder equity is the net worth of a company, or it’s total assets minus its total liabilities.

Your cash flow statement is a document that details the cash used in making a company function correctly, plus where the money came from. Wikipedia relates a business to a large vat of water that holds more of the liquid and also has lines running from within to the outside of it - into the investor’s pockets and those to whom the business is in debt. The cash-flow-statement attempts to describe the activity of the water – or the flow of your cash.

The earnings (or P&L statement) watches out for a company's earnings and expenses over a given time period, as the balance sheet provides a description the same thing for 1 distinct window of time and addresses assets and liabilities.

It may seem quite straight-forward until you reflect upon Kiyosaki's words on discerning your assets and your liabilities apart from one another. He says that the lending institution, for instance, will list your home as an asset. It seems reasonable. After all, it’s something you own, right? Yet as stated by Kiyosaki's rich dad's statement of liabilities and assets, your house is in fact a liability. It’s considered a liability because it ultimately costs you money in dues and updates. It undoubtedly is not making income for you, and up to the time it starts doing that (say, you move out and are able to rent the first property out to make a profit), then it is not an asset.

Not that the bank is lying to you outright. A house is an asset on their balance sheet because it is making money for THEM.

That’s the type of thing you can decide for yourself and determine whether you are losing or making money on an investment, if you take the time to educate yourself education. Remember: Knowledge is POWER.

By: → Alex Anderson

Effective Real Estate Investment For Making Big Income

Friday, December 7, 2012
In today's financial climate, real estate continues to be a strong investment in many areas. When investing in real estate, they say that the three most important things to consider are location, location and location.

As mentioned above, location is an important factor in buying real estate, so make sure that you do your research first.

For real estate agents, the key to success is to mail to the same “farming” area over and over to get your name in front of potential clients enough so that they remember you when it is time to list or buy a home. Summarily, effective real estate marketing technique is the foundation of a good real estate marketing system, which is key to your short, intermediate and long term success. These real estate marketing ideas, anchored by a good real estate marketing listing system, can help supercharge your business and help you achieve the success you deserve.

Here's an example of a real estate marketing technique that every agent and his and her uncle uses: "Offer a No Cost Obligation Competitive Marketing Analysis (CMA) to attract consumers. A real estate agent resume is made up of several marketing pieces – all of which are designed to attract new clients. A good real estate marketing flyer will also be attractively designed, neat and devoid of clutter.

A real estate post card marketing campaign will enable you to frequently and inexpensively market Real Estate Postcards to the masses, and as you know the more frequent your contacts with prospects the better your results will be. Most real estate agents stick with what they know and simply print up the details and send them around by post. Select a a series of real estate post cards to send to the owners in the targeted neighborhood(s).

Buyers and sellers need outstanding real estate agents to help them through the process of buying and selling a home. New college grads and other sales professionals seeking a job in the commercial real estate industry should do a thorough job of researching how good their prospective employers’ training program really is. The prospective commercial real estate professional should interview a couple of newer employees at the firm to find out how their training has gone so far.

Learn from the professional real estate investor and don’t get caught up in the “get rich quick” hype of highly leveraged real estate. Another benefit of doing things from this angle is that you'll probably find a lot less competition especially in your local market relative to the other side of the fence of traditional real estate investments. Cyclical Nature of Real Estate—Downturns in the real estate market can decrease the value of a REIT investment.

Being an incredible sales person and entering the real estate market does not guarantee similar sales success.

By: → Razho Litzodo

Marketing Tips For Your Real Estate Investment

Wednesday, December 5, 2012
Now that you have made the jump and did some investing in real estate, it is time that you learned some marketing tips to help you make the most of your investment. Marketing is important in real estate investing, and if it is not done correctly, or at all, it could end up costing you lots of money. There are quite a few different ways to market your real estate investment, and these may include direct mail campaigns, fliers, newspaper ads, your home website and website ads, and e-mail blasts to name some of the marketing techniques.

A direct mail campaign is one of the most effective ways to market your investment. This marketing method costs little and is simple to accomplish. The costs are only the cost of the mailing lists, the cost of the copies and envelopes, and the cost of mailing. The key is to follow through with the process. It requires at least three to five exposures to your mail for familiarity to set in and people to become comfortable with you. If you only send out one mass mailing you will probably not get any responses. It is recommended for this type of marketing campaign that you send out approximately six or seven mailings, with an interval of seven to fourteen days in between, to get the best effectiveness. It is also recommended that you use both postcards and letters during the mailing campaign.

Newspaper ads are another great marketing technique for the real estate investor. This marketing method does cost more than direct mail, but it may also be more effective if you do it correctly. The more circulation the newspaper has the more expensive the ad will be, but it also means that more people will see the ad. Keep your words to a minimum for these ads, because you usually pay by the word or the line. Try not to use too many abbreviations, as some people may have difficulty understanding what you are saying. Make the ad quickly and easily understandable using a minimum of words. Weekends may be the best time for this marketing campaign, because more people read newspapers on the weekends than any other day and some people only subscribe to the weekend editions of the paper.

A great marketing method for your real estate investment is to use your website. Make sure that your website is well maintained and that it has a professional look. Make sure that your information is clear, easy to read, and easy to understand. Make sure that you include your contact information so that anyone who has any questions can speak with you. E-mail blasts are another way to market your real estate investments. This is where you keep a mailing list of e-mail addresses of people who are interested in your services and want to be included. Whenever you have a property available, you send the addresses on the list information about that real estate investment.

Whether you use direct mailing, newspaper ads, your personal websites, or e-mails, marketing is a very important aspect of real estate investing that is commonly overlooked. To be successful and get the most out of your real estate investment you need to market your real estate investment properly. The cost will vary depending on the methods you choose, but marketing is one of the most important aspects of managing your investments. By not marketing your investment you can lose considerable income.

By: → Joel Teo

Real Estate Investment Property

Wednesday, November 28, 2012
If you’re looking for real estate investment property, you could try looking at land for sale. As a stable medium to long term investment opportunity land has the potential to offer excellent returns, real estate investment property with peace of mind.

Land is a tangible investment – you can see what you are getting – but in addition you have the chance to enjoy it for its own sake, with the potential for considerable returns. Land as real estate investment property has risen in value by nearly 30% in the last 12 months and is up by 130% since the early 1990s.

Land compares favourably as an investment when compared with high risk stock market picks, making it an excellent real estate investment property opportunity.

Land which can be bought affordably can be turned into a real money-spinner if you get the right permissions subsequently. As an example, a plot of land in the South East, bought for £15,000, could gain planning permission for a four bedroom detached house. A builder could buy this land for £200,000 to sell a £600,000 house. This represents an excellent real estate investment property investment.

Land has some great advantages:

1. There is a finite amount of land

2. Land can increase in value in two ways

* By increasing property values, as demand outstrips supply

* By gaining planning permissions

3. There are strong possibilities of exceptional short to medium term returns

4. Any nationality can buy UK land

Recent government activity with regard to housing has made this a good time to own land. The government wants more green belt land to be built upon to increase the house-building programme over the next ten years. As other investment markets are feeling the squeeze, it is inevitable that land prices will continue to rise in the coming years. Real estate investment property such as land will shoot up in value.

The price of land has gone up by a multiple of eight in the last 20 years, with the most expensive land to be found in London and the South East. Prices here have been forced up by a shortage of residential land and an increased need for more housing.

In the medium to long term land can be a good investment, but you can make really big money if you buy land without planning permission and subsequently get permissions for that land.

So far, since it came to power, this Labour Government has approved 162 different schemes of development of green belt land. Still the shortage of housing continues to increase, with the shortfall predicted to be one million homes by 2022, unless there is a dramatic pick up in development. There is also a shortage of land suitable for development. A recent report said that an additional 70,000 to 120,000 houses per year would have to be built to keep pace with demands.

These facts make land an attractive investment, and prices for land are expected to keep rising as demand for new housing continues to increase.

The largest gains can be made when buying land without planning permission, as the land can be purchased at relatively low cost and if the land is later granted planning permission large profits can be made.

There are obviously some things to look out for when buying land and such things as access rights, road infrastructure and many other things need to be checked out.

Land as real estate investment property has the potential to make big money if you do you homework, and it is also recommended that you use a solicitor when investing in land, to ensure that everything is in order.

By: → Damian Qualter

Real Estate Investment Tips

Wednesday, November 21, 2012
Ron Victor

Real estate investment presents optimistic cash flow along with tax benefits. However, much like any other investment niche, real estate is dependent on intricate market trends that must not be overlooked, in case the investor may undergo a major loss. Surprisingly, many of the newbie investors are keen to part with their hard earned money, devoid of carrying out a preliminary research of their investment. They also bank on intuitions and traditional trends instead of relying on a meticulous analysis. But before you risk your investment, do heed the following real estate investing advice, in order to make certain some momentous returns on your property investment.

a) Verify the seller’s credentials – Newbie investors find a lucrative property but don’t find any inconvenience while verifying the seller’s credentials, since they are in a scurry to bag the property. They should also confirm some definite aspects as well, together with rent payment records, taxes, and other possible expenses.

b) Avoid negative cash flow – This is an additional real estate investing advice for selecting a property that does not eat away your working capital on a standard basis and there is no point in buying a property that necessitates more money for its upkeep relative to the revenue it generates. You might also be forced to sell such a worthy asset former to the realization of any remunerations of ownership.

c) Original tenants can afford the much required information – Ask the tenants if they are troubled by pest infestation, lack of basic amenities, or some other recurring problem. Of course you don’t want to buy a property that requires an awful lot of repair, and even if you do, you must know the problems outspoken.

d) Look for an insurance cover – A decisive real estate investing advice is that you must have sufficient insurance coverage for your property bought recently and insurance will also offer the much needed shroud to guard your personal assets against legal actions.

e) You must charge fair rents – No expense hurts more than what’s acquired in the upkeep of a vacant property and so arraign fair rents to make certain that your tenants affix with you for as long as you wish for. Moreover, you must also ensure that the chosen tenants are not defaulters. Verify their credentials, talk to their previous landlords, and also check their credit history.

f) Sustain a certain degree of stinginess until and unless you have a healthy source of income – Once you have closed a profitable deal, you must ward off from going on a profligate shopping spree. Instead re-invest your profit towards another property payment on a normal basis until you conquer a significant affirmative cash flow.

On the whole, real estate investing can be an extremely profitable investment niche. But you must have a good grip of what the procedure entails, and must not leave any stone unturned. Just stick on to the real estate investing advices, and you shall be on your way to develop into a professional real estate investor. Now let us see how to value any piece of real estate. When considering real estate VALUE, whether it’s a real estate stock or a property, there are two value rules that are to be applied:

• Don't pay too much for the earth.

• Don't pay too much for the business.

As a good real estate investment rule of thumb, net rents in real estate have averaged about 1% above Treasury bonds. Once you’ve figured your P/E, it may be very different from the current nationwide fair value P/E guess of 16. If your P/E is low, you may have gotten a good deal, or you could collect high rents from your place. If your P/E is twice as high as 16, my advice is that you ought to consider selling. The tricky thing about selling real estate is that real estate is not liquid. Unlike stocks, where we have the luxury of being able to sell whenever we want and the luxury of trailing stops to get us out exactly when we want out, in real estate, it’s not so easy. You unfortunately need to be a good guesser, because you actually need to sell into an “up” market, and buy in a down market.

By: → Ron Victor

Real Estate Investment: One Of The Most Rewarding

Wednesday, November 14, 2012
Donald Trump, a real estate tycoon says, “It’s tangible, it's solid, it's beautiful. It's artistic, from my standpoint, and I just love real estate.”

Real estate is the term that covers land and other things that are permanently attached to it such as buildings. It is considered as synonymous to real property or realty. It is the exact opposite of personal property, chattel or personalty.

People behind a real estate investment must be good in purchasing and selling realties. They must buy, develop, appraise and sell lands, houses and buildings wisely in order to do business productively.

For sure, they know how to profit. Not jut ordinary profit but rewarding and fulfilling one.

However, in order to have a financially rewarding experience, you must be knowledgeable with the ins and outs of the real estate investment. Ask your self: Is the business deal you are about to enter into a good deal? How do you know if it is?

You must know first the techniques behind the real estate investment before you can be ready to enter it.

There are also keywords on real estate investment that you have to master and here they are:

1. Wealth flow. The first thing to consider in a real estate investment is the flow of money. You have to ask your self first. Is this realty viable? How persuasive can it be to the target market? Will this investment provide them future income? Aside from those, also ask your self, how important is personal income to you?

2. Leverage. Leverage, with regards to real estate investment, is the use of borrowed funds in order to purchase realty. This is done with anticipation that the purchased realty will boost the profit.

This process is important to investors. This is because the lesser cash you give on each realty the more you can have additional purchases. This does not end here, if the value of the properties soar, the profit will also increase exponentially.

3. Equity. Real estate investment equity may take several forms. These forms include foreclosure, re-zoning opportunity, discount, potential fixer upper and defectively managed property.

There are many ways of generating equity but the best way is buying into equity. You can do this by searching for a seller who wants to dispose of his property and that he is willing to renounce his equity for lesser that its full value.

4. Appreciation. Real estate investment is all about purchasing the right realty in order to realize great profits.

This can be a pretty difficult at times. This is because real estate is speculative and risky. You can be up on one point and down on the other.

5. Possibility. As you have read, real estate investment is pretty risky. If the realty did not appreciate in value, what will you do?

There are different outcomes available in real estate investment. They include overwhelming profits, average income and terrible loss. The latter is the most debilitating of them all.

6. Limited Liability. One of your concerns about real estate investment is the manner in which you can limit your liability. Perhaps, you know already that the real estate investment world is susceptible to unlimited liability. Be cautious of this fact. Be sure to limit your liability up to the maximum extent.

If you have already found a realty that satisfies you investor instincts, you are now more aware of what to do and what to ponder.

By: → Robert Thatcher

Real Estate: A Strong Investment

Wednesday, November 7, 2012
Description: Even in uncertain economic times like these, history shows that real estate is one of the soundest investments a family can make. Also remember that the stock market is not the only place where people can make their fortunes. And also, you’ll hardly ever hear of real-estate investors who’ve gone bankrupt, unlike stock market investors.

Even in uncertain economic times like these, history shows that real estate is one of the soundest investments a family can make. During the Great Depression of the 1930s when the stock market plummeted as much as 89 percent, housing prices dropped only 39 percent. So, according to most of the research on housing trends, prices continually stay at the same level as, and most often appreciate faster than the rate of inflation. In fact, the prices of houses actually increased by 10 percent during the economic recessions of the mid-19702 and the early 1980s.

The last downturn of the global stock market resulted in millions of investors who got their fingers burned. Overnight, life savings were eaten away, retirement funds went into decline and the economic forecast for all of us who had any money invested in stocks and shares was gloomy, to say the very least. And as a direct result, investors sought alternative asset classes to invest their hard earned money in. This has led to a global boom in real estate markets and property prices, and has spawned a generation of budding real estate investors.

However, the opportunities to make big, quick profits in residential real estate tend to come and go. If the local market is hot, families might get to buy and sell a house at a profit. but, if the market is not so hot, there are chances that you’ll have to hold on to the house for a longer period of time before selling it or at least till the market turns.

Tips for First-Time Real Estate Buyers

If you play well, you can be the big winners in this current environment of boom. However, it’s important to draw up a good budget to help you decide what you can afford. And, once you’ve determined a price and picked your desired community, you can shop around to find the best house within your budget.

However, for those of you who’re still uncertain about how to go about it, there are five things that might just help you close a great deal. While deciding on the house to invest in, never make the mistake of assuming anything. Instead get help from an expert if you’ve any doubts. Also, it’s important to set a realistic budget and stick to it. You also need to consider every single area of cost and payment to make sure that there are no nasty surprises on the way.

More than Just an Investment

Residential real estate is more than just an investment. For example, if you purchase a vacation home, it will not only be a great deal when housing prices move upwards, but it can also be a place for some great vacations for your family and you.

Also, there is another advantage. The federal government believes that home ownership is so important to the future of our country that it has allowed mortgage interests to remain a substantial tax shelter for families. So, homeowners are allowed deductions on their property taxes. And, the profit on the sale of your home remains tax-free as long as you buy a house for a greater or equal price.

So, before you decide that residential real estate investment is not exactly your cup of tea, re-examine the financial benefits of owning your own home. Also remember that the stock market is not the only place where people can make their fortunes. And also, you’ll hardly ever hear of real-estate investors who’ve gone bankrupt, unlike stock market investors.

By: → Naomi Warne

Why Invest On Real Estate?

Thursday, November 1, 2012
It's all about money. And if there are other things included, they will be found somewhere in between.

Not that we are trying to be too materialistic here but lets face it, we all need some security that would run down through the years. And that’s exactly what a real estate investment is.

Unquestionably, the benefits that real estate investment could provide are far many than people would have first thought. And while we don’t all have initial access on investing in real estate, working on how to invest on one is a good option when trying to save and earn money in return. If you are more forward looking and want to see a more stable income, you should be investing your cash on real state.

Your house for example, would not forever remain as your house if you choose to have it rented or sold one day. Not only would this incur great sums of money, it would also help you become more secured when you need to produce cash in the future. And the vacant land you have bought today, especially when it lies in strategic points, could increase in value in the nearest future.

We will offer you the primary advantages of real estate investment. But remember that it's not all about the pros, it could also offer disadvantages that may or may not fit people of all sorts. But who knows, maybe real estate investment is for you.

Pros

You have the leverage

This seems to be the best feature real estate investment has got in store for you. Look at this scenario-When you are investing in the stock market, your $150 000 would mean a cash out of $150 000. However, with real estate investment, this could only take in the form of down payment of 5%, 10% or 20% or if you are lucky enough, you can get a duplex, a land property, or a house for zerodown. Now, the appreciation and the depreciation will lie on the actual value of the real estate but in case of loss or failure driven by unforeseen circumstances, your loss would only incur the actual down you have invested.

The loss you have is also your gain

When talking about taxes, real investment offers some of the best possibilities of deduction. With real estate investment, you can remove as much as $25, 000 while in portfolio investments, you can only deduct as much as $3000 per annum. To know more on this, it is best that you consult a tax strategist who could help supply you with more comprehensive details.

Cons

It is not your get-rich-quick type of investment

If you are looking for becoming a millionaire overnight, this option is not the right one for you. It is a waiting game and it takes patience and perfect timing to come out with the best possible return with what you have invested. However, with a small exposure to risks, your initial investments could accelerate at a great speed within 7 to 15 years.

No accuracy of earnings determined

Since the return of real estate investment could not be exactly counted and computed when not seen at its greater scale of details, you cannot estimate the real value of the property. This only affects the determination of the yield though. But it would come pretty easy when you want to know exactly where you are standing. Merely look at you’re your statement and you will likely know your earning, just like in the stock market.

By: → Mario Churchill

Want to Invest in Real Estate? 7 Questions You Must Ask Yourself Before You Buy Another Real Estate Investment Course

Thursday, October 25, 2012
Here are seven questions to ask yourself.

1. Is this a hobby or a business?

Ask yourself why you want to invest in real estate.

-Do you want another income stream

-Do you want to build equity in a house

-How many sellers and buyers do you want to speak with each day/week/month

-How much time do you have to invest in real estate

-Are you working a full time job

-Are you retired looking for additional income

-What do you want to do with your time?

If you want to build a real estate investing business, then you need to treat it like a business.

Are you going to be a landlord? Then you need to determine how much time you want to spend collecting rent, maintaining the property, making repairs, answering tenant calls late at night, etc.

Or have a property management company handle the tenants and maintenance? Then you need to determine who you will hire to manage your property and how much you will pay them. Typically a property management company will charge one months rent to locate a tenant and then charge 8%-10% of the monthly rent for collecting the rent and answering all calls from the tenant. You still need to set aside a reserve fund for maintenance.

Maybe you don’t want to be a landlord and you want to wholesale property. Then you need to develop a buyer’s list of buyers who have the cash to purchase the house. You will still need to work with sellers to locate properties, get it under contract. You then need to get your wholesale buyer to sign the assignment of contract. And you have to make sure you follow up with the closing agent to make sure the deal is funded by the wholesale buyer and the deal closes. You will get your assignment fee once the deal closes.

Here are the questions you need to ask yourself.

-Do you want to be a landlord

-How much time do you want to put into real estate investing

-Do you want to build a business or just make some extra money once in a while

2. Do you want to work directly with sellers?

There are many investors who want to get into the real estate investing business who don’ t have prior sales experience. Yes, you can call homeowners directly and negotiate the purchase of their home, it is possible. It’s even easier when you are speaking with a motivated seller. I mean a seller that is really motivated to sell, not someone who wants to sell, wants full price for their home and just doesn’t want to wait for the all cash buyer that will pay retail price.

Are you someone that wants to help these motivated sellers? Do you have it in you to hear their stories over and over? Some of these sellers will break your heart and you will want to help them. You have to make sure that you only work with those that you can help and make a profit for yourself. Just because someone is willing to deed you their house does not mean it is a good deal.

Think about a situation where the seller has two mortgages, judgments, and liens on the property. Yes, you can work this as a short sale and get the liens removed and negotiate with the lender to get a smaller settlement for the payoff of the mortgage. You need to decide if you want to put in the time and effort it takes to negotiate the short sale and get the liens removed. I have seen investors in the short sale negotiation process with the lender for anywhere from 2 months to 18 months. Do you want wait months to close the deal?

You need to decide if you want to work directly with homeowners or have someone handle this for you.

3. Do you want to work directly with buyers?

Once you have a house under contract, it is time for you to find your buyer. The best thing you can do is to build a buyers list before you have a property. Find out where the buyers want to live, and then go find a house in that area. It is much easier to find a house for a buyer than it is to find a buyer for a house.

Do you want to take calls from the buyers? They call at all hours, while you are having dinner, before you wake up in the morning, when you are driving to work, etc. Are you willing to drop everything you are doing to take a call from a buyer?

4. Where are you going to get the money?

This is one of the biggest concerns of all real estate investors, where to get the money.

Yes, you can buy a house with little of your own money. Some of the techniques to do this are:

-Buy the house subject-to the existing mortgage

-Have the seller carryback the financing in the form of a note

-Lease/Option the house

You can also build relationships with other people who have money, such as

-Private lenders

-Hard Money Lenders

-Mortgage Brokers

The biggest money concern that you never hear about is where to get the money to market your business. You can buy a house subject-to the existing mortgage. But how do you find that house? You have to continue to MARKET, MARKET, MARKET.

Marketing costs money. That is what most of the gurus forget to tell you. You hear all about how you can buy a house with no money down or little money down. What they don’t tell you is that you have to spend money on marketing to find the house, and money on marketing to find the buyer.

Before you get started, put together a marketing plan so you know how much money you need to get started.

5. Do you want chunks of cash or cash flow?

What is the reason you want to invest in real estate? Are you interested in getting chunks of cash? Cash Flow? Or Both?

What you want out of real estate investing will help you determine what type of real estate investing you want to get into.

If you are looking for chunks of cash, you have a couple of choices. Consider wholesaling or rehabbing (fix and flip).

If you are looking for cash flow, consider landlording, selling a home with seller financing, or be a private lender.

6. Where do you want to invest?

Many investors will start out in their local market because they are familiar with it and they already have some relationships in the area. It’s easiest to start local since you are familiar with house values and have access to local experts to answer your questions.

7. What is your plan to learn more about RE investing?

The most successful real estate investors are those who keep up with the changes in the industry and are constantly learning new techniques.

One of the best things you can do is find a local mentor, someone who is making money investing in your local market. Ideally they should be investing in the area that you are interested in. If you want to wholesale properties, find a local investor who is wholesaling properties. Not only will you ask them to mentor you, but they may buy some of your properties from you.

If you are interested in commercial real estate, then you shouldn’t spend your time with an investor who deals only with single family homes.

Always continue to learn about Real estate investing. There are many gurus that travel the country teaching real estate investing. Ask the people at your REIA whose products they have purchased and whether or not it helped them in their business.

First determine the niche you want to work to get started. Learn everything you can about that specific niche and create income in that niche before you move on to the next niche. Don’t get distracted by the “shiny ball” syndrome.

Real Estate investing can be very lucrative. You need to create a plan, continue to educate yourself, and continue to market for sellers and buyers.

By: → Heather Dunlop

Real Estate Investment Training Courses Teach Investment, But Are They Right?

Thursday, October 18, 2012
It's all about cash and real estate investment training courses teach that investment is a smart idea, but we're going to look at the good and bad here. Not that we are attempting to be too materialistic here but let us accept it, we need some security that would run down thru the years. And that is precisely what a property investment is. Undoubtedly , the benefits that property investment might provide are far many than folk would have first thought. And whilst we do not all have first access on making an investment in property, working on ways to invest on one is a good option when attempting to save and make money in return. If you're more forward looking and would like to see a steadier earnings, you should be investing your money on real state. Your home as an example, would not forever remain as your home if you opt to have it hired or sold one day. Not only would this attract great sums of cash, it might also help you become more secured when you must produce cash in the future.

And the empty land you have acquired today, particularly when it lies in strategic points, could increase in price in the closest future. We are going to offer you the first advantages of property investment. But recall that it isn't all about the pros, it may also offer downsides that will or may not fit folk of all sorts. But who knows, perhaps property investment is for you. Pros you've got the leverage This looks to be the best feature property investment has got in store for you. Look at this scenario-When you are making an investment in the market, your $150 000 would imply a money out of $150 000. However, with property investment, this will only take in the shape of down payment of five pc, ten percent or twenty percent or if you are lucky enough, you can get a duplex, a land property, or a home for zerodown. Now, the appreciation and the depreciation will lie on the particular price of the estate but in case of loss or failure driven by surprising circumstances, your loss would only encounter the particular down you have invested.

The loss you have is also your gain When talking about taxes, real investment offers some of the finest chances of deduction. With property investment, you can remove as much as $25, 000 whilst in portfolio investments, you can only deduct as much as $3000 per annum. To grasp more on this, it's best that you consult a tax strategist who could help provide you with more comprehensive details.

Cons it isn't your get-rich-quick kind of investment If you're looking for turning into a millionaire overnite, this option isn't the right one for you.

It's a waiting game and it takes patience and perfect timing to come out with the best likely return with what you have invested. However, with a small exposure to hazards, your first investments could accelerate at a great speed inside seven to fifteen years. No accuracy of revenues determined Since the return of property investment could not be precisely counted and computed when not seen at its larger scale of details, you can't guess the genuine price of the property.

This only has effects on the determination of the yield though . But it might come pretty straightforward when you would like to know precisely where you are standing. Simply look at you're your statement and you will probably know your earning, just like in the market.

By: → Lou Brown

Top Secrets Real Estate Investors Use To Turbocharge Their Businesses

Thursday, October 11, 2012
Have you ever wondered why some real estate investors seem to make it all look so easy? We have all heard the stories about how one investor made over $100,000 in a week by flipping a house. Or maybe about how another one bought a multimillion dollar apartment complex and walked away with cash at closing.

So how do these people do it? And is it something the average person off the street can learn to do? Well, those are some of the same questions I had when I first started in the business. So I spent months of research and tens of thousands of dollars to learn what strategies these successful people use that the rest of us do not. What follows is a brief summary of what I learned. Some may surprise you, others may not. However, I found these to be common words of wisdom from every successful investor.

1. Real Estate Investing is a Business, Not a Hobby

Every successful real estate investor I know operates their endeavors strictly as a business, even if it's just a part-time thing. This means setting up a Corporation, S-Corp, Limited Liability Company, Limited Partnership, General Partnership, or typically some combination of these entities. Notice I didn't mention Sole-proprietor? Talk to a knowledgeable real estate attorney in you area for a better idea of which ones are right for you and your goals. Not only will the right entities protect you and your ASSets, but will allow you to take advantage of certain tax advantages you would otherwise not have. If you stop reading here and take no other advice from me please, please do this one.

2. Build A Team of Experts

Few, if any, business owners succeed without a team of experts to guide them. These people can save you a tremendous amount of time and money and possibly even legal problems. Your business team should consist of a good real estate attorney who understands the state laws and an accountant. I recommend finding an accountant who is also a real estate investor if possible.

You should also have a realtor in each area you are considering investing in, an appraiser, a home inspector, an escrow company, a mortgage broker, other investors, a general contractor, and an insurance agent. There are other specialist would should also consider for special cases such as an architect, a surveyor, environmental company, etc.

3. Have a Plan

Develop a business plan for your real estate investing venture even if you are not new to it. After all, this is a business and few really reach their potential without a good plan. I promise you, spending a few hours putting it down on paper will be well worth it. And it's always good to revisit your plan often to keep you on target.

4. Network, Network, Network

Real estate is people business. If you haven't done so already, get good at smoozing. Now I don't mean the used car salesman type where you do all the fast talking. Join your local real estate investment club, become a member of a church if you aren't already, volunteer with Habitat For Humanity, just get involved! Get to understand what the seller's or buyer's needs are. This means listening! Get to know what other investors are looking for and who the local "players" are. You may be able to do a partnership on a deal or refer them to a deal that may not be exactly what you're looking for. Above all, treat everyone you meet with respect whether they're your team, sellers, or buyers and they will respect you. If you do these things, more deals will come your way than you can possibly handle. I can think of a lot worse problems to have!

5. Know Your Market

Spend some time getting to know the areas where you plan to invest. Go to some open houses and talk to the agents. Drive the neighborhood and look for the "For Sale By Owner" signs otherwise known as FSBOs. Look for homes that appear vacant or in disrepair. Learn how much homes go for in the area and what the local trends are. Talk to some the local residents and learn what the community is like. Is there crime in the area, how good are the schools, is the area growing, what are the local demographics? This information will serve you well when it comes time to invest.

6. Never Buy A Property Without At Least One Solid Exit Strategy

In real estate, you make your money when you buy, not when you sell. So what am I trying to say here? For each offer you make, you should know exactly how you are going to make your money from it. It could be as a rental for which you should have a positive monthly cash flow. It could be as a rehab and flip for a profit. Or maybe you may offer it as a lease with an option to buy. Or, it could be hold for the equity growth. Run your numbers for each strategy. If the numbers don't work, don't do the deal no matter how much you like the property!

7. Treat Your Agents Like Gold

Real estate agents can make or break your business and a good one is worth their weight in gold. They will do much of the legwork for you and bring you potential deals. They know their areas inside and out and can steer you away from potential problems. They will even find you buyers for your properties as well as show it while you are out looking for more deals. And, they work only for commissions based on the sales price of properties that sell.

However, most real estate investors don't buy and sometimes don't sell property at full market prices. This could directly affect your agent's commission and their motivation to support what you want can diminish. I suggest paying your agents commissions based on market price regardless of the ultimate sales price. Yes, it may impact your profits some but you'll have a very loyal agent. And guess who gets the first phone call when hot property comes up!

8. Don't Be A Hog

The old saying goes, "Pigs get fat, and hogs get slaughtered." The saying holds true in real estate investing as well. Many new investors make the mistake of trying to squeeze out the maximum profit out of every deal and then wonder why they can't find any buyers. Don't be afraid to leave something on the table for the next guy, especially if you're selling to other investors. It's better to make a lot of smaller profits over and over than it is to make one big profit. This strategy should have potential buyers lining up at your door when you have a property to sell.

9. Give Away 10-15% of Everything You Make

I can hear you now, "He said what?!" That's right, give away 10-15% of everything you make. How you decide to do it is up to you, but I warn you, you may have to get creative. Steve, a mentor of mine follows this rule like a religion. In fact, on his very first deal he made about $5,000 which he need desperately, since he had recently lost his job. He was nearly bankrupt but still decided to give away some of his profits. He decided to buy his pastor a new suit, something he had never had in his life. Even though Steve was excited about making the money, the look on his pastor's face when he wore it for the first time made him feel ten times better. By the way, word got around very quickly and before you know it, he had three more deals in the works that profited much, much more.

10. Offers, Offers, Offers!

You'll never make any money if you don't first start with an offer. But for some reason, this seems to be the biggest hurdle for most new investors. I like to use the "Fire, Aim, Ready" approach to making an offer. Don't spend a lot of time trying to figure out what the perfect offer will be, just make one. Most of my offers are made without ever having seen the property. Remember, if the first offer doesn't embarrass you, it's too high. I know of a very successful real estate investor in the Tampa area who once offered $1 for a $14 million golf course! Okay, so he eventually bought it for a little over $2 million and the resold it a couple of weeks later for a tiddy profit. It's only after you have the property under contract that you should spend the time to determine if the price is right or not. Most successful investors will make 25 or more offers a week of which maybe only two or three may eventually end being accepted. Of those, maybe one will make it to closing. But let's see, one deal a week, $5-10,000 profit each....you get the picture.

11. Have Fun

Like any business, real estate investing has its challenges. Sometimes deals fall through at the last minute, renters can be a real pain, or you find out about the sewer line collapsing at one of your properties that needs $15,000 in unexpected expenses to fix it. There will always be obstacles to overcome but the rewards can be well worth it. So have fun with it! If you truly enjoy it, it will show on you and suddenly the problems don't seem like such a big deal anymore.

There are many more tricks to the trade depending upon which niche you decide to invest in. But the basics are the same across the board. Apply these secrets and you too can become the next multimillionaire!

By: → Troy Thomason

Real Estate Investment Trusts (REITs) – a Different Way to Invest in Real Estate

Thursday, October 4, 2012
Real Estate Investment Trusts are securities that invest into real estate and can be traded on the major exchanges or held in a private trust for individual investors. Individuals can invest into REIT's by buying the shares of mutual funds or shares of a non-traded REIT.

Some REIT's invest into a mix of real estate types, while others focus on an industry segment such as hospitality or medical facilities. This flexibility gives investors the opportunity to diversify their overall portfolio and then also within the asset class of real estate by choosing REIT's that invest into various industry parts.

Advantages

High Yields- Many investors are attracted to REIT's for their high interest rate yields. REIT's have on average shown investors an 8% rate of return over the past 10 years, although the returns can be as high as 15% depending on the structure and the portfolio's holdings. These high yields can be reinvested or taken as a current income stream depending on the investor's financial objectives.

Flexibility- Many investors are interested in owning real estate as a portion of their portfolio, yet they are not interested in owning real property. Owning REIT's allows an investor the opportunity to own real estate without owning real property, and with the added flexibility of being able to liquidate traded shares quickly on the market. Also, investors who do not have the capital to buy a property on their own in cash can do so by pooling their investment capital with other investors.

Diversification- Real estate is considered to be its own asset class and when added to a portfolio's mix, it can provide for additional diversification for an investor. Traded REIT's will react to the supply and demand factors of the market, while non- traded REIT's do not, and can offer a more stable investment choice for investors who are looking to buy and hold real estate. Overall, REIT's can offer an important diversification piece for an investor's portfolio.

Disadvantages

Liquidity- Some REIT's are not publicly traded, making them more challenging to liquidate. Non-publicly traded REIT's are designed for an investor with a longer term investment objective and time frame; it is typically recommended for most non-traded REIT's to have a 5-15 year time frame before they require access to their investment capital.

Inverse Relationship to Interest Rates- REIT's have an inverse relationship to interest rates within an economy; when interest rates are rising, the rate of returns on REIT's will decline and vice versa. If the investor owns a REIT that is not publicly traded when interest rates become unfavorable, it may be challenging to liquidate the investment to reposition their portfolio. If the REIT is traded, it will be easier for the investor to reposition their portfolio accordingly to interest rate movements in the economy.

When is a Good Time to Buy?

Generally speaking, like other investments, the best time to buy REIT's is at a low price compared with earnings. One needs to consider the yield and dividend payouts as well.

By: → James Vignione

How To Build A Successful Real Estate Website

Thursday, September 27, 2012
Do you want to build a successful real estate website that is going to bring in more real estate leads than you know what to do with? If you said yes, then you are in luck. We are going to talk about different ways that you can increase the leads to your real estate website, and in the end, be more successful than you ever dreamed of.

After all, there is a big market out there for real estate right now. However, just because there is a big market out there does not mean that you are going to do good. You have to first generate a lot of leads to your website. So now we are going to talk about tips that can help make your website the best that it can be, and get the most out of it as well.

The first thing that you are going to want to do for your real estate website is to build a landing page. A landing page is the page that your leads are going to land on when they click on one of your many ads. It is very important to have your landing page be different than your home page. That is because a landing page is just suppose to give a little bit more information on what the ad was talking about. If you take them right to your website they are going to get overwhelmed. The best way to get leads is to break them in easy.

Next, create a lot of keywords rich pages for your real estate website. To look for keywords that are searched for the most, you can go to any search engine and look for their most searched keywords.

However I recommend to use keywords research tools like keywords discovery to identify keywords related to your niche or location. You are going to want to work these keywords into the text of your website. Another great thing that you can do is to include these keywords into the title and subheadings of your website. When search engines search sites, the main thing that they look for is headings.

Next, you need to make sure that you increase your link popularity. The idea is to get inbound links on many relevant websites as possible. The more links that you have out there, the better. This is how search engines will rank your site. So not only will you get a lot of leads from the search engines, but you will get a lot of leads from the links you have out there pointing to your website. I like to use article marketing to build my link popularity. The key is to submit 2-3 articles each day. Your articles will act like a viral marketing tool spreading your links all over the internet.

Nowadays Realtors who aren't utilizing the internet as a key marketing tool are really missing the boat. Statistics show that internet users looking for a home online are increasing steadily and that is not going to change anytime soon.

By: → Serge Dandelin

Real Estate Investment Loans

Friday, September 21, 2012
A loan on secured by real estate collateral is typically known as a mortgage. This is the most popular form of real estate investment loan used by investors. Real estate investments provide an opportunity to generate cash flow. Apart from commercial banks, savings banks, savings and loan associations, credit unions, real estate investment loans can also be obtained from insurance companies, mortgage bankers, mortgage trusts, investment trusts, pension funds and finance lenders. Private individuals sometimes offer real estate investment loans as well.

There are 2 types of real estate investment loans — residential loans and commercial loans. Property that is solely used for business purposes like malls or industrial parks would be termed as commercial real estate. Commercial loans include buildings, warehouses, and stores. These properties are generally 5 or more units. Property that is solely used for single unit housing purposes is termed as residential real estate. Residential loans include those properties that are bought for rental income and future appreciation. The borrower initially receives a lump sum from the lender, which has to be paid back in installments. To purchase a residential property involves having significant funds. Before a loan is granted the 3 main factors that are considered are, the investor’s income, credit scores and reserves. In order to get a loan there are 5 basic essentials, which are interest rate, terms, payment, final value and principal. Loans can carry a fixed interest rate or rates that vary with market conditions. Some loans have negative amortization periods; investors should be careful of such loans.

Real estate investment loans consist of interim loans, short-term loans and long-term loans. Apart from commercial and residential loans, the other types of loans that are offered are construction debt, permanent debt, equity financing, structured financing, interim financing, mezzanine financing, foreclosure investor money, hard money loans and residential repair funding.

Investors may not need perfect credit scores to qualify for real estate investment loans. Bad credit real estate loans are designed for those individuals who have a less than perfect credit report. It is a type of sub prime mortgage and is a higher risk to the mortgage lender because of the past credit history of the borrower. Bad credit loans allow individuals to obtain a mortgage for buying real estate when other more conventional mortgage lenders or banks may have turned them down.

The longer the tenure of a loan; the higher the rate of interest will be. A 30 year fixed loan will have a higher rate of interest than a 2-year fixed loan. But people generally opt for a loan with a shorter-term fixed option, as the rate of interest is lower and hence the monthly payment is lower. To get a loan there are no pre-determined limits set for the real estate investor.

Some real estate investors tend to prefer in marketable real estate assets. Buying shares in a REIT (Real Estate Investment Trust) is one way to do this. Investment loans can be use to partially fund such investments and the REIT shares are used as collateral to secure such loans.

By: → Kris

Real Estate Investment For Beginners

Friday, September 14, 2012
As a real estate broker, I often meet self-identified real estate investors. When I speak to these people, I usually find that they are either true investors or real estate “investors.” The difference is that the real estate “investor” often has never actually bought an investment property. They often downplay the difficulties of real estate investment, and they generally are very eager to peddle their “expert knowledge.” The true investor is usually experienced and is privy to a few basic facts:

1) It’s not TV

“Flip This House” is great television – but is about as realistic as “Sponge Bob Square Pants.” “Flip This House” will show you a tidy $150,000 profit wrapped up in a 30 minute episode because viewers want to see the money and not the work involved. Real investing is very lucrative, but investors also spend years honing skills and market knowledge that lets them find properties under market value.

2) Walk before you run.

Too many investors start with high-risk properties, which is a little like deciding to run a marathon when you’re a couch potato. In both cases, you’re likely to get hurt. New investors need to start small and learn to minimize risk while lowering variable costs. For example, new investors are better off buying a property that’s already rented out to credit-worthy, long-term tenants. For a first time rehab project, buy the house as your home or build in at least 6 months of carrying costs. Once you have made a few deals, you will have the experience for bigger investments.

3) Investment is Long Term

Many new investors assume that they can make quick money by flipping houses, but unless you make 1031 exchange work for you, flipping results in short term capital gains only. Savvy investors focus on income producing properties. They purchase property in a market that seems likely to appreciate, hire a property management company, and let checks come in monthly for several years. The passive income lets them earn consistently while property value rises.

4) Use a Realtor Wisely.

Research realtors until you find one who not only works with investors but makes good investments themselves. Don’t make the mistake that many new “investors” make by going after the agent’s commission. You want a realtor to be on your side.

5) Work With a Business Plan.

All successful professionals and companies have business plans – and you should, too. Determine what properties you are interested in, how much money you can make, how much money a property will cost to buy and maintain and decide your business goals. Work on paper, coming up with every possible expense and writing down how to minimize risks or any problems that may crop up. Once you have a plan, don’t waver from it.

6) Take Action!

You can’t make money if you don’t invest. Once you have your business plan and you see a property that looks like a good deal, take out an option period. In Texas, you can get a 10 day option period for $100 in many cases, which gives you plenty of time to research and snap up a great opportunity.

7) Talk Yourself Out of the Deal

Once you have contracted a property that fits your business plan, play devil’s advocate. Working on paper, come up with everything that could go wrong and what you can do if something negative does happen. If there are negatives that you can’t mitigate, walk away. You want a property that will make you money no matter what, so that if the worst does happen you won’t be ruined.

Not everyone claiming to be a real estate “investor” actually is one. Following these simple steps and learning from successful investors can make you one of the few who do and not the many that merely talk.

By: → Eric Bramlett

Ways To Finance For Real Estate Investment

Friday, September 7, 2012
Real Estate Investment is now treated as a major case of capital budgeting by using state-of-the-art investment analysis which incorporates the future stream of income it may generate and the associated risk adjustments. There are many ways to finance a real estate investment. Some investors may find it easy to get a loan for a good investment property. Others do not want to use standard real estate financing to buy a property. They would rather use creative financing. You can use any method to finance your real estate deal. As long as you remember there is never something for nothing in the real estate market you will do well.

When you find a property you want to buy the first thing you must look at is how you plan on financing the purchase. This can be in the form of a conventional loan. It is hard to get a lender to take this kind of risk unless you have perfect credit. There must be equity in the home. This may mean coming up with a down payment. You may be able to skip this if you are buying the home at far below the market value. The other problem with a conventional loan is the pre-payment penalties most banks impose. When buying a home to resell, you do not want to have your profits go into making a substantial early interest penalty payment. It makes sense to use this type of loan when you are buying the house as a rental property. For someone who is determined to flip the house, the conventional route is not the way to go.

The adjustable rate mortgage may be more to the liking of an investor wanting to flip a house. The terms of the loan can be negotiated so the maturity is in 3 to 6 months. This allows the loan to be paid off without the interest penalties. Some states, like North Carolina have legislation which does not allow the finance company to charge a prepayment penalty for loans under $150,000. You should check the local area laws to see what your finance companies are allowed to do. There are also loans available for the investor. The interest only loans are good for someone who wants to only keep the property for a short time. The payments are calculated on the interest of the loan. This can be beneficial to someone who is buying the property to fix it up and resell it.

It is important to know what is on your credit file before you find a piece of real estate you want to finance. This way you can fix any errors which may reflect badly on your credit score. You can also know what the lender is looking at to determine the risk of loaning to you. Generally someone with a credit score of 640 or above should have no problems getting a loan. The higher the score the better your chances are for getting approval. Some of the other things the lender will consider is the value of the property, the amount you have to put into it, and the location. Properties in distressed areas are harder to get loans for than an area which is growing.

Real estate finance is not difficult to understand. It pays to educate yourself with the options available. Speaking with a loan officer can help. It pays to have a friend in the finance industry anyways when you are investing in real estate.

By: → Kim Lee

Secret Real Estate Investment Strategy

Saturday, September 1, 2012
Probate real estate investing is a special niche not many investors know about. This investment strategy involves buying real estate held in probate. Probate is the legal process used to distribute estate assets of a person who has died. In the best cases, probate takes about six months to settle. If complex issues or family disputes surround the estate, probate can drag on for years.

Probate real estate investing can provide a solution to heirs needing to sell real estate before probate settles. There can be many reasons heirs need to liquidate real estate holdings. One of the most common is the estate has insufficient funds to maintain the property.

Throughout the probate process the estate is responsible for property related expenses. If the decedent held a mortgage, the estate must continue making mortgage payments in order to avoid foreclosure. Additional expenses include homeowner's insurance, property taxes, utilities and homeowner's association dues.

Oftentimes, heirs reside out of town and cannot manage property upkeep. The estate will have to hire outside help to handle general maintenance such as lawn and pool care. If the estate cannot afford the care, the house could quickly become an eyesore and lose value.

The majority of heirs do not know they can sell real estate holdings during the probate process. Some states require court confirmation prior to selling probate property. Experts recommend working with an attorney when buying or selling real estate suspended in probate.

There are no special requirements for probate real estate investing. However, it is important to conduct research and understand the judicial process before diving in. Probate properties may not be the best option for a first-time real estate deal.

The first step of probate real estate investing involves making a trip to the local courthouse where probate cases are handled. Probated estates are a matter of public record and can be viewed by anyone.

Most of the required information can be found in the decedent's last will and testament. The Will includes contact information for the estate administrator, along with the decedent's wishes for distribution of assets and personal belongings.

Information regarding real estate is also contained within the Will. Conduct a search of deed records on the property. Records of Deed document land ownership and transactions. Every time real estate is transferred or sold, a new deed is recorded. Records of Deed disclose if the property has a mortgage note. If so, the estate may need to sell the property quickly.

The estate administrator is authorized to make decisions on behalf of the estate. However, if multiple heirs are entitled to the property they must all be in agreement before the sale can commence. If court confirmation is required, the sale might be postponed by 30 days or longer.

By carefully searching through information provided in Wills and probate documents, investors can develop a list of potential candidates. Initial contact will be made with the estate administrator. This can be done by phone, mail or in-person.

For obvious reasons, it is important to be respectful and offer your sincere condolences. Offering to purchase their real estate holdings could provide a solution they did not know existed.

This is a simplified overview of probate real estate investing. This niche offers endless possibilities and currently, is a technique few investors are using. Take time to become educated about investing in probate properties and learn the ropes. Doing so could pay off with handsome profits.

By: → Simon Volkov

Buying Real Estate Investment Property For Retirement

Tuesday, August 28, 2012
What is the difference between rich and wealthy? The difference could be described as either working for a living or your money working for your living. In other words, when you are wealthy, your money works for you such as real estate property providing a cash flow so you do not have to work an 8 to 5 job. That is being wealthy.

It stands to reason that the purchase of a rental property today can make your retirement comfortable because the added income is a positive cash flow. Achieving financial wealth through real estate investments is long term, and can be risky if you don’t do your homework.

There are so many get rich quick scams out there, and some of them are get rich quick using real estate investments. Some of those infomercials are really so much hot air. They have the right idea but the wrong way to achieve it. That is why it is crucial to work with your tax advisor and a knowledgeable real estate professional rather than taking advice from an infomercial at one o’clock in the morning.

The problem most people face at retirement is that the cost of living has gone up faster than the increase in their 401K. Investment property can make a huge difference at not only what you can do when retired but also when you can retire. Working an 8 to 5 job generally does not allow you to save enough out of each pay check to acquire real wealth. Even those high paid executives can fall into a security trap thinking their income is assured, so therefore their retirement is assured. We don’t have to look any further than Enron or Worldcom to know that nothing is totally assured in this life; which is why you need to take control of your life and your retirement.

If you were to take $50,000 and use it as a 10% down payment on a $500,000 investment property, assuming: a breakeven cash flow and not including any tax credits or tax breaks, the value of the property appreciating over 20 years, the value of the property would be three times as much as when first purchased. That means that your initial investment of $50,000 has equity of over $1,400,000.

Take that same investment of $50,000 to a market fund or other bond-type, non-risk investment, and you can expect an 8% to 10% increase on average. After 20 years, you would realize $266,000 to $366,000.

When you put it into perspective in a real life type of comparison like this, you can see that real estate investment can provide a very lucrative retirement with little or no risk to you. The added benefit is that you are able to leave a nice legacy to your loved ones which is priceless.

By: → Alex Anderson

Real Estate Investment Loan – Two Critical Things To Consider

Saturday, August 25, 2012
Have you ever wondered why some real estate investors fail to meet their monthly bank instalments for their real estate investment loans or why their once stellar real estate investment has gone sour? This article will cover two critical external factors attributable to Real Estate Investment Loans that can affect the viability of your Real Estate Investment.

1.Interest Rates

One of the key advantages of Real Estate Investment over other types of investing is the ready access of information available through the traditional print media and the internet. If you do not know much about macro-economics, the first basic bit of economics that you can learn relating to your Real Estate Investment Loan, is the effect of an interest rate rise and whether there is going to be a rise and why and when. A rising interest rate may eat into your monthly cashflow and erode your earnings so it would be wise to spend some time thinking about the effect of a change in the interest rate on your current investment situation.

When choosing a Real Estate Investment Loan, you want to have an eye on current interest rates, future interest rates and the penalty that you might have to pay should you want to refinance your loan later to take advantage of a subsequently lower interest rate. So an obvious thing to do is to get a fixed interest rate, if you think that the interest rates are going to be higher in the next few months. The way to analyze this is to spend some time reading the business part of the newspapers to consider how monetary policy in the Federal Reserve is going to be in the next few months. This explains why some financial institutions and large property developers hire former Federal Reserve executives to tap on their expertise in understanding Federal Reserve Policy.

Another related interest rate investment strategy pertaining to Real Estate Investment Loans is to buy the property “subject to the existing mortgage” if the mortgage was locked in at a lower interest rate than the prevailing market rate. This particular strategy works well in a rising interest rate situation. Remember that a slight percentage increase may translate into a large jump in the amount of interest that you are paying so it would be wise to do your maths and get a friend to double check it before you leap into a deal.

2.Rental Yields

The most common indicator and thing that people would know about rental yield if you ask them is the Return on Investment (ROI). This is the annual rental as a percentage of the total cost of the property. So for example if I had paid $100,000 for the property and I recoup $10,000 per annum, my ROI would be 10%. Note that as a quick rule of thumb this also means that (excluding interest), you would fully pay up your property in ten years if you apply the full rental proceeds to servicing your real estate investment loan.

However, ROI is not the end all and be all of the analysis, another consideration when analyzing Rental Yield is not only the current or past rental yields but the future rental yields. Thus in order to do future projections, we need to study the property cycle of the target country and examine economic factors which may affect supply and demand of rental property in the area.

For example, let’s say that we deem a particular Real Estate Investment viable this year for the purposes of cash flow and get a Real Estate Investment Loan. But what the you might have not considered is that you bought the property at a high in the property cycle and rental demand might go back to normal levels thereafter, rendering your so called Real Estate Investment in negative cash flow territory. So we can observe that you need to learn about the potential downside of your investment and do your sums carefully before you embark on getting your Real Estate Investment Loan.

In conclusion, having a good understanding of interest rates and rental yields will enable you to profit from Real Estate Investment and as such it would be imperative to learn all you can about these things in your target market so as to maximize your profits and yields. Investing in property when viewed in this light can be said to be a science and it sometimes is best to treat it as such so as to remain detached when deciding on whether to enter into a deal.

By: → Joel Teo

Basic Rules Of Preconstruction Investment Real Estate

Tuesday, August 21, 2012
Although the preconstruction real estate investing option has been around for many years and is nothing new, it just recently became well known to the masses and real estate investors all over the world are scouring the web for the best new construction and preconstruction real estate projects in areas where real estate prices are skyrocketing (Baja Mexico, Costa Rica, Bulgaria, Cabo San Lucas, Orlando). While the sudden increase in demand has influenced many legitimate developers to offer more projects and developments, it has also seen the emergence of many ill-prepared developers into the market. Here are just a few ways you can properly screen your preconstruction real estate developer / brokerage and make sure you are not signing with a less then reputable developer:

1. Read Small Print – Before investing in a development, be sure not to fall victim to the curse of the small print. Avoid ending up the subject of those horror stories about real estate investors who are suckered into scandalous contracts with real estate developers. Some real estate developers will not let you sell the property until years after it is finished and others will charge huge penalties if the property is sold early. Always, have an attorney look at every contract before you sign anything.

2. Find a Preconstruction Brokerage – Unless you are VERY well connected in the area's preconstruction market, it's a good idea to go through a real estate brokerage that specializes in preconstruction real estate developments. There are several reasons why using a quality brokerage can help you, but most importantly, they know the developers and can discern between which can ensure quality and which are "accident prone".

3. Research the Developer's Past Projects – If the developer has had huge delays in past preconstruction projects, it will probably happen in the next several projects. Remember that your time is money – even if you get your full deposit back 2 years later, because of constant delays you may lose hundreds of thousands of dollars worth of wasted time and resources.

***Note*** As real estate developers have learned that the word "preconstruction" alone can sell out a project, they have created a new trend in the industry by labeling every phase of the project a "preconstruction phase." Often these are low-quality condo conversions or condotels that are not worth half the asking price. BE SURE you are buying in the actual preconstruction phase before purchasing!!!

Just remember, the bigger the preconstruction real estate market gets, the more you have to watch out for fly-by-night developers and unethical brokerages that don't have your best interests in mind.

By: → Phil Laboon

Making Money With Las Vegas Real Estate Investment

Friday, August 17, 2012
Las Vegas in the state of Nevada remains today ever more than before one of the top real estate investment locations in the United States. Many real estate investors have been flocking into the state to invest in property in the area and there is a good chance that the growth of the gaming industry there will continue to spur economic growth.

This article will highlight three areas to consider when choosing your next property investment in Las Vegas.

Firstly, consider proximity of your property to the strip or even better purchase an apartment in the Casino itself. In real estate investment, the prime indicator of capital growth is rental yield. By purchasing a property near to the strip, your occupancy rate and rental yield of your property would be higher than say a little near the fringe of town. The latest developments by W Hotels & Resorts feature for instance apartments that they rent out on your behalf and you collect the rental proceeds.

Secondly, city rejuvenation projects may also provide an avenue for growth. The city realising that much of the human population in Nevada started to migrate away from the city centre and so has embarked on a redevelopment project so as to attract the crowd back to the city centre. One of the tenets of real estate investment is to invest in the path of progress and you might want to invest in properties that are in the newly redeveloped areas in that part of Nevada.

Thirdly, remember the impact of Nellis Air Force Base. This base remains one of the drivers of the need for services in Nevada and commercial property surrounding the area may provide somewhat good rental yields for companies and businesses that wish to provide services to the base employees.

In conclusion, Nevada today ever that before, remains an important investment area for real estate investment in the United States with the ever increasing tourist traffic and convention traffic flooding into the area. Spending some time considering real estate investing in Las Vegas is therefore going to be a profitable thing for you this weekend. Start taking some massive action today and your financial future awaits you.

By: → Joel Teo

Property & Real Estate Investment in Egypt

Monday, August 13, 2012
The main reasons Egypt is so popular with property investors are its stable economy and comfortable standard of living. At present the price of property in Egypt is still within the means of many buyers, however as prospective investors realize the countries potential these prices are anticipated to grow rapidly.

Seen as an emerging property market, Egypt has already demonstrated strong returns for those who invested early, some have reached 20-30% per year depending on the area. The government has stepped up its promotion of the country and is dedicated to modernizing Egypt’s communications and transportation networks in preparation for the arrival of visitors to the country.

The popular Red Sea coastal resorts and main cities of Cairo, Luxor and Alexandria have received the main attention from overseas property investors. Various development projects are underway or have already been completed in the coastal resort regions. Due to this there has been an increase in tourism leading to a significant boost in demand for property in Hurghada, Sharm El Sheikh, El Gouna and Marsa Alam.

What has caused Egypt to become more popular during the last few years? Generally, people are drawn here for its interesting and exotic culture and traditions, yet it also manages to be modern in its provision of amenities. Egypt has the advantage of being just a short flight away from most major European cities, it can offer the ideal climate, has a stunning coastline and a broad range of activities and sights. Currently the country has a healthy economy and the government is energetic in its promotion of the country to tourists and visitors, these are just some of the basic ingredients needed for investors looking for long term returns from property in Egypt.

As Egypt receives more visitors each year, the demand for high generating short term holiday rentals increases and with a year round warm climate the continual holiday rental is also positive. Budget airlines have already organized flights to the Mediterranean and Red Sea resorts, minimizing the time the journey takes and the cost. There are regular flights operated by British Airways and Egypt Air between Heathrow and Cairo International Airport where a connecting internal flight can then be taken to the coastal resorts of Sharm el Sheikh, Marsa Alam, Hurghada and Taba.

Over the long term, investment opportunities for Egypt real estate are positive, for anyone thinking of investing in property here this is the best time to do something about it as the economy is steady. The Egyptian government is busy marketing the country to overseas investors through tax breaks and a simplified purchasing procedure. The costs of labor in Egypt are low, the standard of living economical and tourism levels are on the increase.

Spain and Turkey have been the leading destinations for property investment for many years, however that is changing as Egypt emerges as a promising destination for investment purposes. As Egyptian resorts continue to provide first rate amenities and the number of visitor’s increases the potential for rental returns is high.

By: → Michiel Van Kets

Commercial Real Estate Investment Overview

Wednesday, August 8, 2012
Commercial real estate investing is an exciting and rewarding industry that yields results to which no other industry can quite compare. In fact, commercial real estate is one of the easiest ways to become extremely wealthy with limited knowledge, personal financial investment and time.

With commercial real estate you are able to return millions of dollars within a matter of a few years, and use other professionals to make it happen. If you can find the deals, get financing, and find the people to do the work, you are officially a commercial real estate investor. Below you will find 5 basic steps that involve commercial real estate investing. It may be simple- almost too simple. However, commercial real estate investors follow these basic guidelines often.

The first step in becoming a commercial real estate investor is to locate actual deals. This can be done through finding potential properties on the internet, the local newspaper, brokers and agents, and for sale by owner (FSBO) signs. There are so many places to locate properties. Be sure to set criteria for the properties that you are going to work with such as type of property, price as compared to actual value, size of lot or building, number of units, condition, etc. Keep in mind that the properties where you can create value that does not currently exist are the best properties with which to start. Once you become a seasoned investor, you can then purchase properties just for their income. Until then, you must perform the work to increase the value of a property.

The second step is to prescreen properties according to the guidelines you originally stated. It may take calling on several properties to find one that fits your specific criteria. Establish quick identifiers so you can quickly move through properties that do not fit your criteria, and uncover the ones in which you would be interested. The more properties you filter through, the more likely you are going to find the deals that will return the best results.

The third step to commercial real estate investing is, after you locate and prescreen a property that you feel is workable under your guidelines, you must create and submit an offer. There are many ways to purchase a property. Using seller financing, borrowing from banks, and using commercial lenders or private lenders are all viable options. The idea is to use other people's money (OPM) to purchase the property you want. This can be done quite easily by understanding the lender's criteria. Meeting seller's wants and needs can be as simple as asking. Remember that the asking price is not always what a seller is expecting to get, so be sure to perform solid research before constructing and submitting an offer. It is a must to identify the current market value of a property that you are considering to buy.

The fourth step is to follow-up with solid due diligence. This entails getting every bit of information you can on a property including actual highest and best use, after developed or future value, any issues or concerns there might be with the soil or environment, or the city or municipality. This is your time to verify all the information you either have been told, or have assumed prior to submitting the offer. This is also your time to locate financing, if you find that the deal is as you had thought originally. This is perhaps the most crucial step, as it will save you from making a terrible investment that could cost you wasted time, effort and money.

The final step is following through with your exit strategy. Depending on what type of investment strategy you are currently using, such as buying properties in poor condition and fixing them up, or perhaps you are looking to purchase properties only to have them generate income, an exit strategy is necessary. You could quick turn a property after increasing the value, sell at retail, or even refinance. It is always a good idea to have multiple exit strategies in mind so that, if one does not work out, you have others to fall back on.

As you can see, commercial real estate investing is really not that difficult of a process. In fact, when you follow these five easy steps you will gain more knowledge regarding various types of commercial properties and how to best obtain financing. You can become a successful investor. Don't ever think that this industry is unobtainable by those not yet educated in the world of commercial real estate. I urge you to continue your pursuit as a commercial real estate investor so you, too, can live the life of your dreams.

By: → Tony Seruga, Yolanda Seruga, And Yolanda Bishop

Real Estate Investment – Three Ways To Success

Saturday, August 4, 2012
If you ever wondered about the most profitable investment avenue, real estate investment comes out tops. Did you know why? As population rises, demand for services and quality living space is bound to grow. Families would look for residences and business would want more offices. Naturally then, owning a piece of real estate would bring higher returns in the form of rental income and capital appreciation over time to beat inflation.

Before you jump at the friendly next-door real estate agent with dreams of cornering a property in the most glamorous district in the city, do your groundwork well. Here are three simple ways to success with real estate investment.

• Determine your time span and budgetary constraints.

• Do a thorough research on the investment.

• Stay motivated to make real estate investment an ongoing habit.

The first step in your attempt to invest in property consists of making a realistic estimate about your finances. You need not save up for the entire value of the property. Even if you decide to purchase a mortgage, the lender would first ask for your financial position. So, calculate your present and potential future earnings, deduct living expenses, payment for other debts and outflows for savings. You can find out the sum you would be ready to pay monthly towards home purchase.

You should calculate the probable number of years for which you could invest in real estate. This puts a dollar value on your capacity to invest and removes ambiguity.

The second step is the most crucial and time-consuming. You must perform a detailed study of the trends in the real estate market. A few rules of thumb are:

• Concentrate your search closer to your area or at least within your state.

• Look for growth potential in upcoming areas.

• Personally inspect the property and the area a couple of times before making the decision.

• Consider areas with good infrastructure as these bring higher rentals.

Investing in real estate should not be a one-off affair. You must imagine property as a component of your investment portfolio. Hence, you must remain an active investor. Keep watching the trend and move out of unprofitable areas to more lucrative ones. Do not be disheartened by the occasional losses. With time and experience, you would make better choices.

Real estate investment calls for careful planning and methodical execution. It is the best way to make your hard-earned money multiply faster and easier. If you did your preparation well, it would be impossible to go wrong.

By: → Joel Teo

Real Estate Investment: A Way To Secure Your Future

Wednesday, August 1, 2012
It’s commonly seen that people take longer time before investing in certain expensive items. They make lots of investigations regarding their purchase. Only when all their queries are answered than they agree to invest in the particular purchase. Similarly, investment in land requires an equally careful investigation on part of the buyers. Besides, a lot depends on whom you purchase the land from.

Purchasing land is like purchasing gold. You ought to be aware of its fluctuating prices. Since land prices are always registering an upward rise in the graph, its best to invest in purchasing it without much hesitation. This should be done, of course, not at the cost of overlooking other relevant factors i.e. a buyer has a limited budget and further delay on his part can often result in his inability to purchase his desired land. Moreover, once a land is purchased, the owner always has the golden opportunity to sell it off at an enormous profit. Land prices are always soaring high and so the buyer can enjoy great profit whenever he sells it!

It is very necessary for the buyer to approach the right person from whom he wants to purchase his land. In the present day scenario, approaching a real estate firm would be suggestible. A number of firms offer lands at below market value and assist buyers to purchase lands with built-in equity. Besides, buyers are also offered consultation services with regard to the transaction. They are welcome to make the required investigation with regard to their purchase. The legal formalities, too, are taken care of by these firms. Hence, purchasing land has become an easier and hassle-free task.

Those interested in purchasing land should make no further delays. Always remember that land is an asset that everyone wants to covet as much as possible. Quite a number of established real estate firms like the Arizona Land Wholesalers offer quality real estate property in Arizona. Investing in real estate is always a safe bet compared to investing in the stock market. Judging by present market statistics, land prices are going to rise further in the near future. It’s now the best time for buyers to purchase lands with future profit in mind.

By: → Suzanne Macguire