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