What Everybody Ought To Know - About Real Estate Investment

What Kind Of Properties Are Real Estate Investors Looking For?

2007-06-07T00:29:00.000+07:00

There are several categories of real estate available for an investor. The easiest for a beginning investor to understand and participate in is the single-family home. Why?

1. Homeownership in America is approaching 70%.

2. They are the highest demand type of property.

3. They sell quicker than other kinds of property.

4. Prospective purchasers have the widest range of financing programs available to them, making the property easier to purchase. If the property does not sell in a reasonable amount of time, it can be rented.

Ugly Properties:

Why should you buy the ugly duckling?

The best property to buy is an ugly one. Look for the property that has never been "updated" or improved or one that has been improved, in a very tacky way. Don't be deterred by the pet urine, feces, or mice droppings. Where some see damage and odor, you should see dollars and opportunity. Ugly ducklings are the properties that have the least competition, houses that can be fixed up by remodeling, not by rebuilding. Many people are scared about things like leaking roofs and broken windows. Be happy to see those things. They'll discourage most inexperienced investors from purchasing the property. In many areas, you will be competing for some deals with "do-it-yourself" homeowners.

They may outbid you simply because they figure they can buy a home for $50,000.00 that will be worth $70,000.00 when they're done fixing it up. It never occurs to them that they will spend $10,000.00 for materials and professional labor, one to two years working on it, and live in a construction zone the whole time. The oddest thing about it is that most people will sell the home when they're done, thinking they did great (although they really broke even) and start the process again.

Buy, flip and sell works best in a 90-120 day time frame, with professional contractors quickly completing decorating, repairs, and renovations.

Where do go to meet the like mind people to get trained in the investing business?

There are Real Estate Investor Association all over the US. Many of this assoications are non profit. They are usually refered to as a REIA. Investor groups are for purpose of investor education, networking, and training. They bring national and local real estate experts to their meetings. They have training on wide topics like: foreclosures, pre-foreclosures, land lording, rent to own, lease options, short sales, deed offs, credit, wholesaling, find, fix, and sell, private money, lines of credit, and accounting. These are just a few of the topics they speak on.

How do you find a Real estate investors association or groups in yourr area?

You can go on line to one one of major search engines. Type in the one of follow words with your local City name: REIA, Real Estate Investing Clubs, Real Estate Investment Association, REIAs, Real Estate Investing Classes, Real Estate Investing Groups, Landlord Club, Real Estate Mentoring Programs, Foreclosure Boot Camp, Real Estate Training Classes, Real Estate Seminars, Real Estate Schools, Real Estate Courses, Real Estate Investing Network, Real Estate Conventions, Real Estate Boot Camps, and Real Estate Forums. Using a search engine as search for topic like how to find a boot camp or class on foreclosures in the state or city you are in works great.

By Ralph Maupin

Ralph Marcus Maupin, Jr. Nick Name ‘Mark’ is one of founders of National Real Estate Network LLC. He teaches real estate investing for college. You will find many free resources such as: Free Real Estate Forms, Terms, Articles and Real Estate Investor Clubs Locations at: .

Use A Second Mortgage To Finance Another Property

2007-06-01T09:44:00.000+07:00

There are any number of reasons why getting a second mortgage on your home is a good idea. Unfortunately, there are also any number of reasons why it is not a good idea so let's take a look at the best scenario and hopefully this will be able to give you an outline of when it's a good idea.

A second mortgage will allow you to release the equity in your home. The general rule of thumb that you need to bear in mind is that if you wish to do this to allow you to invest that money in a way that will grow your wealth over a number of years than this tends to be a good starting point. If you have owned your home for a good number of years and have been making regular mortgage repayments then chances are the deal that you got when you started is not as good as some of the financial loan products that are available today. The market is extremely competitive and therefore mortgage providers are always undercutting one another in terms of the cost to the end-user to be able to get the customers in the first place. The other great advantage you have a in this situation is that because you've already paid off a good chunk of your mortgage you have built up the equity in your home and you now maybe in a position to release that.

Probably the best reason to get a second mortgage is to allow you to invest in a second property. In terms of inflation, property almost always beats general standards of inflation and as a result is invariably a good investment. In terms of buying a second property, there are really two areas that you need to look at. The first is capital appreciation and the second is current rent levels. Over an extended period of time what you would like your second property to do is appreciate at least in line with market values and preferably for it to do better than that. The old property adage about location, location, location is very relevant to this and the type of property is also important as well. For example, during a period of time when the property market is not buoyant apartments will be far less attractive and probably far more difficult to sell. On the other hand, even when the property market is not doing that well a house with even a very modest amount of land will tend to do much better.

The other thing that needs to be borne in mind is current rent levels. If you're going to go down the road of leaving yourself with monthly repayments to buy a second property then it's very important to be able to assess what type of rent you are likely to get on that property. For example will it meet the new mortgage repayments? Would exceed them or we have to make up the difference yourself? The other aspect of this is that you need to bear in mind how easy the property might be to rent in the first place. There is no point in having a property that should generate a good rental income if it's extremely difficult to get a good tenant to occupy the property.

Overall, investing in property is one of the best ways to grow your wealth over time. Making sure that you get the right kind of property that will generate a good rental income and will also be easy to get tenants for are fundamental elements in the equation. You need to make sure that you take these into account when deciding to make the plunge. A second mortgage on an existing home where you've built up equity is an excellent way to finance this and there is no reason that you cannot look at it in terms of doing this a second or third and building up a property portfolio in that way over a period of time by allowing each property to finance the next.

By Tom Allen

realmortgagenews.com for the best tools and information about mortgages

Greater Cash Flow, Greater Returns- Investing Across State Lines

2007-06-01T07:38:00.000+07:00

Investing Across State Lines is a popular practice in commercial real estate. Investors who venture outside their comfort zone find greater cash flow and greater returns by accessing an abundance of current regional data via the Internet, industry resources and advanced education from sucessful professional investors. Investing in high yield commercial markets are available to the investor seeking increased return from commercial real estate investments by investing across state lines.

New Markets

Dissatisfied Single Family Residence investors are now entering new commercial markets in search of better opportunities. Many commercial investors whose experience limited them to one geographic area are going out of state because of better opportunities in other markets. Markets such as Washington, California, the District of Columbia and New York have had prices peak and Capitalization (CAP) Rates for commercial real estate are very low (meaning the price of a property is disproportionately high in comparison to its net income). Therefore, there is a high barrier of entry for investors to get into commercial size properties and rates of return are low.

There are other markets where investors can buy commercial properties that have lower prices, higher CAP rates (lower price in comparison to net incomes) and better rates of return. Additionally, different markets may be in different market cycles, which can create excellent buying and/or selling opportunities.

Reasons to Invest Out of State

Investors may go out of state to invest because of laws, and taxes. Laws may be more favorable in another state and make it less expensive to invest and make a return. The same goes for tax savings.

Economic factors may also make it attractive to buy in different markets around the country. For instance, Texas, over the past couple of years, has experienced very strong job and population growth. In addition, the Texas legislature has passed laws to reduce property taxes. Economic and political factors in Texas have made it a great place to buy office space or apartment buildings.

When an investor learns how to invest across state lines successfully, you can identify opportunities in different markets as they emerge. You keep assets working effectively, as a result, and move into different market cycles when timing becomes advantageous.

Why Staying in Your Comfort Zone May Limit Return on Investment

An investor that invests solely in their regional comfort zone risks having to ride out changes in the local market. You may have to put up with lower returns and deal with negative economic factors for a considerable amount of time. Ultimately, you may miss out on opportunities for greater returns. Investing out of state gives flexibility to the investor, providing more options.

Once you have the big picture figured out you should have a good idea what types of investment strategies will help you to achieve your financial goals. This will enable you to pick the right investment markets and to plan your entry into a market where opportunities are present.

You can literally choose which market you want to invest in or the type of asset (retail, office, multi-family, industrial, etc) that you want to buy to fit your strategy. Before you begin investing, make sure that you have a clear understanding of your financial goals. This will help you to develop a clear investment strategy and long-term goals.

Investor Education Resource

Investor Tours University is a dedicated resource helping investors build wealth and achieve success of their definition. We offer state-of-the-art, commercial real estate investing education, tailored to meet the needs of investors with varied backgrounds and experience levels. Our faculty, consists of a network of national experts in legal, tax, investment strategy, property management, acquisition and sales professionals who practice what they teach investors: how to achieve generational wealth using commercial real estate.

Richard Sorrentino is Executive Director of Education for Investor Tours University. His website is http://www.investortours.com (ITU) is a subsidiary of the Partnered Property Acquisitions Group, founded by Monte Lee-Wen CEO. Visit http://www.theppagroup.com. We may be contacted at 800-928-6033. The PPA Group has purchased over $40 million in commercial real estate in Texas since the company relocated to Austin, in August, 2006 with a projected target of over $100 million in commercial real estate acquisitions in Texas alone, by the close of the forth quarter of 2007. ITU is the #1 educational resource for in depth commercial real estate investment education offering a proprietary investment system taught by Monte Lee-Wen, author and investor.

Investor Tours University currently offers:
# Free weekly teleclasses
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# Investor Tours Events
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© 2007 Investor Tours University

Real Estate Investing FAQs - What Are The Real Estate Investing FAQs?

2007-06-01T07:21:00.000+07:00

Real estate investing is one of the fastest and most proven ways to build real wealth. If there’s one thing I know for sure, it’s that there are many ways to make money in real estate. Whether it’s in flipping, development, buy and hold, land splits, you name it.

People ask me all the time about how to make money in real estate and the reality is that individuals need to find an approach that works for them. The only thing an investor needs is a little education, some encouragement, and the guts to take the plunge.

As a real estate investor with over 20 years of experience, I have assembled here my list of most recent real estate investing FAQs (frequently asked questions):

Real Estate Investing FAQ #1 - Are we in a real estate bubble?

This is by far the biggest question I hear. To be sure, the recent real estate boom was the largest the country has ever seen. Not since after World War II has real estate appreciated so much, so fast. Now the market psychology has changed and many investors question when the market will recover.

Real Estate Investing FAQ #2 - Are stocks a better investment than real estate?

I am always amazed how often this comes up and how the answer is spun depending on whom you are talking to. The real estate folks say that it’s real estate, while the stock market guys say stocks. The investor must take a close look at both the quantitative and qualitative factors of each class of investment.

Real Estate Investing FAQ #3 - Can I invest my IRA in real estate?

There has been a lot of media attention recently on this topic. People often ask me whether this is even legal. There is no doubt that it is legal, but it can be complex. Considering the uncertainty of social security, investors need to do what they can to fund their own retirement.

Real Estate Investing FAQ #4 - Can I really make money with foreclosures?

We have all heard about the money that can be made buying and selling foreclosures. But considering the risks involved, can you really make money in foreclosures?

Real Estate Investing FAQ #5 - Is making money in real estate easy?

I think you know the answer to this one. Making money in real estate takes a lot of diligence and hard work. But fortunately it can be done, and has been done by many. If it was easy to do, I’m not sure it would be so profitable.

These real estate investing FAQs are only a few of the ones that I often hear. Hopefully, some insight into these questions will make you a more astute investor.

About the Author

Paul Sunndin is a writer and real estate investor. He is the author of the book “Everything You Have Learned About Real Estate is Wrong.” This book answers the above questions as well as many other real estate questions. To obtain a free copy of the book (now available in digital format) and to find out about innovative tactics for the real estate investor, visit his site at http://www.realtactic.com.

Residential Real Estate Investing - Is Residential Real Estate Investing The Best Way To Make Money?

2007-06-01T07:18:00.000+07:00

At over $20 trillion in size, the residential real estate market has a substantial influence on the U.S. economy. In fact, the single-family home market is several times larger than the entire commercial real estate industry.

But investors often ask whether residential real estate investing is better than investing in commercial real estate?

The answer is – it depends.

Each investor has a different skill set as well as vastly different financial resources. In addition, investors have varying backgrounds and interests. Money can be made with both. The investor needs to do what works best for them. Residential real estate investing may be the best choice for many, but not all investors.

There are many advocates of commercial real estate investing, but there are a couple of reasons that I generally favor residential real estate investing over commercial real estate.

First of all, an important factor that distinguishes residential real estate investing as compared to investing in commercial real estate is that the pricing of single-family homes is often driven by inefficient information. This means that pricing and market data is incorporated at a slower rate into the marketplace as compared to commercial real estate. This can enable the astute investor to better analyze price movements and allow for improved market forecasting.

Residential real estate investing is largely dominated by single-family residences that have fewer sophisticated buyers and sellers. With commercial properties, there are many more institutional investors with extensive market experience. Accordingly, locating a good deal may be much more difficult in commercial real estate as compared to residential real estate. Investing in commercial real estate is generally dominated by skilled professionals, who have more financial resources than the individual investor.

In addition, the demand for residential real estate continues to increase. This demand has been fueled by many factors, including population growth and baby boomers. The population is growing while available land remains relatively constant.

The Baby Boomers, which consists of people born between 1946 and 1964, are reaching their peak earnings age and have more disposable income than any previous generation. This population, measured at approximately 80 million people, continues to increase demand for housing (including second homes) in cities that offer many desirable amenities including affordable health care, a favorable climate and cultural and recreational activities.

Now I’m not saying that money cannot be made in commercial real estate. But for the average investor, residential real estate investing is generally a better investment vehicle. The investor needs to look past the current residential real estate slowdown and realize that in certain markets now is a great time to be investing in residential real estate.

About the Author

Paul Sunndin is a writer and real estate investor. He is the author of the book “Everything You Have Learned About Real Estate is Wrong.” This book discusses many tactics for today's residential real estate investors. To obtain a free copy of the book (now available in digital format), visit his site at http://www.realtactic.com

How To Make Lucrative Offers On Investment Property

2007-06-01T07:14:00.000+07:00

I still remember his comments: “You will annoy the homeowners and you are risking loosing this property! They will refuse to negotiate with you if you insist on making this offer”. My real estate agent was reluctant to make the offer on an investment property I liked. He felt the owners would be offended because the offer was way below the listing price. Against my agent’s advice, I still asked him to offer $69,000 on a property that was listed at $89,900. After three long weeks, they came back with counter offer of $80,000. When my agent notified me of their counter offer, he was very satisfied. He made it known that I should accept their counter offer. However, I still felt I could do better based on the analysis that I had done on the property. In my opinion, it is very important to focus on the following items in order to negotiate a great deal. First, It is vital that you understand what motivates the seller. Second, you will need to perform a thorough analysis of the property data.

Let’s review these factors in detail:

* What is the assessed tax value of the property?
* How much did the current owners pay for the property?
* How long has the property been on the market?
* What is the average sales price on similar properties in the area?
* How old is the property?
* Does the property need any repairs?
* Are you dealing with a motivated owner?

You are at the point where you can make thousands of dollars by making the correct offer. However, you will need to review all these factors in detail:

Assessed tax value: your aim is to obtain the investment property from 10 – 20 percent below the tax value. To validate you number, you will also need to review the current tax value of other similar properties in the neighborhood.

Last sales price: This is public information and your real estate agent should be able to obtain it for you. If you are already investing in real estate, you know that this information is also available in the internet from several sources. This data will give you another bench mark where to place your offer. If your potential property is owned by an institution that does not manage real estate, they might be more inclined to accept your lower offer.

How long has the property been on the market: If the property got listed recently, you know that the owner will not deal with you until they have tested the waters. If the property has been listed from six months to a year, the owner will be more willing to entertain an offer from an investor. A word of caution is needed at this time. It is very important that you determine why the property has not been sold yet. You will need to determine the factor that is preventing the sale. It could be that this property has been overlooked by other investors. However, in most of the cases, you will find that there is a specific reason: It could be that your property needs some repairs, or it does not have a clear title, etc. Once you determine the reason, it can be used a a bargaining chip in your negotiations.

What is the average sales price in the area? As you gain experience with this method, you will be making offers a bit lower than the average sales price. Remember when your offer is presented, there must be reason for the lower offer.

How old is the property? The age of the property is just another bargaining chip. Older properties have more maintenance problems.

Does the property need any repairs?. We already started discussing this situation. If your property is in need of repairs, you will need to have a licensed general contractor advise you on the repairs before you buy. Do not skip this step. Your profits will evaporate very soon if you do not estimate the correct repairs.

Are you dealing with a motivated owner?. The biggest mistake you can make is to negotiate with someone who is not motivated to sell. Find out what motivates the seller, In some instances, you can let the seller make the first offer. “Mr. owner, what is the very best deal you can offer me on this property?” This question will put the pressure on the seller. Whatever he offers, you can ask him to do better.

After you have screened several properties, it is time to make the offer. Using this information, you should be able to make a profitable offer. If you do not buy it right, meaning below market value, there is little change of making a profit.

One last tip. Always, always leave yourself a way out. Make sure that any contract you sign has several contingency clauses. One clause should let you off the deal if it does not pass inspection. The second clause should state that the purchase is contingent on you obtaining a reasonable mortgage in a certain period of time.

Making offers on investment properties does not have to be complicated. In fact, it can be quite easy if you follow the outline presented in this article.

Mr. Borjas started investing in Real Estate 7 years ago. This activity led to a General Contractors License and to build custom homes in NC. To learn more about profiting from property investment and custom homes, visit us at http://www.JamarHouses.com.

Hitting the Property Jackpot

2007-06-01T07:11:00.000+07:00

There is a fundamental difference between entering a lottery and attempting to make money in the property business. The former relies completely on chance. While there may be an element of luck required in property, you can be in a position to control your own destiny.

If you're serious about making money from property then you need to approach it as a business proposition. Just as you would if you were starting your own business from scratch, you need to consider the various aspects of the property market before you begin.

It's wise to start by drawing up something pretty comparable to a business plan. It may be that you don't like the formality of committing so much information to paper, but such a plan can save you both time and money in the long run.

The reasoning behind drawing up a business plan (it's really a plan of action in this case) is that it offers the opportunity for you to outline your objectives and how you intend on achieving them. There will be times in the future when you may need to refer back to your plan - you'll find that it helps you to retain focus.

Let's think about a plan to make money by buying a range of properties and then looking to rent them out. If I were drawing up such a plan, the first thing that I'd consider would be my target market.

If you're going to be renting out properties then you'll need to have tenants. You should begin by asking yourself which locations offer the prospect of plenty of tenants. Typically, you'll be looking at towns and cities that have high student populations, or maybe locations where property prices have got too high for first time buyers.

These will be your potential target markets. Once you have these identified, you can develop your plan by constantly asking yourself key questions:

Where are the best locations? How much does property cost in these locations? What rental returns might I expect? How would I go about the practicalities of managing and maintaining properties?

You'll see from the questions above that each one that you answer will help to build up a clearer picture. Before you know it you'll have a complete plan for your property investment future.

Next will come the final stage: putting your plan into action!

Keith Barrett has written about finding a good Estate Agent in Winchester and the property market in general. This article may be used by any website publisher, though this resource box must always be included in full.

How Can I Generate Real Estate Leads?

2007-05-26T09:04:00.000+07:00

It’s no mystery that generating business is a complete secret to many real estate agents; but why is that? In today’s market there are many agents asking – "How Can I Generate Real Estate Leads?” - and few that actually do. As a real estate agent you are among a group of as much as 70% who fail within your first 2 years in business. And this begs the question: How can you generate real estate leads? This article will explore 2 aspects of real estate lead generation that I use every day after 10 years of experience.

In order to understand this next point, put yourself in the customer’s shoes. The first point is not to BUY leads. In my 10 years of experience, these people don’t know you, never really gave you permission to contact them, and will probably find you to be very rude! If you are going to buy leads, there are systematic ways to convert them in to a closing with cash in your pocket. But you have to be very careful when you go down this route. So to answer the question, “how can I generate real estate leads? My recommendation is not to buy them.

But hey, I’m only telling you what has worked for me, and I do BUY LEADS as a part of my strategy now that I know how to work them.

Now, on to the second point in this discussion; and that is to Become Visible. But how do you do this on a shoestring budget, and more importantly, how can you generate real estate leads? It’s simple, you advertise. And when the customer darkens your door – you respond QUICKLY. But where do you advertise, and how do you respond? I wish I had more time to go in to this in more depth, and it is very simple once you understand the basic concepts.

As you can probably tell by now, this is not nearly descriptive enough to be of any real help. But I do believe that you can use these 2 key secrets as a very profitable building block when answering the question: “How Can I Generate Real Estate Leads?”

Thanks for reading! I hope this has helped you stimulate a few ideas on your real estate lead generation journey.

By Mike D. Davis

Mike Davis has been a real estate agent for over 10 years, and operates his successful website at http://www.MikeDavisHomes.com- In all that time, he has made plenty of mistakes, trying to figure out the best way to generate business. But after much trial and error, and with the advent of the Internet, he has become an expert in lead generation.

Discover his system of how a shy and introverted real estate agent can earn over $160,000 per year for $49.95 at LoganSystem.com

Home Evaluations - A Valuable Tool

2007-05-26T08:39:00.000+07:00

In today's real estate market, one of the most important things you can know is the actual selling value of your home. It is something that can dictate the amount of money you have to do renovations, or the amount that you should ask if you are considering selling your property. Home evaluations have been a valuable tool in the arsenal of home owners for years and their importance has not faltered in today's high-stakes real estate market.

Home evaluations depend on a variety of factors. Typically a home's value will be dependent on the following things: comparable homes sold in your area, listed homes in your area, FSBO homes listed and sold and then, finally the distinct features and assets that your home offers. For instance: if your home has 3 bedrooms, 3 bathrooms, and a size able piece of land; it will be compared to other homes that match that criteria. Once the basic comparison is done, other elements such as a new kitchen, a newly renovated bathroom, pool or hot tub or renovated interior will be taken into account.

One of the most important things that a home analysis shows you is the price range for your neighborhood. A seller must be careful to not price their home outside of what people are willing to pay for the area. Generally speaking people will not pay $500k for a home that is nestled amongst $150k homes, unless it is something that is mind-blowing spectacular.

If you are not too happy with the number that comes back from the evaluation, why not dip into the accrued equity for some price-increasing changes? Selling a home is an art that is only made simpler by having a lot to offer buyers. Today's buyers are always (mostly) looking for homes that have been renovated and improved. There are some that are seeking a more historic look and feel to homes but even then, most want that feeling and atmosphere accompanied by modern conveniences. After you have made the changes try having another evaluation done, or even consult with your realtor as to which changes will bring better value to your home.

By Virginia Wherland

Virginia Wherland is a REALTOR as well as the founder and broker of Associates Realty. Associates Realty is proud to specialize in Edina, Minneapolis real estate.
For access to the beautiful homes and properties in Minneapolis, contact Associates Realty today or visit us online at http://www.associatesrealty.net

Warning: Do Not Refinance Your Home Until You Read This Report! - 5 Costly Refinance Mistakes

2007-05-26T08:33:00.000+07:00

Warning: Do Not Refinance Your Home Until You Read This Report! 5 Costly Refinance Mistakes and How to Avoid Them

Mistake #1 –

Refinancing only to obtain a lower interest rate So why are you refinancing your mortgage loan? Are you trying to save money through a lower monthly payment? Are you trying to reduce your interest rate? Are you hoping to combine your refinance with a cash-out equity loan? If you’re simply trying to find a lower interest rate, make sure you calculate the related fees and closing costs. These fees might make you rethink the process. Unless you can save enough money to easily cover these costs, refinancing may not be right for you.

Mistake #2 –

Cash-Out Refi to Pay off Unsecured Credit Card Debt Many people opt for what’s called a cash-out refi. This not only can save you money on your monthly mortgage payment, but can provide you with cash to pay off high-interest credit cards. We recommend that you review all of your options before choosing this path. Are you really desperate enough to get rid of your unsecured debt that you would consider putting your home on the line? Review other options first, like calling your creditors and asking them to reduce your interest rates and save your home equity for a rainy day. Remember, you can always refinance without having to touch your home equity.

Mistake #3 –

Not Asking About Points In their simplest form, Points are up-front mortgage interest fees paid on a loan to reduce the initial interest rate. Points are fees the borrower pays the lender at the time of loan closing. If you pay one point (1%) on a $100,000 loan, then you will pay the lender $1,000 at loan closing, but will reduce your long-term interest rate, which will save you money throughout the life of your loan.

Some loan rates have points already built-in, so you need to make sure the lender is very clear on how many points are being charged.

Mistake #4 –

Refinancing into an ARM or Interest-Only Loan In some cases, it makes sense to refinance into an Adjustable Rate or Interest-Only loan. But be aware of the ramifications. While you might refinance into an ARM and initially save money; over the years, your interest rate may creep up and end up eating-up the refinance savings. Interest-only loans are another popular option, but they’re not right for everyone. Interest-only loans are actually only “interest-only” for a short period of time, like 5-10 years. This means that eventually, your payment will start to include principal again, and if you can’t afford to pay the principal at that time, you might be forced to refinance again! Always plan long-term...

Mistake #5 - All lenders are required by law to provide what is called a Good Faith Estimate of Closing Costs. Use this “Good Faith Estimate” as a tool to find the lowest price. You should ask any lender you speak with for a guarantee that clearly states, in writing, that they have the lowest bottom-line closing cost. If they can’t provide you such a guarantee, in writing, you should find another lender.

By Darren Meade
http://darrenmeade.zaadz.com

Exclusive Report - 8 Steps To Success - How To Sell Your Home Fast & Make Maximum Profit!

2007-05-26T08:27:00.000+07:00

When you sell your home, it will be the largest transaction you ever participate in (other than buying a new home). You need to inform yourself and get educated with the facts before you sign on the dotted line.

This report will teach you how to not only sell your home more quickly, but how to get top dollar in the process. We will examine 8 critical steps to success and how you can apply them to your situation.

Tip #1 - How to Maximize Profit

Ever heard the old saying 'There are three factors in selling Real Estate - location, location, location'?

While this may hold true to a certain extent, location isn't everything. No matter where your home is located, there ARE things you can do to get maximum profit upon selling.

First, you need to make your home sparkle and shine. Imagine that you are in a contest called 'The Cleanest Home in America' and you are trying to win a top prize. Well, you don't need to imagine, because you are in a contest. There are hundreds of other sellers in this area who are trying to get YOUR buyer to purchase THEIR home and you WILL lose out if your home isn't spic and span.

Fix every problem, no matter the size. If a door squeaks when you open it, use some oil on the hinges. If the paint in one room has some minor peeling, re-paint that room. Potential buyers will look at everything.

Tip #2 - Act like a Home Buyer, think like a Home Buyer

How hard is it for a potential buyer to obtain information about your home? Do they have to jump through hoops to get a return call from your Real Estate Agent? Do they have to come to an open house just to find out about all of the amenities your home offers?

Never make it hard for a buyer to do business with you. Sound simple? It's not. You would be amazed at the amount of buyers who simply move on and give up on a certain home because they can't get the info they want and need in an efficient manner.

Do yourself a favor. Before selecting an Agent, call up the Agent acting like you are a buyer and want information on one of their listings. Then, see how long it takes for them to return your call. The service you receive will be a good indicator of the service and response time your potential buyers will receive. Also, if your agent is running an ad for your home in the local homes and land magazine, make sure they insert plenty of info about your home and its amenities. Buyers want to know the sq footage, the price, and main amenities right off the bat. Do the legwork for the buyer and make it easy!

Tip #3 - Find the Best Real Estate Agent. the Easy Way

Trying to find a great Real Estate Agent can be a time-consuming and frustrating process. Every agent in town will try to convince you that they're #1 for this or that. All of them will promise you the moon, but few will be able to deliver. We participate in many Real Estate transactions each month and, as a result, we are very familiar with the top Agents in this area. We would be happy to introduce you to a top agent, at no cost to you. To sign up for our NO-COST, no obligation 'Agent Locator Service', visit our website.

Tip #4 - Always Sell First

There are a number of reasons we advise you not to move out before you sell. The main reason is that vacant homes take longer to sell. Did you know that scientific tests have proven, time and time again, that vacant homes are more difficult to sell, because they appear to be lonely, cold, forgotten places?

Tip #5 - Dot your 'i's' and cross your 't's'

Even if your Agent has assured you that the purchase agreement / contract is complete and correct, always double-check it yourself to make sure. It's important that you read and understand the contract the buyer will sign. Make sure that everything has been properly disclosed. A good buyer discloses everything, including any repairs the home will require, as well as all terms and additional costs. All of these should be spelled out clearly in the contract.

Tip #6 - Learn How to Negotiate Properly

When you are done reading this report, make sure you check out our No-Cost Report entitled 'Negotiating Tips of Top Sellers'. Visit the Home Seller section of our website and click on the link there.

Tip #7 - The Price is Right. (Or is it?)

Price is the most important item to consider when selling your home. If your home is priced too high, your home will languish on the market for months. If the price is too low, you will lose thousands of dollars in hard-earned equity needlessly.

Remember - It's not what your house is worth, but what someone is willing to pay. You need to gauge market conditions properly for your area, and then set your price a bit lower than the average. If you price your house according to the market, it's not likely to sell quickly. That's because the top 10% or 20% of houses with the best prices are selling each month in this area. If your house isn't in that lower 20% range, then it isn't likely to sell as quickly.

Tip #8 - Get Prepared and Do Your Homework

If you are selling your home, statistics say that you will likely buy a home here or somewhere in this state. You will soon be on the other side of the deal when you become a home buyer. You're going to participate in the largest financial transaction of your life the next time you buy. Are you ready? Have you done your homework?

Are you aware of the supply and demand statistics of home inventory vs. sales made this year? Are you aware of what % of total homes listed for sale actually sold last month, and more importantly, how that statistic can positively affect how you structure your purchase offer? Have you assessed the best use of your cash and planned to maximize your leverage?

In short, have you prepared a Home Purchase Strategy? We participate in many real estate transactions every month. Over time, we've learned a thing or two. Our staff would like to help you develop your personal strategy and consequently help you save thousands of dollars in the process.

By Darren Meade
http://freemortgageinformationsoutherncalifornia.com

Real Estate Agents Still Very Important in Completing the Deal

2007-05-26T06:46:00.000+07:00

Washington Business Journal Survey confirms the importance of Realtors The Washington Business Journal confirms that Realtors are still vitally important in the real estate transaction according to consumers.

The Journal commented on the changing role of the residential real estate agent, and asked it readers, given their experience in the D.C. and Northern Virginia region's headline-making housing market, "How important are real estate agents when buying or selling a home today compared to 10 years ago?"

Despite, online virtual home tours, full-service residential websites, properties on craigslist, and other tools at the consumer's disposal, survey respondents overwhelming believed that the role of a real estate agent in the D.C. metro area is crucial.

75% of readers believed that Realtors are either "Crucial," "Critical for negotiations and paperwork," or "More necessary now than ever."

The largest response category was that Realtors are "critical for negotiations and paperwork." It is affirming to hear that the homebuying public does in fact understand our job. Locating the right home for a buyer, or listing a home for sale is an important part of the job, but definitely not the most crucial. The knowledge that Realtors possess about the market, the negotiating process, and the mountains of legalese and paperwork to complete the transaction is what distinguishes us and is how we earn our commissions. I always inform my clients after we find the right home and have a contract accepted or after a contract is accepted on our listing, that "now my real work begins!" The fact is that the bulk of the real work in a real estate transaction occurs between contract and closing.

Brian Block is a Realtor with RE/MAX Allegiance in Alexandria, Virginia and serves the Northern Virginia and Washington D.C. markets. His blog can be viewed at http://blog.brianblock.com and he can be reached directly be e-mail at brian@brianblock.com.

Good Renovation Ideas For Your Home

2007-05-25T20:47:00.000+07:00

Renovations are always a good idea if you are trying to add some value onto your home to increase its selling price. In today's real estate market you need to be able to set your property apart from the majority or other homes that are available and new rooms are a great way to do it. It's a difficult thing to figure out which rooms will be best served by a facelift. As usual there are a few likely and stereotypical candidates, these being the bathrooms and kitchens. The fact that these rooms can sell homes aside, don't allow yourself to get sidetracked into focusing solely on these rooms. If you feel that other rooms need the attention, go right ahead and make the changes.

Houses with a distinct theme can be some of the most beautiful homes on any given market. A cohesive and unified theme to a home is more inviting than a mismatch of differently themed rooms. If you are thinking about your bottom line asking price then one thing you will have to consider is new appliances. Updating tired old stoves, sinks, refrigerators, washers and driers will raise the asking price significantly and give cleaner and more attractive lines to the rooms that they are in. Other good ideas for these rooms are new countertops and fixtures. Over years, countertops can become stained, discolored and marked by knives and other objects. New countertops can light up a room like nothing else. If you really want to boost you home's asking price, opt for granite countertops. They are well worth the expense.

Another good idea for renovations is to redo that tired old deck. If you deck has seen better days then this is a great place to refurbish. Even though decks are a seasonal luxury, they play a big part in the exterior appearance of a home and as such, their appearance can easily alter a home's value.

Preston Guyton is a professional Realtor® serving the Myrtle Beach real estate market. For more information on Myrtle Beach homes & properties, contact Preston today or visit http://www.prestonguyton.com.

The 5 Best Ways to Advertise Your Rental Home

2007-05-25T20:40:00.000+07:00

Getting you rental filled is of primary concern when you are turning over rental units. Landlords understand that a vacant unit is translated to profit loss. This is why having a sound marketing strategy is so very important. Simply filling the unit is not enough; savvy landlords view the marketing effort as the first step in screening tenants. An efficient and proper marketing campaign is the best method for landlords to reduce the risk in choosing the best person to rent the unit. They want to be sure that the person they contract with can pay rent on time and fulfill the obligations of the lease. Having to choose a marginal tenant because of lack of options can prove to be costly. The cost evictions, turnover and repairs can be devastating.

* The easiest and best way to market you rental home is the time tested “For Rent” sign. Simple as it may be, this method capitalizes on the idea that renters will drive around desired communities in search of future housing.

To enhance visibility, it is recommended that more than one sign be placed on the property. Many landlords place a small box on one of the signs to place flyers with rental details. This will allow for the landlord to disqualify prospects by revealing price, policy and expectations. Qualifying prospects will save much time by cutting unnecessary phone calls and showings.Signs must be reveal contact information clearly and in large print. Many landlords lose rental opportunities by making the writing too small or unreadable. To make the signs stand out more, tie two or three balloons. Adding simple balloons to the "For Rent" sign in front of your rental can increase the effectiveness of the sign by 150%. Add helium for increased effect.

* The second most effective marketing effort is to distribute the rental details flyer to all the free community bulleting boards in the vicinity. These boards are located at grocery stores, churches, community centers and government offices.

Prepare and place announcements or flyers about the availability of your rental property on bulletin boards in local shops, businesses, churches and community centers. This method is especially effective if you are marketing to Hispanics and other immigrants.

* The third most effective way to market your rental is by offering other tenants, friends and associated a referral commission if they refer a new tenant. Customary referral rewards range from $50-$200. This allows landlords the ability to shorten vacancy time.
* The fourth most effective way to market your rental is “classified ads on newspapers”. They can be more expensive if you go to the larger newspapers in most cities. However, if you go to smaller publications that distribute the in rental’s neighborhood, municipality or city district, the price will be much more reasonable. Ads in big newspapers are generally very short because word usage is limited. Smaller publications allow more details in the ad.

The problem with classifieds in general is that they are limited in that they cannot put many details in the ad. Having many details in the ad is very important because they allow the landlord to prescreen prospects. Having unqualified prospects robs the landlord of valuable time. It can never be overstated that the time spent on unnecessary showings and phone calls can be better spent on real prospects.Classified ads also run into the problem that they expire when the next newspaper is published. People seldom go to previous issues to look at classifieds.· The fifth most effective way to market your rental is “online ads”. Online ads can be effective when people relocate from outside the area of the rental. People considering a move generally go to the internet for housing information. Online ads allow for the landlord to post much more information to better pre-qualify prospects. This information is available to prospects anytime prospects connect to the internet. The internet has many rental sites that vary in price. A good starting point is to start with an inexpensive ad (www.usrentallisting.com ) in order to test the ad without risking too much. If it proves to generate rentals, then the testing ends. Generally these websites are promoted through pay for click and organic search strategies along with print ads.

If a landlord manages many properties they may consider getting their own site with individual pages devoted (http://www.homepartners.com) to every aspect of every rental. These sites are used as property management tool in addition to the obvious marketing uses. It is never too late for landlords to develop a sound marketing strategy for their rental. Landlords cannot afford to limit their number of qualified prospects to their rental.

Manuel Enrique Lopez "QuiQue"- Senior Consultant for Landlord2Landlord.info : Landlord Information. Editor of "Landlord Profits" Newsletter and Blog

Real Estate Investing Rule One - Establish a Target Market

2007-05-23T19:45:00.000+07:00

As an Investor, one of the most vital things to be done to aid your success is to create a Target Market. This is an area that will be your focus for finding properties. What you will want to do is determine a location that you know the best. This needs to be an area where you feel like an expert; it is the part of town that you can take a hundred different side streets and you always know where you are.

This is so important because the world is changing everyday so your focus needs to be on an area that you can be aware of new changes and capitalize on them. Knowing where and when new developments will enter the area is just as important as knowing how long homes are sitting on the market.

For my first investment property, I did not follow this rule. I swayed outside of my comfort zone and area of expertise. I was offered the home through a mortgage broker that had knowledge of the property. After viewing the home and making note of what needed to be done, I made a very low offer and they accepted.

My thoughts on the deal were somewhat mixed. I knew I had just acquired a property that had a large upside for me, but I also knew it wasn’t located in a very good part of town. The uneasy feeling that I had in my stomach seemed to just get worse as time went on. As my partner and I were having repairs made, we started realizing that the crime in this particular area was very high. It seemed as quickly as we could install some changes and make some repairs, the items would be stolen almost as quickly.

During the day, the crime was not a factor, as there was always somebody around, but at night was a different story. After a few weeks of this, I decided it was time to make this a rental property rather then to just flip it. After several interviews with potential renters, I found an excellent couple that just fell in love with the home. I made them an offer that if they could watch the home at night for me, I would lower the amount of the deposit. They accepted immediately to save some money. It was a win-win for us both.

Due to the deal that I got on the home, it still ended up being a profitable investment, but I can’t say it was worth all the time and headache that it caused. From this experience, I learned the lesson of “stay close to home” the hard way.

Over the years, I have been involved in many real estate transactions, and this same rule always holds true. You can use your local area knowledge to your advantage. For instance, if you have knowledge that the construction of a new company is about to take place or a new elementary school is going to be built close to a particular neighborhood, start to keep your eyes open for new properties. In cases like these, there will be a new demand for housing, either for new employees for a company or for people wanting to live near a school.

Surprises are not typically a good thing during a real estate transaction, you can help to put yourself in a better situation by staying close to home in the areas that you are very familiar with.

Curt Fletcher, is the author of several books about increasing your likability, selling homes, creating success, and improving your life. His goal is to help people gain confidence in their own abilities and maximize their full potential in creating success, wealth and happiness. To book Curt for a meeting, conference, or event, contact Curt Fletcher Success Strategies via email curtfletcher@curtfletchersuccessstrategies.com

http://www.curtfletchersuccessstrategies.com/index.html

Finding Real Estate Deals - It's Who You Know, Not What You Know!

2007-05-23T17:24:00.000+07:00

When developing a strategy for real estate investing, it's important to remember that like in business, networking is an integral part of enhancing your investing ventures. Networking can help investors locate some of the best deals around. By its very nature, networking can yield some surprising results as connections are made and relationships created in some unlikely places.

Not only that, but many people fail to realize that the person they are sitting next to might hold the key to their investing dreams – but they will only know this if they take the crucial first step to make an introduction.

One of the best places to network is at a conference. Although people attend to hear the speakers, a good deal of business is conducted and relationships forged outside the speakers' panels. Whether it's during a break for lunch or going for a drink at the bar later, the best way to make connections is to be aggressive and start a conversation.

Those that network know how profitable networking can be. Those that don't network don't realize they potentially can be leaving thousands of dollars on the table.

Again, the principles of networking are the same, regardless of the industry. There is some truth in the old saying that it's not what you know… but who you know. Connecting with the right people can lead to a virtual goldmine of lucrative deals.

There are essentially three networking areas that produce results:

1: The "A Team" of experts: attorneys, accountants, mortgage brokers and anyone else who has contact with potential sellers… including real estate agents. Once these individuals are identified, a formal introduction can be made with a letter (don't forget to include a business card!). When possible later on, follow up with a phone call.

This can be the most lucrative source, but it may also be the toughest to crack. However, building relationships takes time, so the focus should be on the long-term goal.

2: Other investors: to reach this group, attend as many investor group meetings and seminars as possible. At these events, the likelihood is greater to bump into someone in the business that might be able to form a mutually beneficial relationship.

The lesson here is that people never know who they're sitting next to… and if they can help one another.

3: Real estate investing Internet forums: Most investor forums will have a section where investors can discuss possible deals, so there is always a chance that something good may pop-up. The real gold in forums is the opportunity to contribute ideas and build rapport with other investors. As with meeting people at conferences or seminars, who knows who's around until a conversation starts and the introductions are made. People can be sitting next to a potential goldmine!

Networking is undoubtedly one of the major secret weapons of savvy investors. When it comes to finding real estate investing deals, it really is a case of who you know, and not what you know. Use networking to your advantage. Embrace it, apply it, and watch your results skyrocket immediately!

by Salvatore Vannutini

Discover exactly how Sal Vannutini combined two of the easiest (yet brutally powerful) real estate investing strategies and made an insane $31,510 Profit In Just 49 Days... And How You Can Do The Same!". Visit http://www.FixerUpperFortunes.com

Property as a Pension? - UK Landlords

2007-05-23T17:18:00.000+07:00

Many property investors have bought into property over the last few years as a way of providing for or supplementing their pension. This is understandable given the turbulence over recent years in the Stock Market to which many pensions are linked and also the demise of the final salary pension where companies were responsible for providing their employees with an income in their retirement.

Given the latest rise in interest rates, is a property based pension still such a good idea? There are a number of aspects of property which do make it ideal for pension investing. These are that:

1. It is relatively low risk.
Unlike direct investment in shares, property as an asset class is relatively stable and has only fallen in value in real times twice since the war. This means that as a pension investment it is much better suited than many investments as it means that should you need to sell on retirement then is value should stay constant and avoid the large fluctuations that are often associated with equity investments.

2. A property is ideal for a pension in that it provides the option of taking a large capital sum or providing a regular income in retirement. This gives the individual retiree the flexibility to spend or invest their capital sum following the sale of their property or alternatively take regular income in the form of rent to provide or supplement their income.

3. Flexibility is a key advantage.
Traditional pension products are incredibly rigid in the way they work. This is because they have to comply with certain criteria set out by government in order that the pensioner is properly provided for. In return for this the Government gives tax breaks to those people that invest in pensions as a way of encouraging them to make provisions in their old age. This means that currently anybody can invest in their pension such as a private or stakeholder pension and the Government will refund the income tax they would have paid into their pension. Very generous you might think. All this comes at a price; namely that you loose control of when you retire or what you can do with the proceeds of your ‘pension pot’. This is a huge sacrifice by future retirees which potentially traps them into a working life that complies with the Governments set retirement age, currently 65 for men and likely to get higher as life expectancy grows. The advantage with a property investment is that if at the age of 50 you have a midlife crisis and want to ‘up sticks’ and move to Brazil you can. Just sell your investment property a go.

4. Property is an ideal asset to pass on to your kids.
For those people with children and family as the years draw by increasingly thoughts turn to matters of estate planning and passing on your wealth to the next generation. It can either be used as a home for them to live in or can be retained as an investment. The disadvantages with an asset such a property is it that it will be subject to capital gains tax if sold or and inheritance tax should the value of your estate breach the limit, currently £275,000. However, whilst this is not ideal it is often preferable to having to put most of your pension into an annuity. This is a product which guarantees to give the purchaser a regular fixed income until they die. The problem is that this may give you only a relatively small income when annuity rates are low as they are now. In recent years they have dropped from nearly 9 to 5%. A typical retiree will get about £7000 pa for every £100,000 invested. For those with families it also means that unlike a property you are investing a significant proportion into a wasting asset or one that on your death will be worth nothing.

What about the figures?

Using Property Hawk’s unique Investor Appraiser you can calculate what your future financial returns will be. For example using the example of buying a £200,000 property with a 75% repayment mortgage on a 5% yield your returns at the end of 25 year mortgage would be 16.8% per annum assuming that the long term growth rate of 5% in house prices continues (inflation at 2%, rental growth of 3%). In basic terms you would have a property that was paid for and worth £338,640 which assuming a rental of yield of 5% would rent for £16,932 per annum. In my book that doesn’t seem a bad deal for putting in just over £50,000 now. The other thing is I quite like the idea of ‘swaning off’ to Brazil when I’m 50. I’m not sure I want to wait until I’m 65+ before I can get my hands on my hard earned saving just because the Government say so.

Chris Horne has 20 years experience as a property professional having worked for companies such as English Partnerships and Drivers Jonas as a planning and surveying consultant.

He now works full time as a investor and property developer.

He also has developed the site Property Hawk targeted at UK Landlords it provides FREE Property Management Software.

Property Hawk also includes a mass of Buy to Let targeted information.

propertyhawk.co.uk is the Landlord's Homepage

Using Real Estate to Supplement Retirement Income

2007-05-21T05:45:00.000+07:00

Many people are looking for ways to supplement their retirement income. There are several ways that you can add funds to your retirement account, but many of those require part time work or at least working from home. You can, however, supplement your retirement income by using the real estate that you already own. If you plan accordingly, you will not have to struggle to make a mortgage payment once you retire, and actually, you could be able to let your home help you make other monthly payments.

Selling your home and moving to something smaller is one easy way to supplement your retirement income. Whether you have a home that is paid in full, or you have a small mortgage left, you should be able to work the numbers and at least save some money per month that can be used during retirement. If you are still living the same house that your kids grew up in with four bedrooms and three bathrooms, it is likely that you do not need a house of that size anymore. And if you have been there for thirty-plus years, there is a good chance that your home is paid for. If this is the case, you can sell your home and move to a smaller, say two bedroom cottage on the outskirts of town and not only have the extra money from the sale of your home, but also the difference every month in the utility costs from moving to a smaller place. There are many options when considering using real estate to your advantage in retirement years.

You must be realistic when considering selling your home. With the housing market up and down in recent months, you want to try to get into the market on an upswing. It is likely that if you have lived in your current home for a solid amount of time and have kept up maintenance or made any improvements on your home that you will receive a much better price when selling your home than you actually paid for it some time ago. In the past 15-20 years, the number of retirees that have a mortgage has nearly tripled. Most people used to work hard to have their home paid off before they retired, but with all of the amenities that people desire these days, it is a hard fight to win. Having to pay a mortgage during retirement will deplete the retirement savings faster than any other monthly payment could. Selling your home and purchasing something smaller will either lessen your monthly mortgage, or get rid of the mortgage all together when you pay for the new home with the proceeds from the sale of your family home. Selling an extra home such as a vacation home and using those proceeds could also greatly increase your retirement savings. If you do this before your retirement, not only will you be able to include the proceeds from the sale into your retirement account, but monthly, you can add the amount of the vacation home's mortgage, utilities, taxes, and upkeep into your retirement account, not missing the money from your every day life because you were used to sending that money elsewhere anyway.

In short, there are many ways that you can use real estate to supplement retirement income, but you have to be willing to make some changes. Keep in mind, no matter what you decide to do, make sure that you do plenty of research before making a final decision about your real estate or retirement.

By Nancy Arlington

http://www.RealEstateInfoLive.com brings you real information on how to easily understand real estate, and how to afford to buy real estate. There's nothing to buy, so be sure to check out our real estate web design template pages.

Updating your Real Estate Investment Business

2007-05-21T05:41:00.000+07:00

With all of the new technology, it is very possible for people to do many things in business that were almost unheard of just five years ago. Are you one of those people who is so set in the ways that things are done that you are unwilling to make any changes, even if it could be for the better? There are many things that are readily available now that were untouchable ten years ago that could make all the difference in your real estate business. If you are willing to embrace change, you may see a huge improvement in your real estate business.

What is the biggest obstacle for people to make a change in? It is not technology related in any way. Nor is it in any kind of physical updating of your business. It is in the attitude. Not only is the business attitude that you convey very important, but so is the personal attitude that you have towards your clients, your work, and your environment. If your attitude towards change is reminiscent of Ebenezer Scrooge, then you are likely not a person that is going to be willing to make a change, neither in attitude nor technological advances. An attitude like that is one that is conveyed to clients in many ways. Although you may put on a happy face in front of your clients, any client that spends much time with you will pick up on your Scrooge-ist attitude and will be less likely to want to use your services. An attitude open to change is one that will help you go far in any business.

Setting goals is an important part of your business and you must be willing to reevaluate those goals at least on a yearly basis, but more often is even better. If your goals are not being met, it is time to consider changing your approach to achieving those goals. You should always dream big and aim high when it comes to setting goals, but you should not set your goals so high that you will be disappointed and less willing to work hard at your goals if you do not come close to achieving them. On a regular basis, sit down and reevaluate your goals and aspirations and change what needs to be changed in order to reach those goals in a manner that makes you satisfied.

Some of the biggest ways that you could benefit from a positive attitude in your business is through customer referrals. Word of mouth is the best advertising anyone can receive, and having good relationships with people will help that advertising go further than any paid advertising could ever reach. No matter the avenue you choose to travel to become successful in your area, probably the most important thing you can remember is to form relationships. Whether those relationships be with real estate agents, your banker, handymen, neighbors of your properties, or even your tenants, all relationships are important.

http://www.RealEstateInfoLive.com brings you real information on how to easily understand real estate, and how to afford to buy real estate. There's nothing to buy, so be sure to check out our real estate notes for sale pages.

Overseas Off Plan Property - Avoid the Rip Off

2007-05-21T05:33:00.000+07:00

International real estate investors are attracted to overseas property owing to the potential that it can offer in investment returns. One of the most profitable types of international real estate is off plan property. Some refer to this type of real estate as pre construction property which is bought at the planning stage. Buying a property before a brick has been laid does have its risks so how can an investor avoid these risks?

Firstly it must be understood why builders want property investors to buy property at the planning stage. This is often to raise finance so that the project can actually start. They may be also testing the water to see how popular the project is to buyers. There will be a few that are trying to simply steal investment money by going bankrupt before a brick is laid or running off with investors money.

The rewards can be substantial off plan property is priced to sell and allows for instant equity to be made by investors. Many property investors will only invest in off plan property as it allows them to buy multiple units which are often discounted by the builders. Often developers will give reassurances that indicate the planned selling price of each unit on completion. Some off plan property developments do not even have planning permission. Profits here can be substantial but presents even more risk. The price of land is always cheaper without planning permission. Once permission has been granted the land is instantly worth more. This coupled with a building that is going up over time can make for a sound investment.

A builder that has constructed a few projects before and has experience can be a good indicator that a builder will forefill his obligations. Deposits that are held in an escrow account will always make investors feel more secure. Employing an independent lawyer to conduct due diligence for you is another option. Recently launched schemes such as the International Developer Information Pack (IDIP) can help protect those buying and selling off plan property by providing independent due diligence reports.

Questions to ask the developer or agent

1.What guarantees do I have that the developer would not go under or this project would not go under?

2. Will my deposit be placed in an Escrow account

3. Tell me about the building company, what work have they done in the past

4. Has the builder secured planning permission and local permissions for the project

5. Are there any legal safeguards for foreign investors in the case of non-completion or poor construction work by the developer?

6. If I decided to sell before completion of the project, would that be possible and would I be penalized in anyway?

7. How easy is it to buy and sell property in this country? 8. What if I decide to sell my (residence/hotel suite)?

9. Are there any other fees while the project is being built and what about after completion?

10. What do you anticipate the rental income to be once the facility opens based on current rates at similar properties?

11. What is the payment schedule

12. What happens if the building is delayed

13. What is the rental yield I can expect?

14. What are the tax and inheritance implications

15. What is the buying process in this country

Nicholas Marr is a lifetime property investor and CEO of Marr International Ltd a UK based property marketing company that is responsible for international real estate web site at http://www.homesgofast.com and http://www.findoverseasproperty.com

Buying A Home - New vs Resale

2007-05-21T00:26:00.000+07:00

When buying a home the largest decision that you will have to make is the choice of whether to buy a new home or a resale home. There are specific concerns that relate to both options so a smart buyer should take the time to consider the pros and cons of each.

New Construction Homes - Well, new construction homes definitely have the "shiny & new" factor in their favor. That being said, you should not assume that everything in the home is perfect. Many people buy new construction homes without an inspection and that is a big mistake. Just like resale homes there can be issues relating to the home's systems or structure; although they are generally issues that are results of the home's construction, not wear & tear. In a real estate market where new homes are springing up overnight, a major concern is the quality of construction. Unfortunately there are less than reputable home builders in operation that use sub-standard labor and materials in order to cut building costs and increase their profit margin. Before buying a new home try to find out about the home's builder. Do they have a good reputation and track record? Have there been any issues with other homes they have built? Try finding people who are living in homes built by the builder and inquire as to whether they have had any issues with the home.

Resale Homes - When purchasing a resale home the home inspection is essential. A home inspection will let you know of any issues that have developed in the home over its lifetime. Common problems are things like: a leaky roof, cracks in the foundations, mold, easements or liens and old or out of date appliances. That being said, resale homes are usually located in a well developed area with good access to schools and community services like shopping, recreation and entertainment. Any issues that come up during an inspection can easily be used as bargaining chips during the offer process. typically you should be able to make the passing of a home inspection one of the major subjects in the purchase. If something does not pass the inspection it is either the owner's responsibility to fix or the owner can decrease their price enough so that the buyer can fix it.

Buying a home is a huge responsibility. It is likely the largest purchase the average person will ever make so it makes good sense to take your time and explore all your options before jumping into anything. The more you educate yourself on your options, the better the chance is that you will find that perfect home that suits you in every way.

CJ deHeer is a certified REALTOR;® specializing in the Santa Cruz real estate market. For access to some of the most stunning coastal properties check out http://www.cjdeheer.com.

Buying a Home - Things To Think About and Financing

2007-05-21T00:08:00.000+07:00

OK, so you are going to buy a home. First of all, congratulations! Second, good luck! Now, hopefully luck will not have to enter into the equation as good planning and proper preparation can help to smoothe out the whole process and assist in avoiding the traditional pitfalls of home buying. When purchasing something as big as a home there is definitely the potential to put your neck on the line, and many buyers do. The unfortunate part is that this is really not necessary. Chances are that if your neck is on the line then something has gone wrong that maybe should have been taken into account and planned for. I agree, you can't foresee everything; but you can try to plan for every possibility.

For a comprehensive list of things that can happen during the buying process make sure you consult your realtor, but in the meantime some of the most important things to think about are location, price, future and financing. Location is a huge issue in real estate and always has been. Without good location, real estate loses its value as areas with more in the way of amenities schools and entertainment grab all of the available buyers forcing other areas into a decline. Make sure that the area you choose is rich with amenities and is close to work, school and anything else you may need now or in the future. The future is also a good thing to keep in mind when buying a home. Will this home suit all your needs in say 10 years? If you are planning to have a family its better to plan for it now and have the available space as moving with kids can complicate an already stressful and complicated activity.

Price and financing go hand in hand as you will usually need one to afford the other. Having your financing organized before you ever start looking for a home is the best way to go about this process as getting financing after you have made an offer limits your options and it is unlikely that you will find the best mortgage available. From another angle, you will not be taken seriously as a buyer by most sellers if you have not been pre-approved for a mortgage. Many home owners will not want to show their home to "unqualified buyers." In having your financing arranged before you start looking you will not only qualify yourself to buyers but you can shop with confidence knowing that if you find that perfect home then you can make an offer without hesitation.

Mana Deva is a longtime realtor with a proven track record. He specializes in the purchase and sale of Southern Arizona real estate. For more information on beautiful homes and properties in Tucson contact Mana Deva, or visit on the web at http://www.southernarizonaproperties.com.

Southern Maine Real Estate Market Conditions

2007-05-20T23:59:00.000+07:00

A few weeks ago the National Association of Realtors released March statistics showing the largest drop in 18 years for home sales. The Maine Association of Realtors released statewide statistics showing a statewide drop of 12.4% compared to 8.4% for the nation. Despite these drops the average sold price for the month of March continues to move higher, 0.5% nationwide and 2.5% for Maine. The housing statistics for the 4 counties followed mirror the national and statewide stats; lower volume, higher average prices.

Largely attributed to stricter lending practices rolled out in March and significant harsh weather thanks to mother nature, the activity in the local markets continues to remain strong and not as dire as the statistics may lead one to believe. What does this mean going forward? Basically there is a lot of uncertainty and the traditional strong and robust Spring markets will most likely not occur. Maine Investors continue to stay on the sideline waiting to see how the residential markets will pan out.

The residential markets will continue to slow down as the ripple effect of first time home buyers who are not able to enter the market will thus effect the sellers of these homes buying their upgraded home and so on up the ladder, with estimates that for every entry level home that does not sell results in 3 more higher priced homes that will not sell. Thus for now it seems despite the continued growth in average prices in Maine, the overall market is going to continue to slow down until lenders figure out how best to deal with the many default loans that will continue to surface.

John Herrigel is a Maine real estate agent and investor. He can be reached online athttp://www.mymaineproperty.com or http://www.mainepropertyblog.com.

The Dominican Republic Real Estate Market

2007-05-20T23:56:00.000+07:00

For those of you who are looking for a guide to property buying in the Dominican Republic, you should know that, in the past twenty years, a very large number of people have been looking for different types of real estate that they could use when traveling into the country for holiday purposes.

The Dominican Republic is a very nice place to spend your holidays in, therefore the travel and tourism industry has experienced a great deal of growth. In relation to this, the present times have proved that the Dominican Republic real estate market has also grown. I am speaking about many types of apartments, resort properties and other residences that people who are coming into the Dominican Republic for the holidays can use.

The whole point is that when it comes to the investments in the Dominican Republic real estate market, the best activity comes from the part that impacts or is involved with travelling and tourists. With this in mind, you can see the reason why these foreigners have been so active in this segment for years and years.

The foreign nationals are capable of spending enormous amounts of money on hotel resort complexes and apartment projects, as they intend to turn them into second homes or vacation properties. This is mainly because there are many people that are willing to spend long periods of time in the Dominican Republic. Of course, they are also interested in very expensive villas and estates! And why should they not be, when the Dominican Republic real estate market is often the target of very wealthy people across the world?! The properties for sale in the Dominican Republic can offer them heaven on earth!

This is not a trend of the current times, but also one of the future. Many real estate experts have stated that this road the properties for sale in the Dominican Republic have taken will continue for many years from now.

Because the values of the properties on the Dominican Republic real estate market are constantly rising, it would be a very wise thing for people to invest in this market, as these foreign nationals and other real estate purchasers in the Dominican Republic will surely make money on their real estate investments by buying properties in this beautiful country. You just have to feel the trends on the market and the money will soon come!

Dominican Republic Real Estate - Properties for Sale Dominican Republic - Exclusive properties and real estate services in The Dominican Republic - Home for Sale Dominican Republic .

Benefits of Using Professional Assistance When Exploring the Orlando Florida Real Estate Market

2007-05-20T23:47:00.000+07:00

Are you interested in moving to Orlando, Florida? If you are, have you already started to examine the Orlando, Florida real estate market? If you have yet to do so or even if you have, you may want to think about getting professional assistance. That professional assistance could come from an Orlando, Florida real estate agent, a buyer’s broker, a financial lender, or a professional who considers themselves to be a combination of all three.

When it comes to getting professional assistance, when examining the Orlando, Florida real estate market, there are many hopeful home buyers who wonder why they should turn to a professional. After all, when examining any real estate market, including the Orlando, Florida real estate market, there are a number of resources that buyers now have access to. Yes, you can use the internet to research Orlando properties for sale and you can also gather a collection of free real estate brochures, but you should know that there a number of benefits to seeking professional assistance. A few of those benefits are briefly outlined below.

Perhaps, the greatest benefit of using professional assistance, when examining the Orlando, Florida real estate market, is the time that you may be able to save yourself. Yes, you will still need to be involved in the process of buying a new home, but you may find that the work that you, yourself, need to do is significantly lower. The amount of time that you should be able to save by examining the Orlando, Florida real estate market will be significantly lower if you are a first-time home buyer. If you have never bought a home before, you may be unfamiliar with just how the real estate market works. That is why you should use the knowledge and assistance of a professional real estate expert.

In fact, the knowledge of a professional real estate expert is another one of the many reasons why you should use a professional to help you examine the Orlando, Florida real estate market. When it comes buying a new home, there are many home buyers, just like you, who need to obtain financing. However, not everyone is familiar with how to go about getting that financing. Using the assistance of a professional real estate expert can help you with financing, among other things. For instance, did you know that Orlando, Florida real estate comes in all different sizes, shapes, and styles? For example, you could buy a new home, have a home built or manufactured, buy land, and so forth. A professional real estate expert can not only help you find the Orlando, Florida real estate property of your choice, but buy it as well.

If you would like to reap some of the above mentioned benefits, you are advised to let a professional real estate expert help you with the examination of the Orlando, Florida real estate market. In the end, you will likely be glad with your decision to seek professional assistance.

Laurence Hammond is a writer for New Home Firm . org where you can find accurate information about Orlando Florida Real Estate and other related information.

Real Estate in Central Florida - Why You Should Examine For Sale Land

2007-05-20T23:31:00.000+07:00

Are you interested in owning a home in Central Florida? If you are, your first thought may be to start examining the real estate market. When it comes to examining the Central Florida real estate market, there are many hopeful home buyers who choose only to examine homes that are for sale. While this approach is more than possible, you may also want to examine other types of real estate in Central Florida. One type of real estate in Central Florida that you may want to look at is land.

When it comes to examining land in the Central Florida area, there are many home buyers, who don’t do so. Many of those home buyers, as previously mentioned, focus more on pre-built homes. Of course, you are free to do whatever you want, but you need to remember that not everyone is able to find the Central Florida home of their dreams. If you are unable to find the Central Florida home of your dreams, you may want to put off your search for a new home or settle for a home that isn’t your first choice. What you need to remember is that you do have more options. You can choose to have your own home built, either by way of custom building or a pre-manufactured home.

If you are interested in having your own home built, whether it be built on the lot from scratch or manufactured piece by piece in a warehouse, you will need a lot of land to live on. That is why you will want to examine real estate in Central Florida that includes lots of land. You can easily do this by examining the Central Florida real estate market. Many online real estate listing services and free real estate brochures list more than just homes, they also list other types of real estate in Central Florida. The only problem is that many just overlook these other listings. You will not want to do the same thing.

Another one of the many reasons why you should examine real estate in Central Florida that includes lots of land is because the perfect piece of property can make your dream home really a dream home. For many individuals, having a custom built home is a dream come true, but could you imagine having the perfect home on the perfect piece of land? By examining real estate in Central Florida, particularly land lots, you may be able to find out exactly how it feels.

As you likely already know, you can go about examining real estate in Central Florida on your own, but you may want to think about using the services of a professional real estate expert. What you may not know is that many professional real estate experts will do more than just help you buy a piece of land, many will also help you get the needed financing, as well as help you find the perfect Florida home builder to construct your new home.

Laurence Hammond is a writer for New Home Firm . org where you can find accurate information about Real Estate in Central Florida and other related information.

Top 10 Things to Consider Before Buying a Home

2007-05-20T23:22:00.000+07:00

Many home buyers are recognizing falling home prices as a time of opportunity to purchase their first or even next home. Before you begin buying a home; however, there are ten critical factors that should be taken into consideration.

First, if you have not already established a budget, now is the time do so. You can establish a budget by writing down how much income you receive within a one month time period as well as all the expenses you have during that time. Be sure to write down all of your expenses and do not leave anything out. Take a careful look at everything to be sure that your expenses are not actually exceeding your income. If that is the case, it's time to take a look at areas where you can cut down.

You also need to take a look at creating a sample of what your budget will look like after you have purchased a home. Keep in mind that your expenses will change as you become a home owner. You will become responsible for expenses that you do not have to worry about now such as homeowner's insurance, maintenance and repairs, property taxes, lawn equipment, homeowner association fees and possibly higher utility bills.

It's also a good idea to go ahead and begin establishing a back up fund if you do not have a savings account. These are funds that you can fall back on in the case of an emergency. Ideally, you should have enough money in your fund to cover at least three months of living expenses in the even that something occurs to interrupt your income. This will prevent you from losing your new home through foreclosure in the event something unforeseen occurs.

As you are probably aware, you will need to make a down payment on the purchase of your new home. You will need to put at least 20% of the purchase price of your home down in order to avoid paying PMI or private mortgage insurance. While it is possible to obtain a loan with a far lower down payment, keep in mind that PMI will increase the cost of your monthly mortgage payments.

Now is also the time to start working on paying down your debt. This is especially true if you have significant amounts of student debt and/or a lot of credit card debt. Keep in mind that a lender will be checking out all of your financial information including those debts. Most lenders require that all debts combined, including your new mortgage not exceed 38% of your total income.

It is also a good idea to check out your own credit report before applying for a mortgage loan. This will give you an opportunity to find out where you stand and to correct any possible errors that may be on your credit report.

Once you have all of your financials under control it is time to begin turning your attention to exactly what kind of home you might need. Unfortunately, many homebuyers focus on what they want instead of what they need. As a result it doesn't take long before their dream home becomes unsuitable. Give careful thought to exactly how much space you need in a home. While a large home may seem impressive, if you don't actually need all of that space, the cost of owning and maintaining such a large home can become burdensome very quickly. On the other hand, if you plan to expand your family in the near future it could be wise to go ahead and purchase a larger home that you actually need right now in order to accommodate future space requirements.

When shopping around for homes make sure you do not overlook any possible opportunities. Many buyers shy away from homes that are for sale by owner; however, in reality considering these homes might actually save you some money. Owners who are handling the sale of their homes on their own may be able to crop some off the sales price as they do not need to worry about a real estate commission.

Finally, be sure to exercise the use of the Internet in your search for your new home. Today there are an abundance of homes that are for sale online. Using the Internet in your search can help you to quickly determine exactly what is available in the housing market right now and give you an idea of how much you will need to spend for the house you want.

Andrew owns a Home Buyers Guide that provides many home buying advices. You can visit his website at:http://www.buy-and-sell-house-fast.com/home-buying-guide.shtml.

Advertising Your Rental Property

2007-05-19T09:12:00.000+07:00

In any market advertising is essential to a successful business. This is a trend that holds true in real estate rentals. So you have a property to rent and are wondering about how to reach as many potential renters as possible? Naturally you would like to have a large cross-section of renters to choose from enabling you to rent the property to someone who will respect the property as you would, treat it as their own, pay their rent on time, and stay long-term. That may seem like quite an order but those renters are out there; its just a matter of finding them.

The tried and true methods of advertising your rental property are still a great basis for marketing a rental. Ads in the local classifieds reach your local market and are probably the place most searched for property rentals. You can also easily list your home with a rental agency to try to attract more prospective renters. Perhaps one of the best ways to reach as large a market as possible is to advertise your rental on a national rentals website. This will open your rental up to a much larger market and exponentially increase the interest in your property. Another great way to increase visibility for your rental is to utilize community bulletin boards. If there is a college or school in your area, also post the rental info here.

In interviewing potential renters don't be in a hurry to fill the vacancy. Be choosy about who you rent to. After all this rental represents a significant investment of time and money for you so having the right renters is essential to the success of the investment. Also, be up front with your rules and requirements for the property and ensure that all applicants understand your regulations as a landlord. Proper upkeep of the property and the consequences of failure to do so should be outlined and detailed in the rental agreement. Make sure your property is safe and protected at all times and the investment should turn out to be worth its while.

Michael Peterson is a representative of NationalRentalProperties.com. The one-stop site for locating rental properties across the nation. Contact us anytime or visit us online at http://www.nationalrentalproperties.com.

Home Value - Buying or Selling

2007-05-19T07:37:00.000+07:00

Whether you are purchasing a home or selling a home, the value of the property will be of great interest to you. The value of any given property depended on quite a few different things. It would be nice if the value was based on the property alone, but this is not the case, factors that are out of your control also play a big role in determining the bottom line value of a home.

The Neighborhood - The neighborhood that the home is in is one of the major factors in determining value. This is partly due to the fact that homes bought & sold in the neighborhood will be used to compare when the original asking price for the home is determined. Also, the quality of the neighborhood itself plays a big role. An area where the yards are well kept, the streets are clean, and the homes are well maintained will have higher baseline real estate values than an area that is run down and dirty.

Schools - Whether or not you have children, schools have a definite impact on home values in their areas. People with children are always looking for homes in a good school zone. Plus school zones are usually more established areas and as such have a higher value.

Shopping & Recreation - Area that have close access to shopping centers (not too close mind you) tend to have a higher value as people do not want to have a long trip to pick up the necessities of daily life. Also being close to sites of recreation is handy, especially if you have kids who are into sports.

Crime Rate - The number of crimes in the area will have a huge impact on home prices as people will tend to shy away from purchasing in a high-crime area. Buyers will also likely take notice of what kind of crimes are most often committed in an area before moving in. It would seem the home buyers are concerned about home-based crimes, naturally.

City Planning - Also known as zoning. This is what will determine the future of the neighborhood and area in general. Are they planning on dropping a huge big box store in your backyard? This will no doubt have a huge effect on the value of a property and the neighborhood.

Selecting your area is one of the most important choices in home buying and is extremely important in the sales game. It is harder to sell homes in less developed areas and areas that are run-down. So plan ahead for your purchase or sale and get the most out of it.

Kelli Bennett is a real estate agent specializing in Breckenridge real estate. http://www.kellisells.com is your leading site for all your Summit County and Breckenridge real estate needs. Contact Kelli today for more info.

Showing Up Late To The Party Part 4

2007-05-18T10:46:00.000+07:00

A big mistake investors can make is to have an arbitrary number at which they will not rise above, no matter what the value. Poor people base their decisions mostly on what things cost; the wealthy, on how much things make. That is not to say that the price doesn’t matter — of course it does. But it’s not all that matters. For instance: the neighborhood in which I grew up in consists of houses that are now worth anywhere from $950k to $2,500,000k. In the early 70’s, they were selling in the $30,000s. If one bought a house here for $30k or $35k back in that era and sat on it ever since, would it really matter now, that they might have “overpaid” by a few grand? Appreciation has a way of smoothing things over. If positive cash flow was being produced all that time, then real estate actually paid the owner to get rich. Nice, huh? And even if hadn’t appreciated a tenth of what it actually has, the benefits of ownership over time have LONG since paid for the property.

A big mistake investors can make is to have an arbitrary number at which they will not rise above, no matter what the value. Poor people base their decisions mostly on what things cost; the wealthy, on how much things make. That is not to say that the price doesn’t matter — of course it does. But it’s not all that matters. For instance: the neighborhood in which I grew up in consists of houses that are now worth anywhere from $950k to $2,500,000k. In the early 70’s, they were selling in the $30,000s. If one bought a house here for $30k or $35k back in that era and sat on it ever since, would it really matter now, that they might have “overpaid” by a few grand? Appreciation has a way of smoothing things over. If positive cash flow was being produced all that time, then real estate actually paid the owner to get rich. Nice, huh? And even if hadn’t appreciated a tenth of what it actually has, the benefits of ownership over time have LONG since paid for the property.

Californians tend to swing from a pendulum of needing everything to be dirt cheap, and wanting properties to appreciate California-style. The challenge here is no one can know exactly what things will be worth ten, twenty, thirty years from now — and most investors won’t be able to keep their properties for that long anyway because they don’t cashflow.

To all would-be investors sitting on the fence: decide whether you want to have a financially-free future to look forward to, and explore whether it makes sense for you to include out-of-state real estate as part of that future. And please, do your homework! Internet search engines are your friend — use them — these days it’s more convenient to find information on various places than ever before in history. Take advantage of that, as well as talking to other investors about their experiences in other places.

There’s a lot of money out there and a lot of investors cleaning up who “got there first” — why shouldn’t that be YOU?

I'm Shannon Gunderson and I'm a professional real estate investor, artist,writer , and more. In over two years of being "unemployed", my partner Jonathan van Clute and I have invested in residential real estate in 8 states and have bought more houses than we ever dreamed of. We are creating the life we have always wanted and will never again be at the mercy of a paycheck. We love to help teach what we do, which is why among other things I write on our blog. I love to get feedback, and would be happy to hear from you!

Showing Up Late To The Party Part 3

2007-05-18T10:44:00.000+07:00

Granted, there ARE many places where that’s likely to be true. But others are still fairly low and increasing at a decent rate. We want to get in those before it’s too late.

My point is that each property should be evaluated in the context of where it is. Just because a house is in Arizona and costs less per square foot than a house in California, doesn’t mean that’s what an investor should buy. (It may well be a good investment — but not just because it costs less than California!) Learn about regions — that’s crucial. A $100,000 house that looks cheap to us Californians could be astronomical to the natives of an area. On the other hand, that house may be worth a lot more in the coming years and new businesses may be moving into the area that will subsidize the higher prices for new residents. Review the facts and base decisions on solid research.

I can’t even count how many people we’ve talked to whose mode of decision making when it comes to investment properties is to, figuratively speaking, throw a dart and see where it lands on a map of the USA. Or worse, wherever a guru tells them. The speaker may be right or wrong, depending on what you want to do. (A place may be ripe for foreclosure opportunities but be lousy for holding rentals, for example.) That also goes for well-meaning relatives, friends, or co-workers.

Have you ever had anyone tell you “Invest in ____, it’s cheap there!” without having any other reason to buy there? Cheap is relative. Even if I can still buy a 3/2 for $140,000 in a good neighborhood, if the maximum rent I can reasonably get is $900, that’s too expensive of a property for me. Add in other costs like insurance, taxes, and expected repairs to get a realistic expectation of how “cheap” said property will be. Once the facts are known, it may be a “go” if the investor doesn’t mind floating the negative, but it should not be assumed to be a cashflow property just because it is not in California.

See part 4 of this series for the conclusion...

I'm Shannon Gunderson and I'm a professional real estate investor, artist,writer , and more. In over two years of being "unemployed", my partner Jonathan van Clute and I have invested in residential real estate in 8 states and have bought more houses than we ever dreamed of. We are creating the life we have always wanted and will never again be at the mercy of a paycheck. We love to help teach what we do, which is why among other things I write on our blog. I love to get feedback, and would be happy to hear from you!

Showing Up Late to the Party Part 2

2007-05-18T10:41:00.000+07:00

That’s something that left-coasters need to know when researching where to buy properties. What are the prices in other states now? Get some rough ideas. It varies. Certain sections of the country have inflated to amounts that make them useless for cash flow. Others have some low-priced areas left, but low prices should not be the only consideration: Californians tend to think EVERYWHERE else is low-priced.

Along this line of thinking is the idea that just because a place is not California, it must be cheap. That’s ridiculous, but not uncommon. There are countless places across the states that have California-level prices. What casts most of CA into the theater of the absurd is that here, there is no current ownership option for anyone other than the wealthy or over-extended. It’s not like you can choose the $250,000 house because the $700,000 house is over your head. The less expensive house does not exist (in stick-built form; manufactureds obviously do but the space rent on such can eat the owner alive as easily as any huge mortgage can). If you’re not loaded or willing to go up to your neck in debt, homeownership is not available. In most other places, homeowners can start out in the less expensive houses/neighborhoods and “move up” when ready: there are varied price ranges of houses to accommodate that.

Many Californians aren’t used to that reality. Nor are many of them prepared to hear that prices have skyrocketed up in many national locales. It’s like, if a place isn’t in CA, it’s the boonies, inherently cheap, and waiting another ten or twenty years to buy there won’t matter because the prices will forever be stuck in the 70’s.

See part 3 of this series for the continuation...

I'm Shannon Gunderson and I'm a professional real estate investor, artist,writer , and more. In over two years of being "unemployed", my partner Jonathan van Clute and I have invested in residential real estate in 8 states and have bought more houses than we ever dreamed of. We are creating the life we have always wanted and will never again be at the mercy of a paycheck. We love to help teach what we do, which is why among other things I write on our blog. I love to get feedback, and would be happy to hear from you!

Showing Up Late to the Party Part 1

2007-05-18T10:30:00.000+07:00

I’m going to reiterate something I stated to a new investor we met this weekend: if you show up late to a party, the best food is likely to be mostly gone, and you get the crumbs or something you didn’t want. I was illustrating a point about real estate throughout the country.

It’s a common affliction of Californians in particular that is understandable. This is a terribly popular state that experienced price increases faster than a waistline in the first year of marriage. Real estate here is a no-brainer, IF you bought early enough or smart enough.

Don’t agree? Here’s the test: go out and ask a handful of people if they would buy CA real estate today. Then ask them if they would have bought it twenty years ago if they could, had they known what prices were going to do. Anyone who says no to the second question is either an idiot, a liar, or has some chip on their shoulder against making money or owning property.

However, CA does not have a monopoly on drastic price increases. It’s happened in many parts of the United States. The rest of the country did not sit in cold storage, frozen at the costs of yesteryear while CA was seeing double digit appreciation. Many other places went up, too. And, like CA, the best time to get there was a long time ago. That’s how appreciation works. How you feel about it depends on which side of it you’re on: having bought or not.

See part 2 of this series for the continuation...

I'm Shannon Gunderson and I'm a professional real estate investor, artist,writer , and more. In over two years of being "unemployed", my partner Jonathan van Clute and I have invested in residential real estate in 8 states and have bought more houses than we ever dreamed of. We are creating the life we have always wanted and will never again be at the mercy of a paycheck. We love to help teach what we do, which is why among other things I write on our blog. I love to get feedback, and would be happy to hear from you!

Real Estate Investing - Matching Buyers with Properties

2007-05-18T10:27:00.000+07:00

One of the things you have to consider as a real estate investor is matching buyers with properties that you acquire. When you develop a buyers list for your properties, whether you’re trying to wholesale or rehab, you will find that the simple saying, “Different strokes for different folks,” applies. Some of the different “strokes” might be low-end rentals, high-end rentals, multiple unit rentals, and rehabilitation projects.

The different “folks” will often match these properties. For every investor, there is a niche they specialize in. If you want to wholesale properties, it’s up to you to offer the greatest spread of properties to fellow investors. Also, you must take into account, your regular home buyers (owner-occupants).

Part of any building block of a business is to identify the target market. For instance, with this site, we identified the people who would be visiting it most likely. We tailor the articles with content that is basic in order to meet the “customer” needs. We don’t overload the articles with complexities, but we do offer the basic 1-2-3 steps for beginning a real estate investment business or a business in general. Part of this required developing a “character” for our visitors. In doing this, we are constantly developing new avenues of interest that we think our visitors will benefit from, including hard money financing (coming soon).

So, for matching buyers with properties is to simply define what each potential buyer prefers. When you decide to advertise for buyers, you might put out ads like this:

Deep Discounts-Properties need Rehab, Priced to Sell, Call XXX-XXX-XXXX

or

Excellent Cash Flow Rentals offered at Discounted Prices, Call XXX-XXX-XXXX

This may attract buyers who are looking for rehab projects. Thus, you’ll be matching rehabbers/contractors with properties in need of rehab. However, when the phone starts ringing, you’ll need to distinguish the type of homes each potential buyer wants. For instance, some might want 4 bedroom, 2 Bath, high-end rehabs, while others will want your basic “bread and butter” home, 3 beds and 1 bath. Also for the second advertisement, you’re looking for landlords. Additionally, you’ll need to identify the different areas each buyer will consider.

You may also run an ad like this:

Stop Renting-Starter Homes Available-Mint-Discounted Prices Call XXX-XXX-XXXX

These buyers might be your owner-occupants that are currently renting that you’ll add to your buyers list. Part of your strategy here might be buying, rehabbing and selling them yourself.

Of course, running one ad might be most economical:

Deep Discounted Properties for Sale, Home Buyers, Investors Call XXX-XXX-XXXX

Now, how do you determine what each investor/buyer wants? You may ask the following questions:

What type of property are you looking for?
Specifics? (# of bedrooms, baths, rooms)
What locations are you primarily interested in?
Have you closed on properties in these areas before?
What are your overall objectives for properties you buy?
What is the ideal return on investment you’re looking for?
What type of rentals do you prefer?
How do you continue to grow your customer base (the amount of people you can sell a property to)?

Well since money is always the bottom line and not all buyers have cash to buy (and you should never expect or rely on that solely), expanding the pool of investors and buyers you can sell to comes down to having contacts. If your buyers don’t have the contacts or the cash, you will need them. So four simple things you should do are:

Make contacts with good mortgage brokers and use them to qualify buyers
Make contacts with good hard money lenders to qualify investors (noobs)
Make sure these brokers and lenders can close deals quickly
Make sure you know the process inside and out so you can expedite the process
Lastly, you may look for ads that offer rehabbed homes for sale. For example, if you see a for sale ad that says, “…renovated” or some variation, call that number and begin the process of adding that individual to your buyers list. Visit the property to get a completely true feel for what they look for. This can be a very effective way of getting investors who are actually involved in performing on a contract because they already have demonstrated the ability to do so!

Always remember that you’re running a business. Every successful business has a well-defined strategy for marketing, sales and growth. Real estate investing is no exception!

©2006 noobdogs.com

Noobdogs.com offers a place for fellow new investors in real estate to ask questions and get good, sound information they can understand. Noobdogs.comis owned and operated by AmeriCountry Realty Group LLC. Founded in 2006 by Tom McGiveron, a Behavior Specialist and entrepreneur, noobdogs.com is becoming the premier site for new investors to achieve success in personal development and real estate investment.

Is Real Estate Investing Right For Me?

2007-05-18T10:24:00.000+07:00

This is an important question that you must ask yourself long before you consider getting involved in investing in real estate. Is real estate investing for me? Many people ask this question and give themselves the wrong answer. There are a number of considerations that an individual must make before they get involved in this high-stakes business.

Finances - What is my current financial position? Can I really afford to sink money into additional real estate? If you have a large number of other financial commitments then this might not be the area of investment for you. As the owner of the new property you will have to be financially responsible for it until such time as you can flip it or find renters. An investment property should never have the ability to drain your finances,

Focus - What will your focus be with the new investment? Are you looking to flip or rent the home? This will figure heavily into the amount of money that you will have to spend up front. Do you have the time and money to renovate a home or is a long term equity-building more to your liking? Either way, you should be aware of this before you start searching for properties so that these eventualities can be taken into consideration.

Availability - Take some time to think about your availability in regards to making the home sale or rent-worthy. As a landlord will you have the time to see to the upkeep of the home? If flipping will you be able to take the time to do the work, or will you be paying a contractor to do it?

These are all important things to think about before you get involved in the world of real estate investing. Be sure you know what you are getting into before you jump in with both feet, If you have any questions or concerns about the process, get in contact with your realtor and discuss things in better detail. The clearer a picture you have before starting the better things will go after the investment has been made.

Eric Bramlett is a realtor & broker servicing the Austin TX real estate market. Eric provides elite service and information to clients interested in homes and properties in Texas. For more information contact Eric, or visit online at http://www.ericbramlett.com

Investment Properties - Long Term vs. Short Term

2007-05-18T10:18:00.000+07:00

Real estate has become a very stylish method of investment in the last several years. While the housing market was expanding, investors were finding sensational appreciation, making home purchases a lucrative way to grow your financial profile. Depending on whether you are planning on making a long-term or short-term commitment, there are several factors to consider when using real estate as an investment. Here are some things to help you make the decision that fits your direction:

Short Term

If you are hoping to make money quickly on your investment, you are probably wise to consider buying single family residences that can be improved for a small amount of money. Oftentimes, there are little things, such as painting and updating, that can add to a home’s “curb appeal,” and, therefore, make it likely that you can sell it quickly for considerably more than you paid for it. Also, since you will not be keeping these properties for long, you need to consider obtaining a mortgage that fits that time frame, i.e. short-term adjustable rate mortgages or interest only loans.

Long Term

For more patient investors, multi-unit properties often offer the best alternative. Since these properties take longer to sell and appreciate slower, they are not suitable for short-term investments. However, the advantage they offer you lies in the rental income they can generate monthly to help cover the costs associated with their ownership. You will want to weigh the monthly income potential versus the hassle that comes with being a landlord, though. Also, long-term real estate investments should be accompanied by more conservative mortgage products.

Even though the mortgage market has recently been declining, real estate still offers a great source of investment. Before you enter this market, though, you should consider the thoughts above to understand what direction is right for you.

By C.L. Haehl

Recommended Online Mortgage Lenders For Investment Properties - We maintain a list of low rate mortgage lenders and update the list frequently. Try applying with one of our recommended lenders first.

Bad Credit Mortgage Loans- Rules for Success- Read this article to learn some tips on getting approved for a mortgage loan with bad credit.

What Causes Motivated Sellers?

2007-05-18T09:24:00.000+07:00

When investing in real estate, always try to keep an eye open for motivated sellers. Here are some things to look out for when seeking a motivated seller:

If you are looking at a property and it's listed well below market value, than the seller is either trying to get rid of the property in a hurry or a careless FSBO. If an appraisal comes in at a higher value than what it is selling for, check it out as an investment.

There are a few reasons why a seller would want to sell their property in a hurry. One reason is the unfortunate event of bankruptcy. The seller may be able to avoid bankruptcy by selling their home quickly. Another unfortunate event may be foreclosure. The property owner was unable to pay their monthly mortgage payments and are losing their house. The best option for people going into foreclosure to avoid foreclosure is to sell their home and save their credit. This is a great opportunity for investors to make money and help someone in need out.

Sometime sellers want to sell their home because they are moving far away and don't want to deal with the property sitting on the market for a long period of time.

Divorce is another situation which is good for real estate investors. During the process of splitting assets, they may want to sell the house for less than market value.

Sometime when people retire they want to relocate to another state. By moving they sometime want money to purchase a new residence and want it quickly. Sometimes they just want to get rid of their old house.

By Chad Stroh
Click here for free foreclosure listings in your area

Profitable Real Property Market

2007-05-18T09:23:00.000+07:00

Real estate market finds tremendous changes over the period with advancement and improvements in the real estate market. Nowadays more number of sellers and buyers finds good entrance and exit for their real estate property. More number of properties is listed in the market for sale for a reasonable price consideration. Today, real estate market satisfies the needs and requirements of their buyers and sellers. When a real estate property is listed for sale by the seller, then he should sell the real property for a reasonable price consideration with profit. This way, the buyer should also buy the property from the market for a fair consideration. Real estate market fetches profit for both the buyer and seller of the real property.

When the real estate property fetch profit to the buyer and seller, then only the real estate transaction made is said to be profitable. To fetch profit for the real estate property, the real estate market is found out. Without any profit, the real estate transaction will not be valuable. With the advancement of technology, more number of seller and buyers are coming forward to buy and sell the property in the market. Nowadays, trends have been changed and people started realizing the need for the real estate property and market. Though the real estate market finds frequent fluctuations, real estate markets also finds good demand for the real properties listed. The main reason for this fluctuation is that, real estate properties are sold for good price consideration in the market.

When a real estate deal takes place for the properties, either the seller or the buyer will obtain profit for the real property. This way either the buyer or the seller obtains profit for the real estate property sold. When real estate property is list out with adequate and relevant information regarding the property, then the seller can sell the real property with hassle free. Nowadays, real estate investing finds a good demand in the market and more people tend to invest in real estate property. When more number of people started investing in real estate investment, then surely the economy attains finite position in the market.

when real estate properties is listed for reasonable price, desired location, spaces and so on, then that particular real estate property finds a good demand in the real estate market. When real estate investing process carries on profitably, then only the buyer and seller come forward to the real estate market. Commercial and residential real estate properties are listed in the real estate market with advancement and increment in price consideration. In the real estate property market, both the buyer and seller have to fetch profit for the property bought and sold.

Ron victor is an expert seo copywriter for Real Estate Investing. He written many articles in various topics like Investing in Real Estate, Property Investment, Real estate investing information and Tips to successful real estate investing. For more information visit our site Real estate investing information. Contact me at ron.seocopywriter@gmail.com.

Overseas Investment Property - How to Make Big Gains with Low Risk

2007-05-18T09:22:00.000+07:00

If you want to make money from overseas investment property you need to keep one major factor in mind when doing so – most overseas investors don’t and get burned.

If however you can learn to avoid this common mistake, then you can make huge gains – overseas property can be cheap and have huge profit potential for the savvy investor if they play it safe.

The risk of emerging markets

Each week it seems there is a new property investment destination to look at that could give you huge gains.

The problem here is with the word “could” - most new destinations simply don’t emerge.

Sure, you hear about the people who became millionaires by being in first, but their small minority.

If you want to be a pioneer go ahead, you could get rich but remember most of the pioneers got arrows!

Buy an established trend.

You will hear this phrase a lot in the stock market and its true, a trend in motion is more likely to continue than reverse.

It’s the same in buying overseas investment property.

Once a market has taken off, it will continue for years or decades, as most people buying or living overseas want to be surrounded by the comforts of home and people who they can relate to.

When the market develops it becomes more popular, as the infrastructure expands to provide what is in effect a home from home.

Central America

Consider the favourite country for US investors Costa Rica.

The growth that has been seen in Costa Rica in the last 15 years has been stunning.

For example, a $30,000 property bought just 15 years ago near the popular town of Jaco is worth as much as $800,000 today.

In fact property prices have increased by 300% in the last 10 years.

Costa Rica remains popular as it has the best infrastructure and home comforts for Americans and cheap affordable beach front property at up to 80% less than in the US and its only a short flight away, so the odds of the trend continuing are high.

30% + gains or more are still be made by investors with low downside risk.

Now you can get the property cheaper in say Nicaragua, but it’s poorer, lacks the infrastructure and involves more risk.

If you want to be surrounded by street children and poverty it’s great – but Costa Rica is the safer bet.

Its property boom has been running longer, the trend is up and infrastructure makes Americans and other foreign nationals feel comfortable.

With beachfront property still great value, the baby boomer generation retiring and the opportunity to make a rental income as well as great capital gains and you have the recipe for further great gains in the years ahead.

The lesson in overseas property investment is

Trade established trends you can make great gains with low risk.

Everyone wants to be in first and make a killing, but more often than not this leads to financial disaster.

In most cases tomorrow’s property investment “hot spot” soon becomes yesterdays and is forgotten by everyone, except those who have lost money.

If you want big gains trade the trend and get bigger profits with low risk.

FREE REAL ESTATE ADVICE NEWSLETTERS, PDF, DVD's AND MORE

For more info on all aspects of Costa Rica investment property visit our website for a huge resource of articles, features and downloads and at http://www.net-planet.org/index.html

Investment Tips in Florida Real Estate

2007-05-18T09:19:00.000+07:00

If one wants to make money long term, then real estate is always the preferred investment option. Investing in real estate in Florida, an investment hot spot, is a different ball game altogether. There can be returns of up to 30% on investment in properties and given that this state lies at the very pinnacle of the real estate food chain, things are bound to look up even more.

The key to being successful in such an investment is to know what you are getting into before you are knee deep in it. So arm yourself with all relevant information about Florida real estate to educate yourself. Investment seminars, books, websites offering tips on how to go about this are good ways to start. Then there are the testimonials of successful investors. Most importantly there are the rules and regulations, real estate laws and the current market conditions to deal with.

Study the value and market price of any piece of real estate in Florida. Hire a real estate evaluating official or appraiser if you are unsure of how to go about this. Once you know the current market value of land it will be easier for you to negotiate with the seller. This could be the key to a great deal.

Some investors will advise you to invest in bargain property where the seller may be willing to sell the piece of land for a price which is at least 20% less than the market rate. Sometimes there are properties with concealed potentials. These can be easily revealed and the property value can then get enhanced. For this to work, you need to unlock all such hidden potentials within the first six months of purchase.

There are certain other factors which determine whether it is really worth investing in Florida:

Location : This is crucial. There are high and low demand areas. Florida and Las Vegas are two of the states most in demand now. The returns can be tremendous on purchase but be prepared to do your homework before deciding.

Amenities : These lubricate the real estate market. Florida real estate flourishes because of proximity to some hotspots like beaches, amusement parks, nature trails, and resort towns. The cost of real estate is thus directly linked to the availability of such amenities.

Cost of living : How expensive the region is, is a question you will forever mull on before making up your mind. Vacation rentals in cities like Orlando for example will have a greater demand because of the lower cost of living. Taxes, normal necessities, organization fees and real estate if too highly priced may often make investments of this nature seem undesirable.

History : If an area has been profitable in the past, chances are it will continue to be so in future. A typical instance is South Florida, an area with a solid past and a tremendous future. Though quite developed, it is expanding frontiers at double speed given its strong real estate investment history.

Bob Lipply sells Florida Real Estate but specializes in Pinellas County Real Estate and Westchase Real Estate.

The Do's and Don'ts of Private Lending

2007-05-18T09:18:00.001+07:00

I have received a number of email questions recently on very similar issues and thought I would address them as a group versus individual emails. The questions are broken down into general areas and include things to do and things not to do. The Don'ts include advertising on Craig’s List and the use of the word "Guarantee". The Do's include what are the best marketing methods. My comments on each are below....

Don'ts

Advertising on Craig List - I do not recommend that you advertise on Craig List. It is too public and there are state and federal watchdogs looking for people who may be violating securities rules. I have said on many occasions that I do not recommend any advertising that is on a national scale including your own web site. This kind of advertising will get you into trouble with securities regulators and may be considered a securities offering to the public.

I know this from personal experience. Several years ago a person responded to my Craig’s List ad requesting information about my investment program. After several emails, the individual said he was ready to invest and I directed him to my title company to prepare the appropriate documents. Strangely, I never heard from the individual again after that.

A short time later, I received a "cease and desist" letter from the Pennsylvania Securities and Exchange. The letter had several direct quotes from the emails I had exchanged with this individual. The State did not fine me, but asked that I never advertise on Craig’s List or on my web site. Needless to say, I am complying.

Guarantee - Do not use the word "guarantee" in any form in any of your advertising. Do not use the word "guarantee" or ever imply that somehow your investments are "guaranteed". This is a sure fire way of attracting the attention of the wrong people. You may say your investments are secured by real estate, which is accurate, but do not use the word guaranteed.

Do's

Schedule at least one breakfast meeting per week - This simple advice might be the best and almost certain way to attract large amounts of capital. Schedule a breakfast meeting every week with someone who has extra cash available and is interested in your lending program. You will not get everyone to invest, but the chances are you will get enough to support a reasonable real estate buying business. At these meetings, be sure to ask the person for the name of at least one other person they know who might be interested in your programs.

Hand out 5 to 10 business cards per week – Again, this simple but very powerful advice will ensure that you have plenty of people on your prospect list. These are the people you have breakfast meetings or schedule a group meeting with. Everyone you come in contact with may be a potential lender. Do not overlook people just because they do not fit the perfect profile. You would be shocked that people that you would never think of as investors may become one of your best clients.

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lender PowerPoint Presentation Kit. This kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your business.

To learn more about this powerful step-by-step kit and receive your FREE Private Lending Newsletter go to http://www.RealEstateWealthToday.com

Private Money Secret

2007-05-18T07:48:00.000+07:00

I was at a meeting of the local real estate investor’s club last night, when a fellow investor wandered over. He knows I use private money to fund my real estate investments, and he wanted to ask me a question. “Are there any secrets about private money you’re keeping to yourself?” he asked.

I looked at him for a moment before responding. “If there are, and I share them with you, they won’t be secrets anymore, will they?”

He acknowledged that I was right… revealing them would remove them from the realm of “secret.” Then we both had a good laugh, and I proceeded to tell my friend the only thing I know about private money for real estate investing that could be considered a “secret”…

You see, most everything you need to know about finding private money is easy to learn or figure out. There are excellent courses and programs for learning how to obtain private money to fund your deals, and much of the information is online or in books. If you have a good deal of time, you could probably even piece together what you need at no cost.

The best private money courses will give you a blueprint for building your own network of private money lenders, and tell you exactly what steps you need to take to stuff your pipeline with hungry private lenders standing in line to shove cash into your hands.

They will also tell you the specific actions you need to take to protect both your private lenders and yourself when you enter into each new lending relationship. They will give you guidelines and templates for setting up the paperwork properly, and tell you how to compensate your lenders the right way.

There is only one “secret” the courses and programs won’t tell you, and you won’t find it in any book or webpage. What is this dark, mysterious secret for finding private money for real estate investing?

YOU MUST TAKE ACTION… and no book, website, course, or program will do it for you! When all is said and done, you can have all the knowledge about private real estate lending in the universe, and it still wouldn’t matter a hill of beans if you don’t go out and put the knowledge to use by taking appropriate action.

Don’t let fear of failure, fear of rejection, or fear of the unknown stop you for even one more day. Figure out what step one is and take it. Tomorrow, figure out what step two is, and take that step. Better yet, write the steps down on paper today, write a date by which you will have each step completed, and put it on your wall where you can’t miss it.

Go out and make it happen. Start NOW!

For lot’s more great information on private money for real estate investing try visiting http://www.private-money-real-estate-investing.com

How’s that for a secret?

Crush The Biggest Obstacle to Your Success in Real Estate... or Anything Else! Download my FREE report and Start Investing In Real Estate!

Tom Dunn is a successful real estate investor and author of the popular DealFiles Real Estate Investor Stories free newsletter. You are welcome to share this report, unedited and in it's entirety, with anyone you like. This text, and all live text links, must remain intact. © 2007 by Tom Dunn.

Property Investment Fashions

2007-05-18T07:47:00.000+07:00

‘Summer of love’
Apparently fashion goes in 20 years cycles. If true, this means that we should all be attired in fluorescent coloured clothing and flowery ‘dayglo’. For those old or indeed young enough to remember - 1987 was the ‘rave’ inspired ‘Summer of Love’.

Economic cycles
Just like fashion, economics tends to follow cycles. It occurred to me that maybe economics and more specifically housing economics is mirroring this fashion cycle and that we are at a similar point to where we were in the late 1980’s.

Twenty years ago the housing market had experienced a period of rapid inflation from the early 1980’s and affordability was becoming stretched. In fact according to the CML affordability was at the lowest point in 1990 when interest payments as a percentage of median income were a massive 26.5%.

Today following a series of interest rate rises using the same measure, it is still only in the high teens. However, there is no doubt over the last few months it is increasingly difficult for landlords, including me to finance their mortgage payments out of their rent.

This reminded me of what a struggle it was when I first became a landlord almost 20 years ago. Now just like then the media is full of stories about an imminent crash following the dramatic house price rises.

How realistic are these claims?

Why it’s different this time?
The boom in house prices 20 years ago was followed by a dramatic bust in the early 90’s with thousand of owners being cast into negative equity, often for many years. I spent eight years with a property waiting for it to recover its’ value.

Are we facing the same scenario almost 20 years on?

No I don’t think so. The difference now compared to then can be summed up by a little word; ‘stability’. Twenty years ago following on from a dramatic economic boom after the depression of the early 1980’s; an economic crash and rising unemployment sent shock waves through the housing market which caused one of only 3 falls in the housing market since the war.

The main reason why I don’t see things repeating themselves this time is that the economy is still robust, company profits are at record levels and unemployment low. There are no signs of the conditions to cause a dramatic fall. Whilst this remains the case it is hard to see such a ‘shake out’ of the market. Much more likely is the widely vaunted ‘soft landing’ as growth rates slow. This view leads me to think about the future direction of my portfolio.

Property as a ‘cash cow’
Ever since starting my portfolio I have stuck by an approach that has attempted to leave as little money in my investments as possible. Instead preferring to extract the capital to use else where. When I first started, this was a prerequisite as limited capital resources meant the only way of purchasing a property was to push things to the limit.

No longer do I need to do this. In looking at my portfolio I have realised that I should no longer bank on using property as a ‘geared play’ on a rising market. This is where you borrow money to buy an asset which grows in value and thereby gives you a much higher return on your initial investment capital (your deposit).

I am now looking to use my property investments as ‘cash cows’. This is using the regular income generated from rent to pay down the debt, so giving me ultimately a debt free asset.

This was how ‘old school’ property investing was done, well before interest only financing was even thought of. It has advantages. It reduces my exposure to rising interest rates and should secure my future capital barring a sudden collapse in capital values which I have already said is unlikely.

Therefore whilst we may end up with the fashions of 20 years ago, we should with any luck avoid the excesses of its’ housing market. Think of employing ‘old school’ property investing techniques as a way of securing your long-term financial security. To my mind, the desire for this never goes out of fashion.

HAWKEYE – a unique perspective on property investing

Chris Horne (39) a qualified town planner and surveyor as well as being the author of the ‘Landlords Bible’ has been involved in all aspects of property from working as a planner in a local authority dealing with planning applications to being a consultant in the oldest surveying practice Drivers Jonas in the West End of London, and working for English Partnerships in the Midlands. He is now a full type landlord and investor. Chris has also started the website propertyhawk.co.uka site aimed directly at UK Landlords. The site incorporates free property management software that enables landlords to track all the financial data relating to their portfolio. It allows users to print tenancy agreements and other forms. The site generates a real time rent book for each property as well as calculating a landlord’s tax liabilty. The service is totally free to use at propertyhawk.co.uk

Preconstruction Real Estate Investing - High Reward Investment or High Risk Crapshoot?

2007-05-18T07:46:00.000+07:00

If an investor heard about an investment that could yield 75%-100% returns within one or two years, he would no doubt say, I want a piece of that action! And it's true, preconstruction real estate investing has excellent potential for profits beyond those you'd find in many other kinds of investments. However, investors need to see through the hype and understand that there are also substantial risks involved in this kind of investment, with the very real possibility of financial loss. Fortunately, the smart investor can control most of these risks by selecting the right investments and planning for negative outcomes.

Put simply, preconstruction investing involves buying a property at a discount before it is built and then selling it at a profit after the building is completed. The value of the property increases during the construction, making it worth more than the price it was bought for. The investor's profit, of course, comes from the difference between his buying price and his selling price.

In a booming market, real estate can be expected to appreciate significantly over 1-2 years. However, what if the market takes a downturn? It's possible that the unit may be worth less than what the investor paid, at least temporarily. Or there may be a shortage of qualified buyers to take the property off the investor's hands. Large developments that take 3-8 years to complete can be highly speculative investments. The investor's money is tied up for all this time, and it may be hard to predict the state of the real estate market so far into the future.

Preconstruction developments often involve condos and resorts in attractive locations. The developer will naturally promote the property in a very favorable light and try to downplay any drawbacks. It's easy for an inexperienced investor to get caught up in the excitement of buying, without investigating all the relevant factors. In fact, one of the most important aspects of preconstruction investing is knowing which deals to get involved with. A savvy investor understands that he doesn't need to jump into every development that comes along. Actually he will do better by setting criteria for the kind of real estate he will invest in and sticking to the plan. Making the right decisions and choosing the right investments is a skill that can be learned through studying the techniques of successful investors and applying them to one's own individual situation.

One of the benefits of preconstruction is that investors only have to put down 5%-25% of the price when they commit to buy the property. The small cost of entry may lead investors to overextend themselves financially in their eagerness to get in on the deal. However, if the investor can't afford to close on the unit when it's finished, he will forfeit all the money he's put into the project. A wise investor will avoid this kind of outcome through judicious planning.

It becomes obvious that the area of preconstruction investing has many complexities. Anyone who is serious about doing this will want to learn as much as possible about the process before diving in. This could include attending seminars, taking courses, reading books, talking to more experienced investors, joining real estate clubs, and so on. The time you spend in research and self-education will undoubtedly pay off. The more you know about selecting the right properties and planning for negative outcomes, the more likely your investments will turn out to be high reward, rather than high risk.

Free video and email course -- Get the critical information you need to start profiting from the hot preconstruction real estate market. Learn more today at http://www.realestateinvestmentbasics.com/preconstruction-investing.php.

Divide And Conquer For Real Estate Wealth Creation

2007-05-18T07:44:00.001+07:00

Virtually every market in the country has a specific opportunity for wealth creation waiting for whoever is intelligent enough and aggressive enough to go after it. It is simple to identify, easy to understand and surprisingly painless to bring to fruition. Don’t just blow it off when you hear it how simple it is. People are making huge amounts of money from this process. I know. I have.

Here’s the program; find a property that has a lot large enough to divide off, buy the property then subdivide it. A small property on a large lot may be a real diamond in the rough. If you can buy an existing property on a large lot, you may be able to subdivide the lot to end up with both a property on a small lot and an additional building lot to boot. When this happens, you will find that the property now on the small lot will in all probability maintain its full market value (your purchase price) particularly if it is a residential property. The newly created lot will have its own market value and therefore be a simple creation of substantial new wealth. You then have the option to sell off one or both of the properties. If you end up with a home and a lot, you could sell off the lot and use the money to pay down the debt on the home and thereby have an increased net worth and an increased cash flow from a rental unit. Or, you could use the proceeds from the lot sale to buy another property and repeat the process. The options available are many.

To get started, as you drive around just keep an eye out for long corner lots, or lots where a home or other building is off-set to one side or the other. Once identified, you can do a little research with the City, County or Township about required lot sizes and if the property meets the necessary criteria to end up with two lots, then voila! A deal is waiting. In many areas current lot size requirements are much smaller than they were years ago when much of an area may have been built up. Sure there is the process of working things through with your local government, but when the lot you buy is big enough to divide, a huge profit awaits. This is only one of many ways to create wealth with real estate. Learn all you can so you can earn all you want.

Roger Beattie is an accomplished real estate investor and writer. He and his programs have appeared in many major publications including Forbes Magazine and The New York Times. He currently has a real estate investment blog at: http://www.MiddleClassMillionaires.com/blog

Creating Positive Cash Flow in Tough Real Estate Markets

2007-05-18T07:43:00.001+07:00

On Friday, I recorded a call with Jassen who is Wholesaler Manager with the Wholesaler Network and we discussed solutions to the negative cash flow problems that investors face in many markets.

In the overwhelming majority of today's real estate markets it is very difficult to buy real estate with little or no cash down and rent it traditionally without having a negative cash flow. For example, here in my market in Northern Colorado, we can buy a house for $200,000 that will only rent for $1,100 to $1,200.

We would have a negative cash flow of at least several hundred dollars per month even with some excellent interest rates trying to buy a house of that price with no money down.

While I do not suggest using what I am about to share with you to justify buying non-deals, there are solutions to be able to buy houses like this and still get positive cash flow.

One possible solution, and my least favorite, is to break the house down into parts. For example, you can rent the house out to students by the bedroom. In my example above, the house above might rent for $1,100 to $1,200 to a family, but you could get $300 to $400 per month per bedroom.

In that case, a 5 bedroom house near our local University could fetch $1,500 to $2,000 per month; that should cash flow with most reasonable interest rates, taxes, insurance and buying it with nothing down.

A much better solution is to change the nature of "rental". We typically use this next strategy when I buy houses with owner financing and then sell it on a rent-to-own, but you can do with any house you buy.

The basic idea is to sell the house with temporary owner financing to your buyer instead of renting it. When you provide temporary owner financing as your buyer qualifies and gets their own traditional loan over the next year or two, the monthly payments you collect are not rent payments; the payments are what a mortgage payment would be.

The payments they pay you are much higher than rent and usually a couple hundred dollars more than what you are paying including taxes, insurance changing a negative cash flow property to a positive cash flow property.

James Orr is a professional real estate investor and marketing expert.

Moscow Real Estate - Investing For Huge Capital Growth Potential

2007-05-18T07:42:00.001+07:00

Moscow real estate prices are seeing fantastic growth with many prime locations doubling in value last year and this growth shows no sign of easing.

Moscow real estate prices look set for strong and sustained growth for many years to come and here we will look at why.

Moscow Property Recent History

10 years ago, a quality flat could be purchased for around $8,000 since then, prices have increased by 100% or more and yet, the strong growth in Moscow real estate prices continues.

The Next Phase Of The Property Boom

The influx of foreign companies and the Russian elites, demand for better quality office and residential property has fueled the boom in real estate values.

Soaring real estate prices continue as the boom looks set to move to its next phase.

So why are prices rising?

Demand & Supply

Quite simply, Moscow simply doesn't have enough secure, modern and spacious apartments that foreigners and many Russians want.

Foreign Investment

With the opening up of the Russian economy we have seen major investment in property, from a number of well known foreign institutions.

For example, a division of Germany's Deutsche Bank is committed to an investment of $500 million for Russian real-estate investments alone.

The biggest foreign investment in Moscow real estate is the new Great Domodedovo, development near Moscow.

44,000-acres are being developed here for new residential and commercial building recreational facilities - the project is costing around $11 billion. The project is being funded by Limitless, a division of Dubai World, the investment company owned by the ruling family of Dubai.

The foreign investment in Moscow and other Russian cities is not just coming from overseas and major funds are being raised by Russian real estate developers.

For example, Russian real estate investment companies are estimated to have raised around $2.7 billion via stock offerings in 2006 alone and the amount for 2007 is expected to exceed this level.

Moscow’s real estates new found confidence will soon be seen in the Moscow City Towers. Designed by world famous English architect Sir Norman Foster a winner of the Pritzker Prize, the Towers are expected to be the highest building in Europe when completed. In its shadow will be a huge retail, hotel and leisure complex overlooking the Kremlin.

The Prospects For Further Growth

In the last year gains in Moscow real estate have seen commercial properties rise by over 30% and retail premises by nearly 60 – 100% - for prime location property.

This growth will continue as the economy grows and new property buyers enter the market.

Russia's economy over the last ten years has seen considerable growth and has benefited particularly from the increased global demand for commodities.

Rising prices for oil and natural gas for example (of which Russia is a major producer) has under pinned economic expansion.

Booming commodity prices have now created considerable liquid cash that has been fed into the banking sector and the pockets of the rising middle class.

This rise in liquidity, has contributed to the huge increase in Moscow real estate investment and development.

Economic growth is ensuring that unemployment is falling, disposable incomes are rising and of course, this leads a demand for better quality housing.

Moscow real estate values look set to increase further for the following reasons:

Mortgages

Until recently, mortgages weren't common in the Russian real estate market, but this is all changing and enabling a number of new property buyers (including first time buyers) to enter the market.

The banks have the liquidity to engage in increased mortgage lending and greater capital investments and are introducing new lending procedures that will bring home buying within reach of an ever increasing amount of Russians.

This has been accompanied by changes in the law which helps both first time buyers and lenders.

Restrictions that had prevented many consumers from obtaining loans have been lifted and on the other hand, there is greater default protection to banks.

The future

Russia is a new and emerging capitalist economy, that is now at the stage where it is creating a new middle class that will help fuel the Moscow real estate boom and keep it going for many years to come.

The gains in Moscow real estate prices have been impressive, but a look back in time at similar booms with similar fundamentals, suggest that this property boom still has a long way to go.

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For more info on all aspects of investing in overseas real estate visit our website for a huge resource of articles, features and downloads and at http://www.net-planet.org/index.html

Investors Could Turn to France after Spanish House Price Crash

2007-05-18T07:39:00.000+07:00

Potential investors are said to be turning their attentions to France after the Spanish property market saw the shares of developers collapse.

Every year Brits choose to buy holiday homes in Spain but now it looks like France may be a better bet. Spain has seen a massive explosion in building along all the Costas. It appears that saturation of the market has been the inevitable result. New developments are offering huge discounts to new buyers.

Brits hit by Spanish property market

According to the latest reports, hundreds of thousands of UK residents with homes in Spain have seen the value of their properties fall by as much as 65 per cent.

The worst hit areas are said to be recently bought property off plan where there is not enough demand.

French property market unlikely to crash

Things are looking up in France however, with a new president potentially hailing a new and positive era for the country's economy. The Sarkozy effect could have a big effect on the economy fuelling property price inflation. There is already talk about making mortgages tax deductible (capital and interest).

A price crash similar to the one in Spain is also said to be off the cards because of a few major differences within the two countries.

In France, issues such as unemployment, job insecurity and relatively tight borrowing restrictions has decreased the likelihood of a boom bust situation which Spain is currently experiencing. This year French property prices should remain stable but if Sarkozy's reforms are accepted, then prices could start to rise more quickly in a few years.

Howard Farmer
Europe Property -
Europe Property Portal
We have French property from 37,000 euros - stone houses, land and farms. Residential, vacation and investments property for sale across all of France. Investments: leaseback, buy to let and reversion property.

Costa Rica Property - The Ideal Destination for a Second Home

2007-05-18T07:37:00.000+07:00

Costa Rica is the ideal destination for buying a second home, prices are currently still inexpensive, but capital gains and the rental market is strong.

Costa Rica offers affordable beach front property just a 2 hour flight direct from the US at prices that are up to 70% less!

Let’s look at why buying a property investment property in Costa Rica is so appealing:

Real estate Prices in Costa Rica are rising

For example, buyers that purchased a $30,000 property just 15 years ago, on the Pacific coast near Jaco now find that their property is worth as much as $800,000.

Another example in the same area can be seen at the Los Suenos Resort, where the Marriot corporation pre sold fifty condominiums of 2000 square feet for $250,000.

The next year, Marriot sold another batch at $350,000 and the following year these Condos were selling at $550,000 or more.

Property in Costa Rica despite these prices remains very competitive in terms of price.

While many investors or buyers have tried neighboring countries such as Nicaragua and Honduras to get cheaper deals the risk is high and the gains are not as consistent or the risk as low as in Costa Rica.

Why Prices are rising and will continue to rise

In fact many people are making 30% + per annum on their properties and getting extra cash from letting.

Property prices in Costa Rica will continue to increase in value as its an established market, giving Americans all the comforts of home (nearly 100,000 have bought property here already) in a beautiful country with affordable second homes.

You can of course make bigger than average gains and here we need to look at location.

Location

When buying property in Costa Rica, you need to look at the established resorts and the infrastructure - which when completed will improve an area’s value.

Here are some examples:

Roads Expansion:

A new freeway is scheduled to be completed link the largest metropolitan cities to the Central Pacific Coast.

This will fuel buying interest in adjacent areas as access becomes easier.

A New Marina

The largest marina in Costa Rica will be completed soon in the Town of Quepos not far from the already popular town of Jaco.

A New Airport

A new airport is being built at Orotina making international access easy for the whole area If you buy before infrastructure is completed, then you will be able to take advantage of strong rises when the crowd decides to buy after completion.

Buying Property

Costa Rica is one of the safest countries in which to buy overseas real estate.

It has a solid stable democracy, no military, a government that encourages investors from abroad, and grants foreigners are entitled to the same rights as Costa Rican’s.

Buying is also tax efficient and there are many specialist Realtors to help you pick the right property for you in terms of budget and capital gains potential.

Demand remains strong

The baby boomer generation what affordable beach front property and a low cost of living and Costa Rica provides all this – in one of the most beautiful countries on earth.

Costa Rica is beautiful.

Pristine sandy beaches crystal clear blue waters, rain forest, volcanoes, as well as a great climate with no weather extremes and an infrastructure that is as good with many industrialized nations and is certainly the best in Central America.

Costa Rica offers a second home that will give you your own piece of paradise at a cost that’s affordable. That’s why prices will continue to rise.

Big Rewards in paradise

Buying a second home in Costa Rica is a solid investment, which looks set to reward savvy investors with great capital gains in the near future.

Not only do you get an appreciating asset, you also get an income if you want to rent it or a great holiday home should you choose to get into the Costa Rica lifestyle.

Buying property in Costa Rica offers a lot in terms of lifestyle and capital gains and is within the reach of most investors.

Discover the benefits of Costa Rica and you maybe glad you did.

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For more info on all aspects of Costa Rica property visit our website for a huge resource of articles, features and downloads and at http://www.net-planet.org/index.html

Real Estate Investing Lessons - Skinning The Deal

2007-05-18T07:35:00.000+07:00

There are almost as many different ways to make money and do deals in real estate investing as there are people. Here’s one more.

My son got a call the other day from a woman named Marge who has a house to sell. Her house, located in the city, is in a school district that Marge isn’t happy sending her daughter to. Prices in that neighborhood are in the low $60k range for a three bedroom home like Marge’s

In a down market, Marge knows that it will take her a long time to find a buyer using traditional means, and she really wants to get her daughter into a better school right away. That’s why Marge called my son after reading his ad.

After talking to Marge for a few minutes, my son determined that she was thinking about asking $60,000 for her home, but she “might take $45,000.” That’s a $15,000 drop inside of about 90 seconds! How do you spell M-O-T-I-V-A-T-I-O-N ?

My son knew he needed to get together with Marge at her home right away and get her house under contract. The only problem is, my son is cash poor right now and not prepared to assume any long term debt. He needed to do some fast thinking.

After touring the house and affirming that, yes, Marge would accept a low offer for her home, my son called another investor he knows and asked if he might be interested in the house. They agreed to meet at the property to look it over.

My son and the other investor met at Marge’s property, and the other investor decided to offer Marge $35,000 on the spot. Marge took her time, but eventually said yes. Only one problem. She wanted help finding another home she could lease/option in the town where she wanted to send her daughter to school. If my son could find her a new home, she would let her house go for $35,000.

My son went to work, calling every investor he knows to find a new home for Marge. After many calls and a lot of digging, he found a likely property in the town in question in Marge’s price range. Only one problem. The owner was not open to selling the home on a lease option.

Are you sensing a theme here? Everywhere my son turned there was “only one problem.” He was quickly learning that being able to solve people’s problems sets the successful investor apart from the “wanna be’s.”

My son set a time to meet with the seller. He sat down and explained the lease option process in detail, letting the seller know how to protect himself and how to set up the lease option to make it profitable and beneficial for all parties. After a little back-and-forth, the seller agreed, and my son learned another great real estate investing lesson.

The long and short of this is, Marge will move into her new home next week. My son and his investor friend will close on her house and my son will get a $1,000 finder’s fee. He will also collect a $2,000 referral fee from the seller of Marge’s new home. My son’s investor friend will most likely realize a $15,000 to $20,000 profit from Marge’s home.

See what a few hours work and a little tenacity can do? Real Estate Investing Success is all about combining knowledge with effort… and many times the knowledge will come as you are making the effort.

Now, go make more offers!

Need a quick jumpstart for Beginning Real Estate Investing? Tom Dunn writes "DealFiles - Real Estate Investor Stories"... stories of real investors just like you and their real deals. Why not check it out right now? It's FREE! You are welcome to share this report, unedited and in it's entirety, with anyone you like. This text, and all live text links, must remain intact. © 2007 by Tom Dunn.

Start Investing In Real Estate Today

2007-05-18T07:33:00.000+07:00

With the amount of hype that's out there regarding investing in real estate, it's easy to think that you can start today and be a millionaire tomorrow. It's even possible to think that nothing can possibly go wrong and it's a sure thing you'll make money.

While it certainly is possible to make money with real estate investing, don't be fooled into thinking it will all happen like magic and not require any work. You may think that all you have to do is buy some houses and let your tenants pay them off for you, but there's a lot more to it than that.

Still, for those people who get started and build their portfolio with care, real estate investing can be very profitable indeed. After all, the biggest problem for most people is taking the first step. So many people attend investing seminars and read books, but never take action. You're never going to make money from property without taking action.

Getting a basic understanding of investing in real estate is, however, the best place to start. If you go ahead and buy a house without knowing anything about what you're doing, your chances of buying a dud are much higher. It's much better to spend some time learning about investing, and in particular, learning how to calculate the sort of returns you can expect on a house.

Once you have some idea of what you want to do, do some research. Pick an area where there are houses that fit your criteria. Wear our some shoe leather checking out houses that are for sale. I never buy a house in an area until I've looked at 20 as an absolute minimum. Sometimes you can do that in a couple of days. In other areas, you may need to look at properties over a few months to get a really good feel for the market.

Now you have a real estate investing strategy, you have an understanding of how to evaluate an investing deal to make sure it's profitable, and you have 'on the ground' knowledge of a particular area, make your move. With all of these things in place, the properties that you should buy will almost leap out and hit you in the face, they're so obvious. And remember, it's better to wait for the right one to come along, than buy a dud.

Make sure you have your finance in place before you go looking, and always take out enough insurance to make you feel comfortable sleeping at night. And finally, keep some cash on hand for those little emergencies and problem that arise from time to time. Getting started in real estate investing takes some time, but once you get going, you'll be surprised how much fun it can be. So take the first step today!

If you want to learn more about getting started investing in real estate, click over to David's site at http://www.makemoneyfromrealestate.com You can also get a free book and tips newsletter at Real Estate Investing Tips

Pre-Construction Investing

2007-05-18T07:23:00.000+07:00

With pre-construction investing, you can make a large profit, and there are even ways to limit your risk. This strategy generally won't work well in slow markets, but then markets go up and down. If the time isn't right now, try it when prices are rising.

The first time I remember hearing about this was in the late seventies. As condominiums became more popular, the prices rose consistently (remember that this was a time of high inflation too). Smart investors took advantage of this before the condos were even built.

First you need to understand how these projects were financed. A developer would determine that there was enough demand for a condo complex, get an option on some land, and have a plan drawn up. The banks didn't want to loan money on an unproven plan, however. How did the developer prove that the units could be sold?

By selling them! If you want to be the proud owner of one of the beautiful new units in the Blue Spruce Condominiums, you had better buy now! That was essentially the pitch, but of course people wouldn't (and couldn't) pay for something not yet built. They could sign the contract to close on the unit once they were done, however, and put down a $500 deposit.

If the units were expected to sell for $55,000 when done, the developer might sell the first dozen for $50,000, just to get things moving. Once he had enough contracts in hand, the bank would put up the money so construction could begin. Six months later, as the condos neared completion, the last ones might be selling for $65,000. Things already there to look at tend to sell for more. (And inflation was at double digits during some of these years.)

Investors who bought a unit at first had a contract to buy at $50,000. If it was assignable, they could just sell it to a buyer for say $13,000, which with the $50,000 price added up to $63,000, still a discount from the going rate of $65,000. If the contracts were not assignable, he could sell the unit and do a simultaneous close. This latter way had more costs, but he still made over $10,000 on an investment of $500.

By the way, as long as the language of the contract limited damages to the deposit amount, (ask an attorney), the buyer could walk away if necessary. The most he would lose is $500.

Pre-Construction Investing - A More Recent Example

Around the time we moved to Tucson, Arizona (2004) there were new subdivisions going up all over. One developer had a subdivision where he was building homes to sell for $150,000 and by the time they were half sold, he was starting to sell them for $200,000. Lucky homeowners who put their deposit down early got to move into a home with $50,000 of instant equity. This did not go unnoticed by investors. Soon many of the sales were to investors who intended to immediately resell the homes for a profit once they were complete and they closed the purchase. Some did very well in this way.

Eventually, the developers stopped selling to the investors. So many investors were in on the game that when the subdivision was done, the developers had to compete to sell their own remaining homes while all the investors were trying to unload theirs. Prices could be pushed down or houses could sit on the market longer, creating more expense for the developer. They preferred to sell to people that were actually going to live in them.

There are other ways to invest in pre-construction deals. Some builders need your help to get financing, for example. If you agree to buy their new house, you can use your credit standing to get a construction loan. They might line up a dozen investors to get a subdivision built in this way. The sales price is set at a level that hopefully assures both you and the builder a profit.

You sell as soon as the home is complete. The builder may sell to you for $160,000, knowing the home will be worth $190,000 when done. If his cost is $130,000, and you are his way to get the money to build it, he is happy. Often the bank may not know that it is an investor and not a resident buying the home (you changed your mind?), but you can let your conscience be your guide when it comes to the financing paperwork.

You can do something similar with condo conversions. When an apartment building is converted into condominiums, the developer may need to pre-sell enough units to get the cash and/or financing necessary for the deal. These early sales are often at prices far below what the finished condos sell for. You might put a $2,000 deposit down on a $85,000 condo that is worth $95,000 or more when it is done.

You'll notice one thing in common about all of these examples. They assume a hot real estate market where things are selling relatively fast and prices are rising. That is what you need to really make money safely with pre-construction investing.

Copyright Steve Gillman. For a Free Real Estate Investing Course, and to see a photo of the home we bought for $17,500, visit: http://www.HousesUnderFiftyThousand.com

How To Get Commercial Real Estate Investment Money

2007-05-18T02:16:00.001+07:00

With the commercial property market booming across much of the western world, and emerging economies providing many investment opportunities, there has never been a better time to invest in commercial property.

The biggest single challenge facing developers with potential commercial projects is actually getting them funded.

However, with growing competition in the finance industry, relaxation of lending rules, and coffers full of money to lend, raising the funds for large scale investment projects can be simple and fast – as long as those seeking to raise the funds know how to go about it properly. The first place to start looking is the Internet. Increasingly, deals are being done online - and done fast – as long as you understand the project financing process.

Increasingly, investor pools are prepared to underwrite commercial property ventures – worth many hundreds of millions of dollars - with no credit checks, no complicated documentation, and no income verification. A commercial transaction is defined as one involving a commercial project which includes real estate as its foundation. Typically, there are two ways in which loans are made available:

The first is known as a “conforming” loan, when full documentation with limited concern for credit is required, while the second is “non-conforming” where there is no documentation required, no credit checks, and no income verification. The Loan-to-Value (LTV) aspect of all commercial transactions is one of the major considerations when providing finance. With non-conforming loans, typically up to 90% of the value of the project can be borrowed, depending on the project type. For example, non-conforming reacquisition transactions require a maximum of 50% LTV for consideration. Conforming commercial transactions offer considerable extended options. Any LTV, regardless of transaction type, purchase or refinance, is usually considered, but the following are also taken into account:

Conforming transactions approvals rely heavily on what cash an applicant has vested in a submitted project. Substitutes for cash include either collateral or a winning pro forma, but not less. Equity in real estate is not generally considered a viable substitute. Regardless of what an applicant might choose to substitute cash with, in order to justify an approval, no substitute can ever be effective without a project that makes sense.

A winning pro forma, if truly winning, can easily substitute for cash and ultimately lead to 100% LTV funding, though not without sufficient cash for closing. Commercial transactions generally take 30-60 days to close, providing they are approved and accepted. Obviously, uncomplicated transactions contribute to a speedier conclusion, whereas complicated transactions, or those requiring an inordinate amount of time to decipher, prolong the processing period.

Uncomplicated transactions are defined as those characterized by simplicity, such as a commercial building in need of refinancing. A more complicated transaction would be a development project, such as a new casino.Non-conforming applications are approved or declined much faster than conforming ones. Typically, an approval decision for a non-conforming transaction will be rendered within 2-7 days. Uncomplicated transactions are defined as those characterized by simplicity, such as a commercial building in need of refinancing. A more complicated transaction would be a development project, such as a new casino.

The bottom line with private investors is that generally they are sophisticated, non-predatory and do not jump on projects saddled with collateral or equity. They are, however, keen to do projects that make sense. Again, credit is of little concern on conforming projects and not required at all on non-conforming projects.

Helen Bassett is a financial journalist with more than 20 years experience in the offline and online corporate sectors. She currently operates a commercial finance website on behalf of investors with up to $500 million to invest in sound commercial real estate projects.

Five Tips for Renting a Property Quickly

2007-05-18T01:05:00.000+07:00

Renting a property can be a tedious task. A task that can either make or break any small landlord. Ensuring that ones properties get rented quickly and efficiently is the key to generating and sustaining healthy profits. For this reason, five tips for renting a property quickly and painlessly are discussed in the remainder of this article.

1.) Send out an “Intent to Return” form – One of the most powerful techniques, sending out a form asking current tenants if they intend to stay another year allows the landlord to prepare for a possible vacancy. If feasible, send the letter two months before the current tenant’s lease is due to expire. If the tenant is planning on leaving, this will give the property manager plenty of time to find a replacement.

Including a self-addressed stamped envelope along with the letter ensures that the tenant will mail it back within a reasonable time period.

2.) Give Incentives for Staying – Offering the current tenant a rent-deduction for a month or two shows the tenant that the landlord cares. Everyone loves a little extra money, especially those renting a home.

3.) List your Vacancy on the Web – If the local community has a web site that allows people to post listings for their rental properties, take advantage. Times are changing, and computer savvy people would rather browse through properties online than spend hours driving through local neighborhoods. These sites are especially useful and popular in communities that have local colleges and universities.

4.) Offer Referral Money – If the tenant is leaving for sure, offer them money if they can locate a new tenant. This is a win-win situation because both the tenant and landlord receive a financial benefit.

5.) Offer Informational Packets with your Rental Signs – Sticking a “For Rent” sign in the front yard is a time-tested way to let others know a property is for rent. Why not give ones self an advantage over the competition and place an informational tube on the rent sign. This not only gives potential tenants up-front information about the property, but also saves the property manager time by weeding out people that are not a good fit for the property.

Using the above tips along with their own ideas, landlords can be sure that they will rent their properties quick and beat the competition.

The author is an avid real estate investor, as well as the owner of http://www.landlorddocuments.com and the co owner of http://www.collegecampusconnection.com .

Home Upgrades - Renovating your Basement

2007-05-18T00:34:00.000+07:00

Renovating your basement is an exciting project – not only will your family get more living space, you will improve your home’s resale value and marketability. The first step in any project is the planning stage – you need to decide what you are going to use the space for.

Office, home gym, family room, teenager's bedroom, or home theatre? Each space will require slightly different features and different considerations. Basements are often under height, which can be a problem if you are planning to build a gym, for instance. You need to have room to move – can you comfortably jump rope in the space? You will want at least enough space to stretch your arms above your head without touching the ceiling. A home gym would benefit from ventilation – either a fan or an outside window that can be opened. If your plan includes an extra bedroom, you may want to consider the location of the nearest bathroom. It may be a good time to add a basement bathroom – this will add even more value to the renovation.

Moisture can be an issue in basements and is definitely something you want to take care of before you begin the finishing. Sometimes the problem is a simple fix: redirecting your gutters and downspouts or adding some correct exterior grading can take care of rainwater drainage issues. If the problem is more serious you may need to install a drainage system. But remember, taking care of moisture issues now will prevent water damage to your finished basement and will protect the health of your family – you are saving in the long run.

There are several options for flooring your new space. If you are working with concrete, hardwood may not be an option unless you install a subfloor. Adding the extra inches may not be advisable if the ceilings are low, so one solution is to choose laminate. There are several options for a wood-like look that provide durability and warmth to your room. Although ceramic and stone work is visually appealing, it also presents a colder harder surface, which might not be the best choice for a below ground application. A better option might be vinyl or linoleum – they come in a wide variety of patterns and textures, including some authentic stone looks, are easy to walk on and fire retardant. Carpet is another great choice, as it adds a warm and cozy touch but it isn’t great for family members who suffer from asthma or allergies.

With lower ceilings and underground spaces, light can be an issue for some basements. You don’t want the space to feel cramped – it should be open and inviting, or warm and cozy. One strategy is to take out unnecessary dividers – remove walls that obstruct sightlines. This will achieve a more open, modern look. If your space suffers from a lack of natural light, choosing light colored options for flooring and walls can help the space feel brighter. Painting the ceiling white will also help. But you don’t need to sacrifice color – use bright and bold shades in accents to spice up the room.

There are many options available to further enhance your decorating – get ideas from television or magazines and try out virtual design tools online. This may seem like a big project, but when you are finished you will have an inviting space that will give your home more usable square footage and greater market appeal. That basement holds a lot of potential!

Christian Jacobsen is a long-time Utah real estate agent and resident, who works state-wide bringing families and homes together. Christian's knowledge and experience make him the ideal choice when looking for a new home or property in Utah. Contact Christian today or visit the Jacobsen Team at http://www.utahpropertyfinder.com

Five Tips for Keeping Rental Properties Attractive

2007-05-18T00:14:00.000+07:00

Owning and managing rental properties is a challenging business. With constant stresses like dealing with troublesome tenants and keeping vacancies to a minimum, landlords and property managers need every advantage they can get to “one-up” the competition. In the following text, five tips for keeping a rental property attractive are revealed.

1. Curb Appeal – The first thing a prospective tenant sees when they approach a property is the building’s exterior. Keeping the lawn mowed, bushes trimmed, the porch clean, and paint from chipping and pealing is a great start to keeping a rental property attractive.

2. Bright Lighting (both internal and external) – Keeping the external of a property well lit gives the tenant a feeling of added security knowing that they are in a visible atmosphere. Keeping the interior of a property well lit makes it look cleaner and more trendy (this is assuming that the property is not a slum).

3. A Clean Bathroom - Ensuring that the bathroom is spotless (for a vacant property) really boosts the overall cleanliness of the property’s interior. The bathroom is where people bath and spend a lot of time grooming, so naturally they want it as clean, if not cleaner, than them.

4. Spotless carpet – Once in the front door, the first thing a person will notice is often the carpet. Clean carpet is a must if one wants to rent their property quick while receiving top dollar. If possible, avoid installing white carpet, instead installing darker shades.

5. Fix the Small Problems – Leaky faucets, burnt out light bulbs, screen doors that don’t quite shut all the way, and many other small problems can cause big trouble. By fixing all of these small troubles before placing a rental vacancy on the market, one can save a lot of time from wasted showings of the property. If people spot various small problems, they are going to think the property manager or landlord doesn’t take care of their people.

By taking at least a couple of the above tips into consideration, landlords and property managers alike can improve their chances of having a waiting list for their properties.

The author is an avid real estate investor, as well as the owner of http://www.landlorddocuments.com and the co owner of http://www.collegecampusconnection.com .

Protecting Your Assets - Rentals

2007-05-18T00:10:00.000+07:00

Playing the real estate game has made more people more money than almost any other industry in America. However, those that have been successful have learned how to protect their personal assets and property while maintaining a strong investment portfolio. Keeping investment properties in your own name can lead to legal problems if there are any issues concerning them. These kind of issues arise when renting properties and can be disheartening as well as financially straining. For this reason it is a good idea to organize a company or business to deal with your investment properties exclusively.

The best way to set about this is to start a land trust. A land trust protects not only your financial assets but the actual properties as well. If you are only renting a single property or a part of your actual home then this step may be a little drastic for a single property, but if you are planning on owning several properties then it is something that you may want to investigate. The process of forming a land trust essentially conceals your ownership from public record, with the added bonus of protecting your land assets from any judgments and or asset claims.

Another thing that is essential for successful renting of properties is a detailed contract that clearly states all the terms and conditions of the rental and what happens in any situation where the terms and conditions of the contract are violated. Make sure that the contract clearly and concisely defines these terms, ambiguous language can be a real downfall if the contract ever comes into question. Taking the time to ensure the protection of your assets and interests is perhaps the best investment you can ever make when establishing a presence in the world of real estate.

Matt Barker is a professional realtor servicing Saint Paul and the surrounding areas.

A proven Saint Paul real estate expert, it is Matt's passion for customer service that sets him apart.

For info on Saint Paul condos, contact Matt anytime or visit http://www.saint-paul-real-estate.com

Real Estate Investing

2007-05-17T23:44:00.000+07:00

Real estate investing is an excellent alternative to investing money in the stock market if handled correctly. More and more people have become involved in real estate investing over the years and with the information available on the internet, that trend has continued to grow. The problem is that investing in real estate is much more difficult and time consuming than many beginning investors realize and the stakes can be incredibly high if you don’t do your homework. The late night infomercials make it sound like anyone can invest in real estate and retire at 40 starting without any of their own capital. While there are always a few examples of the extraordinary, this is not the reality that most investors face when they pursue real estate as a vehicle for investing their hard earned money. It takes time, discipline and more often than not, your own resources to be a successful real estate investor.

If you are new to real estate investing, you would be well served by becoming part of an organization dedicated to real estate investing and becoming an active member of a local real estate investors organization or at the very least becoming part of the many growing online real estate investing organizations to help get a better understanding of the complexities involved before you get in over your head. There are many different activities involved in real estate investing from bird dogging and flipping to becoming a landlord just to name a few. Many seasoned professionals will offer to pay you money as a scout helping them to find new properties that they can invest in. This is a fantastic way to get your feet wet and begin learning many of the fundamentals about investing in real estate. You can also begin learning the ropes in your spare time while you still have your income from another job to fall back on. From there, you may decide that one type of investing is better for you than others and you can progress to the better paying and higher yielding opportunities that await you. As a local Realtor in Atlanta, I have been witness to many new investors falling flat before ever really have a good opportunity to started. Don’t make that mistake yourself. If you are interested in joining the many who have found a way to free themselves from the routine of working for someone else and you would like to attain the independence that you can find as an entrepreneur investing in real estate, you owe it to yourself to learn how the real estate market works before you begin to risk your own money. Investing in real estate can be a very rewarding and life changing career choice, but, like anything else worth doing, it will require work and require that you get educated about the many complex variables that make the difference between the successful investor and the bankrupt family.

Ryan Ward of Keller Williams Realty Consultants is a member of the national, state and local REALTOR associations, and resident of Alpharetta, Georgia who specializes in listing and selling real estate in Atlanta. For more information about Ryan Ward and Atlanta homes,visit his Atlanta Real Estate website or call 404-630-3187.

Selecting a Mortgage

2007-05-09T03:11:00.000+07:00

Selecting a mortgage is not only time consuming but confusing, given the large variety of loan packages on offer in the market today. With different mortgage rates, varied costs and fees and multiple terms and conditions, you need to be well informed to make the correct decision about which mortgage is best suited for you.

Among other things, mortgage rates are extremely important while selecting a mortgage. Interest rates fluctuate depending on different factors that influence the economy like prime rate, Treasury bill rates, federal fund rate, federal discount rate and certificate of deposit rate etc. If the economy is doing well and the demand for mortgages is high, the interest rates will also see a climb. On the other hand, if the demand for mortgages is low in a poor economy the interest rates will drop as well.

However, there are several other factors that are as or perhaps more important than interest rates that determine which mortgage is right for you. These primarily include your financial situation such as income, savings and liquidity, your housing needs and duration of stay, the level of risk you are willing to take as well as the term of your loan. All these factors need to be considered equally and balanced with one’s present position and future goals.

Before you decided on which mortgage is best for you, you will need a mortgage lender approval who based on your credit rating will offer you a loan that he feels is within your reasonable risk limits. The mortgage lender will take into consideration your ability to pay and then adjust your interest rates, points, terms etc accordingly. Only after this will you be able to select a mortgage that fits your requirements both, personally as well as financially. You can go in for mortgage refinancing at the end of the term if such a need arises.

The basic features while considering the selection of a mortgage are as follows:

1) Interest rate – fixed or variable:

In a fixed rate mortgage your interest rate will not change during the entire duration of your loan. This will enable you to know exactly what your periodic payout is and how much of the mortgage will be paid off at the end of the term.

* Federal Housing Administration Insured Loans (FHA)

* Veterans Administration Loans (VA)

* Farmers Home Administration Loans (FmHA)

With a variable rate, the interest will vary periodically during the life of the loan, depending on interest rates in financial markets.

2) Duration of mortgage: short term or long term

The duration of mortgage is the length of current mortgage agreement. A mortgage typically has duration of six months to ten years. Usually, if the term of the loan is short, the interest rates will tend to be low. A short term mortgage is for two years or less and is appropriate for people who feel that the interest rates will drop in the future, especially when it is time for renewal. A long term mortgage is for three years or more and most suited for people who believe that current rates are stable and reasonable and want the security of budgeting for the future. After the expiration of the term loan, you can either go for a renewal in mortgage at the current rates or repay the balance principal owing on the mortgage.

3) Open or closed mortgages

Open mortgages are typically short-term loans and can be paid off at any time without penalty. Homeowners who are planning to sell in the near future or require the flexibility to make large, lump-sum payments before maturity choose these kinds of mortgages. Closed mortgages are committed after taking into consideration specific terms. If you want to pay off the mortgage balance you will have to wait until the maturity date or pay a penalty.

4) Conventional or high ratio

A conventional mortgage is one that is not more than 75% of the appraised value of purchase price of the property. The balance amount is paid through your own resources and is known as down payment. If you have to borrow more than the stipulated 75%, then you will need a high ratio mortgage. If the down payment is less than 25%, the mortgage will have to be insured. The insurer will charge a fee which will depend on the amount you are borrowing and the percentage of your down payment. Fees range from 1% to 3.5% of the principal amount and can be paid up front or added to the principal amount of the mortgage.

Paying Points on Mortgage Loans:

Paying points on mortgage loans lowers the mortgage rate on your loan. Typically, one point is one percentage of the total loan paid up front, usually at the time of closing. The factors determining whether you should pay for points will depend on:

* The tenure of your stay- If it’s a short-term stay, paying points does not make sense as you pay more in points than you save in interest. If you plan to stay for 10-20 years, points will pay off over time.

* Deduction in tax- Paying points on a new residential mortgage allows you to deduct the money paid on that year’s income tax return.

Not every mortgage is in consonance with your specific needs, but once you determine your goals both personal and financial, you will have the ball rolling. To keep monthly housing costs down, ensure that:

* Your down payment is as large as possible

* Mortgage should be a long term one

* Select a mortgage with a low interest rate

* Keep the payments within your budget

By William Brister

Tax Free Income - The Ideal Wealth Builder

2007-05-08T09:08:00.000+07:00

This ideal wealth builder concept is very simple, and can be summed up in one sentence! Buy one investment property per year for the next 10 years. Or be even more aggressive and buy 2 properties a year. Double your tax-free income! However, for this overview, we will use one property. Here's how it works:

Find yourself an Exclusive Buyer's Agent who knows what you're trying to accomplish. This person will be invaluable to you in locating the right properties. This person will not have any conflict of interest and will be there just for you.

Then get to work! Locate and purchase one great investment property. Try to stay in a $125,000-$150,000 price range, because you want this property to appeal to the widest segment of renters without being on the low end. Look for a home in an up-and-coming area. One that is well constructed. If it's priced under market, that's great. But keep in mind that the most important consideration is the location and the property itself. You're going to be in this for the long-term!

Year #2 - Repeat the same procedure. Then keep repeating the procedure for up to 10 years, always being careful to find just the right property.

The example I'm presenting will be based on the following considerations:

* The home has been maintained in ideal condition.
* Both the area and the home have appreciated in value.
* The rental market for the area has also increased.

So, here's how it works:

Refinance the home you bought in year #1. This $150,000 home (at least in the Middle Tennessee market) should now (10 years later) be worth $225,000-$250,000, if you have purchased it following the above guidelines. You will have also kept the property rented, which has made all your payments...and you've been able to take advantage of all the tax breaks associated with rental property.

Proceeds from a refinance are not taxable income, so you are looking at approximately $100,000.00 of tax-free income. You've not sold the home (which would be taxable income)...you've only refinanced it! Could most people live on this amount of money for a year? You bet they could!

OK - So now we start repeating the process all over again. In year #11, you will refinance the property you bought in year #2...and so on. This system will provide tax free income for years to come. You will only have to work if you choose to do so! Isn't that a great feeling?

Just be sure to keep the properties in good condition and they will serve you well for years to come. It just requires some careful planning.

Pam Rumley is a veteran real estate broker in the Nashville, TN area.

Discover If Real Estate Investing Is For You

2007-05-04T15:55:00.000+07:00

Is real estate investing for you? This is a very important question that should take much thought as you read through this article. It’s not a get rich quick scheme. Real estate investing can be rewarding and profitable relatively quickly, and you need to understand how to make it work for you. It takes hard work and often long hours. It’s not for the faint hearted or the lazy. To be a successful real estate investor you must enjoy it. You must have a passion for the business. A real estate investor must be committed. You must do the work. Time is of the essence. How you spend your time in this business will determine if you are successful or not. You must plan what to do every day, week, as well as every month, and follow that plan.

Learning the industry is essential to become a successful real estate investor. Never stop learning! Your education in real estate investing never ends. You must keep up with the ever changing market and market trends. Becoming knowledgeable about real estate investing is most important. Also, you must gain the correct knowledge or education. There are different courses offered in different areas and you may not be interested in certain segments of investing. Choose the areas that interest you and enjoy.

The true real estate investor must be willing to accept rejection and face that rejection head on. Every rejection is one step toward acceptance. In other words, every no you encounter is one step closer to a yes. Fear is the biggest deterrent of many not getting started in real estate investing. Fear of rejection, fear of people saying that it can’t be done, fear of making a mistake, and fear of not having the financing to do the deals. Fear of an offer being rejected, fear of the appraisal coming in low, fear of inspections, fear of the loan may not go through, any number of things associated with the industry. All of these fears can be overcome, and must be to become a successful real estate investor.

There are many different areas of real estate investing that involve various strategies, types of properties and techniques and methods in acquiring properties. My recommendation is to choose one or two types of properties in which to invest in and become an expert in those areas. It’s very difficult to become an expert in all areas of investing. Remember, you must enjoy what you are doing. You may be interested in preforeclosures, foreclosures, wholesaling, property management, tax deeds, tax liens, mortgage notes, mobile homes, commercial real estate of a myriad of other areas. You are the one that has to be comfortable in the areas you choose. I have touched on many areas for you to ask yourself the question, “Is real estate investing for me?” Think about it. Is it something you want to do? If it is, and I know you can do it. Then, you will need to go forward and become educated on the many steps in real estate investing, the different strategies, techniques, types of properties and funding avenues that can be found in the myriad of tapes, compact disks and books available in book stores, online and in your local library.

By Michael Hrisko
Real estate investor, mortgage broker, and home inspector.

Five Simple Secrets to Building Wealth with Real Estate

2007-05-02T17:07:00.000+07:00

Tax Benefits
Real estate investing offers numerous tax saving benefits. Interest expense on the money borrowed to purchase real estate can be written off on your taxes. Operating expenses and depreciation can also be deducted. Last but not least, you can cash out refinance and pull the equity out of property without paying taxes on that gain (until you sell the property). Now, these are basic concepts around the tax benefits of real estate. A professional tax advisor should always be consulted to help you create the best strategies for your personal situation.

Equity Build Up/Paying Down the Mortgage
Every month when the mortgage is paid on a property, part of that money is going to principle and increasing your equity. Using a buy and hold strategy in real estate and renting or leasing your property allows you to increase your equity and wealth by having someone else pay off your mortgage.

Cash Flow
Cash flow equals the amount of income above and beyond expenses. Rental properties can produce monthly cash flow and once they are paid off via tenants paying down the mortgage, cash flow is greatly increased!

Appreciation
Appreciation is simply the increase in the value of an asset. Real estate appreciates in two ways. One way real estate appreciates is through market appreciation, the value of houses rising over time. Another way that real estate appreciates is through improvements or renovation.

Financial Leverage
Financial leverage refers to borrowing money to increase the potential return on investment. Proceeds from funds borrowed are invested with the intention of producing greater returns than the interest paid on the loan.

Using leverage in real estate, you can borrow money against real estate to make money. Let’s say that you have $10,000 to invest. If you purchased a $100,000.00 home using your $10,000 as a down payment and that home appreciated 10% to a value of $110,000.00 your return on investment would be 100%. Your $10,000.00 investment made you $10,000.00. If you used the same $10,000 and purchased stock and had a 10% return, you would earn only $1,000.00.

Maybe you’re saying, “All this sounds good but……what about all this bubble talk?” Let’s face it – the market goes up and the market goes down. That’s life. Life has its ups and downs. The stock market has its ups and downs. There’s not much that doesn’t have ups and downs. What is more important than ups and downs is learning how to operate and create wealth in any market. Buying right is always important and buying right is just a facet of understanding the market conditions and which strategies work best in various market conditions.

There is a ton of information available to anyone who wants to learn how to invest in real estate. Consider your self lucky to have so much information readily available. Today, you can find almost any medium you choose to study real estate investing including books, home study courses, seminars, teleseminars, mentors, coaches, - you name it!

“Don’t wait to buy real estate, buy real estate and wait! Author Unknown

By Nancy Spivey

Nancy Spivey helps new and experienced investors create profitability, productivity and prosperity. Nancy is a professional coach and speaker, and an active real estate investor, who serves on the board of directors for the Georgia Real Estate Investors Association, the largest investor association in the U.S. For more information visit her website at http://www.transformit.net .

The Best Entity for Holding Real Estate

2007-04-30T20:08:00.000+07:00

This question – hands down – is the one I’m asked over and over: What’s the best entity for holding my real estate investments?

My recommendation to most people is that a limited liability company (an LLC) is the best entity for this type of business. Here’s why…

* Excellent liability protection
* Flow-through tax treatment
* Ability to transfer real estate
* Charging order procedure (for Nevada LLCs)

Liability Protection

An LLC is similar to a C-corporation (C-corp) or a Sub-Chapter S corporation (S-corp) in that it exists as a separate corporation entity. It provides full liability protection to its officers and directors (called Managers) and its shareholders (called Members).

Even with excellent insurance coverage in place, there are still many risks associated with owning property, especially if you are intending to hold rental properties. Tenant injuries are a prime concern, but even with vacant property, a trespasser can incur an injury on the property and sue for hazardous conditions. Owning property in your own name means that in the event you are sued and found guilty, anything your insurance policy does not cover will come out of your pocket.

Putting an LLC entity between you and this personal liability means that your assets will stay protected.

Flow-Through Tax Treatment

Unlike a C-corp, an LLC does not pay income taxes. It is a “flow-through” entity, meaning that, like an S-corp, the tax on the profits (as well as the write-offs on any losses) are passed through to the members.

The flow-through tax treatment becomes important when you decide to sell a property or convert it to personal use.

You, as a member, would pay capital gains taxes on your share, but at a lower rate than a corporate entity would be charged.

Ease of Sale

LLCs have an extra advantage over an S-corp (or a C-corp) when you want to convert a property to personal use, or trade it (called a “like-kind exchange”) for another home of similar value. If held in an S-corp, the conversation or trade of property would be considered a sale, with the accompanying tax consequences. Held in an LLC, there are no tax consequences to converting or trading the property.

Charging Orders

In Nevada, a charging order is the sole legal means by which a creditor may attach a judgment to an LLC. If a tenant were to injure themselves on your property, win a lawsuit, and your property insurance left you partially uncovered, the balance of the judgment owed could be attached to the LLC through a charging order.

Effectively, the judgment holder would become a non-voting member of your LLC, with the right to receive a share of the profits, if the LLC decides to distribute profits to its members. That’s it. They cannot force a sale, or even a profit distribution, as they are a non-voting member with no control whatsoever over how the LLC is operated. And, in a fairly ironic twist, any monies received by a judgment holder through a charging order would be treated as income and subject to capital gains tax.

Unkind and unfair to creditors? Perhaps. But in Nevada, that’s the law. Remember, not every state uses the charging procedure as the sole creditor remedy. It may be worthwhile to create a Nevada LLC to hold your properties and then qualify the Nevada LLC to do business in whatever state or states your properties are held.

By Garrett Sutton - www.RichDad.com

The Expenses When Investing In Real Estate

2007-04-30T16:04:00.000+07:00

When investing in real estate there are some expenses that come
with the business. These expenses if you plan on renting
properties out should be covered by the rent. One expense that
comes when you're investing in real estate is the mortgage. The
mortgage is the money you borrow from a bank to buy a house. If
you are renting property out the best kind of mortgage to get is
a fix rate mortgage. The mortgage is usually the largest expense
when investing in real estate.

Another expense that comes when you're investing in real estate
is property tax. Property tax is a perpetual tax you have to pay
even when you are done paying for the property. If you don't pay
the property tax the government will take your property away.
This is why there is no real right to property. If a property is
truly yours no one have the right to take it away from you. The
only way you can lose property lawfully is if you violate
someone else's rights and for compensation for your violation
they are awarded it in a court of law.

There are some ways you to get absolute ownership of your
property with land patents. The only problem with this is if the
government dose not follows its own laws they will take your
property anyway. One last expense that comes when investing in
real estate is water and sewage. If these bills are not paid a
lien will be put on your home and the property can be taking
away. When investing in real estate if you plan on renting it
out it does have a lot of expenses. If you use the information
you read here you will know how to overcome these expenses.

A good web site where you can see more information on topics
like this is
Real
Estate Facts which is highly recommended. Thank you and
enjoy.

Kevin Cox

Getting The Most Profit Fixing Up Old Properties

2007-04-29T21:46:00.000+07:00

Fixing up old properties is a good way to make money investing
in real estate. When fixing up old properties to get the most
profit, there are some things you should know. One thing you
should know when fixing up old properties, to get the most
profit out of it, is the property value of the area the property
is located in. If the property value in the area the house is
located in is high, you will have a bigger profit margin to work
with. One other thing when it comes to the property value is the
direction the property value of the area is going. If the
property value of the area is going up, this can maximize your
profit.

Another thing you should know when fixing up old properties, to
get the most profit out of it, is the condition the property is
in. It is recommended that you know what needs to be fix or
replace to bring the property up to date. One other thing that
is important when it comes to the condition of the property is
before you buy any property that you look at the foundation. The
foundation is one of the most expensive things to fix in a
property. If the foundation is cracked or sinking you might not
get the most profits fixing a property like that.

One last thing you should know when fixing up old properties, to
get the most profit out of it, is a contractor that you can
trust. It is recommended that you know what you want to be done
to the property. By doing this you can get an estimate from more
than one contractor. Investing in old properties is a good way
to make money in real estate. If you use the information you
read here you will have some good ways on how to maximize your
profit margin.

A good web site where you can see more information on topics
like this is
Real
Estate Facts which is highly recommended. Thank you and
enjoy.

5 Minute Guide to Real Estate Investing for Beginners

2007-04-29T19:27:00.000+07:00

One of the best ways to make money is to invest in real estate.
There are risks, but of all the risks in investing real estate
has some of the lowest. Of course, beginners need to know a lot
of information before beginning in order to protect themselves
as well as their interests. A
real estate investing
program or a real estate investing seminar are two great
suggestions for beginners interested in real estate investing.
In fact, many started with a
real estate investing
seminar.

Of all the important things for real estate investors to know,
most importantly beginners, is that if you don't know real
estate law as well as the rules and regulations that accompany
it then you may be putting your investment at risk. In order to
avoid this you need to learn as much as possible about real
estate law so there is no problem and you don't risk your
investment simply out of ignorance. Once you are aware of real
estate law and the market as a whole then you will be ready to
move onto the next step.

The first tip is to know the current market price for any piece
of real estate you are considering. Don't take the seller's word
for it but instead find an appraiser or use your own knowledge
to come up with a price for the real estate. When you know what
the selling price is and the current market value then you will
have a better chance at getting a deal. You want to always know
more than the seller so that you can negotiate so that you end
up with a bargain. Buying bargain real estate is one of the best
ways to make money and if you can find a seller willing to sell
for less than 20% of the market value then you should definitely
buy.

Another suggestion is to simply buy real estate that has hidden
potential that could easily be unlocked to increase the value of
the real estate. Whatever the hidden potential is it must be
capitalized on and increase the value of the home by at least
20% for it to payoff. Make sure you do this within six month's
of purchasing the real estate.

If you follow these basics then you should have no problem
getting started and making money with real estate investing.
Keep in mind that it does take time and hard work to make it pay
off but it will in the long run.

About the author:
Caitlina Fuller is a freelance writer.

Preparing To Sell Your House Quickly

2007-04-28T06:51:00.000+07:00

Luck may have a little chance in getting your house sell fast,
but there is a good chance for quick selling when a house is
prepared to sell. Pricing could be very important factor, anyhow
there are other important factors that will have a great deal of
effect on where your house is ready for quick sale or not.

5 Steps for Helping Your House to Sell Quickly 1. Prepare
yourself first to sell your house. You need to do your best to
see the house as no longer your home, but just as a product to
be marketed. This may take some work, particularly if you have
been having that home for a number of years and has many good
memories, but this is required if you want to maximize your
potential.

2. Consider a qualified whole house inspection. An inspection
would presumably expose any huge defects before they could cause
future trouble with a potential buyer. It also is a signal to
your buyers that you are a responsible and good seller.

3. Prepare the house. Stand back and look at your own house as
impartially as possible. Would you purchase this home? Ask your
friends and neighbors to do the same, asking them to be
completely honest. Overlooking faults may cost you money! Get
them fixed before you put the house on the real estate market.

4. Do what is essential to make your house be notable from the
competition. Make sure that your house is fresher, cleaner, and
much better maintained than other. Familiarize yourself with
successful marketing and advertising techniques.

5. Remove most of the "impression", which you have crated on the
house. Having just a few family pictures around is good, but if
your house is a "place of worship" for your family, then walls
full of personal pictures you need to take some steps to
depersonalize it. Buyers must be able to imagine themselves in
the house that is just impossible if everywhere they turn they
stare at you!

About the author:
Divyasena is a SEO copywriter for mp3playeraccessories.net as
well. She has involved herself in this field for more than 3
years. For further details related to the article you can visit
the site http://www.homeoffersusa.com. You can contact her
through mail at divyasena@gmail.com

Managing Risks in Real Estate Investments

2007-04-28T06:47:00.000+07:00

When it comes to investing in anything there are always risks
involved. However, risks can be managed if you know the tricks
of the trade. Of course, a
real estate investing
program could help you out significantly and give you some
good tips. But, a real
estate investing seminar won't be able to give you all the
information you need to reduce risk. Some things you will just
have to learn on your own.

One of the first things you should consider is how much cash you
have on hand to invest as well as the current market conditions
and the amount of knowledge you have investing in real estate.
One of the most important tips is as simple as knowing the law.
The easiest way to minimize your risk is to always stay on top
of real estate law and know the rules and regulations in and
out. This is not to say you have to study real estate law every
single day and memorize everything, but you should have a very
good idea of what is most important and how it impacts your
investment.

Next, look at the market and see what is available and the
average prices. Consider buyer interest and how the market is
responding. When you know these things then you will be able to
manage risk better. Consider what the future may hold as well
because just because the real estate market has been on the
upswing the last few years does not mean that it will stay that
way forever.

If you want to have a good idea of whether property values will
keep going up or whether they will decrease then you need to
consider if there are many new homes being constructed, if most
people have jobs, and if the economy is on the rise or not. When
you have a good idea of all of this information you will be able
to forecast the real estate market.

There are many ways to minimize risk after you have made a
purchase but one of the best is perhaps to make a down payment
of at least 10% and more if you can. When you are able to invest
this amount of money in your home you will have immediate
equity, which frequently results in a lower interest rate.

When you follow these tips then you are more likely to minimize
your risk and have a better chance succeeding with real estate.

About the author:
Caitlina Fuller is a freelance writer.

Is Real Estate Still About "Location Location Location"?

2007-04-27T07:32:00.000+07:00

When buying a house, the conventional maxim asks you to focus
only on location. There is no doubt that location is very
important. But, there are many other issues to keep in mind so
that your efforts to ensnare a dream home do not become a
utopian mirage. This article talks about some of those issues:

Do Not Be So Sure That You Can Time the Market There is a
shipload of pundits out there who will swear that the market has
reached its crest or its trough -- or both! But, it is your
money in the game. So, do not let them all take you for one
grand ride. Buy a house when you need it and can afford it.

It Does Not Cost What You Think it Does Do not just look
out for the basic cost of transacting. Depending on the specific
property, you could expect to spend tons of money on getting
stuff up to shape. For instance, if you are buying a house, you
might have to take care of interiors, plumbing, fixtures,
ceilings, walls, painting, carpets, flooring, windows, doors,
well that is just the beginning of the list. There is a whole
lot more. Make sure to factor it all in.

Do Not Fall For Common Tricks of the Trade If you are a
first time home buyer, there is always the chance that you might
fall prey to some of the common tricks that a home seller might
resort to. Here are a few for your reference, but it is up to
you to use your creativity and imagination to avoid getting
fooled.

 Trick 1: Using excessive illumination to make the
house look cheery. Some sellers will switch on all lights
when they are showing you their home -- even if it is daytime.
This makes the home look different than it actually is. Politely
request to turn off some lights to get a better idea.

Trick 2: Using fragrances to disguise the stink.
Surely that is something you would have caught, right? Make sure
you do.

Trick 3: Being unavailable to answer questions. It is
ok for the seller to be missing when you visit the home. But
they must answer all your questions unambiguously.

Those are just a few of the issues you need to keep in mind when
buying a house.



Ajeet Khurana
Futurist, entrepreneur, author, publisher, teacher...

Way To Get The Best Deal in Real Estate

2007-04-26T17:28:00.000+07:00

Real estate is money making business, but you need to keep some
chief factors to find the best deals. To make a best deal you
need to find out the circumstances of the seller, it is hard to
find but it is helpful make initial offer. If you will come to
know this factor you will not feel uncomfortable submitting
other reasonable offers. The sellers can only say no, and most
that say no will not close the door a on a potential sale. This
indicates to you that there is an agreeable selling price
somewhere; you just have to make sure that it is a lot closer to
your price than theirs. This way you have the advantage of
knowing that you have other good potential deals in your pocket.
In the end you will get good deal.

What should you look for?

You should look for the properties which you can get large
discount on the selling price and also know the circumstances of
the seller. Most probably sellers may be looking for sell
because of some reasons such as they desperate need for cash;
this might be tax bill, a divorce settlement, lawyer's fees or
seller wants to clear mortgage because of a change in
circumstances and many more reasons. Some properties might get
too old to have those kinds of worries, like collecting the
rent, or dealing with awkward tenants.

You are looking for properties that you can convert to another
use.

Apartments that you can buy and sell back to the tenants, if
possible with a mortgage repayment that is cheaper than what
they are now paying in rent. This will depend on your own
borrowing situation, to make sure the new payments cover your
own mortgage repayment. Apartments to office space, office space
to apartments. Are there any new developments in the area? Keep
an eye on local council meetings, attend them if you can, and
try and pick up on the council's intentions. This is how I got
my first commercial property, by talking to a member of the
council at a barbecue. Bare land that is zoned for residential
or commercial, or might be in the future.

As a final point, remember that it takes just as much work to
buy a million dollar property as it does to buy a hundred
thousand dollar property, so whenever possible go for the most
valuable property you can find. For More details contact on
www.sammysellshomes.com

Sammy.
Experienced Real estate professional and agent in U.S.
(California, East bay)