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.

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.

If you are interested in real estate investment strategies then you would benefit form taking a real estate investing program. However, if your schedule does not allow time for a real estate investing seminar then you can read the following tips to help guide you through real estate investing. However, keep in mind that it is important to always follow your gut and if you don’t feel right about something then you should not make an investment.

Three of the best strategies to utilize include purchasing real estate at a bargain price, working on a piece of real estate to increase its value, as well as a double digit cap rate. The most important thing to remember when making a bargain purchase is that it is not a bargain unless it is offered to you at less than 20% of the market value. Anything other than that is not a bargain purchase. The other tip is for increasing the value of a piece of real estate. This strategy is for you to buy a piece of real estate at the current market value but that has some kind of hidden potential that you could capitalize on after the purchase. You need enough money to be able to make the changes in a maximum of six moths after the purchase so that the real estate’s value is increased by a minimum of 20%. If you wait longer than six months the strategy may not work as you had anticipated.

Finally, when you use double digit cap rate to invest in property you need to be pretty savvy and understand what this means. Basically, the meaning is that when you make a real estate purchase the capitalization rate is at least 10% and more is better. To determine the capitalization rate you subtract the rent from the operating expense before any debt service. This is the net operating income which should then be divided by the purchase price. Finding a real estate investment like this is not common, but if you do you need to jump on it!

There are a lot of other real estate investing tips out there, some that are good and some that are bad. What you need to understand is that there is always risk involved with purchasing real estate and trying to make money from it.

Living in a Global Village, more and more people from all over the world have come to realize that one can live in one's own country and at the same time own South African real estate. It is rather easy to buy a holiday home or apartment in South Africa at very affordable prices.

It is more specifically the coastal areas that are drawing tourists to buy property as these areas offer spectacular views, vibrant entertainment and amazing tourist attractions.

As far as South African real estate is concerned, the Cape Garden Route for one, provides the enthusiastic golfer with world renowned courses where the immense Indian ocean is a backdrop to the flight of the little white ball. There are look-out posts over hundreds of kilometers where one can view the play of the whales during the mating season. The beaches are clean and the scenery changes consistently to provide endless variety of mountains, indigenous trees, dark deep rivers, game reserves, bird life and beautiful flowers.

Compared with prices at other international coastal destinations, property prices in South Africa are still relatively cheap. The prices will not stay this way, as the coming Soccer World Cup in 2010 will most likely draw much tourist attention and, as is always the case, with attractive propositions, the supply and demand equation will tilt heavily towards the demand side.

Many buyers of South African real estate already know that when they cannot utilize their coastal property, it can be rented out to other tourists without much effort in order to keep the holding costs down. The prices of prime coastal properties have continued to rise way above the South African inflation rate, and therefore provide the investor with solid capital growth opportunities.

The infrastructure is advanced enough to cater for various needs of visitors. One can, for example, land in Cape Town, board on a plane to George and an hour later be sitting on your verandah overlooking the ocean and the mesmerizing mountains.

Car rental companies have offices at all the airports, should one have the desire to find the serendipitous along the planned route by car. Tour operators are well trained to offer services that will take one to view sharks from cages below the water, lions hunting at night, famous battle fields, the locations where ancient people lived and where the film stars of today play.

The places of interest are endless and once one has decide to explore South Africa thoroughly, the time and desire to be anywhere else will become less and less. It therefore makes sense to own a comfortable piece of South African real estate in order to cement your unique exploring life style.

There are many estate agents that will be able and qualified to provide valuable information, but one should always discuss a proposition with various other agents to ensure the best qualified decision on investing in South African real estate.

In Kenny Rogers’ song, the “Gambler,” he says, “Know when to hold ‘em, know when to fold ‘em.” Even though he is singing about gambling, these words are so profound for real estate investors whose primary investment strategy is to find, fix and sell houses for a profit.

Like a high stakes game of poker, there is a great price to pay if you lose at the game of flipping real estate. The choice to “hold ‘em” or to “fold ‘em” is a choice that a poker player, or an investor, must make after some careful and calculated analysis of the hand they have been dealt, or the house that they are considering as a flip.

Professional poker players know that it takes a certain amount of skill to win at poker. They learn how to spot the trends and calculate the odds that another player is holding a particular card or which cards have been dealt. Based on that information, they will “hold ‘em” and stay in the game, or they have the discipline to “fold ‘em”and wait for the cards to get reshuffled.

Any real estate investor that flips houses for a living as a means to build wealth should do no less. Flipping houses is not a game, but a business. However, relying on luck to win at flipping houses is just as risky as a professional poker relying on sheer luck instead of proven formulas for success.

Let me give you five cardinal rules to follow if your investment strategy is to find, fix and sell houses. These five rules have evolved from my having rehabbed over 225 houses in four years.

1. Finding the Right Deal

To find the right investment property, you must decide on the criteria that make for a good investment property for YOU. You must consider the price range of houses you will ultimately sell to your buyers. For example, my niche market is providing quality, affordable housing to low-to-moderate income families. Having defined my target market, I now select the neighborhoods where low to-moderate-income families live. In these neighborhoods, most of the homes are 30 to 50 years old. The homes that we target for rehab make ideal candidates with good profit potential after we fix them.

2. Analyzing Risk vs. Reward

I get most of my property leads from wholesalers because they know my investment profile. So once a legitimate lead comes my way, I have to decide what to offer on the property.

In this step, it is very important not to let your emotions tell you that the house just needs “a little bit more” rehab money to get it done right. You just cannot rely upon your emotions. Consequently, an automatic formula or process will really help you to decide if and when you should “fold them” and move on to next house.

Accordingly, I rely on the following flip-tested formula to determine my maximum offer:

After Repair Value
– Rehab (Fix-up) Costs
– Holding Costs*
– Minimum Profit
= Maximum Offer

* (closing costs, property insurance, taxes, utilities, interest, sales commissions, etc.) Some investors resist using this formula because the calculations can take some time, but it’s more important to be right than fast.

3. Financing the Right Flip

There are two quick ways to get the financing for your prospective investment property.
a. You can get a loan that will be repaid with interest when the house is sold.
b. You can partner with another investor who will put up the money and you split the profits, generally on a 50/50 basis.

Should you decide to get a loan, private lenders are an ideal source of funds for most deals. Private lenders generally will lend money to investors based on the resale value of the house or the After Repaired Value (ARV). Most private lenders will make loans in the 65% to 75% Loan To Value (LTV) ratio.

If you do not have access to a private lender and you don’t want to lose the deal, then seriously consider partnering with another investor. After all, half the profits are better than no profits. Your local REIA is an excellent place to find other investors with the financial resources to partner with you.

4. Adding Value Rehab Strategy

Although each of the five rules is crucial to your flipping success, the rehab phase is where most new investors make some gross miscalculations. Rehabbing the house within your fix-up budget and in a timely manner is essential to earning a profit.

If you’re just starting out as a flipper, forge a relationship with a contractor that will help you create a plan for the work that needs to be done to get the house to retail standards. Next, determine the materials needed to complete the rehab. Finally, assess the cost of the labor and materials, and the time (in days or weeks) it will take to complete the rehab project.

5. Profiting From the Sale

Once you complete the rehab on the house, it’s time to sell the house and take your money to the bank. You basically have two ways to sell the house.
a. Sell the house yourself
b. Retain a real estate agent

Selling the house yourself can be time-consuming and you must have the resources to pull it off. You will be responsible for putting up yard signs, directional signs, and distributing flyers throughout the neighborhood about the property. Also, you will be responsible for all incoming phone calls from prospective buyers and showing the houses, taking the applications and submitting the applications to those lenders that you have a relationship with in your town.

On the positive side, you get to keep the commissions (usually 6%) you would ordinarily pay a real estate agent for selling the house. If you sell houses with an average price of $80,000 each, and you sell 15 houses in one year, you will save $72,000 in realtor commissions.

Conversely, hiring a real estate agent saves you a lot of time and effort because the agent will manage the entire house selling process. The agent will list the property in the Multiple Listing Service (MLS), market and show the house, make sure the necessary paperwork gets done correctly and ultimately sell the house within a mutually agreeable timeframe.

Depending on the property’s location, I have used both methods for selling houses, and they both work. In high traffic areas, I sell the house For Sale By Owner. Otherwise, I rely on an agent to get the job done.

Professional poker players insist on playing with a full deck. Anything short of that and the deck will be stacked against them. Ignore any one of these five rules and your odds of successfully finding, fixing and selling a house for a profit will be stacked against you. Apply these five rules to your real estate flipping business and your fears will no longer hold you back because you will know when to “hold ‘em” and when to “fold ‘em.”

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

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

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

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

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

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

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

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

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

Selling a home for top money and in the shortest amount of time requires two things: a home and a realtor. Why is a realtor required to make this process as stress-free and painless as possible? Simple. Realtors are trained professionals. They deal with this process on a daily basis. In the process of selling a home there are likely no hurdles that they have not experienced before, no situations that they do not have experience in. From the minute your home gets listed, they become the official representative of the home. An ambassador if you will. Its their responsibility to portray your home in it's most positive light and to garner as much attention as possible for your property.

Marketing is really one of the primary advantages that a good realtor can offer, in addition to their industry knowledge. Agents have access to a great marketing budget and network. This usually begins with the agent's website, a place where your home can be prominently listed. An agent will also have a variety of other marketing materials at their disposal, this can include things like newspaper adverts, mail outs, postcards, email campaigns and their already established network of contacts and other buying agents. These contacts will be the most important thing in selling your home as good relationships with buyers agents equals an exponentially higher number of potential viewers.

A realtor is also able to dedicate more time to your home. With your home being their main concern, it is at the top of the priority list. Many people who try to sell their homes themselves end up listing with a realtor because they simply can't dedicate the amount of time to the sale that is necessary. Life tends to take precedence over the home sale. Work, kids, family and so on can take valuable time, let the agents do the selling, you have a life already that requires your attention.

Getting the right mortgage can be a tricky process. There are so many different lenders available in any state or town, offering any number of different mortgage options. In finding a mortgage that is right for you, it's a good idea to investigate not only the mortgages themselves, but the lenders as well. Always make sure that you are dealing with a lender who has a good reputation. Before you begin to look for mortgages you should get a handle on your financial picture.

Investigating your credit is a good idea, even if you are not purchasing a house, its a good idea to know these things anyway. Find out what your credit rating is and also find out if there is anything that is marring your credit negatively. If there is then you will want to try to correct that and take care of any other outstanding items that could affect your ability to get a good mortgage. Sometimes if you have outstanding debts and take care of them, you can get letters of release to verify that the debt is no longer a concern. This is a good step as sometimes it can take a while for items to removed from your credit report, the letters will show mortgage companies that the debt need not be a factor in the assessment of your mortgage.

Now, shopping for the mortgage itself. This is where things can get a bit complicated. There are so many different kinds of mortgages out there, how will you know which one is perfect for you? This is the purchase that you should spend the most time considering, even more so than the home itself. The financing will determine much of your future financial picture including how quickly you are able to pay it off, the interest rates, and the security of your equity. Be careful of mortgages that seem too good to be true. There are a number of mortgages that take advantage of the borrower and can be financially damaging. Be sure to consult with your local BBB and Chamber Of Commerce in regards to the lender's reputation and track record. Be careful, after all; you are spending a lot of money and making a huge commitment.

There is a simple truth in the real estate industry: real estate agents sell homes. It is this same reasons why a large percentage of FSBO homes eventually end up listing with an agent. Realtors simple provide an irreplaceable service, that is proven to sell homes quicker and faster and with more profit and less stress for home owners. When it comes to the art of homes sales it is difficult to equal the package that is offered by a professional agent.

Perhaps the most important thing that an agent can offer to a home seller is a comprehensive marketing package. This package typically spans multiple forms of media and is tailor made to showcase homes to a large market. The most prominent of these advertising methods is a well constructed and optimized website. Maintaining a good web presence is critical in assuring that your home has as much coverage as possible. It is a reality of the current real estate business that 90% of homes are first seen by their future buyers online. The web presence combined with more traditional marketing methods such as newspaper ads, mail outs and open houses help to give your home the best possible chance of selling for a price that makes you happy.

Another reason that many FSBO homes end up being listed is the fact that as a home owner, you still have regular life responsibilities, work, kids, family and so on, do you really have 24/7 to dedicate to answering phones and arranging meetings? Most people don't. Its easy to see how selling a home requires an individual that can give it their undivided attention. Your home deserves the best attention and chances possible, use a realtor and ensure that it has those chances.

In considering the improvement of certain aspects of your home prior to selling you must ask yourself; "what will benefit my bottom line price?" There are some simple cosmetic fixes that you can make but be mindful that this is bestowing your taste and personality on a home when you are trying to market it to other people. People who likely will not share your exact design preferences. Instead, if you are looking to make some improvements to shore up your asking price, why not take care of some major structural elements? Fixing these up will look great in the home inspection and speak highly of your home's quality.

One of the major things that you can do to dramatically increase the home's value is to put on a new roof. Most new roofs will also come with a 15 or 20 year warranty, these two things combined are an enormous selling point. Another great aspect of this is the fact that a new roof can make a home look much more orderly and clean. If you combine this with a new paint job and some real attention to the yard and driveway the home will look good as new!

When having a new roof installed there are some considerations that you need to be mindful of. If you live in an area with a home owners association that has community rules then make sure that your new roofing material complies with the regulations. Also ensure that the company you hire has a good local reputation and all the relevant insurance; and of course, references are always a good thing. There is a certain secure feeling that comes with the knowledge that the roof of the home you have just purchased is new and has a lengthy warranty attached.

Finding the right real estate agent right from the start is the best way to go. However there are five signs it is time to find a new real estate agent.

Under some circumstances it is acceptable to stop the buyer or seller and agent relationship. However, it is a good idea to look at any contract you might have signed.

The first step in terminating your real estate agent is to make sure there is an ethical or legal reason to do so. Many times a problem between seller or buyer and agent can be resolved by simply by talking about the problems. There are reasons certain results occur in the real estate market and it is a good idea to have a clear understanding of what a real estate agent can do and is obligated to do.

Clear expectation of what can be expected is a good start of any relationship, especially a business relationship. Here are a few areas that you can know an agent should do for you. If these expectations are not fulfilled it may be a good time to see what options are available for finding a new real estate agent.

1. The agents should get the best possible price and terms for the person they are representing. If there is cause for concern of the loyalty of your agent to you, after talking about it with your agent this could be cause for termination of the real estate agent.
2. The agents must disclose all material facts pertaining to the property. This would be like old, and bad plumbing. A roof that leaks, or a foundation that is cracked. If there is areas that you can see the agent is simply not being honest about the property, this could be a reason to change to a different real estate agent.
3. The agent should disclose facts that would pertain to any type of price fluctuation. This would be like death, divorce, illness, moving out of the country etc. If they are the buyers agent. If the agent is a seller’s agent they cannot release any personal information about the seller without the sellers permission. If the agents are representing the seller and the buyer, they cannot release any information that is damaging to either side. They must maintain an ethical approach to do the best they can for both parties
4. If the agent is not up to date on their licenses and you find that they are representing themselves in a false manner, this may be cause for switching to a new agent.
5. You should receive adequate response to your calls and questions and should see a reasonable amount of acquirements into your home if you are selling. Therefore, you should be able to see work done by your agent. This is in the form of calls, shows, listings, and open houses. If you do not see this, it could be cause for releasing your real estate agent.

There are a few things that dictate the rules that a real estate agent should follow, here are those:
• Federal Fair Housing Act
• State Real Estate Laws
• National Association of Realtor's Code of Ethics
• Employing Broker's Guidelines
• Lawsuits

There are some requests an agent cannot accommodate due the laws that dictate to them rules and responsibilities. Therefore if there is a request you specifically have and do not understand why your agent is not able to follow through with that request, ask them why. You will probably find there is a good reason.

Before terminating the relationship between you and your real estate agent, be sure to communicate with your agent your concerns and questions. If the communication is not resulting in the needs you have being taken care of within a reasonable fashion, you need to read your contract and negotiate the terms for dismissal of that agent. Use caution when going from one agent to another. It can become a battle for commissions if you do not clearly state what your plans are to the prior agent and to the new agent.

If you have reviewed your legal and binding contract and there is a limited time frame, you can see if the time frame is over. That is very simple, and then you can inform the agent you want to go with someone who is more able to fulfill your needs.