Investing Real Estate | Invesing Money Real Estate

Affordable Housing - Pre Built Homes

2009-06-10T03:15:00.003-07:00

Shelter is a basic human need and everyone needs to have a home. The single largest investment in our lives is in a home. However, several factors have pushed up the cost of a decent home very high.

The Prefabricated House is a solution to challenge this situation and make decent housing available to all. Use of prefabricated technology whereby the house is prefabricated in a factory greatly saves on materials in that the customer only pays for the used materials as opposed to the normal traditional method whereby a lot of material is wasted on site.

Prefabricated technology also saves in labor since the house parts are easily fastened to each other during installation.The quality of construction is also kept high since the houses are made in an ISO 9000 2000 certified factory as opposed to the normal traditional method whereby the quality of construction and workmanship is not easily determined until the building is completed.

Current global building technological advances, mainly Structural Insulated Panels on structural steel structures are used for wall, roof and floor. Structural Insulated Panels are made of two steel panels with polyurethane form insulation in between them and come in panels of 1.2 meters by 2.4 meters.

The room space design is flexible and can be customized to a customer's requirements. Customers can select a house plan form our list or request a new house plan design according to their wishes. Once house plan design is agreed, the house is then installed in the customer's land wherever it's located.

Prefabricated housing provides genuine housing solutions to all in the most economically viable and environment friendly way.

Frank Gichuhi Is A World Renown Architect Who Specializes In Design Of Unique Buildings And Researches On Current Trends In Construction And Real Estate REAL ESTATE SOLUTIONS. You Can Also Add Your Views About Architectural Design, Construction And Real Estate On His Blog Here REAL ESTATE SOLUTIONS.

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The First Step in Custom Home Building

2009-06-10T03:15:00.001-07:00

Since the time we are young, most of us dream about what our ideal home will look like and where it will be located. But most people just starting out as new homeowners can't afford the dream house right away. However, after years of hard work and savings, the time may come when that lifelong dream can become a reality. When this time arrives, it is important to plan carefully so that building that special home doesn't become too expensive and overwhelming.

The first and most important step in the planning process is finding the right general contractor. A skilled contractor can help successfully determine what type of home can realistically be built and what the budget for that project might be. He might also have suggestions of architects for the design of the house. The contractor will be responsible for organizing and supplying the materials, labor, equipment, and services necessary to complete the project. When finding the right contractor, it is important to make sure he has a lot of experience with custom home projects.

As the homeowners work with the contractor, it will be important to determine needs vs. wants. Just because it is a custom home doesn't mean that the homeowner will be able to afford every detail they've ever dreamed of. Evaluating budget and determining essential design features and prioritizing them will be key. Once the basic ideas are decided upon, the contractor can assist in coming up with a real budget based on the actual costs of the materials, labor, and equipment. With the help of an experienced contractor, building the dream home can be a joyful and satisfying endeavor.

Excell Contracting is a contracting company established in 2008 by two brothers. They are custom home builders in Maryland. Building a custom Maryland house can be a big undertaking. Contact Excell Contracting for help. Billings Farnsworth is a freelance writer.

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Why I Feel That the Real Estate Market Will Take a Toll on Families

2009-05-27T23:32:00.001-07:00

I think that divorces will skyrocket because of the housing market. The cause and effect of this is unknown but you can put the pieces together if you think.

The divorce rate will go up because of our nation's problem with their debt and due to the housing market. I feel that most problems in a person's marriage is due to money..... unfortunately. With the average couple having at least $8,000 of credit card debt, not including both of their school loans, you have a detrimental equation. Not only do couples have credit card debt and student loans they have to fret about, some own homes.

Most homes in this country have lost more than 20% of their value in the last year alone. If they were to eager to get into their dream home, they may have bought a home with a sub-prime loan that they could not afford and may never be able to afford. With a sub-prime loan, after a set amount of months, their low interest rate on the loan jumps and their payment on their mortgage all of a sudden jumps in some cases more than 30%.

When a couple can barely afford their mortgage payments to start, and it jumps more than 30%, it eats into every part of their budget. If you put yourself in their shoes, if your not a victim already, you will have to make hard decisions like, pay the mortgage or buy groceries. This would, in my eyes, cause a huge strain in a marriage. The divorce rate is already more than 50% in this country and 20% of people owe more on their homes that what it is worth.

There are many ways to avoid this according to a lot of people. I feel different. If you owe more on your home than what it is worth, try to short-sell it. If you still have equity in your home sell it by-owner. People do not realize how much money they throw away when they sell their home with a real estate agent. On a $200,000 home, you may pay more than $14,000 in commissions. That commission, for just placing your home on the MLS, can be your down payment on an unbelievable deal in the future.

There are many different ways to accomplish selling your home without commission. There are also a lot of different resources to find a home at a great deal.

I would recommend using my website http://www.foreclosurebyowner.org.

If you are selling your house by-owner, you can list your home for free or use my premium listing service. If you are in the market to pick up a great deal on any kind of home, check my site out. I have over 1.6 million listings. My site will give you an estimate on what the home should be selling for and what the price of the home is now. You will not be disappointed. There is even a forum to shoot around ideas and meet people in your situation. http://www.foreclosurebyowner.org

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Private Lenders - 7 Tips For Creating an Effective Private Lending Credibility Kit

2009-01-03T21:25:00.001-08:00

The lending climate with conventional institutions in the current economy certainly does not rule in favor real estate investors or those that are just getting started in real estate investing. More so, the success of your real estate investing business is consistently at the mercy of the lending institution.

As a result of the economic downturn, conventional lending institutions are increasing the criteria for lending, an effective private lending credibility kit is essential to taking control of your future. Private lenders are the lifeline to your real estate success and your portfolio should reflect your trustworthiness, your expertise, and your ability to create a win-win situation for both parties.

Tell Your Story

Write a Bio That Speaks: The bio that you include in a private lending credibility kit should tell a story about you, the highlights of your accomplishments, and be written in a conversational style that will create an instant rapport with the potential private lender. Telling your story allows the prospect to connect with your experiences and builds trustworthiness from the get go.

A bio that takes on the form of a generic resume will not only bore the prospect trying to decipher it, but it will also fail to reach your prospect on a personal level. No matter what the industry, people like to know that they are dealing with a real person and not a robot.

Promote Your Company

Project a Professional Image: The background of your company should represent your expertise in real estate and communicate to the potential private lender that they are dealing with a reputable agency.

This page of your private lending credibility kit should tell the private lender why your company stands out from all the rest. Highlight any professional accomplishments, awards, and/or affiliations associated with the real estate industry as well as a company mission statement and future goals for expansion.

Showcase Investment Properties

Create a Picture Portfolio: Include pictures of any previous investment properties along with a short description of the deal and include any private lender testimonials.

If you are new to real estate investing, showcase properties that interest you along with a brief explanation of how you intend to acquire the properties and how it will benefit private lenders as well as your company.

Free Expertise

Offer Free Information: Provide examples of free expertise that you have previously offered to potential prospects. If possible include any feedback from the prospects that reflects the benefits they gained from tapping into your expertise. This can include tips and advice on working with private lenders.

Checklist

Show Concern for the Private Lender: Place a checklist in your private lending credibility kit which contains the necessary steps that need to be taken to complete the deal. This not only shows the private lender that you understand the process, but it also shows concern for the private lender's time.

Accreditations and Affiliations

Certifications: Highlight any real estate certifications you have received and how it has helped you attain your goals. This can also include any experience with seminars and professional speaking engagements.

Company Affiliations: Include any professional affiliations that your company has earned such as the Better Business Bureau or any Real Estate Association Memberships.

And I invite you to learn more about Private Lending Credibility Kits and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://www.realestatewealthtoday.com/PLS-Vol1-Sales.html

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Kit.

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Private Lending Money - Tips on Marketing Your Private Lending Credibility Kit

2009-01-03T21:25:00.000-08:00

As a real estate investor, you know how important an effective private lending credibility kit is to the success of your business, especially if you are just starting out. Instead of being at the mercy of conventional lending institutions to approve your loan, a private lending credibility kit will set you up for success in the world of private lending.

Thanks to the power of the Internet, there are several tools you can use to increase the chances of reaching your prospects and getting your credibility kit in front of many potential private lenders.

In addition to creating a website there are several unique ways to get your private lending credibility kit in front of hundreds if not thousands of potential private lenders.

Create Podcasts

One of the hottest forms of advertising for entrepreneurs right now is through the iPod. Just a few years ago podcasts were non-existent and recently the industry exploded with sites like iTunes and Podcast Alley with over 55,000 categories.

Entrepreneurs have starting realizing the power of podcasting to keep their business name in front of many potential clients and the real estate industry is no exception.

Real estate investors can create free podcasts and offer them on high traffic sites such as iTunes and Podcast Alley. Potential clients can download and listen to your real estate expertise on their iPod or iPhone while on the go. Your potential clients will be more likely to remember you and become interested in viewing your private lending credibility kit as well.

If you are pressed for time, there are a growing number of professionals out there who will create the podcast for you.

Broadcast Your Expertise

Create a video that contains credible and interesting information about the real estate industry and include a link to your private lending credibility portfolio in the video description and the video itself.

Post your video on YouTube by creating a YouTube account and from there you can make as many free videos as you would like. Refer to the videos in your private lending credibility kit. With over 75 million visitors on YouTube, you are bound to gain the interest of private lenders who will take you seriously.

Social Networking

Many people think social networking is for teenagers when in reality many entrepreneurs use social networking to provide useful information on their industry and as a tool to network with potential clients.

Social networking sites such as LinkedIn are designed specifically for business professionals and provide a way for you to build credibility with your real estate clients. Although you cannot advertise a product per se, you can certainly lend your expertise and lead your clients to view your private lending credibility portfolio.

Advertise an Entre-Card

You can obtain an "Entre-Card" or online business card from the Entre-Card site for placement on your real estate blog. When visitors to your blog view the Entre-Card they can leave their business card in return. Since your blog reflects your expertise on real estate investing, you can lead your prospect to your private lending credibility kit through the contact information they left on your blog.

I invite you to learn more about Private Lending Credibility Kits and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://www.realestatewealthtoday.com/PLS-Vol1-Sales.html.

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Kit.

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Florida Offers Real Estate Investing

2008-09-02T04:14:00.001-07:00

Real estate properties in Florida come up with more innovated types of real property. Real estate investing becomes the world's business and large number of buyers and sellers started making their real estate investment on the real properties. Florida is the beautiful state which comes up with more number of real estate properties for the buyers and Florida real estate investing on real property satisfies the requirements and demands of the people. In Florida, more number of real estate properties are listed for sale by the sellers and Florida real estate market meet the requirements of the buyers and sellers individually. Florida real estate property market is designed specially for the buyers and sellers of Florida and they offer the real property for reasonable price consideration.

Florida real estate investing also comes up with some rules, regulations and procedures with regards to the real estate properties. Florida real estate investing enables the sellers to sell their properties for reasonable price consideration and also to fetch profit along with it. While it also helps the buyers to buy the real estate properties for fair price consideration along with profit for the real property purchased. Florida real estate properties provides more useful services to the buyers and sellers without any loss with regards to the prices and also helps to negotiate the real estate investing property transaction to get completed very sooner.

The main purpose, why people go for real estate investing in Florida is because of their culture, climate and locations and also for prices. Florida real estate property always fetches good demand among the buyers and sellers and it is the main reason for their prices. As already said Florida real estate investing goes for its prices and other benefits provided, more number comes to the real estate market for purchase and sale of real estate investing property. Florida real estate properties offers huge benefits to the people and if people get satisfied from the property, then there will be no delays in the sale and purchase of real estate properties.

Though huge number of real estate properties is listed for sale and it is sold, still real estate market fetches more demand among the customer for reasonable price consideration. In Florida, real estate brokers are well known regarding the different kinds of real properties in Florida and also information regarding real estate properties of Florida. Florida real estate market satisfies the demand of the buyers and sellers without any problem and large number fetches the services provided by the Florida real estate investing properties. Florida real estate investing properties can be sold and purchased by the real estate brokers or by the realtor or the buyers and sellers. Florida real estate market satisfies the demand and serves the purpose.

Ron Victor is an Expert author for Real estate investing information and Property investment. He written many articles like Real estate investing tips, Real estate investing training,Investing in real estate online. For more information visit our site. Contact me at ron.seocopywriter@gmail.com

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Are You Investing In A Good Real Estate Investing Guide Before Buying?

2008-09-02T04:14:00.000-07:00

Investing in real estate is a dream that many people have. If done well, it is an excellent way to achieve equity and even a good sense of cash flow.

However, this dream can be quickly shattered if the investing does not go well. If someone is new to investing in real estate, it might be a good idea to read through a real estate investing guide. Any good real estate investing guide will cover the ups and downs of investing in real estate.

The guide should give the potential investor an idea of the losses and gains that can come from any real estate investment. The real estate investing guide should outline the significant amount of time and work it takes to be a successful investor in real estate.

For some, simply buying a home is an investment in real estate. Owning your home builds your credit and within any good seller’s market, will result in profit. Usually, real estate increases in worth over time. New investors will learn the basics when reading through a real estate investing guide.

There are many different types of real estate investments. Such investments include a single family home, duplexes, apartment building, commercial buildings and even empty lots. A good real estate investing guide will explain how to successfully buy such properties, work with your tenants, generate leases and evictions, and even how to hire property or building managers.

All of these factors will directly affect your success or failure in real estate investing.

Earl Taylor is an expert opportunist with 8 years experience as an internet marketer. He is the author of CareerJobs. His diligent research and recommendations has been known to help thousands. Get his Free home assembly job listings just for visiting. Or send a blank email to: cashfaqs@freeautobot.com

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What is a Real Estate Development Agreement?

2008-08-25T22:10:00.002-07:00

Of all of the legal agreements that you will have to go over in your lifetime, a real estate development agreement is one of the longest and one of the most complicated. Many of the other forms we've looked at here are short; usually one or two pages and they can be filled out and read over in only a few minutes. With a real estate development agreement, you will likely need hours to wade through one of these dense, 10-50 page documents. Let's take a look at what a real estate development agreement is and why they are so lengthy.

A real estate development agreement is just that, an agreement to develop a parcel of land for personal or commercial use. The agreement can be between an individual and a construction company, a commercial builder and a city or town, a city and town and a retail business or other combinations of the above. Some real estate development agreements between large companies like Wal-Mart and a city or between a company that will be dealing with hazardous chemicals, like a gas station and a city, can be extremely long as they need to cover any eventuality that could arise during building or later on if there is an accident.

The typical real estate development agreement starts off with simple definitions of who is involved with the agreement, the date and where the piece of property that is scheduled for development is. The agreement will also spell out the municipality that is in charge of overseeing the development. The next part of the contract is often the "Witnessed" section that lists all of the necessary steps the builder has had to complete up to this point to have the development agreement approved by the city. The city will make sure that the area you've chosen to build on is properly zoned for the type of building you intend to do and they will also check that you've submitted a development plan, which is different than this agreement, to the city in advance of this form. Once those steps are met, the meat of the contract is spelled out.

The first section is the definitions that simply spell out what each term used in the contract refers to. For example, the city or builder will likely define what "total cost" means so it can be used throughout the contract. If it is a simple home building contract, there will only be two or three definitions, if the contract is for commercial property, there could be dozens.

Next, the development plan sketches out the project. This section is often short and simply lays down the ground rules of the build, such as the time frame, property limits and so on. The improvements section can be quite long as it outlines all of the improvements this development will do with the city like improving sewer lines that it hooks up to.

The final sections of the contract go over deadlines for building and things like landscaping rules, parking rules and what rules are in place for further building on that parcel of land. Overall, a real estate development agreement is often as complicated as your plan is: simple for homes, complicated for commercial properties.

Mark Warner is a Real Estate Development Agreement Research Analyst for RealDealDocs.com RealDealDocs gives you insider access to millions of legal documents online drafted by the top law firms in the US that you can download, edit and print. Search For Free at RealDealDocs.com

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Development Agreements For Real Estate Deals Small and Large

2008-08-25T22:10:00.001-07:00

A development agreement is an understanding reached by two or individuals or parties about their respective rights and obligations in relation to a certain thing or a specific subject. The development on which these two parties are reaching agreement can fall into a number of categories.

In terms of real estate, the development agreement could pertain to land improvement, construction involving land, or buildings. In the technological fields, it could pertain to new product development, software development, or other improving techniques for technological development. It can also refer to business or corporate development.

The developer is the one who will do the designing, developing, and sometimes even manufacturing and marketing of the product or subject to be developed. The specific details will be laid out in the development agreement. The agreement will also discuss the obligations of each of the parties, the deliverables, specific milestones, and other details of the project to be developed. Specific exchange of information will be detailed, as well as where and/or how these exchanges will take place. The terms on which the deliverable will be accepted will also be spelled out specifically in the developer agreement. There may be a specific time limit associated with this acceptance. Any potential fees will be laid out, along with any other payment terms. Other elements such as distribution may be discussed.

Having a written development agreement can be important. If properly created, this document will prevent disputes. If problems do develop, the development agreement will provide ways to resolve the issues. If the parties were to end up in court, the development agreement establishes their legal responsibilities to each other. Having a written development agreement can prevent delivery of an unsatisfactory product. The best way development agreements break the project down the project into distinct parts or stages. These are generally referred to as milestones.

As each milestone is reached, the developer is required to provide an acceptable deliverable. While this may not be a completed product, it should be something that will allow the other party to assess the progress of the developer. These milestones are usually tied to a payment, which gives the developer motivation to meet any deadlines for the milestones. This process enables both parties to monitor the development process and resolve any problems or issues early on. In a worst-case scenario, there should be provisions in the development agreement to end the project early if mutually satisfactory progress is not being shown through the milestones.

Having this sort of development agreement has benefits for the developer as well. Since the client signs off on each step of the project, they can avoid any potential claims of an unsatisfactory product or performance. The developer has a chance to address any of the client's shifting needs and requests as well. Few development projects ever develop exactly along initial specifications. Development projects tend to grow and change as the process moves along. The key is to have a development agreement that allows for communication between the two parties regarding changes and a delivery timetable that is realistic yet flexible.

Mark A. Warner is a Development Agreement Research Analyst for RealDealDocs.com. RealDealDocs gives you insider access to millions of legal documents online drafted by the top law firms in the US that you can download, edit and print. Search For Free at RealDealDocs.com.

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Tips For Choosing Your Perfect Real Estate Agent

2008-08-25T22:10:00.000-07:00

If you're buying a new home for your family or selling one you currently own, a few simple steps can help you find just the right real estate agent to fit your needs. With so many choices available, it can be hard to know which agent is going to do the best job for you, but here are a few things to look for when choosing an agent.

Agents For Buying A Home -

If you're looking to purchase a home, notice how much time each agent you interview spends asking questions about your family's needs, then how much time they spend listening to your answers. An agent who spends more time asking about your family finances or your ability to obtain a mortgage - rather than about the size of your family, whether or not you have children, and what sort of schools you may or may not be looking for - might not have your best interests in mind.

Also, make sure the real estate agent you choose is willing to work around your schedule when it comes to showing potential properties. In today's technological age, many agents save time by sending out general lists of listings to potential buyers. You may be better served by an agent willing to work around your schedule; regardless of whether sending you listings that actually match your criteria, or taking the time to show potential properties in person, when your schedule allows.

Agents For Selling A Home -

If you're looking for a realtor to help sell your home, an agent who examines your house with a fine toothed comb for the things needing fixed or changed is concerned about helping you sell for the quickest and best price. Also, look for a real estate agent who will help you to stage your home so it looks best for potential buyers. Staging may involve repainting the walls if they are too loud a colour, removing large pieces of furniture to make the home look bigger, and rearranging other furniture to make your home more appealing.

Overall, choosing a real estate agent who will work for you doesn't have to be a difficult process. The main thing to remember is your agent should be working for you, and not just for the commission they earn when you either buy or sell your home.

Want to avoid being Sleepless in Seattle or Gullible in Gig Harbor when you're buying or selling a home? Visit Terry Heath at his blog, My Gig Harbor Realtor (http://mygigharborrealtor.com) for real estate tips and tidbits.

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Amazing Profits From Probate Properties

2008-08-04T22:42:00.003-07:00

Probate Sale. Probate sale is one that involves a deceased Seller(s) and the property is being sold either traditionally and or coupled as a short sale. Many of these properties are without any type of mortgage and can be purchased right especially if the Seller's heirs are out of state and the property needs cleaned out or requires lots of repairs.

Most Sellers are anxious just to get the sale over with because of the ongoing monthly expenses that many are paying from their own personal accounts. Some properties may have foreclosure issues and most all have estate attorneys that have already cleared the way for the sale. Many of these properties are great deals and some may offer Seller financing.

Probate can be completed with or without an attorney. Best to do with an attorney if you do not know what you are doing and also have confidence that the attorney will also work with you.

Most sellers are tired of it by the time that the investor is involved. Many have paid for a funeral with money they did not have. A retainer to the attorney and continuing monthly bills for a mortgage, taxes, insurance and utilities that is quickly draining them. Usually the property has a large accumulation of personal items and lots of unwanted debris that needs disposed of.

Most properties need lots of work and not presentable to a retail buyer. The heirs just want to sell it and be done with it all.

To learn more about the amazing profits of probate, please visit our website or contact us for more in depth information. Have questions...please contact us.

A Simple Guide For Tour Planning With Tax Delinquent Properties

2008-08-04T22:42:00.002-07:00

When you plan to invest on property, you have to make sure what you are investing on is worthwhile. Don't just invest because it's a tax delinquent property and it's cheap. Know if you are really maximizing your potential to make money in tax delinquent investing by scoping the market and getting all the location details of the properties that could be up for auction. After getting the addresses of the properties, which you already categorized, scrutinized and decided upon in a certain county. The next thing that you should do is do a tour plan on the county.

You will need a map, which you can buy in a grocery store, a pen, a notepad, a good camera and a car of course to make it fast paced. Having pinpointed the properties that you are interested in by knowing all their addresses mark each property on one map. When you are finished marking, you can take one look at it and it will be clear which route you need to drive so that you will not be going on around the areas twice. Wasting time is always a bad habit.

When driving through the properties make sure that you jot down the exact geographical location and special notes you remember from each property. This will help you in the marketing of the property later on. With your camera on hand take a digital picture of what you had just written in the notepad (which is the house number), because this will help you not to get confused over things. Come to think of it, you will be looking at 15 to 20 lots; you cannot just trust your memory to remember all the details. From experience, even when I have a picture of a property at hand, without my notes visible in the photo, I could not remember that one special detail I saw when I was right in front of it. I've forgotten some details, even if it was only hours ago that I saw the land in the photo. Now, I have a bunch of photos of properties I found interesting but could not tell you what I found interesting about them by just looking at the photo.

What I now do is I take a notepad and I label each property by numbers, like "Property 1". Then I go on to take a picture of property one. I take pictures of everything I want to take a picture of in that area and then I sit down and take notes. On the notes I make sure that the number 1 is apparent. I make a note that this property is flat, street like this, road access, it has a nice mobile home on it, or a nice house, the house has green roof, etcetera. Then when I download my digital pictures I know that all the pictures behind the number one that I took a picture of belong to the sheet where I put the number one in. Now I can match them up and get a good reminder when I need to make my final decision on which properties I want to buy.

Lease Option Real Estate Investing

2008-08-04T22:42:00.001-07:00

Lease Option Investing

Exactly what is lease option real estate investing? A lease option is basically a rent-to-own contract for a piece of real estate. The buyer signs an exclusive contract to have buying rights to a property after a given amount of time. When the allotted time expires, the buyer can do one of two things: buy at the price agreed on when the contract was signed, or don't buy the property and forfeit down payment.

To make this easier, let's take a look at this from a buyer's eyes.

Buyer

Why would anyone use a lease option for real estate investing? Try risk management. If you were shopping for a home a few years ago (before the market went bad) but were unclear if the area would be hit by recession, you could use a lease option to pay monthly 'rent' and then wait for the contract to expire. The next step would be to get the property appraised. As a buyer, a lease option means you do NOT have to buy the property.

So when you look at the home appraisal after a few years, you compare the current market value to that of the agreed upon purchase price. If the home is worth more than what you agreed, you can purchase and gain instant equity. But, if the property went down in value, then you can leave the deal with no ties and are only lose the down and monthly payments.

How about some real numbers to see how this works? You sign a lease option to buy a home for 100,000 after a 3 year contract. You put 3% down for the contract as you 'good faith', and agree to pay 100$, above current market rents (this excess going toward a future down payment when the real purchase takes place).

When the contract is over you have the home appraised. Luckily the home went up 10% over the last three years! Suddenly you have exclusive rights to buy the home for 10k below the current market value! Since you already put 3% down and can couple that with 100/month (2400) credited for the purchase, you have a total of 5400 (5.4%) toward the real purchase! Now, 10% of 110000 is 11,000 and you now have 5400+10k in equity for a total of 15400 towards buying this property! So, with 3% down and a little thriftiness you have gained a 15.4% down payment!

Yeah, but if the house went down in value? So the appraisal comes in at 90,000. Ordinarily, since the house went down 10k, you would have to shoulder that loss. But since you purchased a lease option, you get to walk away from the property instantly and with no further commitments. However, you do lose the down payment and the extra 100/month. In other words, you lose 5400$. Yes it's a loss. However, if you had bought the home for 100,000, you would be suffering a loss of 10,000 instead of 5400! This is a loss regardless, but you save yourself nearly double the loss by using a lease option.

But how does this benefit the seller?

Seller

During these poor economic times, it's very tough to sell your property since there are many sellers polluting the market and increasing the number of unsold houses. The excessive inventory lowers overall prices. Now, for some reason (personal or financial) you need to sell your property and fast or cover the payments.

Lease options can do both and here is how.

Thanks to the financial education available, many people want to buy a home but do not have the credit or the full down payment needed to buy a home. Seriously, how many people do you personally know that could be identified as one or the other? These people are ready and willing to buy a property but can't get a bank to look in their direction. Hence why a lease option for a low down payment that accepts medium to poor credit has such a strong customer base.

Okay, time for some more real numbers, this time from the seller's perspective. Let's assume you have a home that you paid 200,000 to buy. Then the market plummeted and now your home is worth 190k. You will have a 10,000 loss in combination with realtor fees if you were to sell your house. I doubt this sounds appealing. What about renting it out to cover the payments? Assume local rents for a 3/2 in your area average 1100. This would not cover your approximate $1400 payments. Are you screwed? No.

You jump on craig's list and offer to lease option you home. 'Rent to own this 205k house for as little as 6k down!' Then you detail the extra monthly amount that will go toward the future total down. Notice you asked for MORE than what the property is currently worth. Why? Because those buying the lease option are buying based on an ESTIMATE of what the home will be worth when the contract expires.

Now take a look at the monthly premium. Obviously the regular rents in the area will not cover you payments. So let's break the payments down a bit. Of the $1400, roughly 200 is used to reduce the principle, so you will get it back upon selling. So the1400 is really 1200. That's isn't too far from the1100 regular rent. Since you're doing someone a favor by carrying the contract, asking an extra 100 more should be reasonable. HOWEVER, the buyer will also be paying more to be used as a future down IF they decide to buy. If the buyer does not exercise the option, then you get to keep all the extra money (down and extra monthly payments).

What this means is that your monthly payment would be 1100 plus a 'fee' of 100. In addition, there is the negotiable amount toward the buyer's future down payment. Assume that extra payment is 200/month over the 3 year contract. The buyer could have the mitigated risk purchase of your home IMMEDIATELY for a paltry 6000$ down and modified monthly payments of 1400. Oh, but we aren't finished. That just happens to be the exact same amount you're paying and you have a real bank mortgage!! Hopefully you can see how this could be appealing to potential buyers that are lacking the down payment. And it's all mitigated for risk!

So how does that really benefit you? Well, the buyer agrees to a purchase price that is NOT impacted by the current economic slow down. You adjust the this price as if the property had never lost any value. In other words, you want a 3% annual appreciation on your home so you offer a 1 year purchase price of 200,000+3% or a two year buy price of (200k+3%)+3%. This would be 206k and 212180 respectively.

The 3% is really $6k. But, isn't that the same as the down payment for the option?! So if the buyer does NOT buy the house after 1 year, you STILL get the 3%!! Now, add in the extra monthly 200 and you get another 2400 per year! And if they DO buy the house? You get your 200k+3% anyway! Lease options are a win-win situation.

You get your % regardless of the market value and the buyer gets their purchase mitigated for risk at the same price while getting a potentially substantial gain in equity!

How to buy property in Brittany

2008-05-31T02:11:00.002-07:00

Ever since we started letting our holiday cottages in Brittany we have had a steady stream of visitors looking for property for sale in Brittany, in the Vilaine/Redon/La Roche Bernard area, but also further afield.

Prices in this area have been doing exceptionally well in last few years with investments often doubling in value from 2002 to 2007, and the market is now cooling down. Prices are not cheap any more and the supply of properties for renovation is reduced year by year. However there has been a lot of building, and there is an increasing amount of old vacant property in the bourgs (=town/village centres).

This is a popular area for retired people and holiday-makers, and there is a lot of demand from people who commute to Rennes, Nantes and Vannes.

Perhaps the best opportunities in this area lie inland, in places like Carentoir, Malansac, Questembert, etc..

How to start looking ?

Most of our property hunting visitors cruise around, visiting the Brittany estate agents in areas that they like the look of, but most are unaware that notaires (=solicitors) have a constant flow of properties which inheritors are disposing of so they usually have something of interest, and they circulate (from their offices) newspapers consisting only of property advertisements.

There used to be one or two English people who were in business here as estate agents to promote French property to English people, but they seem less prominent these days, and anyway the Brittany Estate agents speak good English.

Before you visit you can find Brittany Estate agents on Google, which lists 2700 entries for “Breton Immobilier” (=estate agent). Agency rates can be higher than in England and pays to look around..

Visits to properties are usually accompanied, and their whereabouts are closely guarded secrets – the agents are nervous of private deals that circumvent them.

How to buy your Brittany property

When you find a property you like you will be asked to sign a “compromis de vente” (=selling agreement) and unless the property conceals any “vices caches” (=hidden problems) you are then legally obliged to complete the sale. However the agreement can be made conditional, for example on getting planning permission, and the like.

Conveyancing is charged on a statutory scale and the only way of escaping the fees is to (illegally) hide part of the value of the transaction. You could well be asked as we were once, whether any part of the deal had been done “sous table”” (=under the table).

Completion is known as the “Acte”. This is usually a very French occasion. Buyers and sellers meet at the offices of the selling notaire, and the whole conveyance is read out, with the notaire checking at each stage that everything has been understood. At one conveyance we went to, the selling notaire half-whispered to our own notaire “Will these people know what’s going on ?”.

Living in Brittany with your new property.

Although our property hunting visitors have demonstrated very clearly over the years that no experience is necessary for living in France those who come to make a new career find life extremely difficult, since France has policies which deter new business start-ups, and employers are not generally interested in having British employees. Be warned !

Of the rest all that we know have stayed.

France is a very nice place to be and of all the countries in Europe is closest in language and landscape to the UK.

Mostly we all do learn to speak French eventually, but often in the case of married couples one will learn French and the other not.

In Brittany itself, English people are very well treated, better liked than Parisians or Germans and mainly exasperate the locals if they never learn French.

Fort Lauderdale Real Estate: How To Sell Your Property

2008-05-31T02:11:00.001-07:00

The city of Fort Lauderdale in Broward County is a prime tourist destination for both local and foreign individuals. The intricate waterways and canal system found crisscrossing all-over the city gave Fort Lauderdale the name "Venice of America"

With the tropical climate all-year-round, one can indulge in summer-time activities with friends and families alike. Enjoy the sandy beaches that are common in the region, the recreation and commercial facilities in the city, as well as the scenic views in surrounding areas.

Real estate properties in Fort Lauderdale, especially for residential purposes are a very lucrative venture. If you wish to sell your property to make a tidy profit, then here are some tips to help you out.

Selling Your Fort Lauderdale Real Estate Property

Determining the status of the real estate market in the city is the first step a home seller should take before selling out. Considering that the market is still on the recovery due to the mortgage crisis that hit the nation, this should be top priority to get the best deals in the project.

First step is to determine the proper time to sell out the property; since the market value of real estate fluctuates from time to time, it would be best to keep a close eye on the economic scenario of Fort Lauderdale, as well as the value of each type of properties. You might also want to time your property sale during the peak season, in between January and March considering that these months is where local and foreign investors flock into the city to look for a residential unit to call their own.

Get The Property Assessed

One of the problems of home sellers is determining the right price for their real estate property. Set the price too high then potential buyers will just ignore you. Set it too low, then you will be swamped with questions on why the price is lower than the others, as well as getting no profit from the venture.

To properly assess your property, you need to look for a professional to do the job for your. Look for a real estate agent that will help you check out your home and determine the value of the property according to its location, surrounding areas, amenities, and, of course, the physical state of the household's interior and exterior face.

You might want to do some minor repairs and renovations to raise the value of your Fort Lauderdale real estate property. Fix cracks on the wall, repairing the plumbing and electrical wirings, and some landscaping designs here and there should give the home value a little boost.

The secret in getting a good profit in selling a residential property in Fort Lauderdale is not to rush in getting it sold off or taking too much time analyzing the market. You need to time it perfectly that will suit the demand, the market value, as well as the potential clients and customers that will take it off your hands.

Making The Most Of The Sarasota Real Estate Programs

2008-05-31T02:10:00.002-07:00

Sarasota is considered by many as a tropical paradise. It is located on the Gulf of Mexico and offers a wealth of natural beauty, a cornucopia of cultural tradition, and an abundance of sunshine. The Sarasota real estate market also offers an excellent standard of living. As a matter of fact, the CNN/Money Magazine once dubbed it as America’s Best Small City. In addition, it’s also one of the country’s best places for retirement.

The unpolluted air, sunny weather, and fine-looking beaches have certainly made Sarasota a world-renowned hub of fine living. Its effervescent cultural and recreational scene offers a wide array of activities for every budget and taste. So basically, the Sarasota real estate industry guarantees a “small town” manner of living with the convenience of urban amenities.

If you’re thinking about relocating to Sarasota—with the intention of purchasing or renting out a place, you better take advantage of the existing programs meant for its residents and prospective homebuyers.

Homestead Exemption

Homestead Exemption is actually offered in the State of Florida. It basically allows you to trim down your property tax cost by requesting for an exemption on your home value’s first $25,000.

Before you can file for an exemption claim, you’re required to establish residency in your house. It should be done by December 31 of the previous year. In addition, the exemption request must be processed by March 1st of the same year you intend to claim the exemption.

Residency may be substantiated with a valid driver’s license and ownership/registration certificate issued by the State of Florida, or with a voter’s registration card. In order to establish residency within the mandatory timeframe, present a recorded title deed for the Sarasota real estate property or an automobile registration for a mobile home.

Rental Development

The Sarasota real estate industry has been successful in collaborating with the private sector to invest in the development of low-cost, multi-family residential properties throughout the county. Through tax credit and bond programs, Sarasota operates in cooperation with private development firms to construct rental properties intended for moderate- and low-income residents.

A number of financing programs have been formed for the various Sarasota real estate developers. In association with the Housing Finance Authority of Lee County and other nearby counties, Sarasota offers financial backing through the Regional Multi-family Bond Program. This financing plan makes use of the funding strength of private bonds to produce appealing and reasonably priced rental developments. The selected developers utilize the profits from bond financing, together with traditional financing, to build multi-family residential properties meant for moderate- to low-income tenants.

Sarasota’s real estate industry also takes part in numerous rental development programs overseen by the Florida Housing Finance Corporation. With the intention of making local projects compete at state level, Sarasota supplies a counterpart by means of local housing endowment. Qualified projects may then acquire financing through a combination of tax credits, conventional financing, and bonds.

Irrespective of the financing source, the low-cost housing developments backed by such programs have become assets of the community. Plus, they’re normally impossible to differentiate from market-rate homes. Without a doubt, the tax credit and bond programs provide much-needed assistance in fulfilling a vital need in the Sarasota real estate scene. This necessity is none other than the existence of inexpensive rental properties in a secure and pleasant location.

How to Sell Your Home Quickly in Sarasota Real Estate

2008-05-31T02:10:00.001-07:00

Are you selling your home in Sarasota real estate? Nowadays, the real estate market is very active again. You need to go back to fundamentals, if you wish to sell your home successfully.

Are you wondering what the fundamentals that this article is talking about are? Read on in order to know the fundamentals that a seller must know. You this day and age, you cannot just put your home in the market, wait and expect it to be sold within few days. You need to face reality; you can’t obtain great deal just that. As a seller, do not simply put your home in the market and expect it to be sold right away, you need to think about the increasing prices and interests rates. In order for you to sell your home, you need to go back to the fundamentals.

The first fundamental that you need to consider is getting your home in good condition. Buyers will spend huge money in buying a home, so you need to make potential buyers to view your home as their dream home. if your home is dirty, potential buyers will not gain a good impression in your home, so you won’t definitely get a good offer.

If you wish to gain great deal, you need to keep your home clean. You need to clean every room of your home. If your home shows wear and tear, it is best to put fresh coat of paint in order to make your home looks appealing and attractive. For you to sell your home successfully and with great deal, you need to create a good impression. You need to take all of the right steps in order to avoid the risk of losing great opportunity to obtain great deal.

See to it that your home is clean inside and out. You have to check out the yard as well. Remove the clutter, mow the lawn and water the plants. If you have pets, put them to proper places and make sure that your yard is free from pet’s poop.

As soon as your home is ready and well-prepared, you must take photos of your home. You need to take photos at different areas such as living room, dining room, garden, garage, and so on. Surf the internet and create free listing in order to market your home and gain lots of potential buyers to visit your home. it is better to target pools of potential buyers in order for you to easily gain offer and great deal.

You need to figure out what is the unique feature of your home and you need to let potential buyers about it. You have to post or upload nice photos of your home to attract buyers. Make sure to put all important information in it such as the name and contact number of your real estate agent, your address and so on.

Doing all of these steps can help you in selling your home in Sarasota real estate quickly and with great deal. You need to bear in mind that good impression is a must.

Indian Real Estate: An Insight

2008-05-31T02:09:00.002-07:00

Indian real estate markets have been going through a rough patch from 2007. Property developers are facing liquidity crunch and seeking for alternative options to keep the ball rolling. Demand curve for residential properties is moving south while the cost of construction is steadily rising. According to a senior official of Indiabulls, real estate developers who have been reporting good results and possess sound financial base, are taking contingency loans to support their financial well being.

Mumbai has always been the trendsetter in the indicative property prices of real estate India. With the opening up of the retail market, there has been a growing demand for retail properties in Mumbai. This has created a viable market for mall space and other retail stores and showrooms. Currently, the real estate investors are mainly HNIs, but a large volume of institutional money is expected to be flowing into this sector in the coming years.

The National Capital Region (NCR) of Delhi, Gurgaon and Noida is witnessing a slowdown in demand for residential properties for the past couple of years. Spiraling cost of financing home purchase, rising property values and inflation has resulted in slackening markets. Real estate investors who made millions in a short period of time in the booming markets earlier are now looking at corners. The chances for return on property investment have come to bottom. A number of real estate developers have reduced their selling price, in order to induce buyers.

The cyber cities of Bangalore and Hyderabad have seen an oversupply of residential units between the price range of Rs 50 lakh and Rs 1.20 crore. Most of such projects were launched in 2004-05 when Indian real estate markets were going through an unprecedented euphoria. But, 2-3 years down the line, the markets reached a level where correction was a need rather than event.

Easy Sell Your Home for Good Price

2008-05-31T02:09:00.001-07:00

Person normally sells his home only once or twice in his lifetime. But this is the most important and tedious of work to deal with the selling of home. As, it is so important to list your home with best of the prices and to the best of the buyer.

First thing that come to mind of people who sell their homes is to contact their local brokers or agents to list their property. With the changing times the tradition of searching and listing homes have also changed and now 75% of the buyers use internet as the medium to search homes.

Few of the basic things that is required when you are selling home, is you have the right exposure of your home to the potential buyers and the right presentation which can develop a keen internet in the buyer’s mind.

FSBO (for sale by owners) is the perfect opportunity to get listed your home in local MLS database and in FsboListAndSell.com. The MLS is where realtors will find your listing to show their clients and FsboListAndSell.com is where consumers look for their new homes worldwide.

What is and Facts about MLS The MLS is a central registry of properties used by REALTOR(s) to match buyers with homes on the market. MLS is described as a "cooperative marketing system" to ensure maximum exposure of properties for sale. The MLS is very effective. Last year, sales across the MLS listings totaled over $100 billion.

In addition to being distributed in printed catalogues, MLS is also a sophisticated computer database of properties indexed by price, location, and type of home, number of bedrooms, amenities and so forth. Photos of homes may also be available on-line and, over the past year, many real estate boards and associations have added their MLS listings to the Internet through FsboListAndSell.com.

Another exciting fact is that on an average realtors are responsible for 85% of all home sales and 4 out of 5 home sold are listed on MLS. Over 75% of buyers use FsboListAndSell.com while searching for a home.

Listing When you list your home its more than a listing. You get a bunch of benefits, which can make your work selling home easier. Some of the features, which you can get, are:

You don’t have to worry about fees when you are listing with MLS. You will be charged flat fee to list your home and thus providing you maximum exposure.

As MLS has linked with many sites so you get the power of listing on many other websites as well.

The most important aspect of listing at MLS is you get a expert guidance and consultation from real estate professional which indeed can make your work lot easier.

More FsboListAndSell.com has been ranked number 1 realtor website for sellers. Also consider that on average a seller not using the MLS on average receives 16% less or $32,000 for a $200,000 home.

Miami Foreclosure Homes Skyrocketing

2008-05-31T02:08:00.000-07:00

With the real estate market in a well publicized slump these days, buying a new home or investment property isn't the first thing on everyone's mind. It seems all we hear about is how slowly the market is moving, and that no one is certain when homes will begin to have appreciation value. However, what many do not realize is that this has actually paved the way for one of the best real estate values to come around in years, the chance to buy Miami foreclosure homes.

Buying Miami foreclosure homes is different from other sales, because it involves buying property directly at auction from mortgage lenders looking to sell the property as a means of collecting a debt owed by previous homeowners. However, since this debt is so often well below the true value of the property, buyers find Miami foreclosure homes for sale at anywhere from 10 to 50% below what they are really worth.

And with the market for Miami foreclosure homes booming, there are all kinds of opportunities for capitalizing on this chance for instant investment value. Miami is home to one of the most hectic foreclosure markets in the country, with over 1,000 foreclosures coming on to the market every week so far in 2008. As the volume increases, prices are going further and further down at auction, leading to huge values for buyers.

Get started buying these valuable properties by searching for Miami foreclosure homes listings with a good service such as ForeclosureDeals.com. ForeclosureDeals.com can help you find good listing information, as well as teach you about buying foreclosures, which can be helpful for first time buyers.

Real Estate Investing Guide - Factors That Affect Your Wholesaling Profits

2008-03-11T23:25:00.000-07:00

I am often asked by other real estate investors how much profit can be made in a wholesaling transaction. There are many aspects to determining how much profit can be made on each deal. In one way or another your profit will be determined by one of the 3 items listed below.

The price of the home- Typically higher priced homes will have more room for profit then lower priced homes. Example: if you can find a home for 50% FMV (Fair market value) and sell the home for 70% FMV then you would have a 20% spread. 20% of $100k is far more than 20% of 20k.

The motivation of the seller-With all things being held equal, the lower the price that you can put the home under contract for, the greater your profit potential will be. Example: If you can buy the home for 50% FMV and you have buyers that are willing to buy homes at 70% FMV, your profit will be far greater than if you put the home under contract at 60% FMV.

The motivation of the buyer- Owner occupant buyers will typically pay far more for a home than another real estate investor. Owner occupant buyers are willing to pay more simply because they are looking for a home to have as their principal residence rather than as an investment property.

I have personally dealt with different variations of all of the above. When conditions have been have been perfect, meaning I had a very motivated seller and a very motivated buyer I have made up to $28,000 on a single transaction without the need for cash or credit. That is one of the reasons why I decided to become a full time real estate wholesaler.

Real Estate Investing with Hard Money Loans

2008-03-11T23:23:00.000-07:00

Most seasoned real estate investors face situations where they require more money than what the traditional lenders will lend, and here is where real estate investing with hard money loans given by the specialized lenders is useful.

The hard money lenders are actually private money lenders who provide money for a short term. These loans carry a strict repayment schedule. It is given the name as hard money on account of its strict nature. The rates of interest of such loans are also higher than the market rates, and the fees charged upfront, range between 4 to 10 points.

The money lenders of hard money give the investors the access to the capital that is asset based, wherein the loan amount is secured by way of a collateral security. The rate of interest ranges between 14 to 18 percent annually and the term of the loan is normally six to twelve months.

Along with the property as collateral security, the hard money lender requires can require credit reports and well as documented experience in previous deals you have done. The lenders indulge in inspecting the property and making appraisals, before approving the loans.

The lenders of hard money study the intent of the investment on part of the investors, the strategy of exit that is adopted, the information of the property that is provided such as the residential or commercial nature of the property and also check the credit ratio of the concerned borrower. The financial strengths of the borrowers play a vital role in securing the loan.

The fees that are charged are dependant on the risk factors and the quality of the real estate deal. The plans of using the money set by the investors are also carefully studied by the hard money lenders. Hence, it is recommended that the borrowers provide a proper business plan for securing the hard money loans. They need to convince the lenders about the low risk nature of the concerned investments.

The conditions and the terms of approving real estate investing with hard money loans, vary for different lenders. The investors have to find the perfect lenders suitable for them, and ensure that they keep a good relationship with them.

Such types of loans are useful for procuring or purchasing properties. They are also useful for the buyers having low finances, against those that are required for the project, but have good fixed incomes.

Some of the lenders of hard money have choices regarding the type of the real estate investments, such as rehabbing houses, purchasing houses and the options of lease purchasing.

It is easy to lose a potential deal for lack of finances and hence, maintaining proper relations with the hard money lenders is a priority for the investors. The support of such money lenders is very important for the investors if they want to complete the real estate project in a proper manner. Good relations with lenders are a blessing in disguise for the investors.

Investing In Billboards

2008-03-02T21:44:00.000-08:00

Billboards are income properties without the usual landlording concerns. Perhaps the biggest problem with investing in billboards is that there are limited opportunities to do so in most areas.

I like the idea of a billboard investment. No toilets to fix, no tenants to evict. Just lease the space, let the renter do all the painting, and collect the income. Of course it might be necessary to upgrade the billboard or repair it every ten years or so, but that just doesn't compare with the regular problems that come up with other rental real estate.

The best way to make money with billboards used to be buying property and then putting billboards on it. However, this is getting more difficult all the time. Many communities are limiting the number of billboards allowed, or just plain outlawing all new ones.

One way around this that I have seen is to have billboards that aren't billboards. The most common example is old truck trailers that have been made into "mobile" billboards. These presumably don't fit the definition of a billboard, and so are left alone. It is just a truck trailer parked near the highway that happens to have advertising on it.

I'm not sure if these are legally secure enough to make advertisers fell comfortable. If not, the rates would be much lower. I might try this if I had a property alongside a highway or busy road, but I wouldn't invest in property based on this scheme.

Buying Billboard Properties

The new laws and regulations almost never make existing billboards illegal. They are grandfathered, meaning they will be allowed as long as they are there. It may not be okay to replace them, but they can generally be there as long as they can be repaired. These are the properties that you will want to look for to make money with billboards.

The math is relatively simple compared to most real estate deals. On the expense side, you have your financing, property taxes, insurance, and occasional repairs. Advertising for advertisers is usually done on the vacant sign itself, for the cost of the paint. If these expenses are less than the monthly rent coming in, you have positive cash flow, and it may be a good investment.

You'll want to know how long the lease has to run. Billboards can remain empty for months, so you have to account for that if you buy one with a lease about to expire. Look around at how many empty billboards there are to get an idea of how easy or difficult it will be to get it rented out again.

Do some research on rental rates before you start shopping for properties. Find out the range of rents in the area, as well as information on vacancy rates, if you can. Then, as you narrow your search, get the average rates for other billboards on the same streets where your prospective properties are for sale.

You want the rates on a property you buy to be in line with others in the area. It's even better if they are low. In that case you might pay a price based on the existing rates and raise the rent when the lease is up.

Ideally you want a property that will have decent cash flow from day one, and has a long term lease with a client who has repeated renewed the lease. Then you might just take that easy return on your investment for many years as the rent also pays off your loan.

There is a strategy that I hesitate to mention, because it seems unfair to me. But it can be profitable. I heard about from an investor who bought a lot real estate with billboards in Arizona. Once he had enough properties in city, he lobbied for a ban on all future billboards,and joined any groups that were doing the same. He urged the city council to "beautify" the city by banning new billboards, knowing that they would always "grandfather" existing properties, including his.

Once the law passed, future competition was eliminated. No new billboards could be erected, despite a city that continued to gain population and businesses. The result, of course, was predictable. Advertising rates on the existing billboards skyrocketed over time. He said he was making a lot of money on the ones he had.

Due Diligence For Real Estate Investors

2008-03-02T21:43:00.000-08:00

Do your due diligence when investing in real estate. You've heard that before, but what is due diligence? A simple definition: "The investigation and verification of the details of a particular investment." Start the process before the offer, but in the offer you also will want to include clauses that allow you to have inspections done, look at certain documents, and review the books.

Due Diligence

Due diligence should always include a look at the books. Review the last 24 month's income and expense statements, and watch for anything unusual, like expenses that are too low or income that seems higher than usual. Look at the rent roll, and investigate whether rents are over or under the market rates for the area you are in. Check the payroll records if there are employees, and watch for surprises, like accrued vacation time that you'll have to pay as the new owner.

Always verify income. You want to see rental agreements signed by the tenants, as well as rental histories, which might show if there are any problem tenants or late payments still due. Documents for rental deposits should show amounts and where the deposits are (which bank).

Look at the service contracts and agreements. Ask if they transfer, or if you are free to change to better (possibly cheaper) services. Among others, you're looking for property management, landscaping, snow plowing, pool cleaning service, and heating and cooling system maintenance agreements.

Do your initial exterior inspection. Walk around with pen and paper, and note anything unusual or in need of repair. Arrange for professional inspections where needed. Be sure that the electrical and plumbing systems are up to date and meet current codes. Estimate of how many years of use the roofing has left, and look at driveways, landscaping, and the condition of exterior paint.

Your due diligence should include an interior inspection. Meet some of the tenants if you can. Look for any problems you'll have to fix in the coming years. Watch for water damage or fire damage, pest problems, and obvious "problem tenants," or "problem apartments." Are there empty units that are listed as occupied? Get the necessary pest inspections and safety inspections. Some Fire Marshalls will do a free inspection to verify that the building meets current codes.

Call local authorities. Ask about any zoning or encroachment issues, or permit problems. Have there been any fire code violations, and were they fixed?

It is usually best to use professional help when doing your due diligence. Your accountant can decipher the books better than you, and notice anything that doesn't add up. A lawyer can review your offer and other documents. She can also tell you what other things you should be doing.

Take notes. Do something about serious issues (have them fixed or adjust your offer). Most problems you'll run into when buying income properties are not entirely unforeseeable. They can be avoided or resolved if you use your due diligence checklist diligently.

Ten Myths Of Real Estate Investing

2008-03-01T04:07:00.000-08:00

Is real estate investing only for the wealthy? Can you buy with no money down? Do you have to know the "right" people? Let's answer by looking at some of the myths of real estate.

1. Real estate investing is for the wealthy. Money helps, but my first real estate investment was a $3,500 lot - which I sold for a profit two weeks after I bought it. Small deals, partners, low-down deals, or just putting aside $7 per day for a couple years until you have enough money for a downpayment - these are some of the ways to start with a little and invest in real estate.

2. "0 down" isn't possible. I sold a rental property for $1,000 down because I trusted the buyer to make the payments, and I wanted the 9% interest and higher price. He could have gotten a cash-advance on a credit card for another $30 per month and made it a "0-down" deal. "No money down" means none of YOUR money down, and yes, it happens.

3. "0 down" is the best way. If you don't invest some of your own money, you'll have higher payments. You'll also spend more time finding suitable properties, and pay more for them (generally cooperative sellers want more for their cooperation - I do). There are 0-down deals out there - they just aren't always worth doing.

3. You need experience. Experience helps, but you get it by investing. Start with common sense, ask how you can lose money, be willing to learn the numbers, and you can start where you are.

4. Some investors have a "knack" for making money. Sort of. More accurately, some just took the time and risk to learn the market and continue their education.

5. You need to know the "right" people. It helps, so start the process. Talk to investors, real estate agents, landlords, etc.

6. You have to be great negotiator. If you learn to run the numbers and make the offers based on them, you can be the worst negotiator and still do okay.

8. You need insider knowledge. Understand one deal, and you are on your way. Read and read more, but the best "insider" knowledge comes from experience.

9. Fixer-uppers are safe. People have the idea that doing the work themselves is the safest way to assure a profit. Not true. Mis-planned "fix and flips" have bankrupted even experienced investors. Most poorly purchased rental properties will only eat a little money every month.

10. The key is lowball offers. The numbers have to work, and you need a plan. You can offer MORE than the market price and make money investing in real estate, if you understand creative financing - and how to do the math.

Government Grants For Real Estate Investing

2008-03-01T04:05:00.000-08:00

If you?re looking at buying a house or investing in property and real estate, the U.S. government is a source for getting the necessary money for it. Being rich or poor is not the criteria for getting these government grants; it is awareness of the grant programs that are available that is most important.

Many people do not know about these grants that the Federal government is giving away. It could be for funding women?s issues, entrepreneurs, office rentals or real estate financing. Real estate investment includes homes, land, offices, hotels, and industrial, mini-storage and retail properties. There are a number of personal assistance companies who will walk you through the red tape required to receive these grants. You can get as much as $8,000 to $800,000, or even millions, to buy real estate. They also provide information about the inside workings of a government financial venture, new developments and loan grants. They can also aid you with direct applications for these grants. Low interest rates have made these loans easier to obtain, regardless of past bad credit or your income.

Government grants have made it easier to be able to buy that dream home or invest in real estate. The grant opportunities for real estate are vast. Homes for AIDS patients, public housing, rural community developments, housing repair for very low income groups, tribal universities, and Hispanic housing are a few among the many. There are also times that the government puts up land for sale to the public when it no longer requires it. This is the kind of real estate that is identified as excessive for the government's needs, and is considered more suited for private needs.

Online websites can help you shop for real estate, and even prove useful in giving a detailed explanation on how government grants for property investment function.

Make Money With Real Estate Investing

2008-02-26T02:16:00.001-08:00

You may well have heard or read about the huge amount of money that many investors are making with real estate so why not you get a piece of the action?

Before deciding to jump in it would be wise to do some investigation in real estate investing and investing in general so you are sure that you know what you are doing and why.

Once you have decided to get involved with real estate investing or in fact, any type of investing then you will very soon discover that there is an unending quantity and variety of investing opportunities. Along with that, there can be a queue of people offering you ‘amazing’ investment choices that will provide you with a very high return on investment.

What to choose? In fact, although most investment vehicles can offer lucrative terms and ROI, there is also equally a very good chance of losing not only the potential profit, but also some or all of your capital. That’s not good.

One of the safest investments to take on is real estate investing. The reason is because although the market goes through its ups and downs the fact that your money is in bricks and mortar means that you can never lose your entire capital and if you do your homework, you can flip the property for a fast killing.

Alternatively, with real estate investing you can hold onto the property for years, even live in it, and then sell at a profit.

Real estate has national tendencies of either going up or down in value but within that there are many niches within the real estate investing market where you could do very well. Sometimes there may be a price drop in one house price bracket but an increase in another house price bracket. Or prices may be going down in one place but up in another.

Real Estate Investing Guide-Learn About Real Estate Investing

2008-02-26T02:00:00.000-08:00

Real estate investment is a great opportunity to earn profits and generate a cash flow. There is a slight difference between real estate investment and other types of investment. Real estate investment can be categorized as a long-term investment or short-term investment. Good real estate investor has ability to invest in real estate at right time.

Real estate investment requires proper knowledge and concentration to invest in good piece of land. Sometimes heavy investment gives wrong results in the future and sometimes with a small investment you can earn more. Investors should be alert at the time of investment in real estate.

If you’re going to rent your property you should have sufficient knowledge about tenant problems and requirements of tenants. You should be aware of all financial as well as legal requirements for your real estate. Investment goals are the primary factor for real estate investment. Decide your investment goals like what you want to do with your real estate.

Real estate market offers different types of strategies to invest in real estate. You should choose the best strategy as per your needs. Efficient real estate investors are able to make their fortunes in real estate business. People who invest in this business can live comfortably. They don’t have any tension about their survival. They can earn more and more profits with single right time real estate investment

Investment in real estate requires great commercial skills and knowledge like other businesses. Real estate business needs additional risk because sometimes you’re at risk in this business. Thats why a person with a great will power can easily handle this business. Forecasting in real estate investing can spoil your future so don’t overestimate your investment.

Best Real Estate Investing Program - Four Easy Steps To Success

2008-02-25T02:48:00.000-08:00

Step one in your best real estate investing program is to find a group of local investors to join, and start attending their meetings right away. Usually this group will be called REIA (Real Estate Investors Association), but it may be called something different in your area. The best real estate investing program puts you in touch with other local people who do the kind of investing you want to do. Start networking for the purpose of finding a possible mentor.

Step two in the best real estate investing program is beginning and nurturing a mentor relationship with one of the investors you meet at the investor’s group. Build a relationship with someone you think you could work well with, and ask them to help you. Emphasize that, in return, you’ll be willing to do a lot of the leg work they don’t have time to do.

Step three in the best real estate investing program is getting your education online. We live in such amazing times… an absolute ton of information is available to you on the internet, most of it free or for very low cost. Read and research your favorite real estate investing topics, and locate the very best free sites the internet has to offer. Once you find them, be sure to bookmark them and visit often!

Step four in the best real estate investing program is doing your very first deal. Even if it takes you several months, you’ll get here, and when you do you’ll want your mentor to walk you through it. This will give you a confidence boost, and help ensure you learn as much as possible.

This four step best real estate investing program may seem simple, but it works every time it’s tried! Don’t make the mistake of trying move too fast, and becoming confused. Also don’t make the mistake of taking no action at all. Read about how to do it, understand how to do it, then go do it!

Investing In Real Estate For Renting

2008-02-25T02:38:00.000-08:00

I’ve known a lot of landlords in the time I’ve been investing in real estate for renting, and they seem to all have one thing in common- they hate being landlords! A bigger bunch of gripers and complainers you would not want to meet. They’re known as “tired landlords” or “don’t wanters”, and they are a big source of deals for folks looking for motivated sellers.

I asked myself, ‘Why do they hate it so much?’ If investing in real estate for renting is such a great way to make big money (and it is!), why do so many people spend so much time trying so hard to stop doing it?

It’s because of the way they approach investing in real estate for renting… in short, it’s because of the stance they choose. Rather than choosing to invest from a position of strength, they are investing in real estate for renting from a position of weakness.

Instead of deciding to be landlords, they should decide to be investors!

What’s the difference. Why does it matter how one approaches investing in real estate for renting? Plenty!

Simply put, choosing investing in real estate for renting as an investor rather than a landlord allows you to focus on those activities that put money in your pocket, rather than those that cause you the most headaches.

Choosing investing in real estate for renting from the strong position of investor, as opposed to the weak position of landlord, allows you to spend your valuable and limited time doing what really matters. By allowing other, more qualified people to take on the mundane tasks of landlording, you free yourself to truly engage in the highly profitable activities of investing in real estate for renting.

I just want to get you thinking about how you see your investing activities, because I believe it makes a huge difference in how you approach the problems that will inevitably occur when you are investing in real estate for renting. As an investor, you will make the wise decision to get the help you need, and you will avail yourself of the resources available to you. As a landlord, you will try to do it all yourself, as you try to make the best of investing in real estate for renting from a weak position.

Real Estate Investing Mistakes To Avoid

2008-02-19T01:55:00.001-08:00

You've no doubt seen them or read them. Glossy ads or four-color spreads in magazines and newspapers promising to teach you all the juicy details about successful real estate investing. And all you have to do to learn all these real estate investing secrets is to pay a rather high sum for a one-or two-day seminar.

Often these slick real estate investing seminars claim that you can make smart, profitable real estate investments with absolutely no money down (except, of course, the hefty fee you pay for the seminar). Now, how appealing is that? Make a profit from real estate investments you made with no money. Possible? Not likely.

Successful real estate investment requires cash flow. That's the nature of any type of business or investment, especially real estate investing. You put your money into something that you hope and plan will make you more money.

Unfortunately too few newbies to the world of real estate investing think that it's a magical type of business where standard business rules don't apply. Simply put, if you want to stay in real estate investing for more than, say, a day or two, then you're going to have to come up with money to use and invest.

While it may be true that buying real estate with no money down is easy, anyone who's even made a basic real estate investment (like buying their own home) knows there's much more involved in real estate investing that can cost you money. For example, what about any necessary repairs?

So, the number one rule people new to real estate investing should remember is to have available cash reserves. Before you decide to actually do any real estate investing, save some money. Having a little money in the bank when you start real estate investing can help you make more profitable real estate investments in rental properties, for example.

When real estate investing in rental properties, you'll want to be able to select only qualified tenants. If you have no cash flow when real estate investing in rental properties, you might be pressured to take in a less qualified tenant because you need somebody to pay you money so that you can take care of repairs or lawyer fees.

For any type of real estate investing, meaning rental properties or properties you buy to resell, having cash reserved can allow you to ask for a higher price. You can ask for a higher price from your real estate investment because you won't feel financially strapped as you wait for an offer. You won't be backed into a corner and forced to accept just any offer because you desperately need the money.

Another downfall of many new to real estate investing is, well, greed. Make a profit, yes, but don't become so greedy that you ask for ridiculous rental or resale rates on any of your real estate investments.

Those new to real estate investing need to see real estate investing as a business, NOT a hobby. Don't think that real estate investing is going to make you rich overnight. What business does?

It takes about six months to determine if real estate investing in for you. If you've decided that, hey I love this, then give yourself a few years to really start making money. It usually takes at least five years to become truly successful in real estate investing.

The Great Debate - Real Estate Investing vs Stock Market Investing

2008-02-19T01:54:00.000-08:00

Everyone should have a well rounded financial portfolio. This means that you should at least have some investments in the stock market. Over the past years the stock market does appear to have kept up with the rate of inflation; however, investment in real estate is a far more stable investment.

The stock market has made many people wealthy. The problem with the stock market is that profits can be wiped away in the blink of an eyes. An unexpected drop in the stock market can destroy an investors portfolio. If you have a large percentage of your investments in the stock market, you must move a large portion of your investments into a more stable real estate investment.

One of the greatest benefits of investing in the real estate market is the leveraging opportunity. With real estate investing, you can leverage your investment 10 to 1. With stock market investments, you can only leverage your money 2 to 1.

What does leveraging your money mean?

When you leverage money, it means that you can use the money of someone else to raise money. Just like a lever raises something up, in real estate, you can leverage money 10 to 1. If you have $10,000 ,you can use this to get (or raise) a loan of $90,000 for a total of $100,000 towards a real estate investment. With stock investments, $10,000 would only get you $20,000 for stock investments. This is called buying on margin in the stock market (very risky).

Dangers of Buying Real Estate Foreclosures Too Quickly

2008-02-18T03:17:00.001-08:00

Are you trying your hand at making money with the real estate market? If so, your prime targets should be real estate foreclosures. Real estate foreclosure properties are the easiest to turn into investment properties, as many are sold at prices below their fair market value. Although it is advised that all real estate investors examine real estate foreclosures, you need to be cautious when doing so. Many beginners do not realize that there are many dangers to buying too many real estate foreclosures, especially too quickly.

One mistake that many investors just getting started making is buying too many foreclosures too quickly. Many beginners mistakenly believe that the more they invest, the more likely they are to see larger profits. While this is true, in many cases, it is advised that you proceed with caution. When it comes to real estate foreclosures, you are advised to first only purchase one or two properties. You will want to experiment with different techniques, like repairs, as well as renting or selling, before banking too much on one method. Should you later find real estate investing not as profitable or more difficult that you imagined, it would be easier for you to get out of it, without losing all of your hard earned money.

Another mistake that many new real estate investors make is by not carefully examining the real estate foreclosures that they want to buy. Many beginners mistakenly believe that all real estate foreclosures are a great deal, just because of their discounted prices. This simply isn’t the truth. Real estate foreclosures come in all different conditions, including perfect and completely run down. As a reminder, you are urged to never judge a book by its cover. Before agreeing to buy a real estate foreclosure, make sure that you see more than just an asking price. You will want to see pictures of the foreclosure property in question. If the property in question is a building, you will want to see exterior and interior pictures.

The two above mentioned real estate investing mistakes are just a few of the many that many beginners make. To prevent yourself from making these common real estate investing mistakes, as well as many others, you may want to think about taking a real estate investing course or investing in a few real estate investment guides. As outlined above, most real estate investors have the best chance of success when they look into real estate foreclosures. For that reason, you may want to take a real estate investing course or purchase books that cover real estate foreclosures, like how you can find them and buy them.

Real Estate Investing for Beginners - Real Estate Investing for Beginners Guide

2008-02-18T03:15:00.000-08:00

Real estate investing can become very profitable for those who know what they’re doing. For those who don’t really know what they’re doing, real estate investing can start to feel like a bad idea. Learn more about real estate investing for beginners, and learn how to turn your initial investment into a whole lot more.

Real estate investing for beginners is not so different from real estate investing for the old pros. After all, you’re all trying to do that same thing: get a good return on the property you bought. Learning how to get that return is the trick to success at real estate. For beginners, it’s best to learn all you can before you start investing. Real estate isn’t hard to figure out, and the more you know the more money you stand to gain from your real estate investment.

For beginners, real estate investing should begin with study. Study the market, study the properties that are available in your area, study the public reaction. This means, spend a little time just watching properties in your area. Look at what’s selling, what’s not selling, and where these properties are location. Success at real estate investing often depends on where and what properties you buy. A beautiful home in a terrible neighborhood won’t sell as well as it would in a great neighborhood, and your investment is what will suffer. You want to know which areas are popular, and which areas have properties that don’t sell as well. Real estate investing for beginners means taking the time to learn, before you jump right into spending.

Keep in mind that, for beginners who are just getting involved in real estate, it’s always good to have some help. Speak to contractors, speak to real estate agents, speak to other real estate investors. Learn all you can from others, and in this way you can learn the tricks to succeed. Real estate investing for beginners is just like any other real estate investing, only with a little less experience.

It’s always important, when working in real estate, to give buyers what they want. In homes, it’s the kitchen and bathrooms that make the most impact on potential buyers. Real estate professionals will say it’s the kitchen and bathrooms that make or break the sale of the house. Giving people a pleasant property is essential, because they won’t want to buy anything they might consider sub-par. If you wouldn’t want to buy the property, chances are good that no one else will want to buy, either. And if no one buys, then you’ve made a bad investment – and will probably end up losing that entire investment, to boot. A property that won’t sell is, essentially, worthless to real estate investors.

Real Estate Notes For Sale

2008-02-13T02:31:00.000-08:00

Over the past few years, more and more people in the United States have been offering real estate notes for sale. Selling real estate is an easy way to turn one's monthly receivable payment into an immediate and large sum of cash. A real estate note for sale can be a mortgage note, a contract for sale or a land contract.

The best way to find real estate notes for sale is to look for real estate note listings. Several websites provide information on real estate notes for sale. They usually list real estate notes from different states. These websites also provide information on various categories of real estate notes. You can approach real estate note brokers who generally have up-to-date information on the real estate note market. They can also simplify the process of transaction. Local newspapers and magazines are other places to look for real estate notes for sale. Real estate investment clubs are a good forum to discuss matters related to real estate notes.

Competition in this field is very high. Earlier, it was easy to buy real estate notes for huge margins of profit. With several financial institutions and companies hunting for real estate notes, individual buyers often find it hard to buy and sell real estate notes. Most real estate note sellers do not sell their entire lot of real estate notes at once. This can place individual buyers in certain tricky situations. Generally, real estate notes sold partially would not generate immediate income. It is better you go for professional help, as the transaction can sometimes be confusing.

Real Estate Investment Clubs

2008-02-13T02:30:00.000-08:00

The real estate investment clubs provide tremendous resources for both beginners and experienced real estate investors. The real estate investment club is a place to meet and network with other investors. Patient and skillful application of investment knowledge and information is required for a successful real estate investing. For success in real estate, there should be a combination of the power of investing knowledge and the power of market information. A real estate investment club through its thoroughly researched real estate investment ideas can arm you with all the necessary information to invest wisely in real estate.

As the competition in the field of real estate are high, Real estate investors need to keep themselves updated constantly on the new trends and developments in real estate investment. There can be new laws and taxes governing real estate. All this is hard to maintain if you are not a full time real estate investor. A real estate investment club is then the ideal place for you. All issues regarding real estate investment can be discussed and sorted out through the medium of real estate investment clubs. Being a part of an experienced and efficient real estate investment club in itself should form a part of the strategy to become a successful real estate investor.

Details regarding all other aspects of investments related to real estate like mortgage investments can be discussed in real estate investment clubs. The real estate club members bring out several publications to guide real estate and home buyers. Most real estate club members also provide information through Internet. Today, there are several different real estate software programs available in the market to help real estate investors. Before selecting software, you can discuss it with your real estate club members as some of them might have already used it and have opinions on it. A good real estate investment club can act as a good forum to clear all your doubts regarding real estate investment.

Real Estate Investing: Infomercial and Mentoring Scams

2008-02-11T03:38:00.000-08:00

Flipping through late-night infomercials recently, I saw two real estate get-rich quick schemes, and I couldn't help but wonder--why do people still fall for those old scams? Has anyone really talked a seller out of his home for no money down with owner financing lately?

Real estate infomercials do great harm to beginning investors, who waste hundreds of dollars on old information. Worse yet, those beginners soon get discouraged and miss out on the true (and profitable) adventure of real estate investing.

One of the most popular late night infomercial shows tells beginners that it's possible to make a fortune by buying houses with no money down and then renting them out to cover the monthly payments. It's true that you can buy a home for no money down, but the requirements include having good credit, good income, and the home should be owner-occupied.

Rentals don't normally qualify for no money down financing. Institutional lenders aren't supposed to make no money down loans on investment properties, and even if you could buy an investment home with no money down, the monthly payments would generally eat up the rent.

Late-night scammers also claim that investors can get owners to pay the closing costs, including the down payment. But when a lender asks where your down payment will be coming from, saying, "the seller" is not the right answer! Today's sellers are also fairly savvy, and understand that with no money invested in a property, a buyer could easily walk away and leave them with a home that's been ruined by careless tenants.

Another TV program offers a bogus system for buying houses at ridiculous prices, but think about it: has anyone bought a home, free and clear, for $345.00 at a tax sale recently? Hordes of investors flock to the tax sales in the area where I live, bidding up the prices of foreclosure properties far beyond a few cents on the dollar. It just doesn't happen.

Today, another real estate investment scam is popular in Southern California. Here's how it works: a young person we'll call Charles charged $4,000 on his credit card to hire a real estate "mentor," after the mentor wined and dined him at a fancy Beverly Hills restaurant.

In exchange for the fee, the mentor instructed Charles to find distressed houses by driving around the area and writing down the addresses of ugly houses in nice neighborhoods. Once Charles had given him the addresses, the mentor obtained the owner's address and sometimes a phone number. Then it was up to Charles to call the owners and talk them into selling their houses for no money down, and carrying the paper (mortgage), too!

I met Charles when he called me about buying a property that my husband and I had on the market for $1.2 million. When I asked him how such a young man was going to make the payments on $1.2 million home, he told me that he planned to rent the house out for enough to make the payments.

As a real estate investor myself, I tried not to laugh at his naivete, and after talking to Charles and listening to his frustration about trying so hard to follow his mentor's advice, I offered to help him find a property, and I'm happy to say that Charles now owns his own home. But he'll still have to spend years paying off a $4,000 credit card bill.

If you want to make money as a real estate investor, a good first step is to buy your own home, like Charles did. You can do that for no money down if you have good credit, or for a relatively little amount of money down if your credit is poor. Once you've purchased your own home, fix it up and then either sell it or refinance it and use your profits as the down payment on an investment property.

Don't pay hundreds of dollars for out-dated methods that may have worked in the middle of last century! They're a waste of your time and money. Real estate investing is truly a great way to make a fortune, but you must stick to tried-and-true proven strategies, ones that work in today's real estate market.

Investing In Real Estate With No Money Down

2008-02-11T03:37:00.000-08:00

Real estate investing with no money down, yes its possible and widely practiced by several creative investors, as they say where there is a will there is a way. This is creative real estate investing at its best. There are so many ways that these enterprising investors use, it just boggles the mind!

Some investors use notes to invest in real estate with no money down. Let's say the investor gets hold of a note whose face value is $100,000 and purchases it for $80,000. He uses the note as collateral for its full value to get a property worth $100,000. He can sell the house for $100,000 and can pocket $ 20,000 or more if he sells the property at a profit! He not only got back the $80,000 but also made quite a profit. Some investors with no money for down payments offer to take over the seller’s loan or mortgage payments in return for the title deeds of the property.

Flipping Properties; Flipping properties is another way to invest in real estate with no money down though it just earns them a modest cash assignment fee. Investors can borrow money from hard money lenders, use a home equity loan or get a line of credit, get the loan from a private lender and secure it with a mortgage, find partners who supply the money needed, etc.

Lease Options; Using lease options or lease purchase options is another way to invest in real estate with no money down. The lessee agrees to buy the property from the seller at a fixed rate at some fixed time in the future, where a portion or at times all of the rent paid will be credited towards the purchase price of the property. The lessee has to pay monthly installments until the end of the lease.

Seller Financing; Using seller financing is another way to invest in real estate with no money down. The seller may agree to get higher monthly installments rather than a lump down payment or may offer to finance the buyer to close the deal quickly.

Tax Certificates; Tax certificates such as tax lien and tax deeds are also another form of investing without money down. People just pay a nominal amount to purchase the certificates and if the owner defaults, the investors could foreclose on the property!

The investor may combine mortgages of your home as well as the property you want to purchase and give cash to the seller without using your own money! The possibility of investing in real estate with no money down is endless for people who use creative investing techniques. once investors learn the knack of investing without money down, they rely on using those techniques again to make a better profit. There are firms that offer help and products to run a small business successfully.

Real Estate Investing - Utilizing Online Resources

2008-02-08T03:54:00.000-08:00

Have you ever considered investing in real estate? There's no doubt that real estate investing can be very lucrative, but it's also important to realize there are risks involved. The more you know about potential pitfalls, the better your chances of avoiding them. One of the best ways to learn about property investing without spending loads of money is to check out real estate investing online.

Once you start looking around, you'll discover there are thousands of sites dedicated to real estate investing online. You can find hints, tips, ideas and advice, as well as learn about all sorts of strategies for investing in property successfully. Many sites also contain the personal stories of investors and their deals, giving you the opportunity to learn from both their successes and failures. Although it's important not to get so bogged down in learning that you never start your own real estate investing journey, it's certainly a good idea to get an understanding of property investing before you put your own money on the line.

The types of real estate investing sites online fall into a few broad categories. There are general information sites, which give you an overview of real estate investing and some general information. Other sites are dedicated to specific investing strategies, such as "no money down". Some sites run by real estate companies can also contain a lot of useful information for investors. Finally, there are sites run by property investing experts, some of which have plenty of free information to get you started, while others require you to buy a course or attend a seminar.

Unfortunately there are plenty of real estate investors who take the plunge and start buying property without really understanding what they're doing. Nobody can ever give you a guarantee that an investment will be a success, but certainly learning a lot of the do's and dont's studying real estate investing online helps to tip the balance in favor of you being successful.

Knowledge is the Key to a Successful Real Estate Investing

2008-02-08T03:52:00.000-08:00

For many years, real estate has been a well known investment. Most of the millionaires out there made their first million dollars in entering into real estate. Indeed, even celebrities are venturing out into real estate investing. They believe that a big way of money making is through real estate investing.

Yes, real estate investing can be as all what it is in the television and celebrities program, they say it is, but investing in real estate is not that easy. Investing in real estate requires a lot such as buying, selling, negotiating and repairing a property or home. So knowledge in this field of business is very important. Someone who wants to go into real estate investing must has the necessary knowledge in this kind of business. Certainly, you do not want to put your money into waste, if something goes wrong. Proper education in this field should be taken into consideration.

Indeed, everyone can enter the world of real estate; anyone can invest in real estate if they desire to invest. All of them can also be successful in real estate investing, provided that they have gain the proper knowledge in real estate investing. Actually, it is possible that anyone can learn on how to invest in real estate.

Anyone can learn about real estate investing, anyone who considers purchasing a property as an investment, provided that they are educated with this field before doing the buying. There are a lot of strategies and techniques that real estate investors have tried everyday such as rentals, foreclosure, lease options and so on. Certainly, those real estate investors who gave their time to learn and educate themselves will be successful in this type of business.

If you are planning to buy property then sell it on your own, without working with an agent, would be risky in having financial loss, if you do not educate yourself first before entering into such field.

There are lots of ways to gain knowledge about real estate investing. One way is by purchasing books to get several advices and guidelines. Another way is through the internet, there are a lot of websites that cater about real estate investing. There are websites that can give you explanation, trainings, education on different topics in real estate investing.

You can also find some mentors online to give you advices and guidelines about real estate investing. Nowadays, there are also some universities that teach real estate investing.

Absolutely, real estate investing is a profitable business. But of course, you do not have to enter into such business just that, you have to gain the valuable knowledge needed in this type of business, in order not to fail. It would be too risky in your part, if you enter into real estate investing without the necessary knowledge; you do not have the immediate techniques and strategies in handling some problems. So a proper education is a must in venturing out to real estate investing.

Using Real Estate To Increase Your Wealth Over Time

2008-02-07T03:36:00.001-08:00

One good thing about investing in real estate is its ability to increase your wealth over time. One way how investing in real estate can increase your wealth over time, is when the properties you invest in appreciate in value. If you have a house for a significant amount of time, the property will almost all ways go up in value. You can get the equity that the properties went up by when you refinance. If you do decide to refinance make show your can afford the new monthly payment.

One other thing when you refinance make sure that the new terms have a fix rate. Another way how investing in real estate can increase your wealth over time is when you rent properties out. The rent from the properties should cover all the expenses and give you a profit every month. The more properties you have over time the more profit you will see.

One last way how investing in real estate can increase your wealth over time is the ability to get more real estate from the ones you already have. One way you can do this is by using the equity you have in your other properties to put as a down payment to get more properties. The bigger your down payment is the lower your monthly payments will be. Investing in real estate if done right can increase your wealth over time. If you use the information you read here it will give you some idea of how powerful investing in real estate really is.

Taking a Real Estate Investing Program Versus Educating Yourself

2008-02-07T03:34:00.000-08:00

Are you looking to make a living as a real estate investor? If you are, it is advised that you first take the time to familiarize yourself with real estate investing in general. To be a successful real estate investor, you must know the ins and outs of the real estate market, particularly how to work it so that you can make a profit. When it comes to doing this, you have a number of different options. Two of those options involve taking a real estate investing program or educating yourself. If you are wondering which approach would be best for you, you are definitely not alone.

When it comes to determining whether or not you should take a real estate investing program or educate yourself on real estate investing, there are a number of important points that should be taken into consideration. One of those points is your intend success. As a real estate investor, you likely want to make as much money as you possibly can; right? In any business, including the real estate investing business, this is best done when you are educated. The more knowledge you have, the more successful you are likely to be. That is why it is often advised that those who are serious about making a career as a real estate investor seriously consider taking a real estate investing course.

What you may not realize about real estate investing courses is that they come in a number of different formats. For instance, there are real estate investing programs that are designed for beginners, as well as advanced investors. There are also real estate investing programs that are offered in classroom-like settings, as well as those that are offered online. No matter what the setting, you will likely find that most programs are being run by those who have had a successful run as a real estate investor. That is one of the many reasons why you may want to take a real estate investing program. Many professional teachers have already tired out the approaches being outlined as successful or not successful. With taking a real estate investment program, you can learn to avoid many common mistakes.

Although a real estate investing program can provide you with knowledge that can help bring you money, you may be concerned with the cost of taking one. While many real estate investing programs are reasonably priced, you may find some that are priced quite high. When examining the cost of a real estate investing program, you will want to take the time to examine the materials that will be taught. After a close examination, you may find even a high costing real estate investment program worth the costs.

Investing In Real Estate Alberta

2008-02-06T03:29:00.001-08:00

Investing in real estate Alberta can make a prudent move for those who want to invest and make money in residential real estate. Alberta is the place right now to be putting your money for the long term. It is, in fact, the strong economy of Alberta that makes it the obvious place to invest in real estate in the country. It is because of this strong economy that despite recent large increases in values, Alberta has been such a hot place for real estate investing.

The factors that translate into Alberta being the No. 1 region in Canada for investing in real estate Alberta include high energy prices, rapid population growth, low unemployment, an abundance of jobs, improved infrastructure and affordable housing costs.

When it comes to investing in real estate Alberta, this year’s top ten places include list-topping Edmonton, Prairie, and Calgary, with Red Deer, Sturgeon County, and Strathcona County tied in fourth. Calgary was third in the previous list as well, while Grande Prairie jumped from eighth place.

When it comes to investing in real estate Alberta, the potential for positive cash flow is still there for investors. It means rents can still cover all of the operating costs of property, especially in Edmonton. However, in Calgary, that is getting much, much more difficult from an investor's point of view. Overall, it is no secret that there are lots of great places to invest in Canada, but for Alberta to elbow its way up the line is very interesting.

Professionals You Need To Become A Better Real Estate Investor

2008-02-06T03:27:00.000-08:00

When inventing in real estate it is almost impossible to do every aspect of the business by yourself. To become a better real estate investor you will need the help of others. There are many professional that can help you accomplish your goals when investing in real estate. One professional that can help you accomplish your goals is a real estate agent. A real estate agent can help you find properties if you are buying or help you find buyers if you are selling. You only pay the real estate agent if he or she help you sell a property, Or if he or she helps you find a property to buy.

Another professional that can help you accomplish your goals when investing in real estate is a mortgage broker. A mortgage broker helps you find banks that will loan you money. With a mortgage broker you don't have to pay them directly they get compensation for their work from the bank when you get a mortgage trough them. If you see a property that you will like to buy it is not unlikely to have more than one mortgage broker. With having more then one you will have more options when looking for a loan.

One last professional that can help you accomplish your goal when investing in real estate is a real estate lawyer. A real estate lawyer can help you read contracts or help your write one. If you do unconventional deals when buying or selling real estate a real estate lawyer is a must have. When inventing in real estate there will be a lot of goals you will have to accomplish. With the help of professionals not only you will accomplish them faster but you will also become a better real estate investor.

Taking a Real Estate Investing Program Versus Educating Yourself

2008-02-05T02:38:00.001-08:00

Investing Into Real Estate vs. Bank Deposits

2008-02-05T02:36:00.000-08:00

For the first time, in over eight years, making a bank deposit is starting to become more profitable than investing money into Moscow real estate

For the first time, in over eight years, making a bank deposit is starting to become more profitable than investing money into Moscow real estate. In the begging of 2007 investments made into Moscow’s real estate are predicted to give on average no more than 5% yearly gains. According to the real estate market investigation center “Indicators Of Real Estate Market” (IRN.ru), for the last half a year an average price of a square meter in Moscow only increased by $89 to $4120 for square meter of an apartment, in the remaining half a year this price will decrease at the rate of 0.1% a month.

Specialists of prestigious real estate company Penny lane Realty also agree, that average gains from investments made into Moscow’s real estate market are leveling off. Because of it, we see increasing number of properties being offered for sale. Property owners are trying to recover the money they invested into their real state. According to market analysts, in present time we are observing reduction of investments made into real estate from 20% to 5-7%, but it does not mean, that investing into real estate became less profitable in comparison to making bank deposits. Investments made into real estate remains to be highly profitable business, but only for professionals, who knows all the unique details of real estate market. “Easy” money, made from real estate investments will no longer exist.

Basics of Real Estate Investing

2008-02-04T02:13:00.001-08:00

Investing in real estate is comparatively painless, and the rewards are extremely ample. Here are a few of the real estate investing basics. Learn about different investing strategies and how to plan and set your goals. The idea behind real estate investing basics is that money is put to use in such a way that it is probable to turn into more money. One should have the basics knowledge about the real estate when investing.

Almost certainly one of the most confusing aspects of real estate investing is to understand how stocks in point of fact work. The most common way to acquire stocks is to use a brokerage. If you pay money for a security with the expectation that the price will grow, you are "long" the stock. But you could revenue from stocks that go down, too. This is an advanced investing basics method known as "short selling." If you buy a security with the expectation that the price would actually grow, you are "long" the stock

Bonds are known as "fixed-income" securities since the amount of income the bond will generate each year is "fixed," or set, when the bond is sold. There are three significant aspect of bond which is as follow

1. The par value
2. The coupon rate
3. And the maturity date

Growth real estate investing is the idea of investing basics that you need to buy stock in companies whose probable for growth in sales and earnings is excellent. Growth investors tend to focal point more on the company's value as an ongoing concern.

In order to buy shares of stock, you need a stockbroker to help you with the transaction. You have now learned the investing basics. Before you begin with basic investing, sit down and develop a personal investment strategy. Choosing your advisers is a very important step for most investors; knowing how to analyze and select stocks, bonds, and mutual funds is only half the battle. If one is looking for a bright future in real estate investing then he should start grabbing the basics about the real estate industry.

What Is Real Estate Investing?

2008-02-04T02:11:00.000-08:00

Real estate investors don’t need to ask the question, “What is real estate investing?” They know the answer, because they know what real estate investing means to them, which may be something quite different than it means to someone else. What is real estate investing to you?

You could ask five different people the question, “What is real estate investing?” and get five completely different answers. The only thing for sure is that real estate investing normally involves real estate. Let me tell you what I mean.

First, to one person, real estate investing might mean buying and selling. Normally, the investor wants to buy low and sell high, and this kind of investor doesn’t normally want to hold on to a piece of property for very long. Their answer to “What is real estate investing?” is “Quick turn around.”

Another person’s answer to the question, “What is real estate investing?” might mean buying and holding. This kind of person doesn’t mind the thought of being a landlord, and doesn’t mind the idea of managing tenants and collecting rents. Maintenance and upkeep don’t scare this investor.

Yet another type of investor is interested in high-value commercial property like hotels, office buildings, and malls. This is a high-risk, high-reward game played for big stakes. When asked, “What is real estate investing?” this investor doesn’t shy away from mega-sized deals.

One more type of investor prefers rehabbing and repairing. This investor buys the worst property and uses their skills and abilities to turn it around and make it nice again. These investors breathe new life into old properties. Their answer to, “What is real estate investing?” involves creating something of great value from next to nothing. People with construction experience or project management skills fit this type of investing best.

There’s also the kind of real estate investor who doesn’t actually buy any property at all. Their answer to, “What is real estate investing?” may involve partnerships, trusts, and possibly even the sale of notes, mortgages, and other financial instruments.

Real estate investing is a very big umbrella, and there are as many different answers to the question, “What is real estate investing?” as there are individual investors. Your job is to do the research, learn the strategies and then decide for yourself which style fits you.

Realtors Can Help You With Your Real Estate Investing

2008-02-02T02:25:00.000-08:00

You can't build a successful, long term real estate investing business without the help of realtors (real estate agents).

The challenge is that many realtors have little real estate investing knowledge. What's worse, even though every real estate agent will work for your money, few are willing go that extra mile to really help you grow your real estate investing business. But there are three simple secrets to getting a great real estate agent really working for you:

1) Use a top “Sales” agent with a proven track record to sell your investment property. Don't take on a "listing" agent.
A real estate agent can help you with real estate investing by advertising, marketing, finding buyers for your real estate, and doing virtually all of the paperwork. To make this process work for you, be upfront with your realtor about your real estate investing goals. And only use a proven realtor with real estate investing experience.

2) Position a Realtor as a Buyer’s Representative
Have another real estate agent act as your “Buyer's Agent” to find property on your behalf. Be sure you outline the sorts of properties you are looking for, then your real estate agent will contact you when they find this type of property. This saves you time and allows you to focus on the business of real estate investing rather than on property-hunting.

3) “Pocket” Listings.
A real estate agent can explode your real estate investing business profits by turning you onto investment opportunities before they go public. Before properties are listed on the Multiple Listing Service (MLS), your realtor can alert you a juicy real estate deal from a motivated seller when it becomes available! This is perhaps the most profitable reason why you should build great relationship with real estate agents. All the best!

Hiring a Real Estate Attorney

2008-02-02T02:24:00.000-08:00

Hiring a real estate attorney is one of the most significant decisions to consider when getting started with real estate investments. The right attorney would keep you on track and would reduce your liability in your real estate investments. Do not start investing in real estate market until your paper work is state-specific. It is as well significant of keeping knowledge about the latest court decisions regarding real estate.

Once you select two or three real estate investment attorney from a list you could get from www.law.com, if you are hiring a real estate attorney remember he should be a winner, or at least won the majority of the time.

Questions to ask a potential Attorney?

What experience do you have in real estate investing?
First you need to ask him, what is the knowledge he have in the real estate investing? The attorney needs to be open to and understand real estate market and creative real estate investing. This is very significant in making your actual final decision in real estate investment. The real estate attorney needs to be attentive to your requirements; he should let you discuss your method of investing then responds in a forthright manner.

How much of your perform is in real estate?
Depending on your market size it must be at least 40% to 60%. In smaller markets there will be less want for an attorney to dedicate all their practice to real estate. Five years of real estate law experience will be the minimum satisfactory.

Do you have other real estate investors as clients?
If so, ask if you could contact them for further references.

What are your fees?
The size of the law firm is not a significant factor except larger firms regularly charge even more as of their slide and are not as accessible to you as a smaller firm. The price the attorney charges are not as significant as how well he works for you, with you and gets your job done. The old saying you get what you pay for applies here.

Short Sale Real Estate Investing

2008-02-01T01:55:00.001-08:00

Short sale real estate investing is defined as purchasing a property from a lender for less than the balance owed on the mortgage. Many books and courses have been written about it, but can short sale real estate investing be simplified? It can!

There really are only two types of short sale real estate investing. First, when you purchase a property that a lender has foreclosed on and listed with a Realtor, you can offer less than the balance that was due on the foreclosure. This type of short sale real estate investing requires that you have a good relationship with the right Realtor.

Look for the Realty office in your town that handles the majority of foreclosures, and look for the agent in that office who works with investors and short sale real estate investing. When you find that agent, you’ll want to impress upon them that you intend to follow through on all your offers. Then, do exactly what you say you will. That’s your ticket to the short sale real estate investing gravy train!

The second type of short sale real estate investing involves you negotiating directly with a motivated seller’s lender. You’ll need to be determined in your negotiating, first of all to reach the right person at the lender’s REO (Real Estate Owned) department, and then to get the price you want.

Stick with it, and take lots of notes. Once you’ve worked with a few lenders that allow short sale real estate investing, you’ll have the tactics you need to enjoy on-going success.

Common Real Estate Programs Available

2008-02-01T01:53:00.000-08:00

Are you interested in learning more about the real estate market? If you are, you may want to think about taking a real estate program or class. Real estate programs are available in classroom-like settings, as well as online. What is nice about real estate programs is that they are designed for a wide variety of different individuals; individuals with different goals. A few of the most common real estate programs available are touched on below.

One of the most common types of program available are for those who are interested in becoming real estate agents. If you are looking for a career change, you may be interested in becoming a real estate agent. Real estate agents help homeowners sell their homes and they also help prospective home buyers find and buy the homes of their dreams. Most real estate programs, which have a focus on becoming a real estate agent, also test and certify their students. If you are looking to become a real estate agent, a real estate program, particularly one that has a focus on making a living as a real estate agent, may be perfect for you.

Another common type of real estate program available are those that are designed for home buyers. Buying a home can sometimes be a long, complicated, and frustrating task. Many first time home buyers are unsure as to what they should be looking for in a new home. If you are one of those individuals, you may want to think about taking a real estate program that aims to educate students on what to look for in a new home.

There are also real estate programs that are designed for those who are looking to sell their own homes. Many home sellers turn to real estate agents for assistance, but not all do. If you would like to sell your own home, that is fine, but you need to know what you are doing. A real estate program that aims to educate homeowners on how to sell their own homes often offer tips on marketing, as well as information on how to deal with prospective buyers.

Another type of real estate program available is for those who are interested in making a living a real estate investor. Real estate investors are those who buy real estate properties and then either rent them out or resell them to make a profit. Although real estate investing is a great way to make money, it can be a tricky business. That is why real estate programs, with a focus on real estate investing, have increased in popularity. Real estate programs, with a focus on investing, often teach students how to make money as real estate investors by outlining some techniques that work, as well as ones that don’t work.

As outlined above, there are a number of different real estate programs that you can take; programs that can fit your needs. In short, whether you are looking for a real estate program that will teach you how to properly buy a home, properly sell a home, make a living as a real estate agent, or make a living as a real estate investor, there should be a real estate program out there that is perfect for you.

Tampa Real(i)ty

2008-01-31T03:02:00.001-08:00

Just last month, December 2007, almost 2,000 homes were sold in Tampa Bay area averaging at $197,000, this was a decline from over 3,000 homes sold the same time in 2006 and indicates a 38% decrease as well as a 6% decline in the average price. Tampa Bay real estate buyers were spoiled for choice with 41, 602 homes available on the market and only 5% of these homes sold in December translating into a inventory of 21 months!

If you take a look at listings for Waterfront area, you'll find a ½ acre lot on the Hillsborough River listed at around $400,000. Consider that when realty was hot in the area, the same plot could have easily attracted $550,000 to $600,000 and you have a great opportunity here because we all know that there aren't going to be any new waterfront lots in Tampa Bay area. Adding fuel to the fire is the announcement that The City Of Tampa is going to get a reshaped waterfront providing access to everyone in the form of Tampa Riverwalk, which will be a long pedestrian walkway connecting Channelside to Tampa Heights.

Could be a better time to be a buyer? From water front lots to condos in Hyde Park and Channelside, you can pick the home or plot you want and negotiate further from the already aggressively priced offers. There is no better time to realize your American Dream than now. If you are a Baby Boomer or seeking to make an investment for your retirement, consider doing it NOW! Buy low and sell at a high price (if you want to).

How to Do a Title Search on Tax Lien and Tax Deed Properties

2008-01-31T03:00:00.000-08:00

When you do a title search basically what you are looking for is Marketable Title. Marketable title is really the absence of liens and clouds, the absence of IRS liens, and the absence of missing links in the chain of title.

Missing links in the chain of title could be for example when the original a person owned a property for 40 years and then passed away and his kids started paying the taxes and eventually they want to sell the property. Well if there was no probate or no will or anything like that, then there is no indication of who should receive this property. It might be that the deceased's will was to give it to his church. It might be that he mentioned to somebody, "You know what, when I die you'll get this property," and this person might even have a witness. Nobody can prove anything and the only solution here is to have the heirs go through a probate procedure to clear the title. For that you or they will most likely need to hire an attorney and it will take a few months.

If you invest in such a property through a Tax Lien Sale, or buy the actual property at a Tax Deed Sale you don't have to worry about that, on the contrary, if you find information prior to the auction that shows such an issue existing it is a Sign indicating to you that is property is more likely to go all the way to tax Lien foreclosure or all the way to the Tax Deed sale. If your investment strategy is to get the actual property, then that is a property you WANT to focus on.

Now just as a side note. Even if you buy Tax Delinquent Properties directly from the long time owners, some of my best deals came from situations like that. I bought a property in Florida where I paid for the Probate procedures having a written, legally binding commitment from the heirs to sell that property to me for around $350.00 after the probate was through. The probate cost me $2500.00 for a total cost of purchase of $2,850.00. Days later I sold the property for just under $30,000.00 CASH.

Probate issues do come up in the Tax Delinquent Property arena, but it's usually quite easy to fix them. Most sellers were smart enough to buy a piece of land or a property or a house and take title as what is called joint tenants with right of survivorship. It means very simply that if there are two people on the deed and one of them passes away, the other one automatically owns 100% of the property. All that is needed to get the deceased party off title is to record a death certificate. But if a death certificate is not recorded, then the county does not know that that person has passed away, so therefore if the widow now wants to sell this piece of property, then there's a cloud on title. If you buy it from her, you're not going to have a clear title to sell until her spouse's death certificate is recorded.

Hot Subdivision in Lewisville Texas

2008-01-29T02:45:00.000-08:00

The Water Oak Estates subdivision of the City of Lewisville, Texas was developed in the 1990's and remains one of the most desirable places to live in the area.

All phases of this subdivision are filled with very attractive homes, and excellently maintained lawns and landscapes.

With the convenience of the completed expansion of FM 3040, it is easy to see why this remains one of the "hottest" neighborhoods around! In 2007, while all the popular media hype was going on about how bad the real estate market was, the homes that sold in Water Oak Estates were on the market for an average of just 34 days (from listing date to closing date). That is remarkable, regardless of the market. Not only that, but the homes in this subdivision sold for an average of 98% of the list price.

The convenient location plays a significant role, and this subdivision is filled with very attractive and stylish homes at an affordable price, especially when compared to neighboring Flower Mound, Highland Village, and Coppell.

With interest rates as they are (and continuing to fall), this is really a great time to buy a home. There are some great ones currently available in Water Oak Estates, but be forewarned: they probably won't stay on the market long!

For those who are currently renting/leasing, the three main factors that you need to take into consideration when deciding to buy or rent are monthly expenses, rate of the property's appreciation, and length of term that you plan on staying in that home.

First, realistically choose an option that you could rent, and an option that you could buy. Then, sit down and list the expenses you will have for renting. Do the same for buying so that you can compare them objectively.

Next, find the appreciation rate of your desired home to try and determine what the home's value will be in the future. This will help you see how your money is truly being invested.

And the last major factor that only you can determine is how long you plan on staying in that residence. Six months? Six years? 40 years? The longer you desire to hold a home, the less appreciation you need in order to beat renting.

Retire and acquire - Buzz - creating a real-estate IRA

2007-09-22T04:56:00.000-07:00

Is the stack market getting you--and your retirement savings--down? Maybe it's time to consider a little-known retirement alternative: the real-estate IRA. "The bottom doesn't generally fall out of the real estate investment as it may with certain other investments in the stock market," says Tom Anderson, CEO of Portsmouth, New Hampshire-based Pensco Trust Co., who notes that many people don't realize they can diversify by rolling retirement funds into a self-directed IRA and then investing in real estate.

How does it work? "It's like any other real estate investment," Anderson explains. "You open an IRA, [take money out of it], find a property you want to invest it in, and go through the closing and registration process." As with any IRA investment, you can sell at any point and incur no taxes on the gains as long as you don't withdraw the fund before age 59 1/2. What's more, you can also use your IRA funds to purchase retirement property and then take ownership of it at age 59 1/2 as a tax-free IRA distribution.

But there's also plenty you can't do. "You have to work with someone who is knowledgeable to avoid setting up a prohibitive transaction," Anderson cautions. For example, while any type of property likely to appreciate in value (such as land, rental property or a commercial building) is fair game, you cannot use IRA funds to purchase a property that you, your spouse, children or parents will live in.

Spiderman on Real Estate Web Marketing

2007-07-10T02:02:00.000-07:00

What can a comic book hero teach us about buying and selling more properties using the web?

The Internet (or web as I will call it in this article) is really an amazing invention. In the case of the Internet, the web-like design allows communications to take place even if one of the hubs or nodes is not functioning. You can see the value of something like this for a country worried about the impact of a nuclear disaster and the threat it would pose to communications.

If you look at the typical layout of the Internet (in line form) from above the U.S. (and even the world) it does indeed look like a web. The web is the network connections. Remember the word network because I will come back to it in a few minutes.

But, the word “web” can be applied to Real Estate Investors and Professionals in some very creative and out-of-the-box ways.

Just about all spiders create webs, but often for different reasons. Some such as orb-builders create beautiful designs to capture creatures that jump and fly. Others have ground-based webs with tunnels. Others live underground and line their homes with them. They use them to house their young, create homes, wrap up food, travel with the wind, climb and descend, and the list goes on. I find them fascinating creatures.

So what can Spiderman and webs teach us about our Real Estate Business?

Let’s take a look at how many different types of “webs” we can use to profit in Real Estate.

The Website—Just about everyone is familiar with websites these days. It is a spot on the web that people can reach for all sorts of information. Perhaps you as a Real Estate Investor or Professional even have one. It is open 24 hours every day of the year, offers information, pictures, and more. Just like a spider, you must have at least a basic understanding of how to use it to help your business succeed. Sadly, very few professionals really understand what it can do for their business and their efforts are equivalent to putting a sign in the yard and hoping someone accidentally drives (or surfs) by.

Now take Spiderman here, our red, white, and blue, two-legged acrobatic arachnid.

Spidey uses his web a bit differently. He has the unique ability to PROJECT his web. Sure, you have watched him shooting it out. What happens? Well, it STICKS to something of course and he can then do all sorts of things. He can swing down a busy street, wrap up some people and drag them to him, and much more. Do folks know he has a web? Sure, everyone does because he is constantly shooting it out for one reason or another. Spiderman markets his abilities very well!

The question is: Are you marketing your abilities well?

Most of the gurus out there are usually trying to get you to buy their system of acquiring properties. Now there is nothing wrong with this. If you looked in my closet, you would find many books, courses, and tape sets that I have purchased over the years. Have I gained a lot of knowledge from some of these systems? Sure—without a doubt!

PROJECT and be ACTIVE! = Active Projection--it applies to buying and selling.

One popular guru uses regular mail to send postcards to everyone in a certain neighborhood that he wants to purchases houses in.

Another guru puts signs up at all busy intersections with his phone number stating that he buys houses for cash in less than 48 hours. (You see these all the time and perhaps you have put some of these signs up yourself.) I have always wondered how many sellers actually receive a check in their hands within 48 hours… Hmm…

Another guru goes down to the County Courthouse several times a week to search records for indicators of people who might like to sell.

Still another (slightly morbid) guru scans the obituaries in the paper and attempts to contact the owners of the property.

- Now I would agree that all of these techniques work in order to find leads and purchase properties.

- I would NOT agree that they are an effective use of your time.

- I would NOT agree that they are easy or likable enough to do regularly.

- I would also NOT agree that they work in the REVERSE very well when it comes to selling the property.

For example:

Are you going to go to the expense of mailing postcards when you have a property to sell?

Are you going to go out and pepper signs around town with a property to sell?

Are you going down to the courthouse when you have a property to sell?

Finally, are you going to take an ad out next to the obituaries when you sell?

You might say, “Hey Joe, aren’t you getting a bit crazy here? (It would not be the first time someone said that to me.)

But hold on a second. Why should you have to change tactics so drastically when it comes to selling the property? Doesn’t it make sense to use the same tactics to simplify your real estate business process and Buy in the same way you Sell?

I would bet that Spiderman has some buttons down near his wrists that cause his web to shoot out and stick to something.

You probably see where I am going with this. Your buttons down near your wrists are called a keyboard. You shoot a signal (instead of sticky silk) through a wire or through the air that attaches to an email box.

You can BUY in the same way you can SELL!

- More effectively.

- For less cost.

- In a fraction of the time.

- AND you can do it over and over without ever running out of supplies or money.

Most importantly, none of the tactics above ever uses the Web as we talked about earlier as a NETWORK!

This network literally “works” both ways generating leads and accomplishing sales and expands larger and larger as you work the system.

I think you would agree it is far easier to open your email box and see 10 leads waiting for you to screen than it is to accept and screen 10 telephone calls. Of course, these calls come while you are eating dinner with your family, hanging out with friends, watching TV, or doing whatever it is you like to do when you are not working your business.

The HomesToGo.Com system is designed to take maximum advantage of the things we looked at above to build networks and actively project your web of influence.

I don’t know of any other system that has been designed by Real Estate Professionals FOR Real Estate Professionals that is build from the ground up using the concepts and theories of “Active Projection Marketing”. The power of the system is incredible and almost unlimited.

Let’s look at the design from the ground up.

The Name: Homes To Go

Unlike several other sites, the name is designed to work both ways. It doesn’t stick to the old and overused tradition of appealing only to those that want to sell. A website like IBuyHomesForCashInaFlash.Com (if it exists) really pigeonholes itself into only half of the entire Real Estate business process, namely attracting buyers. Would you feel comfortable trying to sell a home with an email like that? What would your customers think? Would they think they are being taken advantage of in their situation?

If you think your clients, (sellers and buyers) are all dumb, think again. They watch TV and have seen Carlton Sheets’ infomercials just like you. People who advertise that they buy houses are a dime a dozen and many people feel they are going to be taken to the cleaners.

The System: Passive Lead Generation and Capture

This is common and has been around for years. The Homes To Go Network takes the idea to a whole new dimension. The simplest system of passive lead generation and capture is to put an ad in the paper with a phone number and have an answering machine record the information from the lead. This is old school thinking and does not work very well. People who call a number want to talk to a real human being and statistics show that they will hang up over 65% of the time.

By the way…what can you do with the recorded lead on your answering machine? Can you save it to a file for later use? Mark it as a possible foreclosure, subject to deal, or wholesale flip? Of course not.

Leads ARE passively generated through the HomesToGo Network system. Yes, like other systems you receive an email with all the details in the county or counties you work in. The difference is that the system captures ALL leads in a database by county and stores them. This is true whether you delete the email you receive or not. It is also true for those counties where an investor or professional is not signed up on the system. When they do sign up, those leads are already there under the Buyer/Seller Explorer in the control panel!

Why is this important? Because of the old adage that “Situations Change”. The smart user of the system will follow up on these leads regularly to see if something has changed in the seller’s life that now makes a deal possible.

Of course, you can do the same thing by dragging and dropping the lead into any folder you create.

The System: ACTIVE Lead Generation and Capture

How would you like to be able to shoot an email to the group mentioned above where the seller’s situation may have changed with just a few clicks?

Ready to shoot your web like Spiderman? Here we go…

Let’s send an ACTIVE web-shot at all of these leads.

“Hi, My name is Joe Ponce and I remember that you were trying to sell your house a while ago. I was just touching base with you to see if it is still for sale. I am looking to purchase a home in your area and came across your previous email.

Please shoot me a message back or give me a call if you have not sold it yet.

Best wishes,

Joe (Your personalized email signature and phone number)

OKAY—How long did that take to follow up on all those leads?

Probably no more than just a couple of minutes and your phone may ring in the next 15 minutes with a possible deal. By the way, remember to remove those leads where the email is bounced back, or you can call to make sure the home is no longer available.

Remember, you can shoot a message like this to any of the groups you have out there to generate new leads or follow up on older ones.

You will be amazed at how powerful “Active Projection” is for leads and sales through the HomesToGo Network system.

So start shooting your web like Spiderman and let it stick to some profitable deals!

We will discuss many other techniques in future strategies!

Learn to Sell Before You Buy

2007-07-10T02:01:00.000-07:00

When I first started buying real estate 15 years ago, marketing was about the last thing on my mind. Over the years as my portfolio grew, I began to notice an underlying trend in those that were very successful in this business and those that were simply mediocre or not successful at all. The difference was an understanding of the importance of marketing, how to use it effectively, and the confidence that comes from it.

Successful real estate investors have learned how to market… either intentionally or by the experience of trial and error. This skill (and it can be learned) often makes the difference between those that are tremendously wealthy and those that simply get by.

Several years ago I had purchased 5 properties at some very good prices. I was in “buying mode” and these deals happened fairly quickly in a period of about 60 days. I began thinking that I was really getting somewhere because I had so much “inventory” in my possession. Over the next two months, that feeling was rapidly being replaced by fear. You see, I had no intention of keeping the properties as rentals. I simply wanted them sold as I had most of my money tied up in them. There were holding costs, some fix-up costs, and maybe most importantly…marketing costs.

It was almost funny as I look back. I didn’t think a whole lot about paying the mortgage on the property for $1,250 or the carpet guy to go in for $1,000 or the painter $600. What was bothering me way paying the newspaper about $150 per ad for something that was definitely NOT working.

It was one of those times in my area late in the year when it rains a lot and it had been raining now off and on for about two months. My properties were not selling, Christmas was coming, and every day I shelled out another check on these properties I began to question why the heck I ever thought I could be a real estate investor. If the phone would just ring a little more often, maybe I could get through this period. As the days progressed the questions came more and more often and sleep was becoming a problem. Why had I bought 5 houses anyway? Who did I think I was? Why would anyone want to buy these houses anyway? Would I ever get them sold?

I remember repeating to myself over and over these three words “They will sell,” “They will sell,” “They will sell.”

Sure, I had been to the seminars, owned a bunch of courses, and was pretty good about getting leads and buying properties. I remember the instructors telling me “you make money when you buy” and while that’s definitely true, unfortunately you don’t put a check in your pocket until they sell.

So, I devoted myself to learning more about how to get these properties sold. I had to rapidly switch to “selling mode” and really work on my skills in this area. As I read more and more, I realized that marketing applied to generating leads and selling property equally. I had to put more “lines in the water” so to speak to get these properties sold. In short…I had to become “active”.

My ad in the paper was a “passive” form of marketing. I was hoping that someone who wanted a property would see it, call me immediately, and demand to see it with a fistful of dollars ready to buy. Since this was obviously not working, I had to do something different.

I began thinking about ways to become “active” in getting these properties sold and got some ideas from some more experienced people I knew and some things that I had read. The telephone all of a sudden became my best friend. To begin with, I sat down and called all the investors I knew (which weren’t as many as should have known) and told them about the properties. I offered them a quick $1,000 if they referred someone to me who was interested in one of them. I then picked up the phone and began calling real estate agents and offering them the same deal. I called every agent I knew and then began calling agents I didn’t know. Then I went to my local real estate investors group passed out some flyers with the same message and collected every name and card I could find. I called all of these people too and then called some more agents I found in the phone book.

I vowed to myself that I would make at least 25 calls to new people each day until something began to happen. The ideas started to come faster at this point. I then called all of the people I had sold homes to in the past and asked if they had a friend or a relative that was looking for a home and offered them they same referral fee.

After a week of calling things began to happen…three real estate agents called referring people who had less than perfect credit. Great! I was advertising this wasn’t I? Two investors called to refer a few people who wanted homes they did not have. I promised to help them in the future if they needed it. I sold the first home in the middle of the second week and something almost magical happened…my confidence improved. I kept calling people the whole time and sold two the following week and the final two the week after that. I was on “Cloud Nine” at this point! I had sold all of the homes and four of them had come from referrals for which I happily paid $4,000. My ads which had been running for over 14 weeks had cost me almost half that!

Something strange happened after I sold all of the homes. People were still calling and asking if I had a home to sell. Talk about a confidence booster!

After this experience, I continued to study marketing more and more. I learned how it applies to generating leads and making sales. I continue to be a student of marketing today. Sure…I buy houses…but I never forget that I also “Sell Houses!”

Dubai Offers a Credible Alternative to the UK Pension

2007-07-07T02:35:00.001-07:00

The thought of the word "pension", sends a shiver down most peoples spine…….unless you are an MP or Civil Servant, with the best pension OUR money can buy!

Let's face some key facts about UK Pensions:

* The income generated within a pension is taxed.
* The income we take from a pension is taxed.
* At some point we have to buy an annuity and our capital is lost.
* If we provide for ourselves we can lose State Benefits at retirement.
* Insurance Companies profit from "managing" our investments and they pay tax on their profits!
* If we create too much wealth in our pension, (£1.5m), we are not allowed to contribute further.
* We cannot invest in overseas residential investment property using our pension fund.
* Unless you are a sports star, you have to wait until at least age 50 to take your pension.

There is a pattern emerging here, the Government earn a fortune in tax from the UK pension market and we, the private sector, not only have to put up with this, but we have to help fund the bloated pensions of the Public Sector!

The good news is that there is a very good alternative... buy an investment property in Dubai. The concept is simple. You invest a deposit in a property, rent it out for say 10 years and clear the mortgage. Then you can enjoy the rental income ("Dubai Retirement Fund").

I have selected Dubai for this exercise, simply because it takes a lot to beat it. Here are just a few pointers as to why it might be a good location to base your investments.

* It is totally tax free, that's correct, no CGT, Income Tax or grubby Chancellor after your money!
* The population is continuing to grow faster than they can build property.
* Forecast GDP indicates continued economic growth and thus rental demand of property from Employers seeking to recruit and locate staff.
* Geographically acts as a trading zone for East and West.
* Property prices still relatively low.
* 70% mortgages allow you to achieve "gearing" of your investment, thus the growth return can be spectacular.
* On selected investments guaranteed rental returns are available.

So now you have grasped the concept, let me demonstrate some figures to you which illustrate the massive benefits of creating your very own "Dubai Retirement Fund".

UK Pension
£18000 invested over 10 years and 15 years respectively:

Fund after 10 years: £24,600 Income produced annually: £724
Fund after 15 years: £29,000 Income produced annually: £943

Notes: Figures taken from Standard Life on line calculator, based on male aged 40. All figures assume 2.5% RPI and 7% annualised growth and 50% widow's pension. Pension RPI linked. All figures illustrated in today's terms.

"Dubai Retirement Fund"
£60000 property purchased, with £18000 deposit and £42000 capital repayment mortgage.

Value after 10 years: £60,000 Income produced annually: £4,800
Value after 15 years: £60,000 Income produced annually: £4,800

Notes: It has been assumed that both the capital and income failed to grow over the terms to represent values in today's terms. The 10 year example is based on a mortgage at 8% interest and the 15 year example is based on a mortgage rate of 7.5%. In the event of death, 100% of the rental income would continue as income. The capital at the end of the term would continue to vest in the owner's estate.

Now, let's summarise the differences, whilst excluding the fantastic capital and rental growth opportunities: After 15 years the value of your Dubai property would be £60,000 paying £4,800 annual income. The UK Pension would have a value of NIL, because you have to trade your fund for an annuity of only £943 pa, which is less than 20% of the Dubai Retirement Fund! It's a really difficult decision isn't it?

In reality a lot of research has to be undertaken to ensure only the best properties are selected, which is where our team of specialists are well placed to help you.

The choice is now yours if you wish to make plans for your future wealth:

• Bury your head in the sand and hope that you won't grow old!
• Invest in a UK Pension and provide the chancellor with plenty of tax!
• ACT NOW and invest in a "Dubai Retirement Fund".

Bulgaria - A Very Different Offering

2007-07-07T02:34:00.001-07:00

Thought you knew what Bulgaria had to offer?.... you haven't seen this !

Luxury Alpine Style Villas near Dolna Banya, Bulgaria.

The first phase release consisting of only 21 uniquely designed 2 and 3 bedroom detached houses.

* Prices starting from just €140,112 euros ( includes VAT)
* 70% LTV mortgage available
* Very good Payment Terms

Option 1 : Reservation of €2,500 will secure a property. Then 30: 70

or

Option 2: Reservation of €2,500, then 30: 40: 30

Why buy?
Unique property design with only 64 Villas in the whole development.
Located close to the beautiful town of Dolna Banya , which is a well-known spa town in the Rila mountain range.

Just 45 minutes from Bulgarias up and coming capital, Sofia , and the airport and just 15 minutes drive away from the exceptional ski resort of Borovets.
One of the few developments on the market consisting of detached 2 and 3 bedroom houses set within their own substantial private plot
Overlooking the much anticipated IBAR Golf Club & Spa in a small secure, gated community.

The development will be built in accordance with The CarbonNeutral Company protocol to work against climate change and promote an environmentally friendly development. Substantial capital gain is expected due to its prime location and the huge investment planned for the region.

From only €42,034 down payment now and then only €750 per month. 70% mortgage available through the UK 's leading Bulgarian Mortgage Specialist. Great attention to detail has gone into the design of the houses, with locally sourced modern stone and wood facades and state of the art technology within.

Why Dolna Banya?
The beautiful spa town of Dolna Banya with the spectacular Rila Mountain range as a backdrop A clean, fresh, healthy and unpolluted atmosphere A huge range of activities available in the area golf, skiing, spa, water sports, flying, to name but a few. High capital growth potential because of the three levels of re-generation planned. The Super Borovets Project has ambitions of creating one of the best ski facilities in the world by 2014.

This is definitely not what has traditionally been on offer from the Bulgarian property market. This is a unique and exciting investment opportunity to buy a freehold property in the boundaries of the much-anticipated IBAR Golf Club & Spa; the first Nicklaus designed course in Eastern Europe and the only course to meet PGA standards in this region.

To discuss the project in full detail Freefone 0800 0 75 55 66 now!

1031 Like Kind Exchanges And Condo Hotels

2007-07-03T02:36:00.001-07:00

How would you like to defer the capital gain taxes you would pay from selling your property? Well, according to Section 1031 of the Internal Revenue Code, certain tax advantages can be realized if "like-kind" properties are exchanged. "Properties are of like-kind if they are of the same nature or character, even if they differ in grade or quality." Therefore, an exchange of real estate for another piece of real estate is an exchange of "like-kind" properties. "It doesn't matter where the real estate is located (but foreign and U.S. real property can’t be like-kind) or whether it is improved or not." Fortunately for investors, Condo Hotels can qualify as a "like-kind" property.

In a typical real estate sales transaction, the property owner is taxed on any gains on the sale of that property. However, through a 1031 Exchange, the tax on the gain is deferred until the replacement property is sold. At that time, taxes will be due for the gains on both the relinquished and replacement properties

It is important to remember that a 1031 exchange is tax deferred, not tax free. By deferring the tax through an exchange, you have more money to invest in a property. Essentially, the provision provides investors with an interest free loan from the federal government. In order to qualify for a 1031 Exchange, the investor must identify the replacement property to be exchanged within 45 days of the sale of the relinquished property. Furthermore, the purchase of the replacement property must take place within 180 days of the sale of the relinquished property. While 1031 Exchanges might not make sense for every Condo Hotel buyer, they certainly offer a way to defer federally mandated taxes. For more information on this type of transaction, please consult your local tax advisor.

Condo Hotel Buyer Demographics - Where Will The Baby Boomers Go?

2007-07-03T02:35:00.000-07:00

Last year, every 7 seconds someone in the U.S. celebrated their 50th birthday. Over the next 15 years, nearly 80 million baby boomers will retire in the United States. Overseas, an additional 135 million World Boomers will opt for retirement. So where will all of these retirees look to go? Since the baby boomers are often referred to as the most affluent generation ever to retire, with more than $17 trillion of wealth being transferred over the next 20 years, industry experts believe that the 213 million boomers worldwide will be competing for a uniquely similar lifestyle. A lifestyle that allows them to spend time at home, near family and friends, but also allows them to retreat at months at a time. And because real estate investments have benefited them in the past, the boomers will look towards some sort of second home ownership to escape to.

Insert the concept of a Condo Hotel, and now the boomers have an investment and vacationing option that makes sense. Condo Hotels allow their owners the option to vacation at some of the worlds most desired locations, with all of the amenities of a 5 star hotel and the conveniences of a condominium. And when they are back home watching their grandchildren grow up, they can still generate monthly revenue by renting their unit. Furthermore, since demand will quickly surpass the supply of condo hotel units available, and because they are being built in such highly desirable locations, owners can expect to see a great amount of appreciation on there investments.

If only 2% of the baby boomers choose to purchase a Condo Hotel, then 1.5 million units will need to be built in order to meet their demands. Overall, Condo Hotels will provide owners a carefree experience whether they are staying in their unit or it is being rented out., after all, isn’t relaxation what retirement is all about!

Mulit Unit Investing in New England

2007-06-29T02:44:00.001-07:00

Here is my somewhat brief overview of how I go about looking to invest in smaller multi unit real estate. Some questions to start if you don’t mind. Knowing not your level of experience my apologies ahead of time if I sound too basic or advanced.

* -Do you own any multi’s now or will this be your first one?
* -Do you currently own any property?
* -Are you thinking owner occupied or strictly investment?
* -How would you rank these following items in order of priority?(Location, Price, Cash Flow, Appreciation, Quality of the units, Size of the Units)

I believe good opportunities can still be found in and around Portand Maine, but there is much to weigh and analyze in determining a good deal from a bad deal. My analysis starts simply at $100K per unit. From this point I weigh in many variables subtracting and adding value to this number to determine if the deal is priced fairly, what the upside potential may be and most importantly does it fit my agenda.

The basic variables:

* -Physical Location, the surrounding buildings, the desirability of the location (What is your target rental demographic?)
* -Systems (Heating/Plumbing/Electrical/Sewer),
* -Building (Siding/Roof/Foundation/Windows),
* -Units (Cosmetics, Floors, Walls, KItchens, Baths, Sq. Footage, Bedrooms, Bathrooms, Layout, etc)

The numbers

* -Utility costs – Heat, Electric, Water/Sewar- Are utilities include or paid by tenant?
* -Real Estate Taxes -Debt service – What is your loan amount? What is your rate?
* -Repair and Vacancy Reserves, Capital Account, Leasing Costs
* -The ratios: Cap rate, NOI (Net Operating Income), Gross Margins, ROE (Return on Equity)

Rapport Building Secrets of Rent To Own Real Estate Investors

2007-06-29T02:43:00.000-07:00

In Rent To Own Real Estate the key is to find a motivated seller, once we have found the motivated seller and pre-screen them on the phone, we set the appointment and go see the house. On the day of the appointment, you want to call and confirm the appointment so you don’t waste your time driving to the property and seller isn’t there. The only thing you take in the house is your business card. Leave everything else in the car.

Ask the seller to show you around the house. If they tell you to just look around, ask them to give you the nickel tour. The intent is to view the house with them and build rapport with them.

* People only do Business with people they Like and Trust, you must make this connection before negotiating on their most expensive investment.

Look at their pictures, and nick-knacks for ideas to ask them questions to get them to talk to you. People only do business with people they like and trust. You can only do this by building rapport. Let them answer your questions and then respond to what they told you.

Use F.O.R.M. to build rapport:

F: FROM
O: OCCUPATION
R: RECREATION
M: MESSAGE

F: Q. Where are you guys From? Your Response: “Oh really I’ve got friends, family” or “I have visited” or “Where is that?”

O: Q. What do you guys do? (Occupation) Your Response: “Wow…..I have always wondered about that.”

R: Q. What do you guys do for Fun or Hobbies? (Recreation)? Your Response: “I do that too”, or “I’ve always wanted to do that.”

M: Q. Where can we sit down and talk?

Once seated, then give them your Message, by asking them Four Questions.

* Let them answer your questions completely, do not interrupt them, People only do Business with people they Like and Trust! Do you like people who interrupt you?

#1. So that I can better help you, tell me again, why are you selling?

#2. How else have you tried to sell your house

before you contacted me?

(What you are doing is reminding them they have a problem). #3. What do you hope I can do here for you today?

PAUSE: You are thinking on how to help them, let them see your concern and wanting to help them. *Your response is that you might not be able to buy their house today because of a lack of equity.

#4. However, I might be able to help you out of your financial problem by making your monthly payment for a while and cash you out in the future, is that something we should talk about or probably not?

If they want to talk more then explain to them you can do a Long term Lease, where your company will Rent the property for a period of time and in the future you have an Option to purchase the property at a price they agree upon today. The option will be $10 Dollars which will make it a binding contact, that you will have the Exclusive Option to Purchase the property in the term you agree to. (That is how Rent To Own Real Estate is done) You will cover most of the day-to-day maintenance up to $250 and they will be responsible for any maintenance over $250.

You then tell them you will require a long-term lease of at least 60 months to make it work. You will sublet the property to a Tenant Buyer and they will be the ones to actually purchase the property in the future. However, you will be responsible for making the payment to them and taking care of the day-to-day management. If they agree, you sign a Lease Purchase Contract that you will Lease the property for up to 60 months and you have the Exclusive Option to Purchase. Then set up a Lease Option closing with your Attorney.

California Home Investing

2007-06-27T02:07:00.001-07:00

All over the country, investors are seeking out good markets for their real estate dollars. It can be a difficult choice as there are definitely a few desirable markets out there. The more popular vacation destinations in the U.S. are always thriving and do not seem to be as affected by fluctuations in the real estate market. California has always been a market that has been a safe bet for investors. The fantastic climate, wealth of recreational and entertainment options have made it an ideal investment area, especially when looking for a vacation home.

California has some great communities for the investor to consider. But we would be remiss not to mention the communities at Thunderbird Country Club. As California's oldest desert golf course, Thunderbird is comprised of several communities woven about the scenic desert links. This is truly a magnificent place to live or to keep as a retreat from the hectic pace of everyday life. Living in a golf course or country club community is vastly different from the average home or community. Imagine waking up every day and seeing the freshly tended greens and lush fairways, knowing that you have a morning tee-time that will take you throughout the community in which you live. Sounds nice doesn't it?

Each of the communities that make up the Thunderbird Country Club has it's own distinct take of Country Club living. Whether you're looking for a property with a view of the club greens, or a private estate at the edge of the desert, Thunderbird has a residential area to suit you. First developed in the 1950s and 60s, Thunderbird communities are a throwback to the golden age of mid-20th century architecture. Vintage Thunderbird homes are notable for their use of clean lines, glass, and spaces blending indoors and outdoors, in an elegantly informal style known as Desert Modernism. Thunderbird real estate, like Palm Springs just to the north, is renowned for its historic architecture and attractive community layouts. New home construction in recent years has added a stylish touch of modernity and opened up the area to more buyers.

How To Build Momentum In Your Real Estate Investing

2007-06-27T02:06:00.000-07:00

Getting started is often the most difficult part when it comes to investing in real estate. If you desire to build wealth through real estate investing you must start and build momentum. This article will help you do just that.

Here’s a real exciting way to build momentum. Follow this proven 3-step method for taking action.

1. Pick one short-term goal that you’re excited about. It may be working on your real estate investing mindset. It may be reading 5 books about investing. It may be attending a seminar. It may be to buy your first property in the next 60 days. It may be to increase your net worth by $50,000 over the next 12 months. Just pick one goal.

2. Make a list of the actions you’ll need to take to reach this goal. What type of person will you need to become? What is the first step you could take? What is another step you could take? Don’t worry about perfection. Just list all of the actions you think you’ll need to take to reach your goal.

Next, write down the actions and tasks that you will commit to completing over the next 90 days. These are actions and tasks that you promise to fulfill. You are serious, right?

Commitment is key………..story of burning boats so they couldn’t go home.

3. At the end of 90 days reward yourself for what you have accomplished, analyze your progress, and adjust your goals and actions accordingly.

It is vitally important to analyze your progress along the way and make the small adjustments that may be needed. Maybe your goal has changed a bit. Maybe you need a new goal entirely. Or, maybe you need to adjust your actions to receive maximum impact.

Without adjusting your goal from time to time you may find that you’ve climbed the ladder of success alright….it’s just that it’s leaning against the wrong wall.

When the space shuttle is flying in outer space from time to time the thrusters must fire to keep it on course. Although the trajectory at lift off was perfect, minute adjustments must be made along the way. Without those tiny adjustments the shuttle could fly into disaster.

As you move toward the accomplishment of your goal, you may need to make small adjustments in your actions or tasks. Be aware of where you are at all times.

This final step is crucial. Every 90 days, evaluate your progress and make adjustments.

Do this every 90 days. That’s four times a year. If you follow this simple formula you will be light years ahead of others.

Real Estate - He is Donald Trump and You're Not

2007-06-22T02:45:00.001-07:00

Why is Donald Trump a Real Estate multi-millionaire and you're not? It's call making something happen not just dreaming about it. We all have our dreams of what we could be, so why do we get struck in this day to day life. Its call our comfort zone. We get up every day an go through the same routines: shower get dress have breakfast drive to work, work, have lunch go back to work drive home have dinner watch TV go to bed and then start all over again sound familiar. It is to most of us but if you want to change it what can you do?

Easy MAKE SOMETHING HAPPEN! Gets a Real Estate investment business going part time? Take a class in Real Estate, buy some programs on Real Estate Investments, and talk to some experts in your local area. Start out slow maybe a little fixer upper you can flip. With the money you make off that deal re-invest into some more properties. If you double your investment each time soon your working capital will be big enough to jump in full time.

The Real Estate Market right now is a good investment to make money. You have a lot of creative loans coming due. The finance companies are worried about people walking away from their loans. With the adjustable and no interest loans reaching their highest payments phase people cannot afford them. There is an estimate 2.2 million house going on the market by the end of this year.

Will you be ready to take the challenge to be the next Donald Trump or will I see you at work tomorrow?

Luxury Real Estate in Mexico - Master Planned Communities

2007-06-22T02:43:00.000-07:00

Master planned communities offer residents the amenities that they require without leaving the community. These communities give residents the freedom and privacy they require in beautiful locations throughout the world. Mexico provides developers with the opportunity to incorporate the natural geography of one of the most beautiful countries in the world into their real estate developments. Master planned communities in Mexico are filled with native vegetation and wildlife which add to the masterful homes that are being built within the communities. Along with the unique Mexican culture that influences the designs of the communities the wildlife brings a nature filled atmosphere throughout the community. Master planned communities have to be designed by award winning designers to ensure that homes and home sites meet their residents’ expectations. Cascadas de Manzanillo contracted two of the best designers in the world to plan and design their homes and home sites. Gomez Vazquez Aldana & Associates have brought the same innovative architecture designs that have created some of the most luxurious resorts in Mexico to Cascadas. In addition GVA brings with them Peridian International, an award winning landscape designer. Utilizing the innovation skills of both of these firms allows Cascadas to call itself a master planned community.

For years people from all over the world have been purchasing homes in cities such as Cancun, Acapulco, and Cabo San Lucus. With the development of Cascadas de Manzanillo investors will be able to move away from the big cities in Mexico to the quiet small town of Manzanillo. Cascadas was designed to accommodate every type of vacationer and every family. Cascadas de Manzanillo incorporated recreational facilities and relaxing parks into their community. These amenities allow residents to spend their vacations in their ideal way.

Every master planned community offers residents something unique; Cascadas contains a private lagoon within the community. The lagoon is surrounded by the planned retail area where residents get to enjoy shopping, dining, and spa amenities. Cascadas de Manzanillo built nature trails within the community that lead to the beach area. Cascadas designed the walk ways to serve as both nature walks and paths to the beach. Cascadas’ location allows its residents to visit downtown Manzanillo and enjoy what the small city offers to visitors.

Investment Property - Finding Discounted Properties

2007-06-18T22:33:00.001-07:00

Investment Property – The Future

Investment property continues to be a popular form of investing for the future. Some chose investment property as a way of funding educational fees in the future. Others may chose investment property to help secure a more financial future, fund additional investment property purchases, or they may simply choose investment property as a way of creating passive income so as not solely dependent on their mainstream employment.

Investment Property – Interest Rates

Despite recent interest rate rises, the property investment market in the UK remains strong. There are a number of reasons why investment property in the UK has remained a strong contender in the investment market. The UK investment property market has experienced a high level of growth especially over the last six years. But historically property in the UK has doubled every 10-15 years. In the last few years, the UK has seen dramatic increases in investment property and incentives for landlords and investors which has seen some investors buying investment property in the UK for up to and occasionally with over 20% discounts. These represent significant savings to a property investor buying multiple investment properties and subject to sourcing the best buy to let mortgage products for these investment property deals, can often result in the property investor having the ability to buy an investment property with little or no deposit.

Investment Property – Finding Discounts

Finding investment property from property developers with genuine discounts can be a time consuming exercise. It is important to identify whether the discount being offered for the investment property is genuine or whether the gross price has been inflated on the investment property to allow for the discount. Establish whether it is a genuine discount on the investment property by getting comparables of other investment property that has recently sold and at what price. Although bear in mind, some investors are able to negotiate better discounts on investment property than others. This may be due to the volume of investment properties that they have either bought already from the property developer or the number of investment properties they are intending to buy. Just as important, is to establish what the likely rental figure will be for the investment property as this will often determine the overall loan amount you can achieve on the buy to let mortgage loan for the investment property.

Investment Property Hotspots

If an investor is looking at investment property in property hotspots or areas that are experiencing high levels of regeneration, it can sometimes require them to fund a higher level of deposit for the investment property initially whilst the rental figure remains relatively lower than the general market average for a new build investment property of the same value in another area. Property investors with a long term view on investment property will still see this as a positive action to take for their investment property portfolio in the knowledge that as the regeneration area becomes more developed, the potential rental demand for the investment property will increase at which point they will use this time to look at re-mortgaging their investment property to release the capital that they had additionally funded. Typically a buy to let mortgage for an investment property will require the property investor to fund at least 15%. Although some buy to let mortgage lenders are offering up to 90% buy to let mortgages on investment properties.

Investment Property UK - Is It Still Worth It With Rising Rates?

2007-06-18T22:32:00.000-07:00

Investment property is still proving to be one of the most popular forms of investment. Property in the UK has historically doubled in value every 10-15 years and regardless of the peaks and troughs during this time, investment property has steadily become one of the most stable ways to invest for the future as opposed to stocks and shares and other investment options.

Established landlords with investment property are very aware of the benefits of investing in property and in particular investment property in the UK. With affordability becoming one of the main issues for first time buyers, landlords are keen to snap up investment property in the UK in the knowledge that first time buyers and other buyers with affordability issues will be left with no alternative but to rent. It is the buy to let investment property market that landlords capitalise on and investment property is their key to success particularly during times when interest rates are rising and investment property prices are rising they are even more keen to buy to rent to this sector.

Investment property in the UK is a key topic of conversation and there are now more than 750,000 individuals who have at least one investment property that they have bought as a buy to let investment property. With buy to let mortgages for investment property becoming more readily available it is giving first time entrants to the buy to let investment property market an even greater chance of owning more than one investment property. Ideally, buy to let investment property investors will be keen to develop their investment property portfolio to such a level where they have multiple investment properties which are all likely to enjoy good capital appreciation. For those more mature entrants to the investment property market, they may be more focused on trying to buy investment property that provides them with a ‘passive income’ from their investment property on a monthly basis. These types of investment properties are generally lower value, but may present a higher rental yield but subsequently the capital appreciation on these buy to let investment properties may be a little slower.

As and when the opportunities arise, shrewd property investors will refinance their buy to let investment property during a strong property market to realise any potential profit from their investment property portfolio which can then be used to purchase additional investment property to add to their buy to let investment property portfolio. Buy to let mortgages for investment property are so varied in choice that it is much easier to obtain good competitive buy to let mortgage products on almost all types of investment property in the UK. Even those where the investment property in the UK is held within a Ltd Company where previously the products available for these may have been more restrictive.

Make Profit In Any Real Estate Market

2007-06-12T03:34:00.001-07:00

How often do you get good news? Real estate investors get good news everyday!

Do you know no matter what state the real estate market is in, it's good news for investors?

That's right, all these headlines can all be good news for you:

Interest Rates Going Up? Good news!

Interest Rates Coming Down? Good news!

Housing Market Slows? Good news!

Housing Market Heats Up? Good news!

Local Economy Takes a Dive? Good news!

What you need to know is what condition your real estate investment market is in, and what to do.

I love to buy when interest rates are high! Why? Because prices go down and when you buy real estate, you can never go back and renegotiate a purchase price after the closing. But you can always look for a better interest rate on your loan.

I don't wish for anyone to suffer, but I look for foreclosure deals in bad economic times. I have helped many folks out of a mountain of debt by taking over payments on a home they would have otherwise lost to the bank or mortgage company.

When the market booms, I look through my property portfolio for anything I want to sell. I sell property that is nearing the end of the tax depreciation table, or property that will net a desirable profit.

You can also watch commercial building in your area as a predictor. Businesses spend millions of dollars studying local economies. Are the restaurant chains building or moving out of your investment area? Are the super stores building?

Whats the average age of homeowners in your area? Older people will be selling homes and downsizing, and young people will be buying.

So the trick is to keep your eye on the market pulse in your investment area and real estate trends. Talk to local agents. Take a banker to lunch. I have got more information from befriending someone in the title business than anywhere else. Though they don't reveal confidential information, I always know what kind of deals are going down in my area.

Are housing starts up? Has building slowed? Are employers hiring or laying off? What is the prime rate? All these are the real estate investor's market questions.

And since it's all good news, you never have to worry!

Six Ways to Use Craigslist to Grow Your Real Estate Investing Business

2007-06-12T03:33:00.001-07:00

According to Alexa, Craigslist.org is one of the top internet destinations. In fact, in the United States, Craigslist is a 10 most visited U.S. websites. It is so large that it gets 0.2% of all traffic on the internet. That means that on any given day, one in 500 people worldwide will visit Craigslist with the vast majority being U.S. visitors.

This kind of traffic puts Craigslist on par with places like eBay and Amazon for number of visitors looking to buy, sell and network opportunities per day. And unlike these other sites, you can use Craigslist to help your business grow with no cost to you. There is no cost to place messages and ads on Craigslist (with some very small, limited market exceptions.) In fact, for 99+% of your uses, Criagslist requires nothing more than a bit of time for you to post and read ads in categories that interest you.

So what is Craigslist and how can it help your real estate investment busniess?

Craigslist is the ultimate high traffic, city centric niche classified site. It is broken down into hundreds of cities so visitors can look for and conduct local business in a variety of topics. If you live in Miami, there is a section for Miami. If you live in Los Angeles, there is a section of Craigslist for Los Angeles. In fact, there are literally hundreds of U.S. cities represented in Craigslist and many more internationally. Each city offers its own comprehensive collection of categories offing areas where you can sell or find goods, look for a job, advertise real estate and more.

You may be thinking – great another place besides my local newspaper where I can spend my advertising dollars. Well, if you are thinking that, you are in for a shock. Craigslist ads can be posted for free. There is no fee to place an ad and no fee if a deal happens. (There are a few small exceptions to this rule but 99.9% of all Craigslist users will never have to pay a fee to conduct business in this massive classified site.)

Now that you know what Craigslist is and how many visitors it gets on a daily basis, let's look at how you can you use this to benefit your real estate investing business? Lets see how savvy investors are using Craigslist today to make even more money buying and selling homes.

1) Find Workers - Lets say that you purchased a house and need to find a worker to help you with landscaping or general handyman tasks. You can use the services section to find help. They have categories like “skilled trade” and “labor” where you can find people willing and able to help you out. And here is the exciting part. You can post an ad spelling out exactly what skills you need and people will contact you. And you can do this at no cost to you.

2) Troll for leads – There are sections of Criagslist where you can look for leads for your next property acquisition or even find investors willing to offer funds to buy your next property. Some good categories is Services/Real Estate and housing/real estate for sale.

3) Find renters – If you put an ad in the housing section called apts/housing, you will be able to find all the tenants you need. I have a friend who is a licensed realtor specializing in rentals and he uses Craigslist exclusively to generate all his leads for his landlord clients.And he rents many apartments, townhouses and houses each and every month with zero lead cost.

4) Selling a House – Utilize the Real Estate for Sale section under Housing and you will have your phone ringing off the hook with hot prospects looking for a house just like yours. Or use it to build a buyer’s list or to determine needs by advertising different houses you have for sale. When those houses are sold/rented, keep the ad up a bit longer and build a list of more people looking for specific types of properties or to take backup offers in case the primary offer falls through. And then go find new properties that match the lead's wish list.

5) Sell Your Castoffs – If you just bought a house and are cleaning it out, you can use Craigslist to sell any valuable items you cleaned out of the house – or just give away stuff to save on the cost of hauling them to the local landfill. You can sell just about anything on Craigslist and it is a great way to get rid of old kitchen cabinets, appliances, etc. It is amazing what people will take if the price is right.

6) Find an Employee – If your business needs a part-time or a full time employee or a contractor to help you out, why pay the exorbitant fees that your local newspaper charges. Just place your ad in the employment section of Craigslist and find that person without spending a penny on your help wanted ad.

These are just a few of the ways Craigslist can be used to grow your investing business. Take some time to study the ads that people are currently placing in various categories and you will be able to find many other innovative ways to use Craigslist for your profit.

5 Steps to Successful Real Estate Marketing

2007-06-07T03:19:00.002-07:00

There are essentially 5 steps to being successful in real estate marketing. Before we go into the 5 steps of real estate marketing, I want to encourage you to become a student of marketing. The moment that you are able to find your own deals - on demand - the more money you will make! It's a direct correlation.

When I started out in real estate, I didn't understand how to "really" market for deals. I was depending upon real estate agents, local real estate investing groups, etc. I did a lot of deals, but I realized I wasn't making the kind of money I knew I could in estate. Follow these five steps to successful real estate marketing and you'll be on your way to filling your own funnel full of five-figure deals.

1. Define Your Target Market:

You must be focused; If you run in too many directions, focusing on too many real estate markets, you'll always be skipping around, never getting ahead. You need to learn overcome objections; you need to know how to handle the different situations that arise. Once you master one market, then you can duplicate your system across market after market. For instance, you may choose to start working with foreclosures or out of state owners. Once you get the real estate marketing system in place for one, add the other. Then, you can simply duplicate it over and over again! The single most important thing to remember is that you MUST target motivated sellers... PERIOD.

2. Execute your plan:

It has been said that successful real estate investors have three things: specialized knowledge, ability to take action, and consistency. It's not enough to have the knowledge. You have to act on that knowledge.

Let's say your real estate marketing strategy involves bandit signs. You need to have a system for distributing signs on a consistent basis, a consistent method for filtering leads, and a bullet-proof follow up system. If you're going to execute a direct mail campaign, make sure you have a system for sending out the whole series. For instance, our foreclosure direct mail system consists of 6 sequential postcards. It doesn't do you any good to come off the starting block at 100mph if you don't have the ability to sustain that pace or the have tools to fulfill the plan. If you only have the resources to send the first postcard, don't bother wasting your money. Find another real estate marketing strategy.

3. Pre-screen your leads:

Scribbling notes on the back of an envelope while you're driving is not a system! We actually send our leads to a separate voicemail line or a call center depending on the marketing campaign. Our students and staff have been trained to do this because it takes emotion out of the system. If I'm having a bad day or sitting in traffic, I can't focus on that call from the motivated seller, so all of the calls are fed through the system. We request that the seller leave certain information on the line or with the operator. We then take that information and do our basic due diligence before we even have our first conversation with the seller to find out if, in fact, he/she is a motivated seller.

4. Make your offer:

By following a specific real estate marketing system, you'll be prepared to make an initial offer during the first phone call. By asking the right questions and having a pre-screening sheet in front of you, you'll quickly learn if they are a motivated seller or simply just wasting time! If your real estate marketing system has this component in place, you'll know what the property is worth, have a ballpark idea of what the repair costs are, and will know if the seller is motivated. Consequently, you will know at what price you should make your first offer.

5. Contract/Exit Strategy:

Once the seller has accepted our verbal offer, or is close thereto, it's time to put the purchase offer in writing. We include 3 contingencies - or escape clauses - into the contract.

- Inspection

- In the event of buyer's default, the deposit is the sole remedy

- Subject to property appraisal

Based on this due diligence, we are then able to decide which exit strategy is most appropriate. All of this follows a basic flow chart process. There's no thinking! It's like when you call in for technical support on your computer. They ask you a question, and based on your answer... they go to the next step. This is how you want to run the marketing division of your real estate business.

Keep in mind that your real estate marketing efforts should be in concert with the types of deals you're looking to do. For instance, if you want to flip properties, your marketing system might target motivated sellers facing foreclosure. On another note, if you're looking to build a rental portfolio, then you might consider building a real estate marketing plan to target landlords filing evictions.

Achieving Financial Freedom

2007-06-07T03:19:00.001-07:00

Imagine a life where you don’t need to worry about money, and you can have everything your family needs. A life of financial freedom is attainable. The secret is to follow a set of proven principles and techniques and apply them to your own life and then you will be on your way to achieving financial freedom and the life you have always desired.

You need to understand that my principles and techniques are more than just theory; they are based on real life experiences and successes and are proven to work over and over again in all types of markets. No matter what the circumstance, these success principles will work to move you toward financial independence, as long as you apply them.

Before you can be wealthy, it is essential to understand what wealth really is. The dictionary definition is: An abundance of those things people desire. A sound or healthy state. Well being. Notice that the definition of wealth does not mention money, not even once. In fact, in Napoleon Hill’s famous book “Think and Grow Rich,” he compiled a list of the twelve things that constitute true wealth as reported by some of the richest people in the world. On that list, money ranked twelfth. The first eleven items had nothing to do with money.

There are so many other things on that list, because the acquisition of money is such a small part of true wealth. There are nine key components to achieving the wealth you crave.

The first component is faith in God. There is a strong correlation between wealthy individuals and spirituality. It has been found that people who have a strong spiritual connection are more likely to take financial risk which is an essential key to achieving wealth.

The second very important component for wealth is a positive mental attitude. You must think about the future a lot, setting very specific and measurable goals. Commit yourself to excellence. Believe that you will achieve, and get the results that you desire. There are always problems that come up in life, become a problem solver and take action. Go after what you want. Don’t forget to always grow and learn. You will never know it all, but take advantage of every opportunity to learn more.

The third component for achieving wealth is living a life of sound physical health. No matter what else is going on in your life, you can not enjoy it if you are not physically healthy. Control your nutrition, put quality food into your body, after all you are what you eat. Listen to your body when it comes to getting the sleep you need. Exercise, because your body craves physical activity; allow it the release that it needs. Meditate to rejuvenate your mind and spirit.

Integrity is the fourth essential component to wealth. You must develop a sense of integrity in everything that you do both in business and in your social life. Do what you say you will do, finish everything that you start and always show up on time.

Living in harmony with human relations is the fifth component. It is important to learn how to satisfy other’s needs. Listen to people, ask questions and respond accordingly. Discover what matters to them and spend time with them doing those things.

The sixth component for achieving wealth is the concept of self mastery. You must commit yourself to a plan for your life and have the discipline to apply the daily habits that you need to succeed. It can be scary at times, you must have the courage to overcome the fear and the persistence to never give up no matter what is thrown in your way. Be ruthless with your time, and overcome the lure of laziness when things become too comfortable. Avoid arrogance and develop a thankful heart, always being thankful for what you have. Above all else, have fun with yourself and your life.

One of the most important concepts of wealth is number seven; financial independence. Set a budget for yourself and live within your means. It is so easy to spend money you don’t have, but you must create a financial plan and live within it. Follow your passion, because doing work you enjoy will ultimately make you more successful and productive. Start investing your money and make it work smarter for you. You will know that you have reached financial independence when your passive and portfolio income exceed your expenses.

The eighth component of wealth is the desire and willingness to give of yourself and your money. The wealthiest people in the world know that giving to others creates a sense of security and peace because what you give to others will return to you ten fold.

The ninth and last component of achieving true wealth is also one of the most important. You must discover and live your true and unique purpose in life. Everyone has a unique reason that they are on this earth, and when you discover it and begin living it, you will truly discover your passion. When you live your passion and develop your talents and gifts to the fullest, you will then be able to experience real wealth.

Is Real Estate Investing Right For Me?

2007-05-25T03:04:00.001-07:00

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.

Real Estate Investing - Matching Buyers with Properties

2007-05-25T03:03:00.002-07:00

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!

Showing Up Late To The Party Part 4

2007-05-25T03:03:00.001-07:00

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?

Property Investment in Turkey

2007-05-25T03:02:00.000-07:00

Over the past decade overseas property buyers have become much more adventurous with markets opening in the Baltic states, the far and middle east. However, the mediterranean locations are still the top destinations for the northern Europeans.

Spain the old favourite still offers much for those who seek the sun and laid back way of living, however, costs have soared and are comparable with other European countries which makes mediterranean Turkey a must to be seriously looked at.

New legislation recently passed allows the Turks much easier access to mortgages, which will in no doubt make the home market much more bouyant,in the past shrewd overseas investors have been quick to realise high property yields and in certain areas have seen their investments triple in 24 months.

Planning permission is rigerous, the Turkish government is determined not to make the mistakes that have occured on the Costa's in Spain and frequently consult with Spanish authorities in an attempt to ensure development of resorts are tasteful and environment friendly. It appears in most cases they are succeeding considering the difficulty in policing the amount of investment that is occuring on their mediterranean and aegean coasts.

A top UK television presenter stated 'Turkey has something for everyone', and she is right, natural beauty, a hoard of historical sites to visit, blue flag beaches, championship golf courses, ski resorts and some stunning resorts makes south west Turkey a real contender in the tourist market. What Turkey has to offer its visitors in much more than could ever be covered in this article.

As to properties, where and what to invest in, well that depends on budget and taste and its all to be found when you know where to look.

Antalya the main city and province in the mediterranean region offers much for the investor, the selection of property available is remarkable, and the quality is in most cases high to fantastic considering the prices.

Within Antalya city are three distinctive areas where you should look, Lara to the east is chic and trendy with sandy beaches, impressive jagged cliffs and prestigious hotels, most of the property available is of high quality and very desirable. Kaleici (the old town) a maze of winding lanes and streets lined with sops, small bazzars and boutique hotels offers the property buyer something nique and different and is a must to be placed on the viewing list. To the west of the city lies Konyaalti famous for its palm tree lined promenade the area is abundant with very affordable properties.

Continue west heading out of Konyaalti and within less than an hour's drive down this delightful coast road and you reach a paradise called Kemer, with the outlying areas of Goycik, Camyuva and Kiris each a delight offering sumptious homes at amazing prices. For the more adventurous carry on west to Kas and be dazzled by the views of this stunning coastline.

From Antalya airport travel east and within half an hour you will reach Belek, the golf capital of Turkey, Belek is host to top class hotels with sandy beaches, championship golf courses and a selection of homes to suit most tastes and budgets.

Carry on east towards Alanya and prior to reaching this wonderful resort you will see to your left an array of developments ranging from apartments and townhouse to magnificent Spanish style villas that enjoy panoramic views to the mediterranean.

A few miles past Alanya takes you to Mahmutlar, a seaside town that has been transformed over the past few years, here you will find five star developments that offer indoor and outdoor swimming pool, tropical gardens, tennis courts, saunas, turkish baths and a host of other on site facilities to pamper you or your guests.

With such an array of properties to choose from, activities for the down right lazy to snow skiing, river rafting, water sports, horse riding, golf and more. A paradise for the nature lover and ardent walker, and mecca for the history buff. Not to mention over 300 days of sunshine a year, low cost of living and the friendliest of people.

Yes, Turkey definitely has something for everyone.

Showing Up Late To The Party Part 3

2007-05-25T03:01:00.000-07:00

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.

France Property Market 2007

2007-05-22T03:55:00.002-07:00

A leading market economist has said that France is set to become the ideal place for savvy investors to buy property, it has been reported.

Jean Luc Brouillet, managing director of one of France's leading banks, told news provider Functionpix that country is the "new destination for long term European growth".

He added that this year has seen the most significant jump in terms of foreign property investment in France.

Land and property purchases in France

But why are so many Brits choosing their nearest neighbor as the best place to purchase a holiday home or to retire to?

Mr Brouillet explained that the main reason is because France offers "an amazing quality of life, coupled with traditional family values and a strong market economy".

He added that factors such as the country's close proximity to Britain, cheap property prices and affordable services were also encouraging investors to the market.

"Towns and villages around the Upper Normandy Seine Valley have proved very popular with British buyers due to it's proximity to ports such as Le Havre, Dieppe and airports at Rouen," he said.

Guides to investment in France

According to Functionpix, those who choose French buy to let mortgages are almost guaranteed a return of at least 22 per cent a year across most regions in France.

Some regions such as Normandy are particularly profitable for investment and can fetch more than a 30 per cent increase.

With interest rates in the UK on the rise and tourists preparing to flood into France during the summer months, now certainly looks set to be a good time to buy for the first time property investor.

Buy And Sell Mobile Homes In Your Park

2007-05-22T03:55:00.001-07:00

Why buy and sell mobile homes? It is safe and very profitable if you own a mobile home park. You have to own a mobile home park for this to work most effectively. If you don't, you might want to buy one with this in mind as an extra revenue source.

What is the value of a mobile home? That depends on several things. You might think that the biggest factor influencing the market value of a mobile home is how nice the home itself is, but often this comes third, after location and ease of purchase.

In Durango, Colorado, for example, an old mobile on a rented lot might sell for more than $40,000. Why would it sell for more than many new mobile homes? Because it's a town many people want to live in, with high rent rates and houses starting at $180,000. Also, due to zoning, they aren't building any more mobile home parks.

In other words the biggest part of that price is paid for being allowed to live in that particular mobile home park in that town. Drag the mobile away and it might lose 80% of its value. Location, then determines value. But you can't move your park, so let's look at what you can control.

Create Value By Making Buying Easy

What is a mobile home worth? One important determinant is how easy it is to buy. Let's look at an example.

A young couple wants a nice mobile home. They like the new ones, which cost about $30,000. With the required 10% down payment the available financing is at 14% on a 10-year amortization. This means a payment of $420 per month, plus lot rent of $280 per month. That seems too high for housing costs, but then rents in the area are that high, and they would rather own something.

The problem they have is that they don't have the $3,000 needed for the down payment, nor do they have the money needed for moving the home to a park, and to pay the various other expenses, like the deposit for the park. They only have about $1,000 in the bank. A common scenario these days.

They decide to start looking in the mobile home parks. They find many nice used mobile homes that are selling for $12,000 or less. The problem is that nobody wants to finance older mobiles, so they have no way to buy one.

Then they come to your mobile home park. You have a mobile home for sale. The previous owner had a job transfer, and after trying to sell the home for $8,000 for a couple months, he was desperate. He was still paying lot rent, after all. You offered him $5,000 and he thanked you for resolving his problem.

You paid $100 for someone to clean up the home and put a price of $12,000 on it. Why so high for a mobile that might be worth $8,000? Because the price isn't just about the mobile. The young couple like it. You tell them that you won't budge on the price, but you will take just a $500 down payment, along with the first month's lot rent. They can afford that. They will pay the balance at $160 per month, with interest at 12%. It will take a little over 10 years to pay it off. They buy it.

Now lets look at this from their perspective. They have a place to stay that they own. It will have some value once paid off. How much? It doesn't really matter. Their housing cost is a couple hundred less per month than if they rented an apartment or bought a new mobile. That means that in ten years they will have spent almost $30,000 less for housing than if they took one of the other alternatives. How could they be worse off. Also, this may be their only option if they want a mobile home, since they have so little cash saved.

How did you do? You made a profit of $7,000 on the mobile, plus you get 12% interest not just on your $5,000 investment, but on the whole balance owed ($11,500 to start). That's a great return on your investment. Now do a dozen more of these.

These opportunities will arise regularly. The owners of the homes need to sell quickly to avoid paying lot rent for months while also paying the expenses in their new home. Selling a home can be a lot of work too. If they hire a sale's agent they'll pay a commission. You can tell them honestly that you buy mobiles to make a profit and can't pay much, but you'll pay cash right now. Many will be happy that you resolved their problem.

On the other end, you can help buyers without cash. As the owner of a mobile home park, you get to say who stays and who goes. That gives you a good degree of control. That control makes it relatively safe for you to sell a mobile home with a small down payment. Remember that in the above example you only have $4,600 invested after your $100 clean-up and receiving the $500 down payment. Even if the new buyers trashed the place and walked away a year later, you will still be able to resell at a profit.

I read a true story about one owner of a park who bought and resold the same mobile home in his park a half dozen times. With interest and capital gains, he figures he eventually made $35,000 off an investment of $4,000. Does that motivate you to try buying and selling mobile homes in your park?

Investors Attracted By French Travel Networks

2007-05-22T03:54:00.001-07:00

One of the main reasons people chose to invest in French property is the country's exceptionally efficient transport systems.

Today, many major French towns and cities are within easy reach of the UK thanks to the high speed French railway, cheap airline deals and fast motorways.

This bodes well for investors who would like to purchase a property in France but still wish to maintain a house or business back in Blighty.

Travel to south of France from London

Meanwhile, a new route from London City Airport to sunny Nice looks set to make life even easier for those looking to buy a holiday home in the south of France.

CityJet, part of Air France, will offer the benefit of a ten minute check in time at London City Airport, making it ideal for those who want to head to France for a quick break.

Geoffrey O'Byrne White, CityJet CEO, said: "CityJet for Air France is an important milestone.

"We are pleased to underline our commitment to London City where we have had a presence for many years while simultaneously pursuing our development with our revamped fleet."

Travel to and from France 'a doddle' It seems then that whether you are looking into buying a chateau, a French farm or even considering retirement villages in France, it will never be a struggle to get back to the UK to see family and friends.

Jean Luc Brouillet, an economist and managing director of one of France's leading banks, told news agency Functionpix: "Better transport systems [in France], less cars on the road, lower taxes and higher quality education is tempting for many cash strapped British families."

Tips On How To Get Started In Real Estate Investing Without Losing Your Shirt

2007-05-22T03:53:00.000-07:00

It's often been asserted that Real Estate investing might be the best and effortless ways to create wealth. In some ways that is true since, with a humble monetary outlay and a reasonable supply of sweat equity, real estate can be purchased and resold for a hefty gain and the opportunity still looks excellent.

While Real Estate investing can be easier than other forms of reaping a good return on investment you should not assume that it is easy.

The largest obstacle to being successful in real estate investing, for those starting out, is the sharp learning curve. Real Estate investing is a complex industry and it does not matter where your real estate is located. You can lose large sums of cash faster than you can say 'stock market crash'. This is especially true if you haven't done proper investigation ahead of time.

Let’s examine the procedure by exploring various things to think about before jumping in to real estate investing.

Before investing cash, invest a little time. Consider what your monetary goals are that you want to accomplish and how soon do you want to arrive there.

It is easy to dream about what we want to accomplish but we must bring these dreams down to earth. Sure you say but how? Housing prices have been going up for a number of years and they still are going up. Real estate is just like all commodities, real estate values vary and may go down, and when they do it could be a sharp, steep decline. If history is any guide, the most likely scenario is a sharp decline.

Writing out your monetary and time commitments is a good and practical exercise. A one year to five year business plan is indispensable and does it in as much detail as you can. A review of your business plan on a regular basis is needed to see how you are coming along and to tweak it as needed from time to time. A good rule of thumb is to check it after six months and again after two years.

Be sure to include an approximation of how much money you have to invest. Since you might choose to use your own house that you are living in as your first investment this financial cost can vary widely among individual investors.

If you plan to operate with less than $10,000 to start with then you are going to need to be looking at either using your primary home or purchasing a 'fixer-upper' to be your first investment.

You can buy a secondary property with no cash down and a few of thousand dollars in closing costs if you have good credit. But the housing market would have to go fast, and you would need to sell quickly.

The problems and risks involved have severe tax and legal penalties. The substitute would be to take on larger monthly payments and maybe extra expenses on repairs. Here again you can this can be dangerous and possibly costly. You have a greater possibility of losing more than your beginning outlay, even if you only interject a small sum of cash, you're going to be legally responsible for the complete undertaking.

An unwise move for the newbie:

Back to your business plan, you need to indicate the level of risk you are ready to take. The level of personal risk one has can be calculated by past experience. If you have not had any past dealings with large sums of capitol on the line then you will have to do some introspection of your personality. Ask someone close to you what they think about your risk level. Some people can deal with an outstanding balance of hundreds of thousands of dollars floating in the balance while others could not sleep with having $10,000 on the line.

Many people invest with a leaning toward capital preservation, others investors want maximum dollar return in the fastest time. Many folks differ widely in their tolerance for risk. Know your limits or you could be in over your head quickly.

How much time do you have to dedicate to your new venture? You will have to create a association with a lender, study all about your individual market, contracts involved, required insurance, your legal rights, other party legal rights and requirements, various tax consequences, and various other facets of real estate investing.

If you find this all to be an interesting challenge and all the above sounds ok, then Real estate investment might be just for you! You can generate a substantial additional income, or a full time living if you want to since real estate investing continues to be one of the soundest investment opportunities obtainable. Although you can generate a pile of money — it's a great adventure too!

Real Estate Investing Tips - 5 Things You Need to Know

2007-05-22T03:52:00.001-07:00

Real Estate Investing is simple, but not necessarily easy! You see, people can complicate anything! It's like telling someone how to drive a car. It's not complicated at all. Just open the door. Sit down. Turn the car on and put it into drive. But, people always make things harder than they need to be; They start asking thinks like 'which door should I open - the left or the right?' or 'Do I unlock it with a key or click the button' and on and on we go. Twenty minutes later, we've still not even been able to get into the car.

I liked that analogy because it applies to real estate. There are really 5 things you need to know - or steps - when it comes to real estate.

Here are the 5 Real Estate Investing Tips you need to know!

Tip #1: Find a Motivated Seller
Stop wasting your time trying to make deals out of deals that aren't there. Sellers are motivated to sell a piece of real estate by only 3 things:

1. Change in personal situation. Sellers become very motivated to sell their properties when things in their personal lives change and they can no longer afford the home or there is an emotional reason for selling. Personal reasons for selling a home are: job loss, divorce, relocation, illness, etc.

2. Economic conditions.

3. Property conditions

Tip #2: Evaluate the Deal
Once you've found a motivated seller, it's time to decide if the deal is going to work. Real estate investing comes down to the numbers. There are 5 factors to consider in order to decide whether or not to invest in a property.

1. Location. If real estate is located in an area that is full of abandoned properties and rundown houses, the score will be lower than if the house was located in a prime location, close to all of the area amenities.

2. Condition. The better the condition of the property, the higher the score will be. For instance, a brand new home is going to have a substantially higher score than a property that's rundown and needs major repairs.

3. Price. The lower the price, the better! The goal is to purchase real estate for as little as possible. 30% or more below market value will score much higher than when the seller is asking for market value or better.

4. Financing. Real estate comes down to the numbers. If the seller is willing to give you financing with flexible terms and low interest rates and you don't have to come out with any of your own money, it's better than when the seller needs all cash up front.

5. Seller's Motivation. On a scale of 1 to 10, how motivated is the seller to sell his/her property? The more urgent their situation is, the higher the motivation score.

Tip #3: Write an Offer
After you've done your homework and looked at the numbers, it's time to put the pen to the paper. But before you write your offer, make sure you have 2 exit strategies in place. This way, you're not stuck holding onto a piece of real estate that you can't rent or sell. Many people are losing their shirts in real estate because they jumped in on pre-construction and hoped to "get rich quick". Consider submitting 3 contracts on the same property with different prices and terms and let the seller decide what works best for his/her situation. For instance, you may have a wholesale offer at 50% of market value, a seller financed alternative that you might use for a rental, and a lease option which you might do a sandwich lease-option.

Tip #4: Line Up Your Financing
Once the seller has agreed to one of your offers, it's time to get the deal closed. If you're wholesaling the property, find your investor-buyer. If you're going to close on it yourself, line up the financing via a conventional lender, hard money lender or line of credit. Also start looking for a tenant or tenant-buyer if you're goal is to build a long term real estate portfolio. The key is to get your financing lined up in accordance to your exit strategy and begin moving immediately.

Tip #5: Follow Through with Your Plan
Many real estate investors purchase a piece of property with one plan, buy-fix-sell. They write the offer based on a certain sale price and with a specific plan to renovate. Then, once they close on the home, they over-improve and try to sell it for more than it's worth or use a hard money lender and then decide they want to rent it.

If you follow these steps and remember the tips, then you will make money in real estate. If you deviate from the plan, then your chances of running into problems increase. You wind up with the wrong type of financing, you can't find tenants, the holding costs eat the profits, etc.

Remember, real estate investing is like driving a car. It's simple. Get in, turn the key, put it in drive, and go!

Flipping in Housing Bubble or Slow Market

2007-05-18T02:50:00.002-07:00

It has become quite evident over the past months that the housing market is experiencing a significant slowdown; in some parts of the country this has been more evident than in other areas. This change in the market has created wide speculation about what is happening as is always the case with everything that ever happens in any market, be it oil, stocks, commodities or housing.

I am sure by now that everyone has heard the speculation referring to the slowdown as a housing bubble, meaning that home prices are drastically inflated and that a “burst of the bubble” or drastic nationwide decline in home values is inevitable.

I personally do not believe that a bubble exists but I do think price adjustments are and will be occurring in some areas of the country based simply upon the supply and demand.

The current excess in supply comes not only from new construction but also from a record number of foreclosures happening as a result of rising mortgage payments “resets” on adjustable rate mortgages, making it impossible for some to pay for their home.

With all of this activity and uncertainty in the market it can be very discouraging and quite easy to join many others that have gone to the fence to sit and watch. My thoughts are that money is never made by sitting on the fence doing nothing; my experience has been that doing nothing has always got me nothing!

Flipping a house in slower market conditions does represent greater risks and requires more caution and due diligence to what housing prices are doing and what you can buy and sell for, it is definitely a time to be more selective and certain about the choices you make. House flipping always requires a good understanding of your market and what it is doing but the bargains can always be found no matter what conditions exist.

When housing prices are in decline it is a good idea to keep things more on the simple side, lean more toward the cosmetic fixers. Limit the scope of your makeovers and upgrades to what you know will add value, don’t over due things.

Have a solid plan before beginning your rehab projects and know exactly what improvements you plan to make to the house. The more work you can do yourself the better your profit potential will be. If you do hire work to be done be sure of your help, you don't want to be at the mercy of undependable hired help slowing you down. Keep your turn around time as short as possible so that the house is back on the market as quickly as possible. Don't flip out, keep flipping!

Investing In Prescott AZ

2007-05-18T02:50:00.001-07:00

There is a real fascination with investing in real estate these days. This has been partially fostered by an abundance of television shows extolling the virtues of real estate prospecting and flipping. This may be a huge factor in the popularity of investing, but the continued interest is founded in the fact that this vein of investing makes money. It is one of the most accessible forms of investing to the average joe and it is also one of the safest forms of investment as it is quite flexible. For example, if you buy a home with the intention of flipping it and the market goes into a slump where not many homes are being bought, you have the option of renting the home until the market picks up.

Planning is essential to any investment and real estate is definitely no exception. You will want to plan your purchase very carefully and consider every aspect of the purchase. Start by looking through some of the neighborhoods where there are homes for sale. Take note of things like schools, shopping, public transportation and other amenities. These will be important assets to consider when buying as the needs of prospective buyers or tenants must be considered.

The next thing you should look at in prospective homes is any renovations or upgrades/fixes that will need to be done to make the home suitable for sale or rent. Be careful not to purchase a home that will need too many things done to make it a viable investment. This is especially important if you are planning to flip the home. You must be able to do your desired improvements and fixes and still realize enough profit to make the investment worth the time and effort. Every fix you do will cut into your profit margin so try to find a home that needs only minor and cosmetic upgrades. Keep in mind, the less you have to spend fixing the home, the more you stand to make when selling. If renting, then make sure that the home is clean and has all the necessary appliances and amenities to make it a desirable place to rent.

Don't Quit Your Day Job

2007-05-18T02:49:00.002-07:00

Many of my students ask me this question, "Should I Quit My Job?"

I am very conservative in my thinking on this and suggest you have at least a one year cushion in the bank before you think you are hot stuff and go quitting your job to rehab full time.

The money in your account does not include the money you will need to rehab the home and the holding costs. If you are managing your project correctly there should be no problem of working your full time job and rehabbing homes. It is also a lot easier to borrow money when you have a job. Banks do not like lending money to self employed people. They think we are a big risk - I would guess.

Also, you may think you have enough money to rehab your property in the beginning but there are always problems that could arise that you may have been unaware of and then you have no way borrowing additional money from the banks - again because they are uneasy to lending money out to someone self employed.

So, don't rush into becoming self employed and pull the trigger too fast. You'll have the rest of your life to be your own boss. Just make sure the timing is right. You are going to be learning a new business of rehabbing homes and you should not have the added stress of money or lack of on top of quitting your job. It will be a luxury worth waiting for once the opportunity presents itself.

Mandy Sheckles is the founder and President of The Wealth Corp. Her company offers Property Rehabbing Education to students around the country. In just eight years, she went from flat broke to being a real estate millionaire.

Building The Right Team Behind You

2007-05-18T02:49:00.001-07:00

This article aims to provide you with helpful information and useful guideline so you can get the right investment decision from the very start of your overseas property investment. We understand how hard it can be to invest in a foreign country and to prevent you from going after the wrong properties and areas we advice to spend time upfront on creating the right strategy and make up a powerful team who will stay behind you and support your interests :

Things To Consider Before Investing Does An Investment Property Fit Your Financial Plan?

Investing in real estate can be a powerful wealth-building tool. It can also be a burden that drains away assets and monopolizes your time and effort. It’s critical to be in control of your finances, have an overall plan, and believe that an investment property is the right strategy for you. Talk to a real estate expert, attorney and accountant about your particular situation and goals. Cultivate your relationships with these advisors. They’ll serve you well throughout your investing career. Here are some questions to ask yourself to help you start clarifying your goals:
• Do I expect the property to provide immediate income or long-term appreciation?
• What’s the status of my retirement savings?
• Will liquidity be an issue for me?
• Will I be able to handle long-term ownership even with an unpredictable cash flow?
• Do I expect my investment property to provide me with income when I retire?

Setting Parameters

Should you invest in a penthouse or in a studio? A three-story house or developing land? The first time out, it’s probably best to invest in something on the small side, keeping your strategy in mind at all stages would allow choosing the best unit! Next decision: locale. City or country? Nearby or away from it all? Residential or resort? This would entirely depend on your strategy! Real estate experts suggest you start with what you want to achieve and the select the area that can most likely achieve your goal. If you are after a whole year rental income then maybe a city location would give you the opportunity to achieve your goal, as well as some resort properties. Every strategy is unique because different investors have different personal and financial circumstances. A prime location in a basic rule in property investing but this doesn’t always apply! There are rules in property investing that might not apply to your specific situation; the best option is to have a specialist advise you to avoid mistakes, especially if this is your first investment overseas.
An Expert Home Team
Makes A Big Difference
Building Your Team

Working with a team of experts can smooth your way to the right investment home, especially if you’re considering a long-distance purchase. You started by talking to your tax advisor and attorney about the feasibility of making this purchase and about potential tax advantages. Now it’s time to contact some other professionals:

Real Estate Consultants. A solid relationship here can make all the difference, especially if you’re considering locales that are farther than a car ride away. A consultant becomes your eyes, ears, and voice as they preview properties and locate homes that meet your criteria — perhaps working online to send you listings. A good consultant can:
• Establish what you want in an investment property.
• Search resources for properties that match your needs.
• Tell you about appropriate properties.
• Provide valuable information on communities, comparable values of neighboring homes, tax rates, rental amounts, and building code regulations.
• Arrange for digital photos or virtual tours to be sent via the Internet.
• Help you formulate an offer on the property you wish to purchase.
• Act as an intermediary between you and the seller, smoothing the negotiating process and negotiating a better price for you.

Mortgage Brokers — a broker is different from a mortgage lender. The broker doesn’t make the loans, he or she has dozens of contacts with lenders and can tailor your financing package to your needs, whether a mortgage, a piggyback combination or hard money.

A Real Estate Attorney — This is all about asset protection; you don't want to amass your empire only to lose it to frivolous lawsuits. In certain states, attorneys rather than title companies do the closings, so you want your own on your team.

An Accountant — The accountant should know real estate and tax law. This is not just to get your taxes done at the end of the year; this is so you can strategize with someone who understands the impact of income taxes and capital gains on what you want to do.

Maximizing Your Profit and Reaching Your Goals With Real Estate

2007-05-18T02:48:00.000-07:00

What is the best way to maximize your real estate profit and reach your investment goals? Real estate is a solid investment that offers both short-term and long-term gains. People have been investing in real estate since land and homes were first bought and sold. If you have interest in becoming a real estate investor, there are several things to consider as you move forward. The main point is to determine why you want to purchase the property—Is it for long-term gain? Is it for short term investment? It may be for both. By clearly thinking your strategy through on before you invest, you will likely maximize your efforts as you proceed. Before you purchase a property, you will have to determine if it is best to flip the property - make improvements and sell it fast - or rent it out. Markets do fluctuate, and even people who are not involved in real estate investing know the terms "buyer's market" and "seller's market." Which decision you make depends on what is happening in the market, how much the property costs, and how your choices fit your overall investment strategy.

How to Know When to Flip a Property
Flipping a house can provide huge profits if you do it right. It has become popular and common over the last several years, and there even a number of television shows dedicated to showing people how it is done. Key factors in making the decision to flip include the initial purchase price, the location and condition of the property, and the prices of similar home sin the area. This last point also includes whether the properties have sold and how quickly they sold. Remember, a price is only truly valid when the property has a buyer willing to pay that price!

Generally speaking, if you plan to purchase a more expensive home, the best idea is to turn it around quickly in order to limit your expenses and gain from the current market. Expensive homes come with big mortgage and property tax payments, which usually mean that renting for the cash flow is out of the question. It can also be difficult to find renters for higher priced homes, and if they miss a rent payment for one or several months, your profits will quickly disappear and you may even start to have a significant loss.

If you find a great property that requires mostly cosmetic changes, you should be able to flip it easily for a meaningful profit. A property with major structural problems can be a "money pit," especially if the price was too high to begin with. Before you commit to any major changes in the property, assess not only your own cash resources (this is very important!), but also your work force resources. Do you have relationships with contractors, landscapers, and other skilled labor professionals? Will those people be reliable in terms of time and price? These are critical questions to answer before you begin. How to Know When to Rent a Property

Renting your investment property can provide you with monthly positive cash flow while you build equity through your payments and the appreciation of the property price. Renting also allows you to take advantage of tax breaks for any improvements you make to the property as a tax deduction. Again, key factors are the price of the home, if the market has growth potential, and the condition of the property.

A lower-priced home translates to a lower monthly payment, property taxes and insurance. Remember, you don't need to make a big monthly profit. In order to succeed over the long run, the idea here is to own more properties and make your profits over time. When you rent a property out, you are building equity using your tenant's money. Add up the costs related to the property, including a small amount for repairs and any utilities you plan to pay for. This is a safer way to invest in real estate and can net you very high profits. There will always be good tenants to rent good properties!

Another way to determine if you should flip or rent is if the market is growing. Does the area have a lot of new construction? Are there new industries moving in? Is the location near an urban area, with plans for an existing public transportation system to the city? Properties located in these "growth" areas almost always net the largest gains over time. This is especially true in areas where there are new people moving in. They often are moving from areas where they have sold their homes for larger process, and are looking to spend that money on new properties, thus driving up existing prices. In a growth market, you can make money flipping a house, but you may be able to make considerably more money over a long period of time if you rent it out, build equity, and sell it for an even higher price at the optimum time. Even if you buy yourself a vacation home, you can make money down the road if you hold on to it, and you can rent it out as a vacation home or to tourists when you do not plan to live there.

It's Not Just About the Bottom Line
When deciding whether to flip or rent out a property, assess the market, do the math, and then consider your own interests and abilities. The perfect flip is not so perfect for those who have no construction or renovation experience, and being a landlord may not be a role you wish to take on. In the end, it's about what's best for your pocketbook, what’s best for your investment strategy and what's best for you.

Slovenia Property Investment - One Of Top 10 World Property Investment Countries

2007-05-16T05:16:00.001-07:00

Slovenia property investment may not be as popular as many other well known property investment locations, but savvy investors are buying and making great capital gains, in one of the top markets for capital growth in the world.

With prices starting at just $50,000 and capital growth in excess of 30% per annum combined with the potential for significant rental income, it no wonder more investors than ever are looking at Slovenia property investment.

Capital growth potential

Investors in Slovenian property are currently enjoying capital gains of up to 30% per annum and this growth looks set to continue.

In the next decade capital growth was forecast at 278% by property specialist program “A place in the Sun” which has increased interest from property investors around the world.

Why Slovenia is hot

Since attaining independence from Yugoslavia and joining the EU, Slovenia has seen strong economic growth.

Tourism has been the fastest-growing sector of the economy and this has enabled it to produce the highest GDP of the new EU members.

Slovenia has become popular due to its variety of scenery; good infrastructure and a variety of airlines now offer cheap, frequent flights - making it easy and inexpensive to get to.

Natural Beauty

Slovenia is located between Austria, Italy, Hungary and Croatia and while a small country, it is beautiful and has something for everyone.

Slovenia features forests, vineyards, snow capped mountains, a beautiful stretch of Mediterranean coastline and some great baroque architecture.

Slovenia has a beautiful capital – Ljubljana.

The city has been described as a smaller and less crowed Prague and comes with stunning architecture.

A booming economy

Slovenia’s accession to the EU saw big changes in the economy, as Slovenia opened its doors to overseas property buyers.

Strong growth in GDP has been mirrored by growth in Slovenian property prices.

The capital Ljubljana offers the best returns on investment, with prices predicted to continue rising by around 30% per annum for many years to come.

The limited supply of housing and restrictions on land development are the main driving forces behind this growth.

The economic expansion in the capital which will see rentals soar – giving “buy to let” investors significant income, as well as capital growth potential.

Primorska on the Adriatic coast and the mountain district of Gorenjska are the next most expensive places to buy in Slovenia.

If you are interested in Slovenian property and cant afford these areas there are plenty more to choose from, as this is a market in its early stages of development and offers better risk to reward than the more mature markets that surround it.

Slovenia has a wide range of property investments to suit all tastes and budgets.

Property for sale in Slovenia with good capital growth potential can be bought from under $50,000 in many areas.

You can invest in ski apartments in areas such as the Julian Mountains, or in traditional country houses near the vineyards or finally, in the expanding urban areas.

In Conclusion, Slovenia Offers property investors:

A great opportunity to invest in a stable and growing EU member.

Slovenian property investment offers above average capital growth potential combined with significant rental income from “the buy to let” areas and finally, being an emerging market it’s highly affordable.

In part 2 of this article you will find some of the best new emerging destinations to buy in and also an in-depth look at the buying process.

Discover more about Slovenia and Slovenian property investment and see how it could change your financial future.

The Real Estate Bubble is Still Here!

2007-05-16T05:15:00.001-07:00

You’ve read the headlines about how the real estate bubble has burst in one city after another.

But don’t believe it.

It is a gross generalization, as are so many tales of economic doom and gloom.

There are always exceptions, and in some places the bubble got a little smaller but didn’t altogether bust.

Just yesterday, I was reading about a small, upscale community in Southern California known for its fine public schools and Midwestern atmosphere.

In March, 2006, the average sales price of an existing home was about $1.3 million. A year later, amidst all of the hand wringing over the mortgage lending crisis the average price ROSE to $1.73 million.

That is better than a 25% gain, year-to-year, which still sounds very bubbly to me.

A prominent realtor reacted to the news by noting, “Real estate is very local.”

That’s local, as in the old saying about the three determinants of a property’s value, “Location, location, location.”

Every market presents some opportunities. As an investor or simply a savvy homebuyer we need to look at what is happening “on the ground” with fresh eyes, discounting exaggerated news and dire predictions and ask, “What’s really going on, HERE?”

In some cases and some places, there seem to be two types of buying opportunities: good ones and better ones!

So, check out that community of your dreams. It may not be as pricey as you think, especially if it is a place where the bubble never really burst!

Morocco Property Investment - A New Overseas Investment Property Hot Spot

2007-05-16T05:14:00.002-07:00

A number of factors have come together to make Moroccan property investment a fantastic opportunity for overseas property investors.

If you want great capital growth and an opportunity for significant income from the buy to “let market” then Morocco can offer you great risk to reward

If you are considering overseas property investment you should think of morocco property as an investment first.

Here are the reasons why:

Investment property in Morocco at present is offering annual capital gains of up 35%.

This capital growth is expected to continue, as tourism and cheaper flights make morocco more popular.

Morocco is already a popular tourist destination and the government is allocating 10 billion euros to increase tourism by several million visitors per annum.

Of course, as tourism grows so does demand rental properties.

You can not only make great annual capital gains with low risk ,but supplement this with a significant income from the “buy to let” sector.

If you are looking for cheap property for sale that has excellent capital growth potential then Morocco offers you outstanding risk to reward.

This market is still growing and capital growth looks set to continue for years to come.

Morocco Lifestyle

With its geographical location, just south of Spain it is seeing an increasing number of tourists and investors from Europe and other overseas locations.

Morocco is a country of stunning beauty, but also has the infrastructure to attract an ever growing number of tourists which include:

• Pristine clean sandy beaches and crystal clear seas.

* The stunning Atlas Mountains and the Sahara desert.

• A wealth of recreational facilities including: Fishing, scuba diving, golf, tennis hiking, Camel treks and a wealth of historic Moorish culture.

* Up-market tourist developments, that bring with them excellent cuisine, shopping facilities and improvements in infrastructure.

• A wide variety of languages are spoken and Spanish, English, Italian and French are common.

• It has a perfect location for other destinations to explore such as southern Spain, which is under an hour away.

• A great climate that includes, both hot summers and warm winters making.

The economic and political climate

Of course, all the above advantages of lifestyle are bringing more people to morocco than ever before.

This mass influx is being encouraged by huge investment to improve the facilities and infrastructure and makes Moroccan property investment attractive to buyers seeking both capital growth and rental income.

• Property prices are cheap and are up to 60% less than other similar Mediterranean resorts.

* Capital gains in property can be up 35% in many locations.

• Morocco has a very Low cost of living. For example, Morocco is far cheaper than its near neighbor Spain and provides a luxury lifestyle at affordable cost.

• Morocco has a booming property rental market with occupancy of up to nearly 90% in the peak summer months.

• Taxes are cheap. For example, tax on any capital gains is a maximum of 20% and in many cases can be nothing at all finally, there is no inheritance tax to pay finally, there is no annual property tax for 5 years.

• Finance is available and up to 70% mortgages are available to overseas investors.

For any property investor the major criteria for buying are:

• Affordable property prices with significant capital growth potential.

• Low taxation and flexible finance facilities.

• A stable economic and political climate that will foster growth.

Add in a buoyant “buy to let” market and it is no wonder Moroccan property investment is growing in popularity and the trend looks set to continue.

Discover more about investing in property in morocco and you may be glad you did.

Getting The Most Profit Fixing Up Old Properties

2007-05-16T05:14:00.001-07:00

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.

Finding Properties To Buy If You Are A New Real Estate Investor

2007-05-16T05:11:00.000-07:00

Finding properties to buy sometimes can be hard work by itself. If you are a new real estate investor finding homes to buy may not be an easy thing to do. One way to find properties to buy if you are a new real estate investor is the local newspaper. The local newspaper almost always has a real estate section with properties for sale. You can make a list of all the properties you’re interested in and prepare to make some phone calls. When you do call, some questions you can ask is the size of the house, how long it’s been on the market, if the mortgage is assumable.

If you are looking to buy properties in an unconventional way you can ask if the seller is willing to do seller financing. The phone is a good way to screen out the sellers or the properties you don't want. Another way to find properties to buy if you are a new real estate investor is the internet. The internet is a good place because some sites have good photos of many properties. It can save you time because if a property looks run down or looks too small you won't waste your time calling.

One last place you can find properties to buy if you are a new real estate investor is driving around. All you got to look out for is the for sale signs. This is a good way the find properties that are close. Another thing with driving around is you can find properties that are not promoted well. You can end up getting a good deal. Finding properties to buy is not an easy thing to do, but if you use the information here you will have some idea of where to look.

Tax-Free Profits on All of Your Real Estate Deals? Yes You Can!

2007-05-10T04:58:00.000-07:00

After completing a successful real estate transaction, do you ever wish a chunk of the profits didn’t have to go back to the IRS for taxes? Do you ever dream about how many more real estate deals you could do or how many more properties you could buy if profits weren’t split with the government because of taxes?

Well dream no more. Realizing tax-free or tax-deferred profits on real estate and alternative asset investing is a reality.

Government sponsored retirement plans such as IRAs and 401(k)s allow you to invest in almost anything (including real estate), not just stocks, bonds and mutual funds. And all the benefits those plans provide, tax-deductions and tax-free profits, apply to whatever investment you choose, including real estate.

The Power of Tax-Deferred and Tax-Free Profits

"The most powerful force on Earth is compounding interest." - Albert Einstein

One of an IRA's greatest features is that it allows Americans to enjoy the true power of tax-deferred compounding interest. Compound interest occurs when interest is earned on a principal sum along with any accumulated interest on that sum. In other words, you are earning interest not only on your original investment sum, but also on the interest earned from the original sum.

Compound interest can occur with any investment you make, but the "true" power of compounding interest is obtained when you make an investment in a tax-deferred environment, like an IRA.

By taking advantage of an IRA's tax-deferred status, you do not have to pay tax immediately on your earnings (like the sale of a property or rent collected). Thus, you are able to enjoy the power of compounding on ALL of your profit, not just what is left after taxes.

Now apply those benefits to your real estate or alternative asset investing. Tax-deferred profits on your real estate transactions allows greater flexibility to make more investments, or to just sit back and watch your real estate investment grow in value, without worrying about taxes.

Is This for Real?

Most investors don't know this opportunity exists because most IRA custodians do not offer truly self-directed IRAs that allow Americans to invest in real estate and other non-traditional investments.

Often, when you ask a custodian/trustee, "Can I invest in real estate with an IRA?" they will say, I've never heard of that" or, "No, you can't do that." What they really mean is that you can't do this at their company because they only offer stocks, mutual funds, bonds, or CD products.

Only a truly self-directed IRA custodian like Equity Trust Company (www.trustetc.com) will allow you to invest in all forms of real estate or any other investments not prohibited by the Internal Revenue Service.

Is This Legal?

It sure is. For more than 33 years and through the management of $2 billion in IRA assets, Equity Trust has assisted clients in increasing their financial wealth by investing in a variety of opportunities from real estate and private placements to stocks and bonds in self-directed IRAs and small business retirement plans.

IRS Publication 590 (dealing with IRAs) states what investments are prohibited; these investments include artwork, stamps, rugs, antiques, and gems. All other investments, including stocks, bonds, mutual funds, real estate, mortgages, and private placements, are perfectly acceptable as long as IRS rules governing retirement plans are followed (To view IRS Publication 590, please visit www.trustetc.com/links/irspubs.html).

Getting Started

“Is it hard to do?” is a common question about investing in real estate with a self-directed IRA. It is really simple and is very similar to the way you currently invest in real estate. The following five steps demonstrate how easy it is to invest in real estate, or just about anything else, with a self-directed IRA.

1) Establish an account with a self-directed IRA custodian. First, you must establish an account with a self-directed IRA custodian and Equity Trust Company is your best option. For more information on why Equity Trust is the right choice for your self-directed IRA needs, visit www.trustetc.com.

Setting up an IRA account with Equity Trust usually takes only minutes to complete by filling out a simple application and sending (or faxing) it to our office.

2) Fund your account. Next you have to fund the account, and this is just as easy as opening a self-directed IRA account. There are two ways to fund your account.

• Contributions You can contribute to your account through a check or wire transfer and contribution limits range from $4,000-$50,000 depending on which account you choose.

• Transfer/Rollover

In most cases, if you have an existing retirement plan such as an IRA, 401k, or 403b these funds can be transferred to a self-directed IRA allowing you to make real estate IRA investments.

3) Investment found: You’re set to go! Now that you’ve got your account established, funded and you’ve identified a real estate investment, you are ready to make an investment.

Making a real estate investment with your IRA is straightforward if you remember a few simple rules. First, complete a Direction of Investment (DOI) form. A DOI instructs the custodian where and how to remit funds from your self-directed IRA for your real estate purchase.

Information contained on the DOI includes the property address, cost, funding instructions (check/wire) etc. In addition to the DOI, the custodian will need accompanying investment documents to ensure proper titling of the investment.

4) Ensuring proper title: You and your IRA are not the same. One of the most common mistakes (and cause of delays) in real estate IRA investing is when the property is titled incorrectly. Frequently the IRA owner will incorrectly put their personal name on the title of the property.

Remember you and your IRA are two separate entities, and as such, the property needs to be titled in the name of your IRA and not you personally.

• The correct title for a real estate (or other asset) IRA investment is:

Equity Trust Company custodian FBO (for benefit of) YOUR NAME IRA

5) What happens after your IRA owns the property? Now that your IRA has purchased the property you need to remember two things:

• Expenses: Any expenses associated with the property (maintenance, improvements, property taxes, condo association, general bills etc.) must come from the IRA.
• Cash Flow/Profits: All net profits must return to the IRA, meaning all income (rent) and profits (selling of property) are deposited back into your IRA account—tax-free!

That is all there is to it, it’s as simple as 1-2-3. In no time at all you can be investing in real estate and other alternative assets receiving tax-free or tax-deferred profits for the rest of your life.

Don’t delay in opening an account. Every day that passes is one less day your investment can benefit from the Earth’s most powerful force (at least according to Einstein), compounding interest.

Selecting an Answering Service for Your Real Estate Investing Business

2007-05-10T04:57:00.002-07:00

Here's how I have my real estate investing business call system set up and what I look for in an answering service.

First, I have all different types of my marketing out to find motivated sellers. I use things like classified ads that have my toll free 24 hour recorded information line telephone number on it. I use different extensions for each type of marketing. So, my classified ad in the weekly free newspaper has a different extension than my post it notes that I have delivered door to door in my farm neighborhoods.

When a motivated seller sees my advertisement and wants additional information they can NOT call me directly. They must go through my 24 hour recorded information line to listen to a pre-recorded message that is about 5 minutes long and explains to them in my best presentation voice, the benefits of them working with me and having me buy their house.

Once they have listened to the message, I give usually give them two options: go to my website and submit a form or call me directly.

If they decide to go to my website, they fill out a web based property information form which is directly loaded into my Real Estate Investor Database contact and business management account for me to deal with when I am ready to talk to motivated sellers.

If they decide to call my office directly, they actually do not call me. They call my 24 hour answering service. Here are some things I look for in an answering service.

First, I must be able to forward my phone number to them. I have my system set up so that the 24 hour recorded information line actually forwards the call to the answering service instead of having the seller hang up and call into a separate number. I prefer this and it requires that the answering service give you a local number (not a toll free number) because, as I understand it, you can not forward one toll free number to another toll free number.

Second, they must be willing to input the leads into my Real Estate Investor Database for me directly. Imagine getting over 100 leads in a few days and having to manually add each one to your contact management system. It is a real pain, so the service must be willing to add the new leads directly into my contact management system (which is web based).

Third, they must be reasonably priced. What is reasonably priced? I think less than 50 cents per call is reasonable. If they are going to charge a monthly fee it should be a monthly minimum against calls and not a monthly fee in addition to a per call fee.

Fourth, they must have reasonably good response time. You do not want your motivated sellers on hold for 10 minutes waiting to get through. You want them to wait no more than 2 minutes and most times they should be able to get through immediately.

Those are the qualifications I look for in a live answering service for my buying system.

6 Ways To Invest In Real Estate

2007-05-10T04:57:00.001-07:00

The first question I have for someone who's interested in real estate investing is: What type of investing is right for you?

Now when I ask people this question, the response I often hear is:

"I didn't know there were different types of real estate investments. I just want to make some money."

Well, there are several ways to invest in real estate.

Let me explain.

1. Make Money Monthly (Cash Flow)

You buy property and become a landlord. This doesn't necessarily mean you deal with tenants. There are plenty of management companies that will do that for a nominal fee.

You buy property and structure the deal so that any mortgage payment, plus the sum total of expenses, are less than the amount of income (rent) you are receiving. Hence the term - Positive Cash Flow!

When calculating positive cash flow, don't forget there are annual tax benefits to owning real estate and appreciation (realized at the time of sale.)

2. Buying and Selling (Flipping)

The idea here is simple: buy property for less than you sell it for. You can buy a distressed property that needs improvement, or buy from a distressed owner that needs out.

When you buy property that needs improvement, to make the most money you will want to bring the property up to snuff. Whether you do the work, or hire it done, you will need to calculate your cost to improve the property, as well as your holding costs. Holding costs are the expenses of owning the property during the time of repairs and until the property is sold. These costs include taxes, any mortgage interest payments, utilities, and normal maintenance such as grass cutting, and snow removal.

When you buy property from a distressed owner, often the property is fine, but the owner has either fallen behind in mortgage payments or taxes, or does not want the property for other reasons such as relocation, divorce, probate, etc. In this situation, you payoff the owner抯 debt, take over the property, and sell for a profit. Obviously the debt needs to be lower than the market value for you to profit.

3. Lease Option

This less common method involves controlling the property without taking title. You lease the property and either sell the property or lease to another tenant until the property sells. This one is a bit more complicated and has some drawbacks, such as the inability to depreciate your lease, but you can reap big profits.

4. Buying Tax Liens Property in default for back taxes can be purchased from the government. You simply place a deposit as designated by the government and sit out the waiting period. If the taxes are not paid, you get the property. Oh, in the meantime your money earns interest and you are guaranteed by the government not to lose a dime!

5. Private Lending

Individuals are allowed to finance so many properties per year without the regulations of becoming a mortgage company. This is a great way to invest passively in the real estate market. By holding a first deed of trust, your money is secured by the property, and you can charge more interest than you would otherwise earn with a typical safe passive investment such as CDs.

6. Pre-Construction:

Buy property direct from builders before they are built. You lock in a wholesale price and market the property upon completion. This is a good opportunity in many areas. You have no tenants to worry about and no mortgage payments during the construction.

So there are six choices for you to start making money in real estate!

Czech Property Purchase - The Process and Timeline

2007-05-10T04:56:00.001-07:00

A common question of foreign investors is how the purchase process works in Czech Republic and what kind of time frame will things be accomplished in. This will be presented on the basis of how our standard procedure works at Czech Point 101, which has been successful for many years now.

First a property is identified and the price negotiated to agreement of buyer and seller. Sound like an easy process? In Western countries it definitely is and it can be here but is often not the case. Please refer to our November/December 2006 newsletter for tips on Czech negotiation. Now what?

At this point there will be great pressure to sign a reservation contract and pay a deposit.

"We have another buyer who is willing to pay full price tomorrow" and "We have lots of interest in this property so we'll only hold it for you overnight while you make your decision" are common ideas you will hear from the real estate agent. Believe me, unless you are the first person to see the property or it has just been put on the market, you have time to think about things. The agent would sell the property to someone else in a second if there was a serious buyer.

A note of caution: NEVER, EVER sign a reservation contract with a real estate agent before getting it checked by an independent attorney. Of course and especially if it is only provided in Czech. The agreements a real estate company will offer are most often one-sided and setup for the buyer to lose their damage deposit. We have even heard of cases where the seller withdrew from the purchase and acknowledged this in writing and the real estate agent still refused to return the deposit.

Usually, work can begin immediately on the pre-purchase (or future purchase) contracts (in the case of a mortgage) or the purchase contract (in the case of a cash purchase) and this will satisfy the real estate agent/owner and prevent them from offering it to other buyers. However, this is not a sure thing.

Often the seller will put forward a pre-purchase agreement and it will take about two weeks to negotiate the terms of the pre-purchase contract. This is the main bulk of the negotiating and legal work since the pre-purchase normally contains the complete text of the purchase agreement.

At this point an arrangement is made for a date to sign the pre-purchase/purchase contracts. It would be safe to allow for a week and a half to find a time that is suitable for both buyer and seller.

From this moment the two paths and time frames depart from a common path depending on whether the purchase is with cash or with a mortgage.

Purchase Contract (cash purchase)

Upon signing of the purchase agreements the purchase price is deposited (this is the recommended route) to an escrow or third party account. Normally the escrow agreement allows 15 days from signing for this amount to be transferred to the notary account. If it is ready and just needs to be wired, it normally takes 3 to 5 days.

During this time period, the signed purchase contracts are held by the escrow agent, whether a notary office or attorney. When the purchase amount arrives on the account, the purchase contracts are released to the Land Registry for registration.

Pre-Purchase Contract (mortgage purchase)

Upon signing of the pre-purchase agreement, often an amount of purchase price is deposited to the escrow account. This is often the amount that the buyer is using from their own cash. In the case of 100% financing, this does not have to be the case.

Now the mortgage application process begins in earnest. The collection of required documents, time for the bank to approve and drawdown is about a six week process. Depending on the complexity and bank, it can be more or less.

Once the mortgage has been approved there is usually drawdown and deposit of the mortgage amount to the escrow account before the purchase agreement is signed. Allow a week and a half to conclude a mutually suitable date for signing the purchase agreements between the buyer and seller.

Common Conclusion

Once the documents are submitted to the Land Registry it is just a matter of time before the change is registered and you as the buyer become the owner.

As of this writing, the process has been going faster and Prague Land Registry changes are being registered in 2 to 3 months and in Brno, from 2 to 4 weeks. This is a great improvement over the past.

During this time period of registration, it can be possible to agree on the turnover of the property, but often this is in exchange for some of the purchase price being released from the escrow account.

Breakdown of Property Purchase Timeline (cash purchase)

Description/Average Length of Time (days)
Negotiation of Purchase/14
Finding Mutually Agreeable Signing Date/10
Transfer of Purchase Amount to the Escrow Account/10
Registration of New Ownership in Land Registry - Prague/60 to 90
Registration of New Ownership in Land Registry - Brno/14 to 30
Handover of Property/20

Totals:
Prague/114 to 144 (4 to 5 months)
Brno/68 to 84 (2 to 3 months)

Breakdown of Property Purchase Timeline (mortgage purchase)

Description/Average Length of Time (days)
Negotiation of Pre-Purchase Contract/ 14
Finding Mutually Agreeable Signing Date for Pre-Purchase Contract/10
Securing Mortgage with Bank/42
Drawdown and Transfer of Purchase Amount to the Escrow Account/10
Finding Mutually Agreeable Signing Date for Purchase Contract/10
Registration of New Ownership in Land Registry - Prague/60 to 90
Registration of New Ownership in Land Registry - Brno/14 to 30
Handover of Property/20

Totals:
Prague/166 to 196 (5.5 to 6.5 months)
Brno/120 to 136 (4 to 5 months)

The amount of time this can take really surprises a lot of buyers who are expecting a quick purchase and turnover of the property. One thing to realize when it comes to Czech business, things do not move quickly! Be patient, set your expectations realistically and your goals will be realized.

Property Investment - To Lease Or To Own?

2007-05-10T04:55:00.000-07:00

When you are poor, property investment isn’t even a question. Normally the really poor people cannot even spend any money to secure a decent structure.

And this is our starting point. One should never underestimate the psychological factors involved where the pros and cons of property owning are concerned. They lie embedded in the unconscious memory of humankind.

For thousands of years, humans struggled to survive the harshness of nature. Extreme heat, extreme cold, floods, and droughts. Too much rain when it wasn’t needed, nothing, when the days of survival started to become less and less. Pain, hunger, death, and loss of dear ones resulted. Constant attacks from other humans that envied their competitors’ better positions. And the memory that brings all this back again and again.

Humans are therefore programmed to find themselves a secure base to build a home and in which to live. A place to find happiness, where one can relax and let your guard down.

A hierarchy of needs (Maslow), however, has to be considered. When one is safe, you’re happy. Happy to be out of the rain, where the winds can’t rough you up and where the sun can’t burn you. But then there will always be other people that live in better circumstances. They will have running water and flushing toilets (by way of speaking). For that, one can once again strive to better your previously satisfactory position.

So you start to pay up. Prepared to work harder in order to afford the better position. Voila! The rental market comes into existence. Somebody will own that hot spot and will ask remuneration for that favoured position.

One could be happy there for a very long time, were it not for a few other factors. Someone else can come along and offer your landlord better remuneration. Then you will have to move and might most likely find yourself in a less comfortable position than before. Someone could have moved up in the food chain in such a manner that he or she can buy out your landlord and now suddenly you have to cope with a much more demanding owner of your comfortable nest. Slowly but surely one starts to realize that the much longed for security is not yet secured.

In modern times, many people succeed to ensure that they continue to live in comfortable renting spaces. If however they don’t succeed to find other ways to ensure that their capital base increases, they in time will once again find that their security becomes threatened.

One needs money to carry medical costs, to feed children and get them through school and hopefully further education. Even when one works very hard and succeeds to pay for what is necessary, there will come a time when your capacity to fight becomes less. Should you then find that your assets cannot provide cover for your needs later in life, the time to rectify that position will have passed you by.

Property investment provides the owner with solid growth if he or she succeeds to buy at the right time in the economical cycle, at the right price and at the right place. More people have bettered their position through life by investing in property than by any other means.

There will be always people that will have to rent a house or apartment. A person buying property (at the right time, at the right price and at the right place) will be able to capitalize on this and will in time receive passive income as well as a broadening capital base.

The bottom line is not to get caught up by being a renter for too long. It will in most cases cost you too dearly. Buy at the right time, with all the checks and balances in place. There are enough property investment professionals around that will be able to provide solid information and advice.

To Maintain Profitability, Maintain Your Real Estate

2007-05-08T04:19:00.003-07:00

Unsuccessful real estate investors tend to focus on the purchase. Successful investors focus on the operation. As you own more and more real estate over longer and longer periods of time, you will find that the clock is your best friend or your worst enemy. So use it wisely!

When considering a real estate investment over a mid or long term period, an important issue you need to come to grips with is the physical nature of a property and how it affects your financial growth and profitability. Too often a property is purchased and then left to operate without much thought about the paint, plaster, pipes, wiring, roof and so on. The intent of course is for the owner to generate as much cash flow as possible and cash flow is good. But, if that cash flow comes at the expense of allowing property elements to deteriorate, then the little profit you are taking now will be eaten up exponentially by the financial pounding you’re going to take later.

Wise management and operation will prove that those willing to do the work when it should be done, will inevitably achieve higher yields than those who foolishly allow maintenance issues to go as long as possible before responding. Simple preventive maintenance items that are ignored will compound due to the ravages of time and will inevitably cost you exponentially more to repair than they would have cost to maintain them when a maintenance need first arose. For example, a dripping bathroom p-trap that would take 30 minutes and a $5.00 part to fix will, if left unattended, warp the cabinet, deteriorate the floor and possibly allow mold to invade subfloors, sheet rock, carpeting and pad. A five dollar fix from a few months ago could now cost hundreds if not thousands of dollars to rectify. Without question the proper and timely maintenance of investment properties is the best expense control program you will ever use. Many owners have learned this lesson the hard and expensive way. Don’t be one of them. Learn from the experience of others, both good and bad.

If you will inspect your properties frequently and make the repairs and upgrades appropriately, you will save yourself thousands upon thousands of dollars over the long haul. You will also be able to maximize your income because of the quality of your property and thereby increase your NOI and market value. If your intent is to profit from real estate, then you must maintain it properly. So do the work as soon as it is identified and do it right. You’ll be dollars and hours ahead. And after all is said and done, real estate investors are capitalists, and proper maintenance is a capital idea. Good luck in your career and with your real estate investments.