Features of GO Zone Real Estate Investment
In order to encourage economic growth and reconstruction of damaged area, the U.S. Administration passed a Gulf Opportunity Zone Act in 2005 after the severe destruction caused by hurricane Katrina. The Gulf Opportunity Zone includes parts of Mississippi, Alabama and Louisiana. This act was formulated by the US Congress to offer tax and other financial incentives to corporations that participated in the process of rebuilding of the devastated area. GO Zone Real Estate Investment is a continuation of the numerous stipulations laid down in the Katrina Emergency Tax Relief Act of 2005 also known as KETRA. This plan aims to benefit victims of hurricane destruction and also the tax payers who participated in the renewal of the region. The GO Zone Real Estate Investment extended its hand of help for businesses and real estate companies who got affected by hurricane. This initiative has resulted in surge in real-estate property demand, in economic investment and in job creation. An important part of GO Zone real estate investment targets at construction of casino barges and many other building sites that were destroyed after Katrina. Some of the advantages of GO Zone Real Estate Investment initiative are: 1. Opportunities in real-estate: many developers now offer 5% refinancing option and low down payment along with small rental assistance for homes of any kind. 2. Casino area investment opportunities: From Bayside Park to casino area of Biloxi there has been record property appraisal that is a result of GO Zone Real Estate Investment. Extensive building has encouraged growth of this important area with investors developing new properties. 3. Higher revenue: Due to expansion and upgradation of the properties, higher revenues have been reported making the regions of Biloxi, Mississippi and New Orleans among the top ten highest generators of gambling revenue across the country. 4. Rental Market demand: An increasing demand in the rental housing units has been due to GO Zone Real Estate Investment initiative, giving opportunity to the investors. 5. Growth Area including casinos: Factors such as continuous expansion of casinos, expansion of defense industry has led to the real-estate boom.
แสดงบทความที่มีป้ายกำกับ Real Estate Investment แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ Real Estate Investment แสดงบทความทั้งหมด
วันเสาร์ที่ 2 มกราคม พ.ศ. 2553
วันเสาร์ที่ 7 มีนาคม พ.ศ. 2552
Location Makes An Impact On Real Estate Investment
Location Makes An Impact On Real Estate Investment
Investing in property always proves to be positive as over the globe the value of property and estates always appreciate with time. While the other possessions may depreciate in value, but the prices of real estate always climb up the ladder.
However, it is seen as time passes some properties appreciate in value that is more than others. A little more knowledge in this field can help you gain a bigger worth in the estate you are investing your funds in. Keeping your immaturity and ignorance in this regard you will unnecessarily lose on your investment.
When you think of investing in real estate you must select the location that is the basic key, very intelligently. Do not choose a land that is deserted for years, or in a forest or away from basic amenities of life. Farmlands may be a good location for putting your money into. It is better if you avoid choosing a quiet and secluded location as usually such remote areas do not give you better returns on investments.
Consider your likely neighborhood as an important factor; the standard of living of the residents, their language and almost the total quality of the neighborhood ambiance should be in perfect tune with your own life style. A neighborhood that has the potential to expand in and provide better returns is always preferable.
The location should provide you enough access ways to the city; it should be closer to your workplace and railroads. A location close to markets, schools, offices, hospitals, parks, clubs, libraries and shopping complexes will be on top priority for the client you will be selling or leasing your property to.
The location plays a vital role in uplifting or pushing down the value of the real estate investment you are thinking to dive in. A good well thought location can make a positive impact on the success of the real estate investment plans.
Investing in property always proves to be positive as over the globe the value of property and estates always appreciate with time. While the other possessions may depreciate in value, but the prices of real estate always climb up the ladder.
However, it is seen as time passes some properties appreciate in value that is more than others. A little more knowledge in this field can help you gain a bigger worth in the estate you are investing your funds in. Keeping your immaturity and ignorance in this regard you will unnecessarily lose on your investment.
When you think of investing in real estate you must select the location that is the basic key, very intelligently. Do not choose a land that is deserted for years, or in a forest or away from basic amenities of life. Farmlands may be a good location for putting your money into. It is better if you avoid choosing a quiet and secluded location as usually such remote areas do not give you better returns on investments.
Consider your likely neighborhood as an important factor; the standard of living of the residents, their language and almost the total quality of the neighborhood ambiance should be in perfect tune with your own life style. A neighborhood that has the potential to expand in and provide better returns is always preferable.
The location should provide you enough access ways to the city; it should be closer to your workplace and railroads. A location close to markets, schools, offices, hospitals, parks, clubs, libraries and shopping complexes will be on top priority for the client you will be selling or leasing your property to.
The location plays a vital role in uplifting or pushing down the value of the real estate investment you are thinking to dive in. A good well thought location can make a positive impact on the success of the real estate investment plans.
วันอาทิตย์ที่ 8 กุมภาพันธ์ พ.ศ. 2552
Real Estate Investment: Why Invest On Real Estate?
Real Estate Investment: Why Invest On Real Estate?
It's all about money. And if there are added things included, they will be begin about in between.
Not that we are aggravating to be too acquisitive actuality but lets face it, we all charge some aegis that would run down through the years. And that’s absolutely what a absolute acreage investment is.
Unquestionably, the allowances that absolute acreage investment could accommodate are far abounding than humans would accept aboriginal thought. And while we don’t all accept antecedent admission on advance in absolute estate, alive on how to advance on one is a acceptable advantage if aggravating to save and acquire money in return. If you are added advanced searching and wish to see a added abiding income, you should be advance your banknote on absolute state.
Your abode for example, would not always abide as your abode if you accept to accept it busy or awash one day. Not alone would this acquire abundant sums of money, it would aswell advice you become added anchored if you charge to aftermath banknote in the future. And the abandoned acreage you accept bought today, abnormally if it lies in cardinal points, could access in amount in the abutting future.
We will action you the primary advantages of absolute acreage investment. But bethink that it's not all about the pros, it could aswell action disadvantages that may or may not fit humans of all sorts. But who knows, maybe absolute acreage investment is for you.
Pros
You accept the leverage
This seems to be the best affection absolute acreage investment has got in abundance for you. Attending at this scenario-When you are advance in the banal market, your $150 000 would beggarly a banknote out of $150 000. However, with absolute acreage investment, this could alone crop in the anatomy of down transaction of 5%, 10% or 20% or if you are advantageous enough, you can get a duplex, a acreage property, or a abode for zerodown. Now, the acknowledgment and the abrasion will lie on the absolute amount of the absolute acreage but in case of accident or abortion apprenticed by abrupt circumstances, your accident would alone acquire the absolute down you accept invested.
The accident you accept is aswell your gain
When talking about taxes, absolute investment offers some of the best possibilities of deduction. With absolute acreage investment, you can abolish as abundant as $25, 000 while in portfolio investments, you can alone abstract as abundant as $3000 per annum. To apperceive added on this, it is best that you argue a tax architect who could advice accumulation you with added absolute details.
Cons
It is not your get-rich-quick blazon of investment
If you are searching for acceptable a millionaire overnight, this advantage is not the appropriate one for you. It is a cat-and-mouse bold and it takes backbone and absolute timing to appear out with the best accessible acknowledgment with what you accept invested. However, with a baby acknowledgment to risks, your antecedent investments could advance at a abundant acceleration aural 7 to 15 years.
No accurateness of balance determined
Since the acknowledgment of absolute acreage investment could not be absolutely counted and computed if not apparent at its greater calibration of details, you cannot appraisal the absolute amount of the property. This alone affects the assurance of the crop though. But it would appear appealing simple if you wish to apperceive absolutely area you are standing. Merely attending at you’re your account and you will acceptable apperceive your earning, just like in the banal market.
It's all about money. And if there are added things included, they will be begin about in between.
Not that we are aggravating to be too acquisitive actuality but lets face it, we all charge some aegis that would run down through the years. And that’s absolutely what a absolute acreage investment is.
Unquestionably, the allowances that absolute acreage investment could accommodate are far abounding than humans would accept aboriginal thought. And while we don’t all accept antecedent admission on advance in absolute estate, alive on how to advance on one is a acceptable advantage if aggravating to save and acquire money in return. If you are added advanced searching and wish to see a added abiding income, you should be advance your banknote on absolute state.
Your abode for example, would not always abide as your abode if you accept to accept it busy or awash one day. Not alone would this acquire abundant sums of money, it would aswell advice you become added anchored if you charge to aftermath banknote in the future. And the abandoned acreage you accept bought today, abnormally if it lies in cardinal points, could access in amount in the abutting future.
We will action you the primary advantages of absolute acreage investment. But bethink that it's not all about the pros, it could aswell action disadvantages that may or may not fit humans of all sorts. But who knows, maybe absolute acreage investment is for you.
Pros
You accept the leverage
This seems to be the best affection absolute acreage investment has got in abundance for you. Attending at this scenario-When you are advance in the banal market, your $150 000 would beggarly a banknote out of $150 000. However, with absolute acreage investment, this could alone crop in the anatomy of down transaction of 5%, 10% or 20% or if you are advantageous enough, you can get a duplex, a acreage property, or a abode for zerodown. Now, the acknowledgment and the abrasion will lie on the absolute amount of the absolute acreage but in case of accident or abortion apprenticed by abrupt circumstances, your accident would alone acquire the absolute down you accept invested.
The accident you accept is aswell your gain
When talking about taxes, absolute investment offers some of the best possibilities of deduction. With absolute acreage investment, you can abolish as abundant as $25, 000 while in portfolio investments, you can alone abstract as abundant as $3000 per annum. To apperceive added on this, it is best that you argue a tax architect who could advice accumulation you with added absolute details.
Cons
It is not your get-rich-quick blazon of investment
If you are searching for acceptable a millionaire overnight, this advantage is not the appropriate one for you. It is a cat-and-mouse bold and it takes backbone and absolute timing to appear out with the best accessible acknowledgment with what you accept invested. However, with a baby acknowledgment to risks, your antecedent investments could advance at a abundant acceleration aural 7 to 15 years.
No accurateness of balance determined
Since the acknowledgment of absolute acreage investment could not be absolutely counted and computed if not apparent at its greater calibration of details, you cannot appraisal the absolute amount of the property. This alone affects the assurance of the crop though. But it would appear appealing simple if you wish to apperceive absolutely area you are standing. Merely attending at you’re your account and you will acceptable apperceive your earning, just like in the banal market.
วันอังคารที่ 20 มกราคม พ.ศ. 2552
Real Estate as an investment
Real Estate as an investment
Generally, a lot of people start looking for ‘real estate for sale’ through the internet. And why not, internet is after all the hub of all information. So, you could look for real estate for sale using the search engines on the internet. You could also specify your requirements in search criteria on the real estate sites in order to get very specific results on real estate for sale. You can even view images and video of some of the properties thus reducing the need for personal visits for viewing.
So, this is surely a good option for finding real estate for sale.
However, not everyone is tech-savvy and there are a lot of people who still take the approach of putting up an ad in the local newspapers. So look for real estate for sale in the local newspapers. In fact, there are some newspapers that are dedicated to just that i.e. real estate for sale. You could even go ahead and put up a ‘wanted’ ad in these newspapers.
Sometimes, looking up for real estate for sale in old newspapers (like 1-2 months old) can help you get a good deal (in case the property owner has not been able to sale the property and has become a bit more ‘motivated’ to sell it).
MLS i.e. multiple listing service is often termed as one the best ways to look for real estate for sale. These are published by the real estate boards. If you can lay your hands on a MLS book as soon as it is out, you can really expect to get good deals. The key is to act fast.
Open houses are another good way of getting the best out of time. You can get to see dozens of ‘real estate for sale’ properties in a very short period of time. And you never know when you might come across a property that is real gold.
Investor groups are yet another rich source of real estate for sale information.
Of course, how can we forget the real estate brokers? Real estate brokers are one the most popular (and sometimes most effective) information resource for real estate for sale. Not only do they provide information about ‘real estate for sale’ but also assist in getting the deal finalized and closed.
Besides that, you can also get very good deals through public auctions, bank foreclosures and distress sales.
Generally, a lot of people start looking for ‘real estate for sale’ through the internet. And why not, internet is after all the hub of all information. So, you could look for real estate for sale using the search engines on the internet. You could also specify your requirements in search criteria on the real estate sites in order to get very specific results on real estate for sale. You can even view images and video of some of the properties thus reducing the need for personal visits for viewing.
So, this is surely a good option for finding real estate for sale.
However, not everyone is tech-savvy and there are a lot of people who still take the approach of putting up an ad in the local newspapers. So look for real estate for sale in the local newspapers. In fact, there are some newspapers that are dedicated to just that i.e. real estate for sale. You could even go ahead and put up a ‘wanted’ ad in these newspapers.
Sometimes, looking up for real estate for sale in old newspapers (like 1-2 months old) can help you get a good deal (in case the property owner has not been able to sale the property and has become a bit more ‘motivated’ to sell it).
MLS i.e. multiple listing service is often termed as one the best ways to look for real estate for sale. These are published by the real estate boards. If you can lay your hands on a MLS book as soon as it is out, you can really expect to get good deals. The key is to act fast.
Open houses are another good way of getting the best out of time. You can get to see dozens of ‘real estate for sale’ properties in a very short period of time. And you never know when you might come across a property that is real gold.
Investor groups are yet another rich source of real estate for sale information.
Of course, how can we forget the real estate brokers? Real estate brokers are one the most popular (and sometimes most effective) information resource for real estate for sale. Not only do they provide information about ‘real estate for sale’ but also assist in getting the deal finalized and closed.
Besides that, you can also get very good deals through public auctions, bank foreclosures and distress sales.
วันอังคารที่ 13 มกราคม พ.ศ. 2552
Real Estate Investment - Top Secrets Real Estate Investors Use To Turbocharge Their Businesses
Real Estate Investment - Top Secrets Real Estate Investors Use To Turbocharge Their Businesses
Have you ever wondered why some real estate investors seem to make it all look so easy? We have all heard the stories about how one investor made over $100,000 in a week by flipping a house. Or maybe about how another one bought a multimillion dollar apartment complex and walked away with cash at closing.
So how do these people do it? And is it something the average person off the street can learn to do? Well, those are some of the same questions I had when I first started in the business. So I spent months of research and tens of thousands of dollars to learn what strategies these successful people use that the rest of us do not. What follows is a brief summary of what I learned. Some may surprise you, others may not. However, I found these to be common words of wisdom from every successful investor.
1. Real Estate Investing is a Business, Not a Hobby
Every successful real estate investor I know operates their endeavors strictly as a business, even if it's just a part-time thing. This means setting up a Corporation, S-Corp, Limited Liability Company, Limited Partnership, General Partnership, or typically some combination of these entities. Notice I didn't mention Sole-proprietor? Talk to a knowledgeable real estate attorney in you area for a better idea of which ones are right for you and your goals. Not only will the right entities protect you and your ASSets, but will allow you to take advantage of certain tax advantages you would otherwise not have. If you stop reading here and take no other advice from me please, please do this one.
2. Build A Team of Experts
Few, if any, business owners succeed without a team of experts to guide them. These people can save you a tremendous amount of time and money and possibly even legal problems. Your business team should consist of a good real estate attorney who understands the state laws and an accountant. I recommend finding an accountant who is also a real estate investor if possible.
You should also have a realtor in each area you are considering investing in, an appraiser, a home inspector, an escrow company, a mortgage broker, other investors, a general contractor, and an insurance agent. There are other specialist would should also consider for special cases such as an architect, a surveyor, environmental company, etc.
3. Have a Plan
Develop a business plan for your real estate investing venture even if you are not new to it. After all, this is a business and few really reach their potential without a good plan. I promise you, spending a few hours putting it down on paper will be well worth it. And it's always good to revisit your plan often to keep you on target.
4. Network, Network, Network
Real estate is people business. If you haven't done so already, get good at smoozing. Now I don't mean the used car salesman type where you do all the fast talking. Join your local real estate investment club, become a member of a church if you aren't already, volunteer with Habitat For Humanity, just get involved! Get to understand what the seller's or buyer's needs are. This means listening! Get to know what other investors are looking for and who the local "players" are. You may be able to do a partnership on a deal or refer them to a deal that may not be exactly what you're looking for. Above all, treat everyone you meet with respect whether they're your team, sellers, or buyers and they will respect you. If you do these things, more deals will come your way than you can possibly handle. I can think of a lot worse problems to have!
5. Know Your Market
Spend some time getting to know the areas where you plan to invest. Go to some open houses and talk to the agents. Drive the neighborhood and look for the "For Sale By Owner" signs otherwise known as FSBOs. Look for homes that appear vacant or in disrepair. Learn how much homes go for in the area and what the local trends are. Talk to some the local residents and learn what the community is like. Is there crime in the area, how good are the schools, is the area growing, what are the local demographics? This information will serve you well when it comes time to invest.
6. Never Buy A Property Without At Least One Solid Exit Strategy
In real estate, you make your money when you buy, not when you sell. So what am I trying to say here? For each offer you make, you should know exactly how you are going to make your money from it. It could be as a rental for which you should have a positive monthly cash flow. It could be as a rehab and flip for a profit. Or maybe you may offer it as a lease with an option to buy. Or, it could be hold for the equity growth. Run your numbers for each strategy. If the numbers don't work, don't do the deal no matter how much you like the property!
7. Treat Your Agents Like Gold
Real estate agents can make or break your business and a good one is worth their weight in gold. They will do much of the legwork for you and bring you potential deals. They know their areas inside and out and can steer you away from potential problems. They will even find you buyers for your properties as well as show it while you are out looking for more deals. And, they work only for commissions based on the sales price of properties that sell.
However, most real estate investors don't buy and sometimes don't sell property at full market prices. This could directly affect your agent's commission and their motivation to support what you want can diminish. I suggest paying your agents commissions based on market price regardless of the ultimate sales price. Yes, it may impact your profits some but you'll have a very loyal agent. And guess who gets the first phone call when hot property comes up!
8. Don't Be A Hog
The old saying goes, "Pigs get fat, and hogs get slaughtered." The saying holds true in real estate investing as well. Many new investors make the mistake of trying to squeeze out the maximum profit out of every deal and then wonder why they can't find any buyers. Don't be afraid to leave something on the table for the next guy, especially if you're selling to other investors. It's better to make a lot of smaller profits over and over than it is to make one big profit. This strategy should have potential buyers lining up at your door when you have a property to sell.
9. Give Away 10-15% of Everything You Make
I can hear you now, "He said what?!" That's right, give away 10-15% of everything you make. How you decide to do it is up to you, but I warn you, you may have to get creative. Steve, a mentor of mine follows this rule like a religion. In fact, on his very first deal he made about $5,000 which he need desperately, since he had recently lost his job. He was nearly bankrupt but still decided to give away some of his profits. He decided to buy his pastor a new suit, something he had never had in his life. Even though Steve was excited about making the money, the look on his pastor's face when he wore it for the first time made him feel ten times better. By the way, word got around very quickly and before you know it, he had three more deals in the works that profited much, much more.
10. Offers, Offers, Offers!
You'll never make any money if you don't first start with an offer. But for some reason, this seems to be the biggest hurdle for most new investors. I like to use the "Fire, Aim, Ready" approach to making an offer. Don't spend a lot of time trying to figure out what the perfect offer will be, just make one. Most of my offers are made without ever having seen the property. Remember, if the first offer doesn't embarrass you, it's too high. I know of a very successful real estate investor in the Tampa area who once offered $1 for a $14 million golf course! Okay, so he eventually bought it for a little over $2 million and the resold it a couple of weeks later for a tiddy profit. It's only after you have the property under contract that you should spend the time to determine if the price is right or not. Most successful investors will make 25 or more offers a week of which maybe only two or three may eventually end being accepted. Of those, maybe one will make it to closing. But let's see, one deal a week, $5-10,000 profit each....you get the picture.
11. Have Fun
Like any business, real estate investing has its challenges. Sometimes deals fall through at the last minute, renters can be a real pain, or you find out about the sewer line collapsing at one of your properties that needs $15,000 in unexpected expenses to fix it. There will always be obstacles to overcome but the rewards can be well worth it. So have fun with it! If you truly enjoy it, it will show on you and suddenly the problems don't seem like such a big deal anymore.
There are many more tricks to the trade depending upon which niche you decide to invest in. But the basics are the same across the board. Apply these secrets and you too can become the next multimillionaire!
Have you ever wondered why some real estate investors seem to make it all look so easy? We have all heard the stories about how one investor made over $100,000 in a week by flipping a house. Or maybe about how another one bought a multimillion dollar apartment complex and walked away with cash at closing.
So how do these people do it? And is it something the average person off the street can learn to do? Well, those are some of the same questions I had when I first started in the business. So I spent months of research and tens of thousands of dollars to learn what strategies these successful people use that the rest of us do not. What follows is a brief summary of what I learned. Some may surprise you, others may not. However, I found these to be common words of wisdom from every successful investor.
1. Real Estate Investing is a Business, Not a Hobby
Every successful real estate investor I know operates their endeavors strictly as a business, even if it's just a part-time thing. This means setting up a Corporation, S-Corp, Limited Liability Company, Limited Partnership, General Partnership, or typically some combination of these entities. Notice I didn't mention Sole-proprietor? Talk to a knowledgeable real estate attorney in you area for a better idea of which ones are right for you and your goals. Not only will the right entities protect you and your ASSets, but will allow you to take advantage of certain tax advantages you would otherwise not have. If you stop reading here and take no other advice from me please, please do this one.
2. Build A Team of Experts
Few, if any, business owners succeed without a team of experts to guide them. These people can save you a tremendous amount of time and money and possibly even legal problems. Your business team should consist of a good real estate attorney who understands the state laws and an accountant. I recommend finding an accountant who is also a real estate investor if possible.
You should also have a realtor in each area you are considering investing in, an appraiser, a home inspector, an escrow company, a mortgage broker, other investors, a general contractor, and an insurance agent. There are other specialist would should also consider for special cases such as an architect, a surveyor, environmental company, etc.
3. Have a Plan
Develop a business plan for your real estate investing venture even if you are not new to it. After all, this is a business and few really reach their potential without a good plan. I promise you, spending a few hours putting it down on paper will be well worth it. And it's always good to revisit your plan often to keep you on target.
4. Network, Network, Network
Real estate is people business. If you haven't done so already, get good at smoozing. Now I don't mean the used car salesman type where you do all the fast talking. Join your local real estate investment club, become a member of a church if you aren't already, volunteer with Habitat For Humanity, just get involved! Get to understand what the seller's or buyer's needs are. This means listening! Get to know what other investors are looking for and who the local "players" are. You may be able to do a partnership on a deal or refer them to a deal that may not be exactly what you're looking for. Above all, treat everyone you meet with respect whether they're your team, sellers, or buyers and they will respect you. If you do these things, more deals will come your way than you can possibly handle. I can think of a lot worse problems to have!
5. Know Your Market
Spend some time getting to know the areas where you plan to invest. Go to some open houses and talk to the agents. Drive the neighborhood and look for the "For Sale By Owner" signs otherwise known as FSBOs. Look for homes that appear vacant or in disrepair. Learn how much homes go for in the area and what the local trends are. Talk to some the local residents and learn what the community is like. Is there crime in the area, how good are the schools, is the area growing, what are the local demographics? This information will serve you well when it comes time to invest.
6. Never Buy A Property Without At Least One Solid Exit Strategy
In real estate, you make your money when you buy, not when you sell. So what am I trying to say here? For each offer you make, you should know exactly how you are going to make your money from it. It could be as a rental for which you should have a positive monthly cash flow. It could be as a rehab and flip for a profit. Or maybe you may offer it as a lease with an option to buy. Or, it could be hold for the equity growth. Run your numbers for each strategy. If the numbers don't work, don't do the deal no matter how much you like the property!
7. Treat Your Agents Like Gold
Real estate agents can make or break your business and a good one is worth their weight in gold. They will do much of the legwork for you and bring you potential deals. They know their areas inside and out and can steer you away from potential problems. They will even find you buyers for your properties as well as show it while you are out looking for more deals. And, they work only for commissions based on the sales price of properties that sell.
However, most real estate investors don't buy and sometimes don't sell property at full market prices. This could directly affect your agent's commission and their motivation to support what you want can diminish. I suggest paying your agents commissions based on market price regardless of the ultimate sales price. Yes, it may impact your profits some but you'll have a very loyal agent. And guess who gets the first phone call when hot property comes up!
8. Don't Be A Hog
The old saying goes, "Pigs get fat, and hogs get slaughtered." The saying holds true in real estate investing as well. Many new investors make the mistake of trying to squeeze out the maximum profit out of every deal and then wonder why they can't find any buyers. Don't be afraid to leave something on the table for the next guy, especially if you're selling to other investors. It's better to make a lot of smaller profits over and over than it is to make one big profit. This strategy should have potential buyers lining up at your door when you have a property to sell.
9. Give Away 10-15% of Everything You Make
I can hear you now, "He said what?!" That's right, give away 10-15% of everything you make. How you decide to do it is up to you, but I warn you, you may have to get creative. Steve, a mentor of mine follows this rule like a religion. In fact, on his very first deal he made about $5,000 which he need desperately, since he had recently lost his job. He was nearly bankrupt but still decided to give away some of his profits. He decided to buy his pastor a new suit, something he had never had in his life. Even though Steve was excited about making the money, the look on his pastor's face when he wore it for the first time made him feel ten times better. By the way, word got around very quickly and before you know it, he had three more deals in the works that profited much, much more.
10. Offers, Offers, Offers!
You'll never make any money if you don't first start with an offer. But for some reason, this seems to be the biggest hurdle for most new investors. I like to use the "Fire, Aim, Ready" approach to making an offer. Don't spend a lot of time trying to figure out what the perfect offer will be, just make one. Most of my offers are made without ever having seen the property. Remember, if the first offer doesn't embarrass you, it's too high. I know of a very successful real estate investor in the Tampa area who once offered $1 for a $14 million golf course! Okay, so he eventually bought it for a little over $2 million and the resold it a couple of weeks later for a tiddy profit. It's only after you have the property under contract that you should spend the time to determine if the price is right or not. Most successful investors will make 25 or more offers a week of which maybe only two or three may eventually end being accepted. Of those, maybe one will make it to closing. But let's see, one deal a week, $5-10,000 profit each....you get the picture.
11. Have Fun
Like any business, real estate investing has its challenges. Sometimes deals fall through at the last minute, renters can be a real pain, or you find out about the sewer line collapsing at one of your properties that needs $15,000 in unexpected expenses to fix it. There will always be obstacles to overcome but the rewards can be well worth it. So have fun with it! If you truly enjoy it, it will show on you and suddenly the problems don't seem like such a big deal anymore.
There are many more tricks to the trade depending upon which niche you decide to invest in. But the basics are the same across the board. Apply these secrets and you too can become the next multimillionaire!
วันศุกร์ที่ 14 พฤศจิกายน พ.ศ. 2551
Commercial Real Estate Investment Success Begins with a Positive Mindset
Commercial Real Estate Investment Success Begins with a Positive Mindset
By: Darrick Scruggs
Ever thought about real estate investing as a means to supplement an income, or even as an avenue to entrepreneurship? The current foreclosure epidemic has caused people who have never considered real estate investing to give it a thought. With foreclosed properties selling at all time lows many wonder about the potential to “cash in.”
The recent foreclosure boom has caused many homeowners to need housing. Commercial real estate can be very lucrative at a time like this. Potential homebuyers are hesitant about purchasing because of economic uncertainties, making the need for rental properties and apartments in high demand.
Many people wonder if they have what it takes to be successful in real estate. The saying real estate investing “isn’t for everyone,” isn’t necessarily true. Real estate investing begins with a proper mindset. Educated investors make the best investors. Understanding the strategies behind real estate investing is the first start to developing the right mindset.
Real estate investors should seek courses and information which educate, motivate and instigate dynamic change in their lives. It is important to free one's self from the negative talk and dire predictions of the world and embrace new ideas, money-making methods, investment strategies and to network with like-minded/ upwardly mobile individuals and experts in the real estate investment and financial education field, when deciding to pursue real estate investments.
The power to be successful begins with having a successful mindset and learning to welcome success. Building financial wealth through commercial real estate investments is very possible with the proper training and a positive mindset. It is not recommended that anyone jump into real estate investing without the correct instruction. Commercial real estate investing with the proper training can not only lead to financial security but also to peace of mind.
About The Power to Be Free
The Power to Be Free is a group of successful real estate investors committed to building more financial success through the power of collaboration and networking. In addition to that they are equally committed to empowering and teaching others to build financial wealth and to successfully invest in real estate as well. All The Power to Be Free members have either achieved financial success and are poised to increase their financial rewards or they are new members who are serious about learning how to do what it takes to increase their personal and professional success while also learning to empower and motivate those who will follow them. The Power to Be Free is about exactly what the name suggests; empowering people and communities to gain freedom through financial
By: Darrick Scruggs
Ever thought about real estate investing as a means to supplement an income, or even as an avenue to entrepreneurship? The current foreclosure epidemic has caused people who have never considered real estate investing to give it a thought. With foreclosed properties selling at all time lows many wonder about the potential to “cash in.”
The recent foreclosure boom has caused many homeowners to need housing. Commercial real estate can be very lucrative at a time like this. Potential homebuyers are hesitant about purchasing because of economic uncertainties, making the need for rental properties and apartments in high demand.
Many people wonder if they have what it takes to be successful in real estate. The saying real estate investing “isn’t for everyone,” isn’t necessarily true. Real estate investing begins with a proper mindset. Educated investors make the best investors. Understanding the strategies behind real estate investing is the first start to developing the right mindset.
Real estate investors should seek courses and information which educate, motivate and instigate dynamic change in their lives. It is important to free one's self from the negative talk and dire predictions of the world and embrace new ideas, money-making methods, investment strategies and to network with like-minded/ upwardly mobile individuals and experts in the real estate investment and financial education field, when deciding to pursue real estate investments.
The power to be successful begins with having a successful mindset and learning to welcome success. Building financial wealth through commercial real estate investments is very possible with the proper training and a positive mindset. It is not recommended that anyone jump into real estate investing without the correct instruction. Commercial real estate investing with the proper training can not only lead to financial security but also to peace of mind.
About The Power to Be Free
The Power to Be Free is a group of successful real estate investors committed to building more financial success through the power of collaboration and networking. In addition to that they are equally committed to empowering and teaching others to build financial wealth and to successfully invest in real estate as well. All The Power to Be Free members have either achieved financial success and are poised to increase their financial rewards or they are new members who are serious about learning how to do what it takes to increase their personal and professional success while also learning to empower and motivate those who will follow them. The Power to Be Free is about exactly what the name suggests; empowering people and communities to gain freedom through financial
วันอาทิตย์ที่ 13 กรกฎาคม พ.ศ. 2551
Is The Future Of Real Estate Investment In Megapolitan Areas?
Is The Future Of Real Estate Investment In Megapolitan Areas?
by David Cowley
Experts believe that real estate development and building will produce some $25 trillion in revenue between now and the year 2030. Most also agree that most of that revenue will be filtered into and through the top ten megapolitan areas in the United States. This amount of revenue will completely eclipse the building boom that followed World War II and means an unprecedented amount of growth and opportunity for the investor.
Megapolitan is defined as two or more existing metropolitan areas that have grown together to become one huge area and the community boundaries have become blurred. An example of one such area is from San Diego through Santa Barbara. When driving from San Diego you will pass through Oceanside, Newport Beach, Long Beach, Los Angeles, Thousand Oaks, Oxnard, Ventura and Santa Barbara. It is very difficult to tell when you leave one city and enter another. Robert Lang of Virginia Tech urban studies has theorized that two-thirds of the population will live in 10 of these Megapolitan areas by the year 2040.
Atlantic Seaboard - extends from Boston through New York, Philadelphia and Washington.
Gulf Cost Belt - Brownsville, Corpus Christi, Huston, New Orleans to Mobile.
I 85 Corridor - Birmingham, Atlanta, Charlotte, Raleigh to Durham.
Valley of the Sun - Phoenix to Tucson.
Southern - Florida Miami, Tampa to Orlando.
Southland - Los Angeles to Las Vegas.
Great Lakes Area Detroit, Chicago to Pittsburg.
North California - San Francisco to Sacramento.
I 35 Corridor - San Antonio, Austin, Dallas, Ardmore, Okalahoma City to Kansas City.
Cascadian - Eugene, Portland to Seattle.
Megapolitan Areas will have certain characteristics in common. They will combine at least two existing metropolitan areas together. Each will total more than 10 million residents by 2040. They will have similar physical environment. Have very good transportation and supporting infrastructure. Goods and services flows freely from one urban area to another. They will also require a large geographical area that is suitable for large scale regional planning.
It's true that some of these megapolitan areas have been hit by economic troubles, but even CNN's Money Magazine agrees that these areas are some of the best for real estate development and investment. Just why is that, and what should you look for when trying to protect your investment in these areas?
Being careful about the industries that are supporting these megapolitan areas is of course very important. Investing in areas that have relied on the automotive industry or manufacturing may not be wise. However, megapolitan areas of New York and Charlotte, North Carolina, have done very well in the past few years because their dominant industries of advertising, banking, and investing have better track records than these other industries that are not as reliable. Absolutely nothing is completely secure or 100% reliable when it comes to business and industry, but obviously one can use some common sense when it comes to investing in certain areas.
Megapolitan areas are typically more desirable for industry and new business because they already have a ready workforce and developed real estate. A company looking to build a large factory or set up an administrative office is probably not going to choose a desolate area, even though the real estate may be more affordable. There is no population in this immediate area to support their business by way of personnel, vendors, and sometimes even roads and available homes. This is one of the reasons that megapolitan areas seem to consistently and constantly appeal to established industries and companies and startup businesses as well.
If you're looking for a solid real estate investment area, you may be attracted to more sparse areas because they are more affordable, but remember that sometimes you get what you pay for. Consider instead investing what you can in these already established megapolitan areas. By using some common sense and doing your homework, you're sure to find that it's the right choice.
by David Cowley
Experts believe that real estate development and building will produce some $25 trillion in revenue between now and the year 2030. Most also agree that most of that revenue will be filtered into and through the top ten megapolitan areas in the United States. This amount of revenue will completely eclipse the building boom that followed World War II and means an unprecedented amount of growth and opportunity for the investor.
Megapolitan is defined as two or more existing metropolitan areas that have grown together to become one huge area and the community boundaries have become blurred. An example of one such area is from San Diego through Santa Barbara. When driving from San Diego you will pass through Oceanside, Newport Beach, Long Beach, Los Angeles, Thousand Oaks, Oxnard, Ventura and Santa Barbara. It is very difficult to tell when you leave one city and enter another. Robert Lang of Virginia Tech urban studies has theorized that two-thirds of the population will live in 10 of these Megapolitan areas by the year 2040.
Atlantic Seaboard - extends from Boston through New York, Philadelphia and Washington.
Gulf Cost Belt - Brownsville, Corpus Christi, Huston, New Orleans to Mobile.
I 85 Corridor - Birmingham, Atlanta, Charlotte, Raleigh to Durham.
Valley of the Sun - Phoenix to Tucson.
Southern - Florida Miami, Tampa to Orlando.
Southland - Los Angeles to Las Vegas.
Great Lakes Area Detroit, Chicago to Pittsburg.
North California - San Francisco to Sacramento.
I 35 Corridor - San Antonio, Austin, Dallas, Ardmore, Okalahoma City to Kansas City.
Cascadian - Eugene, Portland to Seattle.
Megapolitan Areas will have certain characteristics in common. They will combine at least two existing metropolitan areas together. Each will total more than 10 million residents by 2040. They will have similar physical environment. Have very good transportation and supporting infrastructure. Goods and services flows freely from one urban area to another. They will also require a large geographical area that is suitable for large scale regional planning.
It's true that some of these megapolitan areas have been hit by economic troubles, but even CNN's Money Magazine agrees that these areas are some of the best for real estate development and investment. Just why is that, and what should you look for when trying to protect your investment in these areas?
Being careful about the industries that are supporting these megapolitan areas is of course very important. Investing in areas that have relied on the automotive industry or manufacturing may not be wise. However, megapolitan areas of New York and Charlotte, North Carolina, have done very well in the past few years because their dominant industries of advertising, banking, and investing have better track records than these other industries that are not as reliable. Absolutely nothing is completely secure or 100% reliable when it comes to business and industry, but obviously one can use some common sense when it comes to investing in certain areas.
Megapolitan areas are typically more desirable for industry and new business because they already have a ready workforce and developed real estate. A company looking to build a large factory or set up an administrative office is probably not going to choose a desolate area, even though the real estate may be more affordable. There is no population in this immediate area to support their business by way of personnel, vendors, and sometimes even roads and available homes. This is one of the reasons that megapolitan areas seem to consistently and constantly appeal to established industries and companies and startup businesses as well.
If you're looking for a solid real estate investment area, you may be attracted to more sparse areas because they are more affordable, but remember that sometimes you get what you pay for. Consider instead investing what you can in these already established megapolitan areas. By using some common sense and doing your homework, you're sure to find that it's the right choice.
วันศุกร์ที่ 16 พฤษภาคม พ.ศ. 2551
Avoiding Online Real Estate Investment Scams
Avoiding Online Real Estate Investment Scams
by Joseph Celestine
Many individuals who are looking to promote and sale the real estate that they have available are taking full advantage of the Internet. The Internet is a powerful promotional tool - we all know that. Millions of individuals around the world have flourished financially due to the fact that they used the Internet as a marketing tool in their endeavors. Unfortunately, many individuals have been subjected to financial loses due to the real estate investment scams that are sprinkled throughout the pages of the Internet. Professionals who once viewed the Internet as a sound resource for real estate deals have quickly discovered that uncovering this type of real estate may not be the wisest investment.
It has been found that many young adults and those that are older in years have been subjected to real estate scams online that have cost them a lot of money, time, and legal complications. Let's take your typical advertisement for waterfront property in Florida. You may see an advertisement that says:
"Beautiful waterfront property in South Florida. Nestled between the lavish palms amongst the tropical wildlife in the region, one can enjoy numerous water activities such as boating, skiing, and more. Ten wonderful acres of beauty for a mere $15,000.00! Call today!"
Now, any average person would find that advertisement quite attractive. However, those that have indulged in this type of advertisement and have purchased this waterfront property in Florida are often left with a beautiful array of...SWAMP LAND! You may or may not be aware of this, but the Environmentalists in Florida prevent the development of property that is considered to be swampland due to the delicate animal and plant life there. The individual that purchased this real estate has done a really positive thing for the environment as a whole, but has just been a victim of online real estate scamming. This happens each and every single day.
If you are interested in purchasing real estate online, there are a few things that you should keep in mind to ensure that you make a sound decision. First, you should always make arrangements to view the property. If you are unable to personally visit the property and observe it, you should hire a legal representative to do this. This will ensure that you do not invest in property that is misrepresented in advertisements, or property that is inappropriate for use - such as swampland. This is the top way to avoid becoming a victim of an online real estate investment scam.
If you are interested in purchasing real estate that you have discovered online, it is important to investigate the title or the deed of the property to ensure that it is completely clear. You should research to determine if there are any types of claims laid on the property. This may be inheritance claims, bank claims, and even foreclosure actions or other types of situations involving a financial institution. You should also examine the property to make a conclusion on the level of maintenance. There are a number of situations that must be considered when it comes to purchasing property. When you opt to purchase online, the price may be right, but is the property right?
If you are interested in obtaining property from an online auction or real estate website be careful of online real estate investment scam, it is considered best to purchase from those that advertise in your immediate area. This will allow you the advantage of knowing what you are purchasing, and allows you to safely purchase it.
by Joseph Celestine
Many individuals who are looking to promote and sale the real estate that they have available are taking full advantage of the Internet. The Internet is a powerful promotional tool - we all know that. Millions of individuals around the world have flourished financially due to the fact that they used the Internet as a marketing tool in their endeavors. Unfortunately, many individuals have been subjected to financial loses due to the real estate investment scams that are sprinkled throughout the pages of the Internet. Professionals who once viewed the Internet as a sound resource for real estate deals have quickly discovered that uncovering this type of real estate may not be the wisest investment.
It has been found that many young adults and those that are older in years have been subjected to real estate scams online that have cost them a lot of money, time, and legal complications. Let's take your typical advertisement for waterfront property in Florida. You may see an advertisement that says:
"Beautiful waterfront property in South Florida. Nestled between the lavish palms amongst the tropical wildlife in the region, one can enjoy numerous water activities such as boating, skiing, and more. Ten wonderful acres of beauty for a mere $15,000.00! Call today!"
Now, any average person would find that advertisement quite attractive. However, those that have indulged in this type of advertisement and have purchased this waterfront property in Florida are often left with a beautiful array of...SWAMP LAND! You may or may not be aware of this, but the Environmentalists in Florida prevent the development of property that is considered to be swampland due to the delicate animal and plant life there. The individual that purchased this real estate has done a really positive thing for the environment as a whole, but has just been a victim of online real estate scamming. This happens each and every single day.
If you are interested in purchasing real estate online, there are a few things that you should keep in mind to ensure that you make a sound decision. First, you should always make arrangements to view the property. If you are unable to personally visit the property and observe it, you should hire a legal representative to do this. This will ensure that you do not invest in property that is misrepresented in advertisements, or property that is inappropriate for use - such as swampland. This is the top way to avoid becoming a victim of an online real estate investment scam.
If you are interested in purchasing real estate that you have discovered online, it is important to investigate the title or the deed of the property to ensure that it is completely clear. You should research to determine if there are any types of claims laid on the property. This may be inheritance claims, bank claims, and even foreclosure actions or other types of situations involving a financial institution. You should also examine the property to make a conclusion on the level of maintenance. There are a number of situations that must be considered when it comes to purchasing property. When you opt to purchase online, the price may be right, but is the property right?
If you are interested in obtaining property from an online auction or real estate website be careful of online real estate investment scam, it is considered best to purchase from those that advertise in your immediate area. This will allow you the advantage of knowing what you are purchasing, and allows you to safely purchase it.
วันอาทิตย์ที่ 30 มีนาคม พ.ศ. 2551
Building Your Real Estate Investment Team
Building Your Real Estate Investment Team
by John P. Myers
How successful you become as a real estate investor will be determined by how well you assemble your team. You will need to have team members who have knowledge and expertise in their field, as well as be trustworthy and reliable. Following are players you need to recruit for your team.
Credit Repair Specialist - Even if you have good credit, it is always a good idea to have someone to repair and monitor your credit. Especially today where identity theft is prevalent, it is a good idea to monitor your credit in order to keep it in good standing.
Accountant - Keeping your accounts in proper order is difficult due to the various laws that apply to investors. Find an accountant who is familiar with these rules and regulations, is an investor himself, or works closely with real estate investors.
Real Estate Attorney - A good attorney is worth their weight in gold. There are just too many laws to learn yourself. Make sure they know the laws in your area and understand the types of deals you are going to be doing. Also I recommend you have them look over any contracts to make sure they are legal for your area.
Real Estate Agents - A real estate agent is good to have in case you decide to sell a property. In addition, the agent has access to the Multiple Listing Service (MLS). It may take a while, but find one that works with investors and understands the types of deal you are going to be looking for.
Title Company - You need to find a title company that works with investors and knows how to handle the types of deals you are going to be doing. They must also understand the investor terms you will be using and be able to close quickly if possible. Like the real estate agent, it may take awhile to find a title company you can work with.
Investment Advisor - An investment advisor is someone who can give you suggestions where to invest your profits. It is a good idea to have someone who does this full time and can give you sound advice to maximize your investment profile.
This should give you a good idea who you need to have on your real estate investment team. Having a good solid team will not only make investing easier, but it will also be more profitable.
by John P. Myers
How successful you become as a real estate investor will be determined by how well you assemble your team. You will need to have team members who have knowledge and expertise in their field, as well as be trustworthy and reliable. Following are players you need to recruit for your team.
Credit Repair Specialist - Even if you have good credit, it is always a good idea to have someone to repair and monitor your credit. Especially today where identity theft is prevalent, it is a good idea to monitor your credit in order to keep it in good standing.
Accountant - Keeping your accounts in proper order is difficult due to the various laws that apply to investors. Find an accountant who is familiar with these rules and regulations, is an investor himself, or works closely with real estate investors.
Real Estate Attorney - A good attorney is worth their weight in gold. There are just too many laws to learn yourself. Make sure they know the laws in your area and understand the types of deals you are going to be doing. Also I recommend you have them look over any contracts to make sure they are legal for your area.
Real Estate Agents - A real estate agent is good to have in case you decide to sell a property. In addition, the agent has access to the Multiple Listing Service (MLS). It may take a while, but find one that works with investors and understands the types of deal you are going to be looking for.
Title Company - You need to find a title company that works with investors and knows how to handle the types of deals you are going to be doing. They must also understand the investor terms you will be using and be able to close quickly if possible. Like the real estate agent, it may take awhile to find a title company you can work with.
Investment Advisor - An investment advisor is someone who can give you suggestions where to invest your profits. It is a good idea to have someone who does this full time and can give you sound advice to maximize your investment profile.
This should give you a good idea who you need to have on your real estate investment team. Having a good solid team will not only make investing easier, but it will also be more profitable.
วันจันทร์ที่ 4 กุมภาพันธ์ พ.ศ. 2551
Paying For A Real Estate Agent
Paying For A Real Estate Agent
by James Gunaseelan
The seller usually pays the real estate agent commissions, which are taken from the proceeds of the sale and distributed after the close of and by Escrow. Commissions are negotiable -- before listing agreements and sales contracts are signed, not at closing. The percentage typically is set by local custom and the strength of the market. Some buyers hire their own exclusive agent and the seller either does not pay that agent a commission or their commission is negotiated as part of the sales contract. Working with a real estate agent offers many benefits. The only drawback is that you will have to pay them when selling your home. In other words, they will take a cut of the selling price of your home. This is the number one reason that some people decide to sell their home by owner. They want to keep all of the profits for themselves, and this is perfectly understandable. But with that being said, you need to keep in mind that the small fee you will have to pay is usually well worth it. After all, an agent does a lot of work for the money that they make.
The question is: how much money do you pay a real estate agent when they sell your home for you? Generally speaking, this is a question that should be answered by the agent that you are going to do business with. After all, this can change from agent to agent depending on the way that they work, etc. But with that being said, there are some standard commission rates that seem to hold true across the industry.
It is safe to say that you will end up paying your real estate agent approximately 6 percent of the selling price. For instance, if you sell your home for Rs.100,000 your real estate agent will take small portion of this. Does that seem like a lot to you? If you are like most, you probably think that it does. But again, you need to remember what you are going to get for the money that you are paying. Your agent will work on everything from marketing to negotiations and much more. Working with an agent means that you will not be responsible for a lot on your own; and this is a good thing for most sellers.
The commission is split. Usually, the seller's agent's brokerage gets half and the buyer's agent's brokerage half, although other splits are possible. If the agents work for a broker, the broker will get 30 to 50 percent of the agent's commission (minus what they spend for things like marketing, newspaper ads, flyers, internet ads, which comes out of their own pockets - along with many other expenses of the daily operating costs of their real estate business). Commissions are the bulk of the seller's closing costs and the reason many homeowners explore selling without an agent. If they are successful, they'll have either no commissions to pay, or only one -- the buyer's agent -- if they agree to pay the buyer's agent. The percentage to be paid also must be in the contract. You will more than likely pay your real estate agent somewhere in the range of 6 percent if they are successful selling your home. If this is something that you are willing to deal with, you can move forward right away. Before you decide against this because you don't want to spend the money, remember that an agent will bring many benefits to the selling process.
by James Gunaseelan
The seller usually pays the real estate agent commissions, which are taken from the proceeds of the sale and distributed after the close of and by Escrow. Commissions are negotiable -- before listing agreements and sales contracts are signed, not at closing. The percentage typically is set by local custom and the strength of the market. Some buyers hire their own exclusive agent and the seller either does not pay that agent a commission or their commission is negotiated as part of the sales contract. Working with a real estate agent offers many benefits. The only drawback is that you will have to pay them when selling your home. In other words, they will take a cut of the selling price of your home. This is the number one reason that some people decide to sell their home by owner. They want to keep all of the profits for themselves, and this is perfectly understandable. But with that being said, you need to keep in mind that the small fee you will have to pay is usually well worth it. After all, an agent does a lot of work for the money that they make.
The question is: how much money do you pay a real estate agent when they sell your home for you? Generally speaking, this is a question that should be answered by the agent that you are going to do business with. After all, this can change from agent to agent depending on the way that they work, etc. But with that being said, there are some standard commission rates that seem to hold true across the industry.
It is safe to say that you will end up paying your real estate agent approximately 6 percent of the selling price. For instance, if you sell your home for Rs.100,000 your real estate agent will take small portion of this. Does that seem like a lot to you? If you are like most, you probably think that it does. But again, you need to remember what you are going to get for the money that you are paying. Your agent will work on everything from marketing to negotiations and much more. Working with an agent means that you will not be responsible for a lot on your own; and this is a good thing for most sellers.
The commission is split. Usually, the seller's agent's brokerage gets half and the buyer's agent's brokerage half, although other splits are possible. If the agents work for a broker, the broker will get 30 to 50 percent of the agent's commission (minus what they spend for things like marketing, newspaper ads, flyers, internet ads, which comes out of their own pockets - along with many other expenses of the daily operating costs of their real estate business). Commissions are the bulk of the seller's closing costs and the reason many homeowners explore selling without an agent. If they are successful, they'll have either no commissions to pay, or only one -- the buyer's agent -- if they agree to pay the buyer's agent. The percentage to be paid also must be in the contract. You will more than likely pay your real estate agent somewhere in the range of 6 percent if they are successful selling your home. If this is something that you are willing to deal with, you can move forward right away. Before you decide against this because you don't want to spend the money, remember that an agent will bring many benefits to the selling process.
วันจันทร์ที่ 28 มกราคม พ.ศ. 2551
2 Ways To Look At Real Estate These Days
2 Ways To Look At Real Estate These Days
by Trisha Frauenhofer
The business of real estate these days is quite different that what it used to be. Of course there is still the buyer and the seller, but the way these two people look at real estate can be completely different.
No longer are the days of people buying a house because they simply want to move in and live there for the next ten years. Now, there is a big business fad called flipping, and many people are jumping on board.
Flipping is buying a house with a home equity loan from a previous home and fixing it up to sell at a higher price. Big money can be made in this business if you know what you are doing.
Now, the mortgage lenders and builders would rather sell their homes to people who want to buy the house to live in, not to flip. Sometimes, these builders will include a clause in the sales contract stating that they can't sell the house until a year has gone by. They can even buy the house back if they suspect that a flip is in the process.
You can see how risky this business can be. However, the property owner really can do whatever they want to with their house. If flipping is their business, it can be quite risky, but some people are up for this game.
The thing to remember though is that this is a real estate fad. When will this fad burst? No one knows, and neither does the flipper. Yes, they can make big amounts of money fast, but when things don't go as planned, the big money is not there, but big money has been spent.
So, if you have thought of going into the real estate business, it depends of what kind of risk you want to take. Do you want to play it safe on the seller's side? Or, are you the risky type and want to flip? You must be confident enough to take the risks and win.
by Trisha Frauenhofer
The business of real estate these days is quite different that what it used to be. Of course there is still the buyer and the seller, but the way these two people look at real estate can be completely different.
No longer are the days of people buying a house because they simply want to move in and live there for the next ten years. Now, there is a big business fad called flipping, and many people are jumping on board.
Flipping is buying a house with a home equity loan from a previous home and fixing it up to sell at a higher price. Big money can be made in this business if you know what you are doing.
Now, the mortgage lenders and builders would rather sell their homes to people who want to buy the house to live in, not to flip. Sometimes, these builders will include a clause in the sales contract stating that they can't sell the house until a year has gone by. They can even buy the house back if they suspect that a flip is in the process.
You can see how risky this business can be. However, the property owner really can do whatever they want to with their house. If flipping is their business, it can be quite risky, but some people are up for this game.
The thing to remember though is that this is a real estate fad. When will this fad burst? No one knows, and neither does the flipper. Yes, they can make big amounts of money fast, but when things don't go as planned, the big money is not there, but big money has been spent.
So, if you have thought of going into the real estate business, it depends of what kind of risk you want to take. Do you want to play it safe on the seller's side? Or, are you the risky type and want to flip? You must be confident enough to take the risks and win.
วันพฤหัสบดีที่ 24 มกราคม พ.ศ. 2551
Commercial Real Estate Investment Strategy For 2008
Commercial Real Estate Investment Strategy For 2008
by Allen Cymrot
The dictionary definition for strategy is as follows: A plan of action or policy designed to achieve a major or overall aim. When applied to purchasing commercial real estate, it means setting the rules for achieving the desired return on investment with the least risk.
Before we set any rules, we need to know the current issues that will affect the value of commercial real estate. A perfunctory list would include the war in Iraq, terrorism, illegal immigration, the trade imbalance, energy dependence with unfriendly dictatorships, nuclear proliferation, the weak dollar, a softer economy, healthcare problems, environmental issues, a decline in educational performance, a subprime credit crunch, decreasing job creation, a questionable future for social security, increasing energy costs, and tax reform. Not exactly a favorable climate for investing in commercial real estate.
When NetGain analyzes the business cycles for the last one hundred years, history has shown that when compared to everything looking rosy, now is a better time to invest. Today's successful investors will be the ones who ignore naivety and greed. That said, current times dictate that you don't buy real estate using the greater fool theory (there will be a greater fool than you who will buy the real estate from you). The present economic climate dictates that you adhere to sound economic guidelines. Following is a composite list of those guidelines that NetGain believes are a necessary requirement for successfully investing in commercial real estate for 2008.
- Buy commercial real estate that has a positive spread. Positive spread means the capitalization rate is greater than the annual percentage rate (APR) cost for debt service. Negative spread is a guaranteed mathematical loss.
- Do not use projected income when computing the capitalization rate. Use current collected income.
- Do not use guaranteed income when computing the capitalization rate. Use market rate rents.
- Do not extrapolate physical occupancy into income when computing the capitalization rate. Use economic (collected) occupancy.
- Use current annual operating expenses when computing the capitalization rate. Do not use some short-term amount that is amortized into an annual amount.
- Include adequate operating expenses for a preventative maintenance program.
- Factor in all the costs for renewing short-term leases when computing the capitalization rate.
- Do not buy commercial real estate with a negative cash flow. Buying commercial real estate with a negative cash flow is the same as buying a failing business.
- Do not use the gross rent multiplier (GRM) as a leading indicator. Use it as a validating indicator.
- Do not use replacement costs as a leading indicator. Use it as a validating indicator.
- Set aside adequate reserves. Each property is unique as to age, amenities, lessees, etc. The current cycle (soft market or recession) will pass and you do not want to run out of money before it ends.
- Do not finance the property with a short-term maturity.
- Avoid a variable rate mortgage.
- Use NetGain's Economic Valuation System (EVS). As the leading proactive due diligence system on the Internet, it is a must when buying commercial real estate in today's market climate.
by Allen Cymrot
The dictionary definition for strategy is as follows: A plan of action or policy designed to achieve a major or overall aim. When applied to purchasing commercial real estate, it means setting the rules for achieving the desired return on investment with the least risk.
Before we set any rules, we need to know the current issues that will affect the value of commercial real estate. A perfunctory list would include the war in Iraq, terrorism, illegal immigration, the trade imbalance, energy dependence with unfriendly dictatorships, nuclear proliferation, the weak dollar, a softer economy, healthcare problems, environmental issues, a decline in educational performance, a subprime credit crunch, decreasing job creation, a questionable future for social security, increasing energy costs, and tax reform. Not exactly a favorable climate for investing in commercial real estate.
When NetGain analyzes the business cycles for the last one hundred years, history has shown that when compared to everything looking rosy, now is a better time to invest. Today's successful investors will be the ones who ignore naivety and greed. That said, current times dictate that you don't buy real estate using the greater fool theory (there will be a greater fool than you who will buy the real estate from you). The present economic climate dictates that you adhere to sound economic guidelines. Following is a composite list of those guidelines that NetGain believes are a necessary requirement for successfully investing in commercial real estate for 2008.
- Buy commercial real estate that has a positive spread. Positive spread means the capitalization rate is greater than the annual percentage rate (APR) cost for debt service. Negative spread is a guaranteed mathematical loss.
- Do not use projected income when computing the capitalization rate. Use current collected income.
- Do not use guaranteed income when computing the capitalization rate. Use market rate rents.
- Do not extrapolate physical occupancy into income when computing the capitalization rate. Use economic (collected) occupancy.
- Use current annual operating expenses when computing the capitalization rate. Do not use some short-term amount that is amortized into an annual amount.
- Include adequate operating expenses for a preventative maintenance program.
- Factor in all the costs for renewing short-term leases when computing the capitalization rate.
- Do not buy commercial real estate with a negative cash flow. Buying commercial real estate with a negative cash flow is the same as buying a failing business.
- Do not use the gross rent multiplier (GRM) as a leading indicator. Use it as a validating indicator.
- Do not use replacement costs as a leading indicator. Use it as a validating indicator.
- Set aside adequate reserves. Each property is unique as to age, amenities, lessees, etc. The current cycle (soft market or recession) will pass and you do not want to run out of money before it ends.
- Do not finance the property with a short-term maturity.
- Avoid a variable rate mortgage.
- Use NetGain's Economic Valuation System (EVS). As the leading proactive due diligence system on the Internet, it is a must when buying commercial real estate in today's market climate.
วันเสาร์ที่ 5 มกราคม พ.ศ. 2551
Reasons To Go For Real Estate Investment
Reasons To Go For Real Estate Investment
by Nahpihta Onamnuhc
Current info about real estate investment is not always the easiest thing to locate. Also, it is quite challenging for new comers who what to enter to this industry. Fortunately, this report includes the latest real estate investment info available.
As today, real estate industry has been attracted by many of investors, especially ones who wan to become a real estate broker. It has bee told that real estate investment is one of the most investment type that give very high ROI and could become very quick profitable. One of the reason that make real estate investment is very high profitable is because they involve with the high value property, people who invest in this sector get very high rate of commission based on the property they selling. Also Real estate is more of a stable investment than many others; vary rarely does property value ever go down, and it is the thing that everyone need to have for their residence.
There are many format of real estate investments such as broker, which you have a job to be an agent of the house owner who is selling their house or you can be a real estate investor who buy an old house in a very cheap price, then you renovate and maintenance it fix it up and sell for a higher price, which is generally called home flipping, or the other popular for mat of real estate investment is the rental, which you buy a house, apartment or flat and open for rent.
No matter which way you are doing in real estate property, it still the business that give very high profit. However, before you decide to enter to the market, you have to make sure that you have enough knowledge about this industry such as market condition, competitor analysis etc. If you find yourself confused by what you've read to this point, don't despair. Everything should be crystal clear by the time you finish.
However, in this article, I would like to give you some of initial guideline on a type of real estate investment, which is probably the most get rich quick one, home flipping. Home flipping can be called house flipping, it is the type of real estate investment that you looking for a very cheap old house and then fix or re-decorate it to become a new house and sell in higher price. This kind of business could give you a profit in a very short time as soon as you can sell the house that has just renovated. However, you may curious that what is the key of success of home flipping business.
It is really depends on quite some factors such as the location of the house, the market price and the style of decoration that have been renovated. However, one of the most important key that indicate the fail or success is the cost of the house. If possible, you should find the old house that has lowest cost in order to gain maximum profit. Those who only know one or two facts about real estate investment can be confused by misleading information. The best way to help those who are misled is to gently correct them with the truths you're learning here.
by Nahpihta Onamnuhc
Current info about real estate investment is not always the easiest thing to locate. Also, it is quite challenging for new comers who what to enter to this industry. Fortunately, this report includes the latest real estate investment info available.
As today, real estate industry has been attracted by many of investors, especially ones who wan to become a real estate broker. It has bee told that real estate investment is one of the most investment type that give very high ROI and could become very quick profitable. One of the reason that make real estate investment is very high profitable is because they involve with the high value property, people who invest in this sector get very high rate of commission based on the property they selling. Also Real estate is more of a stable investment than many others; vary rarely does property value ever go down, and it is the thing that everyone need to have for their residence.
There are many format of real estate investments such as broker, which you have a job to be an agent of the house owner who is selling their house or you can be a real estate investor who buy an old house in a very cheap price, then you renovate and maintenance it fix it up and sell for a higher price, which is generally called home flipping, or the other popular for mat of real estate investment is the rental, which you buy a house, apartment or flat and open for rent.
No matter which way you are doing in real estate property, it still the business that give very high profit. However, before you decide to enter to the market, you have to make sure that you have enough knowledge about this industry such as market condition, competitor analysis etc. If you find yourself confused by what you've read to this point, don't despair. Everything should be crystal clear by the time you finish.
However, in this article, I would like to give you some of initial guideline on a type of real estate investment, which is probably the most get rich quick one, home flipping. Home flipping can be called house flipping, it is the type of real estate investment that you looking for a very cheap old house and then fix or re-decorate it to become a new house and sell in higher price. This kind of business could give you a profit in a very short time as soon as you can sell the house that has just renovated. However, you may curious that what is the key of success of home flipping business.
It is really depends on quite some factors such as the location of the house, the market price and the style of decoration that have been renovated. However, one of the most important key that indicate the fail or success is the cost of the house. If possible, you should find the old house that has lowest cost in order to gain maximum profit. Those who only know one or two facts about real estate investment can be confused by misleading information. The best way to help those who are misled is to gently correct them with the truths you're learning here.
วันจันทร์ที่ 31 ธันวาคม พ.ศ. 2550
Business Opportunity and Real Estate Investment Advantages
Business Opportunity and Real Estate Investment Advantages
by Stephen Bush
A recent sampling of investment advice suggests substantial rationale to evaluate business opportunity and commercial real estate investing. An important financial attraction is the ability to exclude commercial property from the commercial loan process. Another key incentive to explore business financing options is the ability to finance a commercial mortgage or business loan with income produced by the commercial property or business.
The recent negative investment climate for residential real estate investment property has provided investors with new reasons to explore investing in business opportunity and business finance options. We will offer some candid advice about commercial mortgage and business financing as well as an overview about the importance of evaluating business and commercial investment property purchase possibilities.
Business Finance - Investing in Unique Businesses and Special Purpose Properties
Commercial real estate and business opportunity choices include special purpose situations such as funeral homes and golf courses. The unique characteristics of such business investment options translate to enhanced possibilities to differentiate a commercial business and provide added value.
Of course specialized business real estate investing does require special purpose business finance solutions such as golf course financing and funeral home financing. A critical requirement for business investment success is the ability to acquire a business loan that is appropriate for both the business and business owner.
Buy a Business with an SBA Loan for a Commercial Mortgage and Business Opportunity Finance
The option to use SBA financing (Small Business Administration loan) provides a business loan choice not available for residential real estate investing. This form of business financing is available to new business owners and can prove to be instrumental in purchasing a business opportunity or commercial real estate investment.
Business Opportunity Financing Without Real Estate Investment Property
Purchasing a business opportunity does not involve commercial real estate. The lack of a commercial mortgage can be an advantage if real estate values are decreasing because business value is dictated primarily by the business income rather than the real estate.
Business Loan - Commercial Investment Value Driven Primarily by Income
In comparison to residential real estate investment property value depending primarily on location, commercial real estate and business value is primarily determined by business income. This results in less sensitivity to local real estate property value trends. A business loan will require an appraisal evaluating business income, usually over several years.
Commercial Loan Precautions - Business Financing Problems to Avoid
Just as there are unique and substantial positive benefits associated with buying a business or commercial real estate investment property, there are also a number of special business loan and commercial mortgage problems to avoid when arranging business financing. It is especially relevant for residential real estate investors to realize that there are more than 20 key differences between residential and commercial investment finance options. There is a critical commercial loan difficulty to anticipate with each difference.
by Stephen Bush
A recent sampling of investment advice suggests substantial rationale to evaluate business opportunity and commercial real estate investing. An important financial attraction is the ability to exclude commercial property from the commercial loan process. Another key incentive to explore business financing options is the ability to finance a commercial mortgage or business loan with income produced by the commercial property or business.
The recent negative investment climate for residential real estate investment property has provided investors with new reasons to explore investing in business opportunity and business finance options. We will offer some candid advice about commercial mortgage and business financing as well as an overview about the importance of evaluating business and commercial investment property purchase possibilities.
Business Finance - Investing in Unique Businesses and Special Purpose Properties
Commercial real estate and business opportunity choices include special purpose situations such as funeral homes and golf courses. The unique characteristics of such business investment options translate to enhanced possibilities to differentiate a commercial business and provide added value.
Of course specialized business real estate investing does require special purpose business finance solutions such as golf course financing and funeral home financing. A critical requirement for business investment success is the ability to acquire a business loan that is appropriate for both the business and business owner.
Buy a Business with an SBA Loan for a Commercial Mortgage and Business Opportunity Finance
The option to use SBA financing (Small Business Administration loan) provides a business loan choice not available for residential real estate investing. This form of business financing is available to new business owners and can prove to be instrumental in purchasing a business opportunity or commercial real estate investment.
Business Opportunity Financing Without Real Estate Investment Property
Purchasing a business opportunity does not involve commercial real estate. The lack of a commercial mortgage can be an advantage if real estate values are decreasing because business value is dictated primarily by the business income rather than the real estate.
Business Loan - Commercial Investment Value Driven Primarily by Income
In comparison to residential real estate investment property value depending primarily on location, commercial real estate and business value is primarily determined by business income. This results in less sensitivity to local real estate property value trends. A business loan will require an appraisal evaluating business income, usually over several years.
Commercial Loan Precautions - Business Financing Problems to Avoid
Just as there are unique and substantial positive benefits associated with buying a business or commercial real estate investment property, there are also a number of special business loan and commercial mortgage problems to avoid when arranging business financing. It is especially relevant for residential real estate investors to realize that there are more than 20 key differences between residential and commercial investment finance options. There is a critical commercial loan difficulty to anticipate with each difference.
วันเสาร์ที่ 15 ธันวาคม พ.ศ. 2550
The Real Estate Investment with the Features of a Corporate Bond
The Real Estate Investment with the Features of a Corporate Bond
by Groshan Fabiola
Why are so many investors, foreign and domestic, placing their money in NNN properties?
Net-leased real estate provides a unique investment opportunity to individuals or institutions interested in owning real estate without the hassles of management and leasing typically found in conventional real estate investments. Net-leased projects are most commonly single-tenant, credit-driven investments on long-term leases which require minimal or no landlord responsibility.
As a result, investors are not bound to their geographic markets, whereas they would most likely be with a traditional real estate investment, not just closely watched "backyard" opportunities.
A net-leased (NNN) property is effectively a long-term bond of a corporation in the form of a lease document encompassed by real estate. The investment appears to be a bond-type investment due to the "coupon-clipper" type of returns, 6%-10%. However, they also provide the added benefits of tax reduction and property appreciation found in conventional real estate.
The net-leased investment can be categorized three ways: 1. Retail refers to big-box users (i.e. discount variety stores, department stores, or home improvement stores) as well as small-box users (i.e. restaurants or drug stores). 2. Industrial includes facilities used for either distribution, manufacturing, or research and development. 3. Office refers to any single user such as an oil company or pharmaceutical firm occupying a facility as the sole tenant.
Pricing on net-leased projects is based primarily on the tenant's credit, the terms of the lease, and the location. Although each of these variables has an important role in the pricing of net-leased projects, it is the combination of all three that will determine a true purchase price.
Tenant's Credit * Many net-leased projects are based solely on a tenant's credit. * Tenants considered investment grade by a recognized rating agency usually trade at a premium (i.e. Walmart, Walgreens, General Motors). * Tenants with junk bond (non-investment grade) ratings or minimal net worth typically trade for a higher return (i.e. UA Theaters, Dairy Mart convenience stores, Taco Cabana restaurants).
Lease * Length of a lease is a another primary factor in determining the sales price on a net-leased investment. Primary terms of 15 or more years are preferred; 10 years is sufficient in 1031 tax-deferred exchanges and similar cases * "Absolute" triple-net leases, where the tenant is responsible for roof, structure, and parking, trade at a premium. * "Double-net (NN)" leases, where the landlord is responsible for roof and structure, trade at a higher yield and usually include a reserve taken for any potential repairs. * Leases with "bumps"- rental increases or upside trade at a premium, with the exception of flat leases with investment grade credit.
Location * NNN leases are credit-driven, causing location to be the least important factor. * Investors often pay an added premium for the residual benefit of specifying a certain geographic location.
The combination of credit, lease and location can lead to paying a higher premium (i.e. Walgreen: 20 year NNN, flat) or receiving a higher yield (i.e. CSK Auto: 15 year NN).
The market for net-leased real estate investments is strong. The availability of attractive financing combined with minimal landlord responsibilities create highly desirable opportunities, especially for investors desiring a property for an IRS Section 1031 tax-deferred exchange.
Whether a risk-averse individual or institution is in need of a smart depreciation vehicle or a relatively safe "coupon-clipper," net-leased properties provide great investments in both credit and real estate markets.
by Groshan Fabiola
Why are so many investors, foreign and domestic, placing their money in NNN properties?
Net-leased real estate provides a unique investment opportunity to individuals or institutions interested in owning real estate without the hassles of management and leasing typically found in conventional real estate investments. Net-leased projects are most commonly single-tenant, credit-driven investments on long-term leases which require minimal or no landlord responsibility.
As a result, investors are not bound to their geographic markets, whereas they would most likely be with a traditional real estate investment, not just closely watched "backyard" opportunities.
A net-leased (NNN) property is effectively a long-term bond of a corporation in the form of a lease document encompassed by real estate. The investment appears to be a bond-type investment due to the "coupon-clipper" type of returns, 6%-10%. However, they also provide the added benefits of tax reduction and property appreciation found in conventional real estate.
The net-leased investment can be categorized three ways: 1. Retail refers to big-box users (i.e. discount variety stores, department stores, or home improvement stores) as well as small-box users (i.e. restaurants or drug stores). 2. Industrial includes facilities used for either distribution, manufacturing, or research and development. 3. Office refers to any single user such as an oil company or pharmaceutical firm occupying a facility as the sole tenant.
Pricing on net-leased projects is based primarily on the tenant's credit, the terms of the lease, and the location. Although each of these variables has an important role in the pricing of net-leased projects, it is the combination of all three that will determine a true purchase price.
Tenant's Credit * Many net-leased projects are based solely on a tenant's credit. * Tenants considered investment grade by a recognized rating agency usually trade at a premium (i.e. Walmart, Walgreens, General Motors). * Tenants with junk bond (non-investment grade) ratings or minimal net worth typically trade for a higher return (i.e. UA Theaters, Dairy Mart convenience stores, Taco Cabana restaurants).
Lease * Length of a lease is a another primary factor in determining the sales price on a net-leased investment. Primary terms of 15 or more years are preferred; 10 years is sufficient in 1031 tax-deferred exchanges and similar cases * "Absolute" triple-net leases, where the tenant is responsible for roof, structure, and parking, trade at a premium. * "Double-net (NN)" leases, where the landlord is responsible for roof and structure, trade at a higher yield and usually include a reserve taken for any potential repairs. * Leases with "bumps"- rental increases or upside trade at a premium, with the exception of flat leases with investment grade credit.
Location * NNN leases are credit-driven, causing location to be the least important factor. * Investors often pay an added premium for the residual benefit of specifying a certain geographic location.
The combination of credit, lease and location can lead to paying a higher premium (i.e. Walgreen: 20 year NNN, flat) or receiving a higher yield (i.e. CSK Auto: 15 year NN).
The market for net-leased real estate investments is strong. The availability of attractive financing combined with minimal landlord responsibilities create highly desirable opportunities, especially for investors desiring a property for an IRS Section 1031 tax-deferred exchange.
Whether a risk-averse individual or institution is in need of a smart depreciation vehicle or a relatively safe "coupon-clipper," net-leased properties provide great investments in both credit and real estate markets.
สมัครสมาชิก:
บทความ (Atom)
.jpg)