Go Zone tax benefits for Real Estate investors

Go Zone tax benefits for Real Estate investors

In 2005, the U.S. Congress delivered the "Gulf Opportunity Zone Act" which offers incredible tax benefits to real estate investors as part of an effort to help revitalize regions affected by hurricanes Katrina, Wilma, and Rita. With the clock ticking on the government tax incentives, and the rapid growth being seen throughout the region, the Go Zone is realizing a "gold-rush" of investment buyers, scouring for bottom market prices and to recoup significant tax dollars they paid out to Uncle Sam over the past 5 years.

Here's 5 good reasons to purchase in the Go Zone:

*50% Bonus Depreciation in the first year of ownership for qualifying real estate investment buyers. This depreciation bonus can be carried back up to 5 years as well!

Demand for housing in the Go Zone will vastly exceed supply for the next 3 - 5 years. The Go Zone lost 65,000 homes and 11,000 short-term rental options in one day!

Gulfport-Biloxi is currently the No. 2 gaming center in the country with 11 casinos and 8 more anticipated to open by the end of 2009.

Housing Predictors gave Biloxi the number one spot on it's "10 Most Promising Housing Markets"

Hanover Companies exclusive "Total Leasing Program" that offers you the option of leasing your newly purchased condo or single family home to a corporate tenant for up to 30 months! The rent you receive as part of the T.L.P. generally covers your mortgage, taxes, and HOA fees for the full term of the lease. This means you could very well be cash-flow positive from day 1.

Two Risks Real Estate Investors Need to Deal With

Two Risks Real Estate Investors Need to Deal With

Everything good has risks; it doesn't matter what it is. This is very true of real estate investing. Real estate investments have the guarantee of high rewards at the end and for many people... it's very tempting to do. Yet, it shouldn't be done on the whim. People should be aware of the facts that surround this moneymaking business. It's much more than the high potential that people often see; there are some downfalls to it as well.

If you plan to get involved with this market, you must take the necessary precautions that will limit your exposure risk wherever you can. If you can't limit the risk, be prepared for the financial risks and be ready mentally to accept whatever negative outcome occurs (should the time arise).

Risks Behind Real Estate Investment

Risk 1 - Lose The Investment

When you're dealing with real estate, there's a high chance that you'll lose the investment. If your investment is big and the demand falters, you may be dealt a devastating blow. Remember... losing the investment may be bad but it's certainly not the nastiest thing that will go wrong. This isn't meant to keep you from getting involved; it's meant as a warning and/or heads up.

When you flip houses as your investment, you could lose much more during the time you work especially if you are injured. Most house flippers do not have enough insurance coverage, whether it is homeowners or personal insurance; they also don't have a lot of money and time set aside to recover from a serious injury.

Risk 2 - Bad Things Happen

Remember that in real estate investing, bad things do tend to happen. What kinds of things? Here are some bad possibilities:

Businesses close their doors
Natural disasters
Economy collapses (or spirals downward)
Local market crumbles
People changing their minds
Accidents during work
Anyone of these things can lead to real overwhelmingly catastrophic consequences. As you notice, the above events are totally out of your control. That's why you need to be prepared for the real possibilities of bad things occurring.

Along with these bad things, there's the risk of the house failing its inspection. Most investors tend to forgo a good inspection and discover, usually down the road, that the home has major structural, plumbing or other problems. Repairing these things will cost money and will eat into the profits.

Once you do found out the problem, you have two options:

First, you can repair it yourself before you put the house on the market.
Second, you can reveal it to potential buyers.
It's very important to discover these before you purchase the home; do a meticulous inspection on the piece of real estate that way you'll uncover any potential problems. It'll save you not only time but lots of money.

Bear in mind that you should not let the two risks keep you from getting involved in the market. However, as an investor, you do need to understand the risks that are involved so you end up making money, not lose it.

Insurance for Real Estate Investors

Insurance for Real Estate Investors

To start a business in real estate investing you will need certain things to help with your investing. First of all you absolutely must have a legal advise because in this business it is almost guaranteeed that you will run into legal problems or have legal questions that need to be answered quickly. Don't worry there is a simple resolution for this problem.
Get a membership with pre-paid legal for a very low rate and get set up with a lawyer in your area that will be available to answer your questions any time. The paln has no long-term contracts and is very affordable, you pay month to month. There are also extra perks that come with the package for a monthly fee including getting your will and testament prepared, free legal forms, free tax dvice, free financial advice and incorporation services for your business. Send an email with your name and contact information to support@discoverforeclosurefortune and you will receive an email back with a more detailed desription of pre-paid legas services and all the info you need to get started with a pre paid legal membership. In the subject box type pre paid legal info request.

Real Estate Education for Real Estate Investors

Real Estate Education for Real Estate Investors

Real estate has always been and continues to be one of the leading industries around the globe. Real estate investing has been a source of huge profits for many of the world's rishest people. Despite the news heard, it is still a good time at real estate to get involved with. The common phrase that "there isn't any land being made" still holds true today. The industry goes through cycles and a down cycle is part of the process. There will be a rebound in the industry definitely after that. It is still a good time to get into the industry, if you have any thought.. Obtaining a high quality real estate education is the most crucial step for you to take. Once you've done that, you can work in whatever capacity you choose.
Let's review 7 ideas to obtain the maximum from your real estate education.

The real estate investment education should be invested by you. You must devote the time in order to obtain the information you need for your education. Read through the top blogs in this area and then post your own responses. Go to real estate forums and chat with other experienced investors.

* Specialize in an area. It's more to your advantage to have an area of real estate specialty than just general knowledge. If you're going to get hired by a big company, they usually like specialists.

Have a membership in real estate club. A real estate club can provide you the added knowhow that you need and also some excellent contacts within the industry. There are times when you do not have anytime to go to a physical real estate club. Hence, the best way is to join a virtual real estate club online.

Go above and beyond the call of duty. Some good books can be researched on Amazon by you to further your real estate education. There are a lot of great resources that can be used by you to improve your education. Go out and search for good information.

* Take an internship. Being an intern at a well-respected company can have a significant positive impact on the opinions of potential future employers. You'll get hands-on experience that can not be duplicated in the classroom. It is also a good way to have more contacts in the real estate industry.

* There will be tons of work. Getting a good real estate education will involve learning a lot of different things. You will have an opportunity to learn more about topics such as resource management, business skills, management skills, contracting law, as well as negotiation skills at the very same time.

* The experience will be fun. Investing your time and money into getting an education in real estate might be one of the most rewarding experiences of your life.

Real estate investment education is one of the best things that can be done by you. For the remaining of your life, you would love your work if you are good at real estate.

Primary or Secondary PrePaid Meters For Real Estate Investors

Primary or Secondary PrePaid Meters For Real Estate Investors

When considering buying a prepaid meter as a home owner or a landlord there are several options that one should be aware of. In the electricity prepaid metering industry there are two options and many types of meters.
The two options are: municipal prepaid meter and landlord owned meter. Many landlords and home owners are not aware of the difference between a municipal prepaid meter (primary meter) and a landlord owned meter (secondary meter).

Both landlords and home owners come across two main barriers to entry when inquiring about installing prepaid meters: First is the price, second barrier is the simple fact that municipality simply does not supply prepaid meters in some areas or that the waiting list to get a prepaid meter installed is 6 months to 2 years with some municipalities. That said, they are not aware of the fact that they are only inquiring for the first option, the municipal prepaid electricity meter.

While landlords with rental property have the option to install sub-meters, also called secondary meters that are owned and managed by the landlord, the home owner wanting a prepaid meter for their primary dwelling unfortunately does not have this option and must turn to the municipality.

To better under this we will look now at the difference between the municipal prepaid meter also called "primary" and the sub-meters which are landlord owned and managed meters.

1. The municipal meter is owned by the municipality and the applicant will only get one at the price of the municipality, waiting list they have and provision of the area if such exists.

2. The secondary meter can be purchased by any landlord, it can be received and installed in a matter of days, the landlord manages the meter and the kwh rate is the same as the municipal tariff for the area.

The first option means that they are at the mercy of the rules and pricing of the municipalities. If the municipality does not provide prepaid meters for their area or the price is prohibitive then really this options is not viable.

Furthermore, with a municipal meter the landlord has absolutely no control of the meter. In other words, the tenant can purchase electricity from any Point of Sale the municipality prescribes and in the same time carry on living without paying the rent to the landlord or avoiding the landlord in that regard.

The second option that landlords have is to purchase a landlord owned meter. Owning a sub-meter does not require municipal approval of any sort. With sub-meters the landlord can buy a meter, often at a third of a municipal meter price and the availability is almost immediate, no long waiting lists for installation.

Sub-meters are also used in multiple dwelling ERFs. Municipality will not provide in almost all cases more than one meter per ERF, which means that if the landlord is letting out a house with one granny flat/cottage or more, the only option is a sub-meter for each tenant. This is being done also in shopping centers and industrial properties, where here are many tenants on one ERF.

Should the landlord opt for a sub-meter, this will mean that the primary meter owned by the municipality will not be removed and the landlord will continue to received the municipal bills. However, the landlord will receive all moneys for prepaid electricity from the tenants. From the amounts collected during the month, the landlord can now pay the bill that will arrive at the end of the month from municipally.

When understanding this setup it becomes evident why the home owner doesn't really have the sub-meter option. A landlord is avoiding arrears from late or non-payment by a tenant and ensuring the tenant can monitor their own use of electricity. However, as a home owner, one would still receive the municipal bill, which in effect can make a sub-meter of no effect as home owners want to alleviate themselves from municipal bills.

With sub-meters though the landlord is not allowed to re-sell electricity (in South Africa) at a tariff greater than that which the municipality stipulates, the landlord is entitled to install a secondary meter and issue electricity tokens for electricity sold at the municipal rate and, at the same time, the landlord is allowed to charge a service fee for doing this.

Because sub-meters are managed and controlled by the landlord, this also means that the tenant has to approach the landlord to receive electricity tokens, which in turn means that if tenants does not pay for their rental, they will have to face the landlord sooner or later to get electricity tokens.

As opposed to primary prepaid meters, landlord owned and controlled meters now add the additional value of not having to chase the tenant who is avoiding calls from their landlord for late or non-payment of rental, sooner or later will have to approach the landlord for additional electricity tokens.

In summary, though primary meters seem to be the only solution known by landlords, savvy property investors and property owners that need to manage tenants are finding out that sub-meters are often a cheaper, faster to get and install solution that affords them a level of control that is non-existent with primary prepaid metering provided by the municipality.

As for home owners, unfortunately if the wish to stop getting bills from municipalities then, this means that they will have to go the municipal route and go through their local municipality process to purchase a municipal prepaid meter at the municipal cost and installation time.

Must Have Real Estate Principles For New Real Estate Investors

Must Have Real Estate Principles For New Real Estate Investors

It is important for Absolute Acreage Investors to accept an compassionate of some of the basics of absolute acreage so you can be a more-informed investor.

In absolute estate, there are two categories of property, absolute and personal. Absolute acreage is authentic as the acreage and whatever is absorbed to it, accepted as improvements. Claimed acreage is aggregate that is not absorbed to acreage or buildings. This is generally accepted as chattel.

A accoutrement is an account of claimed acreage that has been adapted to absolute acreage by assuredly adhering it. Two examples cover chandeliers and cabinets. If they were at the store, they were claimed property. Once they are absorbed to the property, they become absolute property.

A advertisement acceding and an acceding of auction specify what is advised as a fixture. If you are purchasing a property, you should anxiously audit this article to see what you are accepting and what you are not getting.

When you acquirement absolute property, you get what are accepted as a "bundle of rights". These are the rights of ownership. They cover the appropriate to occupy, to use, to acquiesce others to use, to rent, to restrict, to assemble buildings, to accumulate others off, to leave and abandon, to aback buying and to encumber.

A acreage acreage refers to an buying absorption in acreage for an undetermined aeon of time. It is a anatomy of buying that you get if you acquirement a property. There are assorted types of acreage estates, with the a lot of adopted blazon getting alleged fee simple. It is the accomplished and a lot of complete anatomy of buying possible. It gives you the abounding array of rights, including the appropriate to canyon your buying absorption on to your brood if you die.

There are altered forms of demography buying to a property, and it is a acceptable abstraction to accept anniversary one and what it means. They are severalty, control by the entirety, collective control and control in common.

Ownership of absolute acreage can aswell be captivated in a trust. A assurance is a acknowledged apparatus that is acclimated to assure ancestors buying interests. A assurance has three parties, a trustor, a trustee and a beneficiary. The trustor conveys buying of the acreage into the trust, which is again captivated by the trustee. Based on some accident according to the agreement of the assurance the acreage is eventually conveyed to the beneficiary.

Title is the appropriate of buying of property. There are 5 basal kinds of appellation - naked possession, blush of title, appropriate of possession, acceptable appellation and complete acceptable title. The acquirement of appellation allowance will assure a "good" title. A appellation company, or abstruse company, will do a complete appellation seek to ascertain if there are any "clouds on the title".

A accomplishment is a accounting certificate that conveys appellation of absolute acreage to an owner. The being who gives or grants the accomplishment is alleged the grantor. The being who receives the accomplishment is the grantee.

There is a aberration amid appellation and deed. Appellation is the appropriate of buying of property. A accomplishment is a accounting certificate that conveys appellation to the property. Appellation is a right. A accomplishment is a document. The two a lot of basal types of accomplishments are the quitclaim accomplishment and the assurance deed.

A accepted assurance accomplishment provides a agreement of acceptable appellation not alone by the seller, but aback through the alternation of appellation through all the antecedent owners of the property. It provides the arch appellation aegis to the grantee, or buyer.

It is important that every Absolute Acreage Client and Broker understands these basal attempt afore purchasing Absolute Estate.

The M-a-g-i-c Secret for Real Estate Investors

The M-a-g-i-c Secret for Real Estate Investors

One of the keys to success in the absolute acreage apple is architecture a able broker list, contrarily accepted as a buyers list. If you accept a solid buyers list, you can body a stronger career with the contacts and admission that you charge to consistently accomplish able-bodied in the absolute acreage market.

Simply put, if you can acquisition a account of investors who will consistently be absorbed in affairs new houses, you can advice these specific investors acquisition the houses they want. If you alpha to apprentice added about your specific investors, you can acquisition account and houses that will address to their specific tastes, authoritative it added acceptable for them to plan with you time afterwards time.

With a able buyers list, you can go out in the bazaar and acquisition a amount of abundant choices in account to accomplish you added successful. In all, it’s important to accept a acceptable buyers account in adjustment to be added profitable. Also, these investors will apprehend that you are an able in the absolute acreage market. They will acknowledgment to you frequently to see what you accept accessible for them. You will be apparent as the aboriginal footfall appear their success and this ensures you will abide popular. The added humans in your buyers account and in your arrangement in general, the bigger for you. You will be able to advertise abode afterwards abode to the humans who are consistently searching for new backdrop in your area.

Make your buyers account plan for you. In adjustment to accept the a lot of success possible, it pays to bethink the afterward simple acronym: ITS MAGIC.

I – Identity

Why will humans bethink you? Why will they accept to go to you against all the added investors and absolute acreage “experts” in the field? You charge to set yourself apart. If you accommodated approaching investors, added associates of your bounded absolute acreage clubs and even the strangers you accommodated in the grocery store, you charge to leave them canonizing your character and admiring your personality. You wish them to acknowledgment to you time afterwards time so authoritative yourself as amiable as accessible is basic to your success. Accept a signature action, a signature adage or a signature section of accouterment that will accomplish humans bethink who you are. Once they bethink you, you can advice them by affairs added and added houses.

T – Appellation Records

If you can accomplish the action of accepting appellation annal easier, you will be added invaluable in the marketplace. Get admission to bounded absolute acreage annal through appellation companies or added absolute acreage brokers to get the advice you need. If you pay absorption to the names on the appellation records, you can see which investors are snapping up homes often. By highlighting these individuals, you can alpha to body your buyers list.

S – Signs on the Street

Promotions and commercial will advice you acquisition the humans that are abduction up houses. Call the businesses that affiance to buy the ugliest abode on the block. Are they absolutely affairs houses? If so, agenda the business and the accommodation makers in this accumulation to put on your buyers account for approaching absolute acreage deals.

M – Marketing

Promotions and commercial will get YOUR name out there as well. Get a acceptable business agenda and advertisement to advice advance your business. You can leave your advice at appellation companies and everywhere abroad that could bolt the eyes of your approaching investors. You should attending to duke out hundreds of business cards anniversary month. Join clubs. Acquisition out area absolute acreage investors are and put your name in foreground of them to get your name out there.

A – Auctions

Go to bounded auctions to acquisition the investors that are searching for new absolute acreage properties. Pass out your agenda and pay absorption to see who is consistently arcade for new properties. Accommodated humans and bethink names. You’ll body your homes buyers account easier this way.

G – Groups

Join bounded groups and meetings. You can acquisition a amount of investors or abeyant investors. Advice a abundant abeyant broker and you could acquisition yourself with a gold abundance down the road. You never apperceive if your better broker will appear beyond your path.

I – Internet

The Internet is a gold abundance abounding with broker leads and tips to advice humans like you body your buyers list. Attending to absolute acreage forums and altercation groups. Even if you accommodated added humans in absent states, accumulate clue of them in case you move or they move in the future.

C – Clubs, accurately Absolute Acreage Clubs

Real acreage broker clubs are traveling to be the best abode to body your buyers list, abnormally in the beginning. Pass out your business cards actuality and appearance off your accustomed identity. You can acquisition a amount of absolute acreage clubs abreast you to attend.

Taking the time to body and advance a able buyers account is one of the better mistakes I see investors accomplish on a circadian basis. Spend the added time to body your claimed buyers account and watch your business soar.

What is a Real Estate Gateway Web-Page?

What is a Real Estate Gateway Web-Page?

by Brett Miller

I'm Brett Miller and I'm a domain-aholic. Yes, the truth comes out! Since the late 90s, I can't help myself from buying these wonderful groups of words with "dot com" at the end.

Domains are like great dreams for the future. Yet, most of my domains sit un-utilized, waiting for their moment to shine. Are you sitting on a treasure trough of unused domains that you keep paying for year after year? Well, there's hope for you yet!

Introducing the 1-Page Wonder: the Domain Gateway Webpage

In the old days, you could simply "park" all of your unused domains to your main website, but that approach will now get you penalized by Google who will see all these domains as separate websites all displaying the exact same data. PENALTY!

Instead of this destructive approach, consider having a special webpage built that takes advantage of the specific keywords present in each domain name itself. Create as many different key phrases that apply to this domain name and link those to your main website.

This 1-page site should not be a duplicate of another page you already host online. It should be its own free standing unique, content-rich super page that is optimized to the hilt with links "pointing" to your main website. In fact, these links are the main reason for having this 1-Page Wonder page. The more links pointing to your main website from other websites on other servers, the better for helping you achieve higher ranking on the search engines.

On your 1-Page Wonder, you want to post as much content that is applicable to the subject as possible. It's better to write new copy for these pages. If you can create a special Blog for just this domain that you will keep up and not let it go stale, this is a great idea since Google LOVES Blogs. Add RSS and XML Feeds to your page with news items that are based on your keywords to ensure that you have constantly updating content, or better yet, set up a Blog that you will enter special material just for that gateway page.

There are a lot of services coming out every day that will give you "widgets"­ snips of web code ­ that your webmaster can place right on the webpage to show Blogs and Newsfeeds. A couple of these are FeedBurner.com and SpringWidgets.com. This will give you a free flowing avalanche of new and rotating copy that you don't even have to write. A good place to find information on a 1 Page Wonder gateway page websites is at

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.

Common Mistakes By Real Estate Investors

Common Mistakes By Real Estate Investors

by Kim Lee

The question will always be which came first the chicken or the egg. In real estate it may be the deal or the plan. Many people make the mistake of finding a great property and then do not know what they are supposed to do. This is where the trouble begins. They have worked themselves backwards into a corner. The idea is to formulate a plan and then find the house which will work with this plan. We are a planning people. We plan for the future, the college education for the kids, and retirement. When it comes to real estate it only makes sense to plan for that too. Sometimes the novice investor gets ahead of themselves and forgets to draw up a plan. Deciding what you want to do in the real estate market will determine what houses you buy and how you sell them. It is best to always have a plan.

Planning to get rich quick is another common mistake. The big deals which will net you millions is usually only a dream. Investing in real estate is a slow and steady process. When you proceed at a steady pace, you will keep moving forward towards your goal. You can make money, but being a millionaire over night is stretching the limit. On the average a good investor can make $60 to $100 thousand a year with proper real estate investments. This strategy allows for a steady forward progress and takes into consideration that not everything will go as planned. You must keep real estate investing just what it is REAL.

Do not think you can go it alone. There are many people who play a key role in making a real estate deal work. The smart investor has a team of specialists who assist him or her. Even they may not know they are part of a team, it is a team all the same. You will need a good real estate agent you can trust to help you analyze the properties. You will want an appraiser and a contractor or inspector to make sure the house is worth the investment. You may even need a lender once in a while. The most important part of the team is the attorney who is going to make sure there are no hidden surprises which may crop up at any point in the deal. This is not a loner business.

This is not a business with a single strategy either. You must have a plan A, B, and C. On occasion it does not hurt to have a D in the mix. You may want to buy a home and resell it. The housing market changes quickly. If you can not get it ready for market in time to sell for a profit, you may consider renting. There are times when the rental market becomes void, or stalls. When this happens you could offer a land contract or lease option to get rid of the property. There may come a time when the only thing you can do is sell to another investor and cut your losses before you lose any more money. The wise investor also knows when to bail.

The common mistakes made by the inexperienced investor can be avoided with a little research and planning. When you decide to start investing in real estate, learn the business. There are many books available which can teach some of the strategies the pro's use. There are seminars, many of them free, which allows you to learn how to invest. Study up and make smart decisions when it comes to real estate investing. This way you can avoid common mistakes investors make.

Investment Property Advice For Real Estate Investors

Investment Property Advice For Real Estate Investors

by Alex Anderson

Author of the Rich Dad book series, Robert Kiyosaki, says his "Rich Dad" asserts that investing in real estate isn't rocket-science. He said it's simply a matter of using sound judgment. But it's common knowledge that common-sense isn't, in fact, all that typical.

Kiyosaki also says, the "worst" investors are those who have simply not studied the things that produce positive results. They adopt the viewpoint that investing in real estate is either too much of a risk or a rip off. Others leap before they look and end up losing money.

The best advice anyone can give you having to do with investing is simply to educate oneself. If, in your haste to make money, you take action without an education, you will be doing yourself a great disservice. One of your most valuable resources is time and if you squander that, you will often find that your money will follow - money you have that you wind up losing, equity you would have made if you'd just taken the time to figure out the techniques of successful investors.

"That is great," you may say. You probably accede that getting a good education is invariably a good thing. At the end of the day, knowledge is power. But "what education should I get?" may be your 1st question. Your 2nd is probably going to be, "How do I go about getting it?"

The first thing you should do is study some essential accounting, which is not as ambiguous as it sounds. Accounting is the language of business. If you're investing in a company or a piece of property or what have you, you will want to be willing to check up on it and see if it will be a benefit (earn you money) or a liability (lose your money). It sounds like common wisdom when you think about it, doesn't it? But if you want to be able to determine those things, you will want to be able to evaluate your financial-statements.

There are 4 basic types of financial statements: cash flow statements, income statements, balance sheets, and statements that express changes in a share holder's equity. The last is pretty self explanatory, and deals with the characteristics that lie surrounded by equity at two opposing points in time. Shareholder equity is the net worth of a company, or it's total assets minus its total liabilities.

Your cash flow statement is a document that details the cash used in making a company function correctly, plus where the money came from. Wikipedia relates a business to a large vat of water that holds more of the liquid and also has lines running from within to the outside of it - into the investor's pockets and those to whom the business is in debt. The cash-flow-statement attempts to describe the activity of the water - or the flow of your cash.

The earnings (or P&L statement) watches out for a company's earnings and expenses over a given time period, as the balance sheet provides a description the same thing for 1 distinct window of time and addresses assets and liabilities.

It may seem quite straight-forward until you reflect upon Kiyosaki's words on discerning your assets and your liabilities apart from one another. He says that the lending institution, for instance, will list your home as an asset. It seems reasonable. After all, it's something you own, right? Yet as stated by Kiyosaki's rich dad's statement of liabilities and assets, your house is in fact a liability. It's considered a liability because it ultimately costs you money in dues and updates. It undoubtedly is not making income for you, and up to the time it starts doing that (say, you move out and are able to rent the first property out to make a profit), then it is not an asset.

Not that the bank is lying to you outright. A house is an asset on their balance sheet because it is making money for THEM.

That's the type of thing you can decide for yourself and determine whether you are losing or making money on an investment, if you take the time to educate yourself education. Remember: Knowledge is POWER.

Serious Real Estate Investors Need to Build Resource Lists

Serious Real Estate Investors Need to Build Resource Lists

by Judson Voss

You may have heard that one of the best ways to make yourself truly wealthy is to become a private real estate investor. While it is true that the millionaire real estate investor does exist in every state in the nation, it can also be a difficult way to begin to build up your own personal fortune. There are more books written and sold each year, on how to become a real estate investor, than on many other topics in business and self-employment. The main reason that the real estate investors get singled out is because their money tends to come in either; large immediate chunks, or as passive income over a long period of time. And as investment strategies go, both of these options can be great.

One of the most important parts of becoming a private real estate investor is the process of networking and building resource lists of professionals such as lenders, bankers, seller's agents, buyer's agents, real estate investor agents, carpenters, plumbers, etc... who you can call on to help make your transactions run more smoothly and who can answer any questions which you might have from time to time.

Nothing is more important to your business than making good contacts in the lending industry. Whether you work with banks, direct lenders, or mortgage brokers, you need to have lenders available to work hassle-free with you to help finance your deals.

One of the best things you can do if you will be looking to expand into other geographic areas with your real estate investment business, is to find other real estate investors already working in that particular area, generally those who simply rehabilitate the properties to flip or hold as rentals. Finding them is as simple as placing an ad in the local newspaper and screening out the callers who are looking to work with you rather than purchase a home from you.

Once you have some potential joint venture partners for your real estate investment business, then it is time to partner with some of those other investors when it is appropriate for both of you to do so. You can even ask your new partners to do much of the legwork there in their own area, and for their compensation they will be paid out of the escrow from the deal. If you are able to find other quality professionals to work with, then you really can have a win-win relationship working together.

It is also always a good idea to network with all of the real estate agents in the areas which you will be investing in property. Every private real estate investor should have realtors out in the field who will let them know about available property " even those not yet listed in the MLS. Once a realtor knows what you are looking for, and what kind of deals you prefer, they will call you when they know about a property which you might be interested in.

One of the most important tools for professional real estate investors is to build up lists of people you can partner with to help get the work you need done. By having lists of people you trust and can work with when you need to, you can be ahead of everyone else in your area.