Investment Real Estate Made Easy ? Make the Most from Each Investment Dollar
December 23, 2007
When it comes to buying investment real estate, there are many schools of thought on how to get the most out of your money. Some say lease optioning your houses is the best and safest way to go. In fact, I believe this to be true in many cases. For getting the most out of each investment dollar, though, and seeing a quick return, I believe that it is best to find property that you can rehab and resell.
Many people have tried this strategy and failed. Let me tell you why this is. Anyone can make money buying investment real estate, fixing it up and reselling it, as long as he or she understands how to buy and how to sell. This is the key. The people who fail in the rehab strategy of investment real estate fail because they know everything about rehabbing but nothing about buying and selling.
The real money is made by carefully evaluating the entire transaction. This includes looking at what the investment property will bring on the back end, or on the sale. Now, when you find a prospective investment property to buy and rehab, be sure to look at your profit after all of our money is spent.
Understanding Opportunity Cost When Investing In Property
December 22, 2007
While most investors have got involved in property investing because they understand the opportunities to make money through leverage and capital growth or high yields, I still see and hear of many who do not fully understand opportunity cost.
Remember anyone that gets into property is usually in it to generate money or income ? how many deals/properties you own is insignificant.
So what does opportunity cost mean?
Well according to the encyclopedia, "Opportunity cost is a term used in economics, to mean the cost of something in terms of an opportunity foregone (and the benefits that could be received from that opportunity), or the most valuable foregone alternative. For example, if a city decides to build a hospital on vacant land that it owns, the opportunity cost is some other thing that might have been done with the land and construction funds instead. In building the hospital, the city has forgone the opportunity to build a sporting center on that land, or a parking lot, or the ability to sell the land to reduce the city’s debt, and so on." http://en.wikipedia.org/wiki/Opportunity_cost
Real Estate Season is Here
December 21, 2007
Yes, it has finally arrived. This is the time of year when the MLS or Multiple Listing Services go up like crazy in all most every city, town and village.
So, what does this mean for you? Well, it might mean absolutely nothing…or, it might mean a huge profitable opportunity. How so you ask? Read on…
Spring, generally as mentioned is the time for realtors. It is a great time to buy and sell or both, depending on your situation. So, the market becomes ripe for action. As an example I have been watching the market in my home town for the last month or so and it amazes me how dramatically the asking prices have dropped. One home up the street that was $119,000.00 is now $91,000.00. That is a serious drop.
My question was why? So I did some digging and it seems here locally, that homes that are higher priced are actually doing it for a very smart reason. Have a high price in “dead” season of the year…it peeks the buyers interest, and then drop it in a huge loss (or so it seems) and you have a buyer frenzy. Case in point, this home I am speaking of was appraised originally at $86,000.00 Smart move on the owners part when you think about it. To the buyer they are getting a sweet deal and for the seller if he sells it at this price or higher if there is a bidding war going on, he makes a profit of at least $5,000.00 Nice.
Apartment Financing Explained
December 21, 2007
So you’re interested in entering the world of property management? Have you thought about how you’re going to get into this potentially lucrative market? Let’s face it; unless you’ve just inherited a large sum of money or are otherwise independently wealthy you’re going to have to borrow. This is where apartment financing comes in.
Before you go down to the local bank or investment company, it might be a good idea to ask yourself how long you expect to own the apartment building or complex. Is this a long-term investment? The answer to this question can significantly impact the type apartment financing you should get.
If you are planning on owning the property for a couple of years or less, most experts agree that an adjustable rate mortgage (ARM) will be your best method of apartment financing. Like the name suggests, an ARM is a loan will an interest rate that may change with time in accordance with an index. ARMs will usually offer a better initial interest rate than other loans in order to offset the risk of future interest rate fluctuations. Moreover, the mortgage holder is also protected by a maximum interest rate, or ceiling, that may be reset every year. Individuals planning to stay in the property management business for the long term may want to look into a fixed rate mortgage. A fixed rate loan will guarantee the same interest rate over the life of the mortgage.
Decorating to Sell a House by Meeting Three Key Needs
December 20, 2007
Specific marketing campaigns are no longer just for automobiles and designer clothes. Targeted marketing techniques are now applied to houses that are for sale. Decorating your house in a specific manner to facilitate the selling of it is an important aspect of selling and marketing your home; this type of decorating is called home staging.
The goal of this type of decorating is to strategically style to address the psychological needs of the buyer. The buyer has three major needs when they look at the house.
All décor choices you make to sell the house will reflect those needs of the buyer.
The most important tip to keep in mind at all times is that first impressions are critical in every area. The first time a potential buyer sees this house is curb appeal. That first glance they get as they step in the house can sell the house. First impression will happen in each and every room; make that impression awesome!
The Pros and Cons Of Hiring A Real Estate Lawyer
December 19, 2007
You’re travelling in a foreign country and you get arrested for something that you didn’t even know was against the law. The potential fine is huge, more than you earn in 10 years. Would you represent yourself in front of judges who might not even speak your language? Not if you had any sense you wouldn’t. You’d probably hire a lawyer.
Let’s think about that. Most people are not willing to risk 10 years salary when they’re in front of the judge, yet those same people are willing to risk that same amount of money, or more, whenever they buy real estate in a foreign country.
What’s the risk? There are plenty.
Not being fully aware of the laws that affect the ownership of real estate for starters. In some cases, you’re not only subject to the laws of real estate ownership which affect any property owner in that country, but there may be special laws which affect only foreign owners as well as local laws which differ from jurisdiction to jurisdiction.
Perhaps you’re not an expert at reading the language that the purchase and sale agreement is written in. Maybe you’ll overlook terms or conditions that would be a deal-breaker if you were aware of their presence.
An Investors 1st and Most Important Lesson
December 18, 2007
Are you ready for the lesson that will put you ahead of 99% of all real estate investors?
Here it is in a nutshell ?
USE AS LITTLE CASH AS POSSIBLE!
The days of mortgage burning parties are long over. But you will still meet people who believe that it is good idea to pay off the mortgage on a property so that they can have big cash flow.
Why do people want to own real estate free and clear?
Because they believe it’s the way to make more money.
But let’s do a little number crunching:
THE OLD WAY
Use $40,000 of your personal savings to buy a house with 20% down and get a loan for the rest.
You may cash flow $400 per month.
And on this one house you will also be getting ?
A. Equity build up like a personal saving account. B. Good appreciation as the house goes up in value. C. Great tax deductions that will lower your tax bill.
THE NEW, SMARTER WAY
Use an $80,000 new business line of credit instead of your own CASH and buy 2 houses.
Home Selling: Making It Easy On Yourself!
December 17, 2007
It’s a dream for many to buy and take ownership of a home. It’s something one aspires for in their lifetime. On the other hand, when it comes to home selling, the task at hand may be little less of a sweet dream and more of a nuisance for many. Be there real estate boom or no boom, selling a home can be a quite a time-consuming process and may not be as easy as one may imagine.
Getting buyers to visit your home may not be as much of a problem as closing in on a deal with one buyer. Prospective buyers can be got through the services of a real estate agent you choose to hire or through any of the advertising mediums you’ve placed an ad in. Do note that 80% of home seekers in the U.S. begin their search for a home online, so listing your home online is an option you should seriously consider.
Real Estate Investing ? ?The Neighborhood Factor?
December 16, 2007
Real estate investing can be a dream career when the process of buying and selling is mastered. The biggest challenge in real estate investing is not the money to get started or the availability of the product. Real estate investing’s biggest challenge is judgment. Personal decisions in making the purchase, fixing up the right things, and making the sale require judgment that comes from experience. The second and 100th property should involve better judgment than the first.
An approach to the first acquisition in a real estate investing career involves analysis of the neighborhood.
If the target property is located in a familiar neighborhood, an analysis is clouded by past memories and feelings. Familiarity can preclude objectivity.
And if the target property is located in an unfamiliar neighborhood, the analysis is shrouded in immediate impressions that may or may not be accurate.
Real estate investing today must consider unfavorable elements like drug and prostitution traffic, crime statistics, and the overall visual impression of neighborhood negligence and abuse by property owners and/or tenants. The windshield view will not reveal the whole story.
Will The Real Home Buying Guide… Please Stand Up?
December 16, 2007
Use Google right now and do a search on, “Home Buying Guide“. Take a few minutes to click some of the links to see what’s out there and then come right back.
Now, try “Home Buyer Guide” and do the same thing.
Overwhelming, isn’t it?
And that’s exactly the problem facing today’s prospective homebuyers; not knowing how to sort through all of the information that is offered to them when buying a home.
Do you know what the other problem is?
Ironic as it may sound, just as prospective homebuyers have too much information on topics such as: how to find a real estate agent, how to find a mortgage, how to fix your credit or how to get the lowest possible insurance, and on and on…they are faced with just the complete opposite when it comes to having information on the main focus of their quest - specific information on the house they want to buy.
In a survey conducted by Key Findings, it was found that “Prospective home buyers say they are unhappy with the information available to them. Some don’t think they are seeing all the homes available in their price range and complain about how difficult it is to find detailed information about the homes they are interested in buying.”
