Real Estate Investing: Sales and Negotiation Skills are Critical
June 22, 2008
Do you want to build wealth through real estate? You need expertise in two critical areas: specific investment strategies and sales and negotiation skills. But if knowing how to identify good deals is what’s really important about investing in real estate, why do investors need to worry about their sales and negotiation skills?
“Knowing how to identify good deals is certainly a critical part of real estate investing, but it’s not the only part,” says Russ Whitney, internationally recognized real estate expert and bestselling author of Millionaire Real Estate Mentor (Dearborn Trade Publishing). “Your investment may be an inanimate object, but in the process of making that investment, you have to deal with people. If you take a look at anyone who has made a lot of money-regardless of the circumstances or the vehicle they used-you’ll find they have at least one trait in common: They have top-notch selling skills.”
Peter Conti and David Finkel agree. In their book, Making Big Money Investing in Real Estate, they say, “The single most important skill you have as an investor is your ability to connect emotionally with people.” With an emotional connection, you can work through the mechanics of any deal.
Real Estate Bubble: Sophisticated Musical Chairs?
June 21, 2008
The real estate bubble is a hot topic today; annual appreciation and housing prices have never been higher in most U.S. markets. While personal incomes have risen in the single digits over the last four years, home prices have risen in the double digits. Home prices in some markets will reach levels in the next two years where they are not affordable to the majority of first-time buyers. As with any market, once part of the market can’t participate it will impact other areas of the market.
Market timing in over-heated real estate markets will be key in the next two years. Those waiting for the very top of prices might be holding some over-mortgaged property. Understanding when to take profits before demand weakens is an art most unseasoned individual real estate investors should have learned from their experience in the dot-com bust of 2000.
How to Own a Dream Home in Spain
June 20, 2008
Every year hundreds of thousands of foreign visitors travel to Spain to delight in the fantastic weather, stunning natural landscapes, excellent entertainment options and superb Mediterranean beaches. Many of these people dream of one day owning their own property in Spain, in fact Spain is now one of the most desirable second home and retirement destinations in the world.
In the 1960s Spain underwent something of a building boom and earned itself a reputation for building unsympathetically for the natural environment. Since then massive effort has been placed in redressing the balance, fixing the architectural problems and recreating the face of Spain particularly along the coastal regions known as the Costas.
The most famous Costa is the Costa del Sol and one of the most beautiful towns in this region is Benalmadena. This town is as famous for its stunning natural beauty as it is for the wealth of amenities and opportunities it offers both residents and visitors. It is also an excellent example of how Spanish property developers and town planners have saved Spain from architectural decline!
Boston Real Estate ? You Still Have Considerable Control Over the Sale of Your Boston Home
June 19, 2008
Boston real estate is a hot topic. Daily newspaper articles comment on whether or not a bubble exists in the Boston real estate market, when and if it will pop, how interest rates affect the market, why Boston residents are snapping up interest-only loans, and how foreign investors in our treasuries keep interest rates low. There are articles about the location and amenities of Boston homes, why those factors make our region so desirable, and why the completion of the big dig is going to make Boston real estate even more desirable.
Journalists remark on the gentrification of our neighborhoods and the development of the Boston Seaport. Reporters poll Boston real estate agents for comments on the empty nesters moving out of suburban neighborhoods to buy luxury Boston condos, the rapid pace in which Dorchester homes are being converted into condos, whether large firms leaving the city might impact Boston real estate, or if bio-technology firms will continue to drive up home prices. We are flooded with theories and statistics of how the weather affects Boston real estate, or how the parking affects South Boston real estate. We hear about the growth of mortgage companies and the increase in mortgage products available to today’s real estate consumer. It isn’t unusual to hear dinner conversation revolving around the next investor hot spot, if having a buyer agent is a necessity, if a 5 year-arm is a good product for a Boston condo purchase, or if the success of the Patriots and Red Sox has any influence on the Boston real estate market.
Old House? New House? Weighing Your Options
June 18, 2008
Maybe it has something to do with a childhood home we fondly remember. Many of us long for old homes built with solid construction, quality craftsmanship and beautiful details. We wax poetic and wistfully recall the hand carvings, plaster walls and eyebrow dormers of homes we’ve known. On the other hand, how do the old homes we admire compare with newly minted models-and what should we consider before deciding which to buy?
Location. Typically, old homes sit on generous plots of land in or near town. The neighborhoods are established and usually more central to schools and shopping. Mature trees and plantings provide shade and beautify the property and neighborhood streets. New homes are generally found in new developments outside of town and homeowners who buy into an early can expect to contend with dust and construction sights and sounds as the remaining phases are being built. Landscaping may be skimpy or nonexistent, but a buyer has the opportunity to design the décor from scratch.
Buying a Newly-Built Home? Ten Benefits of Using a Real Estate Professional
June 18, 2008
It might not seem necessary to involve a real estate professional in a transaction where a buyer can deal directly with a builder. However, by using a real estate professional, you have someone to protect your interests and guide you along the right path. Here are 10 advantages to using a real estate professional when buying a newly constructed home.
1. Just as a real estate professional calls on experience and knowledge of an area to help buyers locate pre-owned homes in a community, he or she can also direct buyers interested in newly-built homes to developments and communities that match client specifications.
2. A sales professional can suggest builders with reputations for delivering a high-quality product, responding quickly to issues, and being financially sound.
3. A sales professional may be familiar with how a builder prices his products and where there may be room to negotiate price or upgrades.
4. Without representation, you are one buyer purchasing only one home. But a sales professional can significantly impact a builder’s bottom line by providing a steady supply of customers. This leverage may work in your favor at the negotiating table. [Note: The builder may require your sales professional to accompany you on your first visit to the site. Check with the builder.]
Chapter One FSBO the Russ Miles thriller/mystery novel
June 17, 2008
Chapter One
She reached the phone on its second ring. "This is Tami!" She confidently answered. She knew who she was.
"Honey, guess what? I sold them! I’ve got the job!" "In Phoenix, Aaron?" "Yes! It’s beautiful here! Ninety degrees in November. Blue sky. This place is booming. We’ll sell our house, there!" I don’t want to sell my home! Tami’s mind screamed in silent protest. While she didn’t utter a sound, her reality whirled as her husband continued to talk.
"The company wants me on my job next Wednesday. I’ll be on the plane back, tomorrow. Pick me up, SeaTac at 4:35. I’ll be on Southwest flight 722. I booked before calling you. Don’t try to come inside. Be at the departures terminal, you know, where you dropped me off!" "But, this is Wednesday! How…" "Don’t you worry about anything! We’ve got a week, Tami. We can do it. I love you."
"Aaron, wait! Please don’t hang up. Tell me all about it. Just a moment, I need to get something to write this down… Now, how do you know that we will be able to move there? We’ve got this house. Trevor’s in first grade. We…"
How to Build Your Free House
June 16, 2008
What if you could “place an order” for the construction your Dream House (made either for your family, or for monthly rental income) and have it built for you in only a few months, or maybe weeks?!
What if you could get other people to do all the work… you wouldn’t have to pound one single nail, or need ANY personal experience in building or construction?
What if you could get other people to pay for it… you wouldn’t have to make a single payment out of your own pocket.
Best of all, what if I said that you could do this over and over again? And I mean in any country… in the USA, Canada, Europe, Australia, etc… as many times as you’d like to?
I am a real estate investor in Southern California, where an average 3-bedroom 2-bath house can easily cost $500,000. No joking! Houses may not cost that much where you live, but they are definitely expensive, no matter where you’re looking.
I had two goals as a real estate investor:
Renting a House
June 15, 2008
Renting a house or a room in your home is a great business that millions of people take advantage of to make some extra cash. While many people rent houses each year, not all of them are successful. Renting a house can be profitable and rewarding if you manage it properly.
Benefits of Renting a House
The main reason for renting a house is you can gain a large steady income. Many people buy rental houses in areas that have a constant flow of tenants and rent them for much more than the cost of the mortgage. Or, you have decided to sell, but the property value is lower than you expected. Over time, a house rental will increase in value and you will gain capital appreciation in addition to a steady rental income.
Typically, a house will rent for a lot more than an apartment. They generally will offer more space and they are usually rented by groups such as families, professionals or students as an alternative to buying or renting smaller spaces.
Another benefit of renting a house is to use it as a vacation home and only rent for part of the year. Many people buy shore homes and rent them except for a few weeks of the year.
How Professional Property Investors Interpret and Use Capital Growth Statistics
June 14, 2008
Understanding and using yearly price growth statistics in an area of interest is critical to making successful property investments decisions.
Property price growth is usually expressed in terms of a percentage i.e., 10% to 25% or more over a period of a year. But, what does this really mean.
Some property agents would have you believe that you will achieve great capital gains in an area with high capital growth.
The problem with this is that capital growth figures are often skewed by new developments in the area of interest.
An area that experiences a lot of new development will have a high capital growth because the cost to build a new property increases over time but it doesn’t mean that older properties will have the same capital growth.
Example;
In Sydney, Australia, a suburb close to the city and on the harbour, Darling Point, experienced apartment capital growth of 68.7% in one year, 2003, but the average the trend has been 9.9% since 1991.
Taking those figures literally means that the average price of apartments in the area has gone up 68.7% i.e., a unit that was $400,000 in 2002 has gone to $675,000 in 2003.
