Real Estate Investing benefits

“Growing instead of Shrinking

First thing to note in the list of real estate investing benefits is that if you look at the real estate market as a time line compared to the stock market, you will notice that real estate is a growing line with few major fluxuations. On the other hand the stock market has high points and valleys that range from quick high’s to sudden drops through out it’s history. It’s harder to look at the time lines of other forms of investing i.e. currency investing, mutual funds, buying gold and silver etc - but one thing is clear, no other market is as profitable or as safe as the investment real estate market. Many people ask me “Why is investing in real estate such a safe investment?” and the answer is as simple as it is complicated, the quick answer is “God isn’t making any more of it” the more complicated answer isn’t as poetic. The reason investing in real estate has so many benefits has many factors, I will go over the basics with you now: 1. Government Tax Breaks - The United States government has setup multiple tax breaks for real estate investors including the very popular 1031 exchange. The textbook definition of a 1031 exchange is:

“”A 1031 exchange or Like kind exchange is defined by section 1031 of the Internal Revenue Code. This code specifies that if an asset, usually some form of real estate such as land or a building, is sold and the proceeds of the sale are then reinvested in a like kind of an asset then no gain or loss is recognized, allowing the deferment of capital gains taxes.”"

The simple explanation is as long as you reinvest the money you made from your real estate investment into another investment you don’t have to pay taxes on said profit. No other form of investing gives you this much freedom with taxes.

2. Anyone Can Invest - Because real estate investing is so profitable and safe it see’s a huge amount of amateur investors entering the market everyday. Why else do you think all these infomercials are on late at night talking about the millions they’ve made overnight with someone’s CD set? O.k. I’m not saying that buying one of those CD sets will make you a millionaire but they are good to learn the basics of real estate investing from. The big problems with these CD sets is they teach making millions in real estate with bad credit or without spending a dime. This is not the case, 99.9999% of the time you will need excellent credit and a good amount of money for the down payment on an investment property (usually 10-20%).

3. Other People’s Money - Why invest your money when you can invest someone else’s? One of the big rules in real estate investing is “If someone is willing to flip the bill - let them”. Banks are more then willing to give out a loan to buy houses because unlike other forms of investing they have something tangible they can keep if you don’t pay up. Banks are usually not as willing to give loans for stock or gold investing because the stock you invested in maybe worth nothing by the time you sell and the bank has nothing OR you take your gold and run across the border. Real estate is almost always going to be worth something (often increasing in value every year) and their hasn’t been a recorded case yet of someone taking a house across the border. Right now the investment real estate market is booming like never before in history and those investing in it are being rewarded more so then in any other time in. If you want more information on this explosive market feel free to visit my website or give me a call and I will answer any question you may have. ”

About the Author

“Phil Laboon is a well known author in the field of Real Estate Investments in Florida, Nevada USA. His articles are very popular & published across internet. He has a vast experience in writing content & articles in this domain.

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Avoid Rookie Real Estate Investing Mistakes

When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of course, ecstatic. Finally, he had done it. He had taken that first important step in truly building his wealth that the man he called his ?rich dad? so often touted?investing. He knew it was very important to become an investor and make his money work for him.

The trouble was, the property he purchased was a losing deal for him. He didn’t see this at first, thanks to a smooth-talking real estate agent. But when he took the contract to his rich dad, he learned what a mistake he had made. According to that deal, he would be losing money each month. He thought it would be all right because he had been told that lost money was an investment in the future appreciation of the property.

He also was not aware that there would soon be major construction near the site, which would hamper access for quite some time. Who would want to live there?

What saved Kiyosaki on that deal was having a mentor like his rich dad, who made him go back and renegotiate the deal. The more experienced investor told him that you should never settle for losing money early in the deal, in the hopes that you will make up for it later. That is a bad deal.

Rich dad made him go renegotiate the contract and instead of losing money each month, he would be gaining $80 per month. His rich dad asked him how many of those losing deals he could afford at that rate. You can do the math. He couldn’t even afford the one. But at a gain of $80 per month, Kiyosaki’s reply to that question was, as many as he could get his hands on.

But many newbie investors fail to put themselves in the hands of a mentor, which his a mistake. It is good to have a trusted friend?not an advisor who stands to make a buck off of you, but someone who truly wishes to educate you?to keep them from making dire mistakes.

Another mistake that rookies often make is the very one that Kiyosaki made?they allow themselves to be talked into deals in which they lose money, after getting bogged down in mathematical ?if’s? that look really good on paper. ?If the property appreciates at this rate, then I can make up all the money I lost in the previous year and…and…? That is, IF the unit stays rented. IF the tenants pay you on time. IF you don’t discover a significant flaw with the property. IF the tenants don’t cause a significant flaw with the property…

The list goes on. It’s bad enough if you’re making money on the deal and something like that happens. If you start out losing money, you’re almost guaranteeing your own failure. Yet a smooth-talking professional can make it sound as though they are doing you a favor by taking your money.

And finally, newbies often fail to consider the environment within which they are making their purchase, just as Kiyosaki did. With real estate, unlike with other investments, the local financial ecosystem can seriously affect your investment, and so you have to stay on top of what is happening in the neighborhood and the rest of the city.

The thing is to educate yourself and keep your head at the negotiating table. If you do those two things then your deals will likely be just that?deals. For you.

About the Author:

Investment Property Specialist - Alex Anderson Helps Beginning and Intermediate Real Estate Investors To Build Wealth And Prepare For Retirement By Investing In Real Estate. Enroll In Her Free/Educational “Investment Property Program” At: http://www.GreatInvestmentProperty.com

Real Estate Investing - Residential or Commercial?

Some real estate investment advisors believe that if you are just beginning real estate investing you should avoid commercial real estate, such as office buildings, shopping centers, and warehouses for the following reasons:

It’s more complicated and does require a greater knowledge of law, zoning and leasing regulations, financing etc. Residential apartment buildings also fall into this category even though they’re used as residential property for the tenants it’s still a commercial enterprise for the investor and since it is a multi-tenant commercial building on land zoned for that purpose it will differ greatly from residential property in it’s maintaining, leasing, valuing, financing, and a host of other things.

According to a study in The Economist, residential property investment was $48 trillion and commercial real estate investment was $14 trillion. There are a lot more potential renters in the residential market than in the commercial one. During economic recessions which can occur every 5 to 10 years, marginal businesses fail at a faster rate. This can mean negative cash flow for you because of high vacancy rates if your tenants are included in these volatile businesses. Although residential rental demand also goes through these cycles, there is always a greater number of potential renters for house and condos than there is for commercial properties.

The profitability rewards are bigger but so is the learning curve. Mortgages are structured differently and building insurance is more expensive. Also to consider are the costs of fire suppression, security, and air-conditioning systems along with telephone and internet facilities.

Consider the right type of residential properties.
Location, price and condition. Do your research and find a property in an appreciating neighbourhood. Remember, properties appreciate for only two reasons: inflation and increased demand.

About 70% of Americans live in 3 bedroom dwellings so 3 or 4 bedroom houses or condos should be your target as they are the easiest to sell, the toughest to sell are 1 and 2 bedroom homes. Only consider properties that are in good condition also unless you want a job as a handyman. Fixer-uppers are only good if you have the extra time or are in the home remodeling business which then would make good sense.

Living in it or renting it?
When buying a property as a rental investment, stick to the lower end of the price spectrum. Rental properties should be about 20% lower than the average home price for an area. The best rental market is for moderately priced but attractive houses because if most renters could afford to buy, they would. The goal for rental properties should be for neutral to positive cash flow whereas the goal for a personal residence is affordable payments.

Choose a property with up to 4 units.
A duplex or fourplex can be a great investment because your tenants will be making your mortgage payments for you and you can live in one of the suites. Now some investors will say this is not a good idea and they would never do it because the tenants would always be bothering them for something. I have done this with great success and without any headaches. You just need to make sure everything is kept up and you need to have a good read for people that you allow to be your tenants. So, up to 4 units is great but anything over that starts to get a bit hectic and closer to the commercial side of investing, which for the novice, isn’t recommended.

Is Real Estate Investing Really One of the Best Income Opportunities

Investing in real estate can be one of the very best income opportunities, but it depends on your personality. I don’t believe everyone is suited for real estate investing, any more than I believe that everyone is suited to be a professional golfer, opera singer, or CPA.

In order for real estate investing to be the best income opportunity for YOU, first make sure you’re the type of person who can succeed as an investor. Fortunately, there are almost as many ways to invest in real estate as there are personality types, so the chances are excellent you will find one you can succeed at.

By answering a few simple questions, I can help you narrow your focus and decide what kind of investing you’re likely to do well with. Be honest with yourself, and answer each question with a simple yes or no. Ready? Let’s get started.

1. Do you consider yourself a highly detailed and organized person?

2. Do you find it difficult or uncomfortable meeting new people and starting conversations with them?

3. Do you enjoy managing large projects and orchestrating the efforts of a group of people?

If you answered yes to the three questions above, your skills make you well suited to rehabbing properties. You may not succeed as a negotiator, so finding and flipping properties is something you probably should avoid, but if you can partner with a skilled deal-finder, handling the rehab projects is something you most likely would enjoy and be good at.

Here’s another set of questions.

1. Do you find it easy to get to know new people and start conversations with them?
2. Do people tend to trust you easily?
3. Do you like how it feels when you negotiate a great deal?
4. Do you dislike detailed work, or are you slightly disorganized?
5. Are you tenacious and persistent?

If you answered yes to at least 4 of the above questions, bird-dogging, wholesaling, and flipping may be right for you. Talking to sellers will be one of your strong suits, once you learn how. Building a list of buyers will probably come easier for you than it might for someone else. However, you should avoid taking on rehabs, or becoming a landlord. Those require more detail and organization than you possess.

Here’s the final group of questions.

1. Are you patient and not easily frustrated?
2. Can you be firm and direct when necessary?
3. Are you consistent and organized in you own personal finances and recordkeeping?

If these answers were yes, perhaps landlording and holding properties for rental would be a good fit for you. In fact, these traits are found in almost all successful, long-term landlords. On the other hand, not possessing these qualities is most likely why so many landlords get fed up with their tenants and wind up selling their properties at a big loss.

There is much more we could say on this topic, but by now you’re getting the idea. It’s vitally important to take a look at yourself truthfully. Ask yourself some hard questions, and use the answers to help determine if real estate investing will be one of the very best income opportunities for you, and which type of investing you are best prepared to excel at.

Now, go make more offers!

International Real Estate Investing - International Real Estate Investing Guide

In the U.S., it is said the economy isn?t completely stable. The stock market is tricky for investors, oil prices continue to flux, and politics are changing. In spite of all this, real estate investing is very hot. Everyone is buying, selling, remodeling ? it?s everywhere, even on reality TV. Does that mean international real estate investing is a good idea?

If real estate is hot on the home front, is it a good investment opportunity on an international level? Some investors are gaining a lot from real estate in the U.S., and many are trying to figure out a way to cash in on the action. For those who want to take their dollars to the next level, international real estate investing may sound like a great idea.

But how difficult is it to find properties, conduct deals, and sell properties internationally? For those who want to travel and have some experience with investing in real estate on a smaller scale, international real estate investing may be the just right. It isn?t something that anyone can do, however, and it?s best to have some experience with real estate on the home front before investing further afield.

There are perhaps two ways to get involved with international real estate investing. Those who take a more hands-on approach will actually go to the site of their property, inspecting before or after purchase and becoming actively involved in the sale. Some investors may delight in traveling around to their properties, and this hands-on approach suits many. Investing in this fashion often means scouting for properties online, conducting deals by telephone, and performing an on-site inspection.

Some international real estate investors may choose to work on their properties remotely. To do this, you will have to have a crew of people who work for you at the location. You?ll need someone who can inspect the property and decide what needs to be done, someone who can sell the property once it?s ready, and someone who can complete the buying transaction. You may need workers to paint and perform other tasks on the property. As long as you have one person working with you who can access the property, this sort of remote management is possible. As the investor, it isn?t necessary that you see a property with your own eyes, or that you get actively involved in the renovations.

To learn more about international real estate investing opportunities, look at the properties that are available. Scout them on the Internet the same way you?d scout a property located closer to home. Find out about the area around each property you?re interested in, and learn what you can about the real estate market in general before you buy. International real estate investing is a great deal like real estate investing at home. If you have the funds and the will to do it, you can.

Basic Tips to Know in Florida Real Estate Investing

One of the great ways to earn money is to invest in real estate such as Florida real estate.

Yes, there are risks accompanied with investing in Florida real estate, but if you are determined to be successful in this field, you have to prepare yourself first before entering into it. Beginners need to be equipped with lots of information before beginning investing in Florida real estate to protect themselves and also their interests. For beginners, there are some great ways in order to gain lots of information, by joining or attending real estate investing seminar or real estate investing program, few of the ways you can do.

You can read plenty of books about how real estate investing works. Use the internet and search about real estate investing. You can look for websites that offer guides and tips regarding investing in real estate. Look and read the testimonials and experiences of successful investors, know how they become successful, you can definitely learn through their experiences.

The most important things that you should know as beginners in Florida real estate investing are the real estate law and the rules and regulations. In order to avoid high risk with your investment, you have to know and learn the real estate law. In entering real estate investing, you should not be ignorant, you have to be alert and be aware of the real estate law and also the market before moving to the next steps.

You have to take time to know the market price of any piece of Florida real estate. Never take the word of the seller, it would be better if you hire an appraiser to help you out or simply use the knowledge you have in coming up with the price for the Florida real estate properties. When you know the selling price of the property and you know the current market value in Florida real estate then it will be easier for you to get a great deal. It would be wiser to know better than the seller, so when negotiating comes, you can end up with a great deal or bargain. One of the great ways to make money is to purchase a bargain property and if you find a seller which is willing to sell his or her property for 20% less than the market value then you should purchase the property.

You can also purchase property in Florida real estate that has hidden potential that can easily be unlocked and can be fixed in order to increase the value of the property. Whatever the hidden potential the property has, what matters is that you can easily increase the value of the property by at least 20%, in order for you to earn money. But make sure that you will do the work within six month as you purchase the property in Florida real estate.

If you truly want to enter Florida real estate and to make money, you can follow these basics tips in order for you to get started in Florida real estate and to make money in this filed. But you have to bear in mind, that this doesn?t pay off quickly or rapidly since Florida real estate investing requires time, effort and hard work. In the long run, you could found out that all the time, effort and hard word pay off and it is all worth it.

Eliza Maledevic Miami Real Estate

Opening A Dollar Store - Rewards of Business Ownership

There are many potential rewards associated with opening a dollar store. However, with those rewards come many risks as well. It is important that the entrepreneur who is opening a dollar store carefully determine what those rewards are in their case and then compare the rewards to the many risks that will also be faced.

So what are some of the rewards associated with opening a dollar store? The rewards can include the potential for monetary profits. There is also the freedom associated with working for yourself, and the pride associated with owning your own business. Among the biggest rewards for many is getting rid of the 9-to-5 J-O-B and the boss that comes with that J-O-B.

All of these rewards and more are attainable if you are opening a dollar store. Well run dollar stores can be profitable. Owning and operating your own business does offer a degree of independence. You can definitely determine what you do and when you will do it. (However, never lose sight of the fact that mistakes can affect business performance.) There is nothing to compare to the pride as you stand in your finished and ready to open for the first time store. Say goodbye to your boss; you are now your own boss.

All of these rewards are well worth seeking. They are all very achievable when opening a dollar store. However never allow those rewards to blind you to the risks associated with business ownership. Recognize the rewards. Recognize the risks. Together they define your potential business success. It is absolutely no fun to see a business fail because the risks existed, yet they were not recognized or properly addressed because of the potential rewards.

To Your Dollar Store Success!

Some Important Points To Know About Real Estate Investing: Contract Clauses

Real estate investing: contract clauses’ is an important topic to learn for real estate investors, because if you do not know the essentials of the clauses then your contract will not produce desirable results when presented before a listed broker. This is why what you learn from home study course is not very useful because it teaches you seminar type of drafting. Instead, real estate brokers like use of standard agreement because it is more in the favor of brokers rather than you. However, here you need to use your skills to change the standard format of agreement so that you are not at the disadvantage.

For the property buyers, here is some important real estate investing: contract clauses.

?And/or Nominees? or ?And/or Assigns?:

If you put the word “And/or assigns” with your name, you will get the right of assigning your contract, which as a buyer you would always wish to have. However, the word “And/or nominees” is not as wide, yet it allows you to assign the title to any trust. One important point to remember here is that the real estate investing: contract clauses must not have any anti assignment provision. If there is any such clause, then you must cross it out.

Inspection Clause:

You must make it sure that you can perform a thorough inspection before a stipulated date and no professional inspector is needed for the purpose. If after inspection you find that the things are not in shape and the seller is neither interested in fixing problems nor he is ready for price reduction, then you should have the liberty of canceling the contract.

Right to Extend:

Most of the real estate investing: contract clauses have a definite date for closing. Any delay can make you defaulter. To avoid this kind of situation add clauses like “on or about June 1st”. Nobody is sure about its meaning. However, one thing is sure that it gives you a little extra time. Alternatively, you can include an extension clause for 30 days by paying mortgage amount of one month to the seller.

Qualification of Buyer:

If you do not want to waste your time, then never believe in the claims made by the buyer regarding loan qualifications. It will be your biggest mistake in real estate investing: contract clauses, if you tie up the property with any unqualified buyer. Instead, you yourself must possess all relevant information regarding loans so that you infer whether the buyer will qualify or not. Mention specifically in the contract clauses that the seller can terminate the contract if buyer is unable to produce the required documents within 48 or 72 hours.

Real Estate Investing - Are You Landlord Or Investor?

When I first started buying real estate, I made a conscious decision to avoid rentals because I had no interest in being a landlord. Like you, I heard all the horror stories of nightmare tenants, late night plumbing problems, lead paint hassles, and evictions. I wasn’t interested in putting a lot of time and effort into screening tenants, dealing with vacancy and repair, and going to court.

In fact, the very first book I bought on real estate was Lonnie Scruggs’ Deals On Wheels, a brilliant treatment of mobile home investing, and a more dedicated "anti-landlord" than Lonnie has never been born. The entire concept of buying and selling mobile homes, as developed by Lonnie, evolved as an answer to his "tired landlord" syndrome.

After reading Lonnie’s book, and others like it, my mind was more set than ever- I would never buy rental property. I would never have a tenant. I would NEVER, EVER be a landlord.

My how times change. Based on the knowledge I have gathered over the last several years as a real estate investor, and conversations with hundreds of experienced investors, I now know that it’s not what you do, but how you do it, that determines the level of frustration you experience with ANY type of investing, rental or otherwise.

In short, it’s the position you choose.

Choose A Position Of Strength

You can be a landlord if you want. I choose to be an investor.

Landlords do many things that investors don’t, unless they choose to. Let’s compare:

Landlords put up "For Rent" signs, place newspaper ads, and hold open houses and showings. Landlords deal face to face with tenants, screen them, and do background checks. Landlords tell tenants they’re approved (or not), explain the rules to tenants, and sign leases with them. Landlords collect deposits and rents.

Investors hire professional property managers.

Landlords take tenant phone calls when there are problems, no matter what time it is. Landlords tell tenants their rent is late, assess late charges, and enforce rules. Landlords apologize to neighbors for unruly tenants, cut grass, and plow snow. Landlords fix appliances and leaking toilets.

Investors hire professional property managers.

Landlords apologize to tenants for problems, fill vacancies, and inform tenants they are not getting their deposit back because of damage done. Landlords evict tenants and go to court with them. Landlords do many, many other things I don’t want to do.

What about investors? Let’s see.

Investors hire a professional property manager to handle all of the things that landlords do themselves. Which is easier, more cost effective, and a more efficient use of your limited time? If you answered, "Hiring a professional property manager," you’re right!

A quality property manager is worth every dollar you pay them. They will make sure that your units are rented to the right tenants, that the property is well cared for, and the tenants are happy. They will fill vacancies and answer trouble calls. They will deal with repairs and evictions. They will handle the bookkeeping, collection of rents, and assessing of late charges. They will form a buffer between you and the headaches of running a rental property. They are experts at all of these things, and much more.

You will get a check at the end of each month.

Get the picture?

It seems so simple, right? Why does it take some investors, including me, so long to see the difference?

Change The Way You See Yourself

It’s all in how you view yourself. When you see yourself as a landlord, you fail to recognize that your time is better spent doing what puts money in your bank account- namely, finding and acquiring property that meets your investing criteria. Unless you are a plumber by trade, or a professional property manager, or landscaper, wouldn’t your time be better spent doing what you have learned to do so well- investing in real estate?

Does that mean that if property management is something you love to do, something you aspire to, you shouldn’t do it? Of course not. If you have a passion for managing your own properties, and you like the idea of being a landlord (with all that entails), by all means go for it. I’m not trying to change what you love- I want you to see that you have a choice.

Maybe you’re like me. I had to teach myself to think differently about who I am- to think like an investor, not a landlord. When you begin to think like an investor, you start approaching real estate like a business rather than a hobby. You realize that you don’t have to do everything yourself just to save money. You come to understand that doing everything yourself is most likely costing you money- maybe a ton of money.

To repeat, the two keys are:

1. Learn to see yourself as an investor.

2. Learn to think like an investor.

Are your strengths really in the areas of landlording I listed above? If so, fine. Keep doing what you’re doing. But if, as I imagine, you are better suited to finding deals and bringing them to the closing table, then hire a pro to manage the properties you decide to hold and rent. Play to your strengths- you will multiply your time and your business will grow like a thoroughbred racehorse bursting from the gate.

Now, go make more offers!

Finding the Right Attorney for Real Estate Investing

Hiring a real estate attorney is one of the most important decisions to consider when first becoming involved in real estate investing. The right Attorney will keep one on tract and lessen the liability in investing in real estate. For a real estate amateur, buying or selling a home without an agent, a real estate lawyer will always be of assistance in order to look into matters which he or she may not be aware of. Steps to hiring a Real Estate Investing Attorney. Make a list of Attorney’s Through contacts (friends, family members, colleagues, bar-association members), make a list of lawyers. Screening Next, find out everything about the listed attorneys and then do an initial screening shortlist three or four prospective attorney candidates: Few things to pay attention to on screening: * Analyze the biographies and Web sites for the attorney and their law firms * Experience in the law field, especially in law pertaining to real estate * Go through a few client testimonials and other references of the attorney * Check out the archives of your local newspaper. Has there been any publicity about the lawyer or the cases that he or she has handled? * Ask about conflicts of interest. Does the lawyer represent any opposing parties? Does the lawyer represent any of the competitors? There are basically two types of real estate lawyers: those who handle lawsuits (called litigators) and those who primarily handle contract matters (called transactional lawyers). Some lawyers do both, but most of them tend to specialize in one area or the other. If you are involved in a lawsuit or may end up in one, look for a litigator. Otherwise, a lawyer who handles transactions may be your best bet. Tips & Warnings * Start with the easiest, least expensive steps an attorney can perform first. Sometimes a little help is all you need. * Attorneys are willing to handle multiple tasks for a fixed price or retainer. * Make sure the attorney specializes in real estate and has expertise in the areas required * It is preferable that an attorney also be a licensed real estate broker. * Real estate brokers are not attorneys and cannot give legal advice. Pros & Cons of Hiring an Attorney

If not a seasoned buyer or seller, it would always be safe to hire an attorney in order to look at things like zoning or permitted use laws, neighborhood or condo association by-laws, environmental restrictions, tax issues, and all of the other sections that can pop up in future.

A Real Estate lawyer will add cost to the transaction because of his or her fees. While these costs are usually not excessive, they are a consideration. Using a Real Estate lawyer may cause the deal to close at a later date due to his or her need to review and revise the purchase and sale agreement.

About the Author

Marcell Corkern is a writer and active Real Estate Investor and specializes in investments of residential real estate and residential mortgages

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