Removing The Guesswork From Real Estate Investing

Investing in real estate can be a hard investment to break into properly without a fair amount of research into the market itself. That being said, the time spend educating yourself on the current and past trends in real estate will surely be time well spent. Real estate has consistently shown itself to be one of the most stable and profitable of ventures available to the average investor. Initially there is a lot of guesswork involved with the process of investing in real estate. These include such things as where to invest, should you flip or be a landlord, and how to go about the financing that will undoubtedly ensue?

The best way to pursue this endeavor is to systematically remove the guesswork and replace it with solid facts and informed decisions. The first question is where should you invest? In real estate there is little that is more important than location. If you are thinking about a long term investment then you will want to carefully consider the location of the property before buying. Make sure that your property is within close proximity of schools, shopping, business and any other necessary amenities. Also make sure that any planned changes to these things is taken into account. Make sure that your investment is located in a secure and growing area so that it will be a profitable investment for years to come.

Now comes one of of the big questions. Will you flip the property or do you have what it takes to be a landlord? This decision will factor largely into the the kind of property you choose. Flipping real estate can bring in a nice profit quickly if you are willing to spend some money on renovations or upgrades. On the other hand, being a landlord can bring in a secure monthly income and add to your equity. The choice is yours.

With your financing, just make sure that you deal with a financial professional that specializes in the world of investments. This is crucial as there are many different considerations when investing as opposed to buying for your own residential purposes.

What Is Real Estate Investing?

Real estate investors don’t need to ask the question, “What is real estate investing?” They know the answer, because they know what real estate investing means to them, which may be something quite different than it means to someone else. What is real estate investing to you?

You could ask five different people the question, “What is real estate investing?” and get five completely different answers. The only thing for sure is that real estate investing normally involves real estate. Let me tell you what I mean.

First, to one person, real estate investing might mean buying and selling. Normally, the investor wants to buy low and sell high, and this kind of investor doesn’t normally want to hold on to a piece of property for very long. Their answer to “What is real estate investing?” is “Quick turn around.”

Another person’s answer to the question, “What is real estate investing?” might mean buying and holding. This kind of person doesn’t mind the thought of being a landlord, and doesn’t mind the idea of managing tenants and collecting rents. Maintenance and upkeep don’t scare this investor.

Yet another type of investor is interested in high-value commercial property like hotels, office buildings, and malls. This is a high-risk, high-reward game played for big stakes. When asked, “What is real estate investing?” this investor doesn’t shy away from mega-sized deals.

One more type of investor prefers rehabbing and repairing. This investor buys the worst property and uses their skills and abilities to turn it around and make it nice again. These investors breathe new life into old properties. Their answer to, “What is real estate investing?” involves creating something of great value from next to nothing. People with construction experience or project management skills fit this type of investing best.

There’s also the kind of real estate investor who doesn’t actually buy any property at all. Their answer to, “What is real estate investing?” may involve partnerships, trusts, and possibly even the sale of notes, mortgages, and other financial instruments.

Real estate investing is a very big umbrella, and there are as many different answers to the question, “What is real estate investing?” as there are individual investors. Your job is to do the research, learn the strategies and then decide for yourself which style fits you.

At my website, I’ve written a more in-depth article on the question, “What Is Real Estate Investing?”

Now, go make more offers!

Real Estate Investing - Is Now A Good Time?

The timing is always right for investing in real estate. As with any investment, you need to be careful of certain things ? it is never a question of timing, but a question of location, mortgage affordability and maintenance.

Location - the number of like properties in the area, economy of the area, one huge employer or many small employers.

Cash flow - will more money be going out than coming in?

Managed professionally ? maintenance headaches belong to someone trained to handle them - not to you.

The economy of an area makes a big difference in whether the area is a ?hot market? or not. When the jobs are there, new ones opening up, and the population is growing, that makes a market hot? plenty of renters. When an area depends on one huge employer, this can make an area not as attractive for an investor because anything can happen to that employer.

One must make sure of facts, however. There is a company in Shreveport, Louisiana which shuts its doors for three weeks every year and lays off over 2000 employees when they do so. This kind of activity can skew area statistics making it seem to be a poor place to invest when that isn?t the true picture. When Boeing shut down, the real estate around Boeing bottomed out, but Canadians swooped in buying up everything in sight and made millions on their investments. That is because the market corrected itself.

Mortgage interest rates are rising at the moment. This does not mean that real estate is unaffordable. It does not mean that the real estate market is going to crash. Far from those dire predictions is the fact that real estate markets correct themselves over time.

Buying and holding is good strategy. Buying and holding and not being able to eat or not being able to buy clothes for your kids is not good strategy. There is a wonderful balance that can be reached. Utilizing hot market areas, where the rent will cover the mortgage and any other expenses involved with being a landlord makes real estate investment a low risk opportunity.

Professional management is the crowning touch for investing in real estate. It is mainly common sense strategy. Who wants to get up in the middle of the night to fix a stopped up toilet or to fix a broken heater? Not even the guy that gets paid for doing it likes that part of the job.

A management company does more than just maintenance. A management company will make sure you get your rent, by not only collecting it but will also make sure you have a tenant. Managing property is what they do and the only way they get more business is if they are good at what they do. You can rest easy with a professional management company because the usual landlord problems are solved by them instead of becoming a worry for you.

Removing The Guesswork From Real Estate Investing

Investing in real estate can be a hard investment to break into properly without a fair amount of research into the market itself. That being said, the time spend educating yourself on the current and past trends in real estate will surely be time well spent. Real estate has consistently shown itself to be one of the most stable and profitable of ventures available to the average investor. Initially there is a lot of guesswork involved with the process of investing in real estate. These include such things as where to invest, should you flip or be a landlord, and how to go about the financing that will undoubtedly ensue?

The best way to pursue this endeavor is to systematically remove the guesswork and replace it with solid facts and informed decisions. The first question is where should you invest? In real estate there is little that is more important than location. If you are thinking about a long term investment then you will want to carefully consider the location of the property before buying. Make sure that your property is within close proximity of schools, shopping, business and any other necessary amenities. Also make sure that any planned changes to these things is taken into account. Make sure that your investment is located in a secure and growing area so that it will be a profitable investment for years to come.

Now comes one of of the big questions. Will you flip the property or do you have what it takes to be a landlord? This decision will factor largely into the the kind of property you choose. Flipping real estate can bring in a nice profit quickly if you are willing to spend some money on renovations or upgrades. On the other hand, being a landlord can bring in a secure monthly income and add to your equity. The choice is yours.

With your financing, just make sure that you deal with a financial professional that specializes in the world of investments. This is crucial as there are many different considerations when investing as opposed to buying for your own residential purposes.

Socially Responsible Real Estate Investing

There are many ways to practice socially responsible real estate investing. In this article I will outline what I believe to be the best way to invest in real estate in a socially responsible manner.

I run into all kinds of people, many of whom are less than charitable when they find out I own rental property, and that I also flip houses and mobile homes. I frequently find myself disagreeing with those same people about just what socially responsible real estate investing means. For some strange reason, many people are predisposed to look down on those who engage in such capitalistic endeavors. Often, these are the same people who take advantage one or more of the many government programs that my tax dollars support.

Here?s what I mean when I talk about socially responsible real estate investing.

I am a man of my word, so when I say I?m going to do something, I make every effort to do it. This applies to offers I make on properties, promises I make to tenants, and agreements I make with contractors and service providers. In my mind, there is no more powerful way to engage in socially responsible real estate investing.

Being a landlord and property investor makes me a productive member of my local economic community. I strongly support and add to the tax base, and help provide a healthy living to several Realtors, contractors, and service providers. I also bank locally, and contribute to my local Real Estate Investor club. These are all great ways to pursue socially responsible real estate investing.

In addition, I provide clean, safe, affordable housing to several tenants, including children and senior citizens. I also provide housing to those in the lower income brackets through HUD?s Housing Choice Voucher Program, also known as Section 8. Providing this type of housing is another powerful way to practice socially responsible real estate investing.

There are those who believe that in order to practice socially responsible real estate investing, one needs to provide free housing to the deserving poor. I do not agree with that assessment. The Bible says, ?The laborer is worthy of his hire,? and certainly that applies to property owners. I commend those who choose to be charitable, but I do not believe it should be legislated. It needs to come from the heart, and be supported by a consistent practice of sound business principles.

That attitude, and the underlying economic practices, are reasons why the United States of America has been, and continues to be, the most charitable nation on the face of the earth. Practicing socially responsible real estate investing isn?t the result of some feel good nonsense, but rather the application of wise investing habits and moral consistency.

Now, go make more offers!

Socially Responsible Real Estate Investing

There are many ways to practice socially responsible real estate investing. In this article I will outline what I believe to be the best way to invest in real estate in a socially responsible manner.

I run into all kinds of people, many of whom are less than charitable when they find out I own rental property, and that I also flip houses and mobile homes. I frequently find myself disagreeing with those same people about just what socially responsible real estate investing means. For some strange reason, many people are predisposed to look down on those who engage in such capitalistic endeavors. Often, these are the same people who take advantage one or more of the many government programs that my tax dollars support.

Here?s what I mean when I talk about socially responsible real estate investing.

I am a man of my word, so when I say I?m going to do something, I make every effort to do it. This applies to offers I make on properties, promises I make to tenants, and agreements I make with contractors and service providers. In my mind, there is no more powerful way to engage in socially responsible real estate investing.

Being a landlord and property investor makes me a productive member of my local economic community. I strongly support and add to the tax base, and help provide a healthy living to several Realtors, contractors, and service providers. I also bank locally, and contribute to my local Real Estate Investor club. These are all great ways to pursue socially responsible real estate investing.

In addition, I provide clean, safe, affordable housing to several tenants, including children and senior citizens. I also provide housing to those in the lower income brackets through HUD?s Housing Choice Voucher Program, also known as Section 8. Providing this type of housing is another powerful way to practice socially responsible real estate investing.

There are those who believe that in order to practice socially responsible real estate investing, one needs to provide free housing to the deserving poor. I do not agree with that assessment. The Bible says, ?The laborer is worthy of his hire,? and certainly that applies to property owners. I commend those who choose to be charitable, but I do not believe it should be legislated. It needs to come from the heart, and be supported by a consistent practice of sound business principles.

That attitude, and the underlying economic practices, are reasons why the United States of America has been, and continues to be, the most charitable nation on the face of the earth. Practicing socially responsible real estate investing isn?t the result of some feel good nonsense, but rather the application of wise investing habits and moral consistency.

Now, go make more offers!

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!

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!

What Is Real Estate Investing?

Real estate investors don’t need to ask the question, “What is real estate investing?” They know the answer, because they know what real estate investing means to them, which may be something quite different than it means to someone else. What is real estate investing to you?

You could ask five different people the question, “What is real estate investing?” and get five completely different answers. The only thing for sure is that real estate investing normally involves real estate. Let me tell you what I mean.

First, to one person, real estate investing might mean buying and selling. Normally, the investor wants to buy low and sell high, and this kind of investor doesn’t normally want to hold on to a piece of property for very long. Their answer to “What is real estate investing?” is “Quick turn around.”

Another person’s answer to the question, “What is real estate investing?” might mean buying and holding. This kind of person doesn’t mind the thought of being a landlord, and doesn’t mind the idea of managing tenants and collecting rents. Maintenance and upkeep don’t scare this investor.

Yet another type of investor is interested in high-value commercial property like hotels, office buildings, and malls. This is a high-risk, high-reward game played for big stakes. When asked, “What is real estate investing?” this investor doesn’t shy away from mega-sized deals.

One more type of investor prefers rehabbing and repairing. This investor buys the worst property and uses their skills and abilities to turn it around and make it nice again. These investors breathe new life into old properties. Their answer to, “What is real estate investing?” involves creating something of great value from next to nothing. People with construction experience or project management skills fit this type of investing best.

There’s also the kind of real estate investor who doesn’t actually buy any property at all. Their answer to, “What is real estate investing?” may involve partnerships, trusts, and possibly even the sale of notes, mortgages, and other financial instruments.

Real estate investing is a very big umbrella, and there are as many different answers to the question, “What is real estate investing?” as there are individual investors. Your job is to do the research, learn the strategies and then decide for yourself which style fits you.

At my website, I’ve written a more in-depth article on the question, “What Is Real Estate Investing?”

Now, go make more offers!

Socially Responsible Real Estate Investing

There are many ways to practice socially responsible real estate investing. In this article I will outline what I believe to be the best way to invest in real estate in a socially responsible manner.

I run into all kinds of people, many of whom are less than charitable when they find out I own rental property, and that I also flip houses and mobile homes. I frequently find myself disagreeing with those same people about just what socially responsible real estate investing means. For some strange reason, many people are predisposed to look down on those who engage in such capitalistic endeavors. Often, these are the same people who take advantage one or more of the many government programs that my tax dollars support.

Here?s what I mean when I talk about socially responsible real estate investing.

I am a man of my word, so when I say I?m going to do something, I make every effort to do it. This applies to offers I make on properties, promises I make to tenants, and agreements I make with contractors and service providers. In my mind, there is no more powerful way to engage in socially responsible real estate investing.

Being a landlord and property investor makes me a productive member of my local economic community. I strongly support and add to the tax base, and help provide a healthy living to several Realtors, contractors, and service providers. I also bank locally, and contribute to my local Real Estate Investor club. These are all great ways to pursue socially responsible real estate investing.

In addition, I provide clean, safe, affordable housing to several tenants, including children and senior citizens. I also provide housing to those in the lower income brackets through HUD?s Housing Choice Voucher Program, also known as Section 8. Providing this type of housing is another powerful way to practice socially responsible real estate investing.

There are those who believe that in order to practice socially responsible real estate investing, one needs to provide free housing to the deserving poor. I do not agree with that assessment. The Bible says, ?The laborer is worthy of his hire,? and certainly that applies to property owners. I commend those who choose to be charitable, but I do not believe it should be legislated. It needs to come from the heart, and be supported by a consistent practice of sound business principles.

That attitude, and the underlying economic practices, are reasons why the United States of America has been, and continues to be, the most charitable nation on the face of the earth. Practicing socially responsible real estate investing isn?t the result of some feel good nonsense, but rather the application of wise investing habits and moral consistency.

Now, go make more offers!

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