10 Important Tips to Successful Real Estate Investing

Raja” Ahluwalia

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

1. Compare Property Values and Rents

Financial statistics only go so far; the best measure of a property’s market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.

2. Be Careful - Tax Laws May Change

Don’t base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor.

3. Specialize In Something You Know

Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you’ll benefit from experience by specializing in one aspect of investment real estate properties.

4. Know The Costs Going In!

Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment.

5. Know Where Your Tenants Are Coming From

If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants’ security deposits at closing.

6. Assess The Tax Situation

Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.
7. Investigate Insurance Coverage

If seller’s coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.

8. Confirm Utility Costs

Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant’s rent.

9. Consult Your Accountant

Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code.

10. Inspect!

Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment.

(c) Copyright 2005 Madan Ahluwalia. All rights reserved.

ABOUT THE AUTHOR

How To Find All The Money You Need For Your Real Estate Investing

Would you like to buy investment real estate? What is stopping you? Is it the money to get started?

If you are like most people, you think that the way to get enough money to buy a property is to go to a bank and apply for a mortgage.

Do you know that the best solution for beginning investors who are short on cash and credit is a method that most people don’t even know exists? This method allows you to bypass banks and mortgage brokers.

In three short steps, you can find all of the money you need to fund any of your real estate deals, without ever having to apply to a bank for a mortgage.

The first step is to realize that the best solution is to use private money. Private money comes from an individual, rather than a bank. A private money investor could be anyone. When you open your eyes to the possibilities of using private money to fund your real estate investments, you realize that all the money you need is hidden in plain sight all around you.

The next step is to find a private money investor. Private money investors are everywhere, ranging from neighbors to professional investors. They can be people you already know or people you find through advertising or online. Let’s keep it simple and start with the people in your own immediate circle. Your relatives, your neighbors, your friends, your co-workers, your dentist, and your mechanic are all potential private money investors.

You might be wondering why anyone you know would be willing to loan you money to invest in real estate. The answer is that most people are not satisfied with the low rates of return they are getting in so-called safe investments in savings accounts, money market accounts, and CDs. And people have been badly burned by the stock markets. They’d like to make more money but they don’t know a better way.

You can find private money investors by asking the people you know if they are happy with the returns they are getting on their investments. Then you ask if they would be interested in earning higher rates of return through safe investments in real estate.

If you don’t know about private money for real estate investing, it’s highly likely your friends, relatives, and neighbors don’t know either. They simply don’t know that they can use the money that is sitting in low-interest savings accounts, money market accounts, and CDs to invest in real estate. They also could have substantial equity in their own homes or IRAs that return tiny yields on mutual funds.

You can explain to them that you are offering a higher rate of return than they could get through any of these other so-called safe investments. They could earn 8%, 10%, even 15% by funding a first mortgage on an investment property. One of the greatest benefits of using private money is that you can create flexible rates and terms. You are asking for them to invest in a property that will guarantee them a higher rate of return than anything they are doing now. And you are doing it by offering a first mortgage secured by real estate.

After you find a person who is interested, your third step is to find a title company to set up the paperwork for you. You are not simply asking to borrow money. You are asking your private money lender to fund a mortgage on your investment property.

At this point, the title company will treat the mortgage contract between you and your private money investor the same way they would treat a mortgage contract between you and any bank.

If you want to get started investing in real estate, realize that the money you need is as close as the people you know as you go about your daily life.

Using private money to fund your real estate investment has two great benefits. First, it allows you make money with someone else’s money. And second, you are helping your private lenders make more money by investing with you than they would by keeping their money in the bank. This is a true win-win situation for both of you.

So, if you would like to buy investment property but don’t have the money or the credit to qualify for a mortgage on your own, the easiest and best solution is to look for private money investors among the people you already know.

About the author:
WARNING: BEFORE YOU INVEST IN REAL ESTATE…
FREE “No Money Limits Consumer Guide to Real Estate
Investor Training.” http://www.nomoneylimits.com

Some Basics in Real Estate Investing

Investing in Real Estate has been a very lucrative business for decades dating back to the great depression and possibly longer if it was documented. A person with knowledge about land and property has a great chance to earn big in real estate ventures. Real Estate investment isn?t easy but you?ll get a lot of perks later from experience and understanding the nature of the business. Like most start-up businesses or even doing it part time, initially it will require a lot of research, will power, and persistence in order to succeed, gain knowledge and allow your investment property to grow into a profit. Investing in real estate is risky because it involves a external factors beyond the investors control such as tenants and as of late natural disasters. With the proper planning these can also be overcome.

When we?re talking about investment real estate, the first thing that comes to mind is a rental property or an apartment building, whereby the owner is receiving income on the property they own. This income is used to offset the debt payment the owner has on that property. In addition, to having someone help pay your mortgage, your investment property may increase in value. Typically, the increased value in real estate has exceeded the rate of inflation. But real estate as an inflation hedge varies from locality to locality. Also, leverage exists with real estate since a high percentage of the investment may be made with a mortgage.

There are two major categories in real estate and these are residential and commercial. Usually, real estate owners invest in rental properties like apartment buildings which are still considered residential if under 5 units. The purchase of commercial properties is mainly for leasing to others or to start up a business. But these days, people also want to invest in commercial properties such as fast foods restaurants, markets, small office buildings, or retail shops. Usually commercial investing is riskier because it requires more initial capital and interest rates are higher than residential properties. Residential income property is high in demand because it?s one of the primary needs of the people especially those who live in or close to the city.

Purchasing real estate requires researching the subject property. Firstly, you must consider the location of the investment property because every locality has different characteristics that attract people. One can usually get answers from a local realtor or city planner in the desired area on the development of the area. As a general rule, property that has close access to businesses, good schools, stores and recreation areas is usually in high demand. Additional research involves inspecting the property title report to make sure it is transferable, physical interior and exterior inspection from a professional and a projected financial report on the property. This is one reason why an investor needs a good real estate agent and mortgage broker who have expert knowledge to find you the right property, to put you in the proper mortgage program and have these related professionals available. It?s their line of expertise and that?s why real estate investors contact them in terms of real estate matters. So, are you ready to invest?

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.

“

Real Estate Investing Guide-Learn about Real Estate Investing

Real estate investment is a great opportunity to earn profits and generate a cash flow. There is a slight difference between real estate investment and other types of investment. Real estate investment can be categorized as a long-term investment or short-term investment. Good real estate investor has ability to invest in real estate at right time.

Real estate investment requires proper knowledge and concentration to invest in good piece of land. Sometimes heavy investment gives wrong results in the future and sometimes with a small investment you can earn more. Investors should be alert at the time of investment in real estate.

If you’re going to rent your property you should have sufficient knowledge about tenant problems and requirements of tenants. You should be aware of all financial as well as legal requirements for your real estate. Investment goals are the primary factor for real estate investment. Decide your investment goals like what you want to do with your real estate.

Real estate market offers different types of strategies to invest in real estate. You should choose the best strategy as per your needs. Efficient real estate investors are able to make their fortunes in real estate business. People who invest in this business can live comfortably. They don’t have any tension about their survival. They can earn more and more profits with single right time real estate investment

Investment in real estate requires great commercial skills and knowledge like other businesses. Real estate business needs additional risk because sometimes you’re at risk in this business. Thats why a person with a great will power can easily handle this business. Forecasting in real estate investing can spoil your future so don’t overestimate your investment.

About the Author

Author presents a website on Real Estate Investing http://www.123realestateinvestingguide.com/ . The website offers great knowledge about real estate investment and some tips on how to invest at right time. Also offers information about real estate investment training, real estate investing seminars, commercial real estate training, and a guide for real estate investing book. You can visit his site http://www.cheaprealestateinvestingguide.info/

Real Estate Investing Guide-Learn about Real Estate Investing

Real estate investment is a great opportunity to earn profits and generate a cash flow. There is a slight difference between real estate investment and other types of investment. Real estate investment can be categorized as a long-term investment or short-term investment. Good real estate investor has ability to invest in real estate at right time.

Real estate investment requires proper knowledge and concentration to invest in good piece of land. Sometimes heavy investment gives wrong results in the future and sometimes with a small investment you can earn more. Investors should be alert at the time of investment in real estate.

If you’re going to rent your property you should have sufficient knowledge about tenant problems and requirements of tenants. You should be aware of all financial as well as legal requirements for your real estate. Investment goals are the primary factor for real estate investment. Decide your investment goals like what you want to do with your real estate.

Real estate market offers different types of strategies to invest in real estate. You should choose the best strategy as per your needs. Efficient real estate investors are able to make their fortunes in real estate business. People who invest in this business can live comfortably. They don’t have any tension about their survival. They can earn more and more profits with single right time real estate investment

Investment in real estate requires great commercial skills and knowledge like other businesses. Real estate business needs additional risk because sometimes you’re at risk in this business. Thats why a person with a great will power can easily handle this business. Forecasting in real estate investing can spoil your future so don’t overestimate your investment.

About the Author

Author presents a website on Real Estate Investing http://www.123realestateinvestingguide.com/ . The website offers great knowledge about real estate investment and some tips on how to invest at right time. Also offers information about real estate investment training, real estate investing seminars, commercial real estate training, and a guide for real estate investing book. You can visit his site http://www.cheaprealestateinvestingguide.info/

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