Real Estate Investing - Control Your Future by Controlling Expenses

I was speaking with a highly respected and successful fellow investor a few days ago and he said something which really grabbed my attention. He said, "The single most important reason for my success is my ability to rigidly control my expenses." I found that hard to believe, so I pressed him on it.

"John," I said, "You’ve done a lot of things right. How can you single out expense control as the most important contributor to your success?"

"Simple," he replied, "Controlling my expenses has allowed me to control my cash, and EVERYTHING else flows from cash."

Our conversation consisted of just a few sentences, but I’ve been thinking about them ever since. You would be very wise to think about them too. In fact, follow along with me while I dissect what John said.

Let’s begin with his summary, "Everything else flows from cash." Two questions arise- first, what exactly did he mean? Second, is it true?

Cash Is King

Here’s what I think he meant. When an investor has ready cash available, he is free to move when opportunity presents itself. He doesn’t need to pause and consider whether or not he is in a position to take a deal down- he already knows. Therefore, he can move lightning fast. Cash equals speed.

Also, when an investor doesn’t have to get all creative with financing techniques, he can concentrate on other, more crucial aspects of the deal. Cash equals focus.

Finally, when he is able to focus his energy and attention on the most crucial elements of the deal, AND he can move with lightning speed, his confidence soars. He KNOWS he can complete the deal, and he won’t let anything stand in his way. So, cash equals power.

If cash equals speed, focus, and power, why then do so many people talk about "no money down" deals? Because they can be done, that’s why, and for someone just starting out, with little or no cash, it’s important to know that. But just because something CAN be done doesn’t make it the best way to do things. No money down is definitely not the best way- not all the time.

What about the second question? Is it true? Does everything flow from cash? Does it really equal speed, focus, and power in real estate investing?

You bet it does! Every experienced investor I know would agree that having large amounts of ready cash makes his or her investing life much easier. It also opens many doors, allowing quicker growth and bigger profits.

I didn’t realize how important cash was until I had some. I remember the feeling I had when my Realtor called me out of the blue one day and said, "Tom, a deal just fell through on a fantastic foreclosure property. The bank wants another buyer by the end of today. How fast can you move?"

I had already looked at this particular property and I recognized a great deal when I saw one. More important, I had enough cash in my account to take the deal down, and I could prove it to the bank. I told my Realtor, "Buy it."

My ability to move lightning fast, and with complete confidence, ultimately put another $28,000 in my pocket!

No cash, no deal. Remember, cash equals speed, focus, and power. Or, put another way, CASH IS KING!

It’s Your Money- Keep It!

We’ve established that everything flows from cash, so John’s summary statement is true. But what about his premise, "Controlling expenses allows us to control cash?" Is that true as well?

This is more difficult to pin down, but let me just share a little of my own experience with you. When I was a beginning investor I had little or no cash, so I did a couple of "no money down" deals and built up a small reserve. Unfortunately, spending discipline has never been my strong suit, so a lot of that cash went right out again. Every expense was justifiable, at least in my own mind. After all, I was building a business wasn’t I? The things I was buying were certainly necessary, weren’t they?

In hindsight, most of them were not. I now realize that if I had eliminated or reduced most of the expenses I thought were essential, my cash reserves, and therefore my portfolio, would have grown much faster. That’s what John learned early on, and what I have finally learned as well.

If you learn it now you will thank yourself a thousand times down the road. Be ruthless when spending your hard won profits. Keep excellent records, and verify each and every expense. Check all of your bills and receipts. Most important, sleep on every decision to spend money, or talk to a trusted adviser . Any technique that slows you down just enough to THINK IT THROUGH will pay you back over and over. The one exception is when you need to move fast on a property, and you have already done your due diligence, or can do it after the offer is accepted.

Most investors put a great amount of effort into finding deals and getting to the closing table. Unfortunately, most don’t put the same effort into safeguarding the profits they take out of those deals. They allow bad spending and expense habits to cripple their growth. This includes overpaying contractors and other service providers, buying unnecessary supplies and equipment, and not carefully checking receipts and invoices. Defeating these bad habits now is like putting money in your investing account. After all, it’s your money- KEEP IT!

So John was right. Controlling expenses allows an investor to control cash, and everything else flows from cash. It looks like it really was the number one reason for his success. Will it be yours?

Now, go make more offers!

The First Steps In Real Estate Investing

With all the stories of people making tremendous amounts of money in real estate it’s no wonder why so many are looking at real estate as an investment vehicle. It offers more security than the stock market, provides great potential returns, offers tax benefits and let’s not forget; it sounds cool to be ‘in real estate’. Everybody can buy and sell stocks from their phone or computer these days. But real estate, now that’s something else.

One of the challenges that many are faced with is putting up the money to acquire a piece of property. Although in reality this is usually not the biggest obstacle. You might say “Hey, what do you mean, not an obstacle. I would love to invest in real estate, but I just can’t afford to!” The point is that hardly anyone who buys a piece of real estate has enough money in their account to pay for it. That’s where your banker comes in. Let’s face it. Do you know anyone that owns their own home? I mean truly own it? Probably not. Sure, you know a lot of people that have a house to their name, but wait until they get behind on their monthly mortgage payments and you will soon find out who really owns their house. That’s right, the bank. So if these people can use the bank’s money to buy a house, why can’t you?

Now ‘owning’ your own home may sound like a somewhat obvious way to get started in real estate, but it is also a very good way to do so. You might say “Duh…” But apparently this little step is overlooked by a lot of people. Just take a look at how many people are still renting a property instead of buying one. Now of course the relation between rent and housing prices varies from country to country and even from area to area. But wherever you go you will still find people renting, because in their mind “they don’t have enough money to buy a house.” In reality it would be much cheaper for them to buy!

When you rent, you are pretty much flushing your money down the toilet. Of course you are getting the pleasure of living, but the point is you’re not building anything long term. Every dollar you spend on rent is a dollar you will never see again. Whereas if you own your own home, instead of paying rent you would be paying for your mortgage. Even though there is a lot of variety in mortgages these days, the basics of practically all mortgages are more or less the same. Every month you make a payment which consists of two parts: interest and principle. The interest part can be compared to rent. Those dollars are gone with the wind and you will never hear from them again. However, the part of the payment that goes to the principle is money you keep. Every dollar that is used to pay off the principal is a dollar you put in your own pocket.

So if you’re thinking about getting started in real estate and you don’t ‘own’ your own house yet… Change it, and get some experience. It’s a great first step towards building your capital and in many cases, it just makes more sense financially. It can also supply a range of opportunities for accelerating the process of building your net worth. When real estate prices go up, so does the value of your property. Whereas the money you owe the bank, your mortgage, remains the same. In other words this helps you build your net worth. Compare this to people that are paying rent… Their net worth does nothing. However their landlord’s net worth is doing very nicely in this scenario and he or she will probably love you for it. So if you get a warm fuzzy feeling about making somebody else rich at your own expense… Keep renting. If you would rather build your own capital instead… Buy your own house!

Many home owners have accumulated more money through appreciation of their property than by working a full time job for many years. Now before you go out and buy the first property you lay eyes on, don’t forget that some security measures are in order here. As you may or may not know, real estate prices do not always go up, and certainly not in a straight line. Yep, this can be shocker to some people, as well as an ugly reminder for those who overlooked this minor detail in the past. If for some reason you would have to sell your home in a down market, it can be a costly adventure. You wouldn’t be the first to end up with a house worth considerably less than the mortgage resting on it. So make sure to keep some slack. In the long run real estate prices have always been on the rise, but in any cycle there are down periods. By keeping some slack and being patient you will be able to sit through these times and profit from the long term up-trend.

About the Author

Jim Mack is an expert on business, health and well being. He regularly contributes articles on these subjects. The Best Investing Tips

Real Estate Investing: Buy To Rent, No Money Down

The market for rental houses is as strong as the demand for new homes. Why not have your cake and eat it too through buying to rent!
With home sales at a record high, it might surprise you to know there is an equally strong market for rental properties. A constantly moving population of business professionals and financial over extension in the 1990s are the primary reasons why an ever-increasing number of people will be renting suitable properties instead of buying a home this year. This is great news for real estate investors!

The robust house rental market is allowing smart investors to have their cake and eat it too. Instead of buying a home, fixing it up and trying to flip it for a profit, real estate investors can turn the home into a rental which provides a positive monthly cash flow. And the home is always there to be sold if the need arises.

It varies by region and the typical age of houses in a particular area, but the general rule for purchasing a property thats optimum for becoming a rental is a house less the fifteen years old with easy access to major highways and shopping areas. Homes should never be out in the middle of nowhere and always less then a forty-five minute drive to major business areas. Three bedroom houses that have central air conditioning and come with all major appliances (including a washer and dryer) are likely to fetch a higher monthly rent.

Many investors shy away from rentals because theyve heard the horror stories told by landlords who chose the wrong tenants. But that has become the exception to the rule. Most people who need to rent a home have good credit, a solid record of on time rent payment and solid employment. Some are professionals whose job requires frequent relocation. Others have purchased a new home and are waiting for it to be built. In places like Phoenix where I live, a population boom has extended the waiting time to move into a new home.

Finding qualified tenants has become easier with inexpensive credit and background checks. Anyone that wants to rent a house knows a credit and background check is all but mandatory. You can avoid tenant nightmares by refusing to rent to anyone with evictions, bankruptcies or judgments against them. Ironically, people with all those things on their credit report can actually purchase a home to live in or rent out with no money down.

There are a number of ways for anyone to purchase homes, apartment buildings or other properties regardless of credit or employment history. All it takes is the right information and persistence. The lazy need not apply, but the rewards are substantial for those who try.

more at http://billknell.tripod.com/buy/money.html

About the Author

A native New Yorker now living in Arizona, Bill Knell is a forty-something guy with a wealth of knowledge and experience. He’s written hundreds of articles on a wide variety of subjects. A popular Speaker, Bill Knell presents seminars on a number of topics that entertain, train and teach. A popular radio and television show Guest, you’ve heard Bill on thousands of top-rated shows in all formats and seen him on local, national and international television programs.

Real Estate Investing: Buy To Rent, No Money Down

The market for rental houses is as strong as the demand for new homes. Why not have your cake and eat it too through buying to rent!
With home sales at a record high, it might surprise you to know there is an equally strong market for rental properties. A constantly moving population of business professionals and financial over extension in the 1990s are the primary reasons why an ever-increasing number of people will be renting suitable properties instead of buying a home this year. This is great news for real estate investors!

The robust house rental market is allowing smart investors to have their cake and eat it too. Instead of buying a home, fixing it up and trying to flip it for a profit, real estate investors can turn the home into a rental which provides a positive monthly cash flow. And the home is always there to be sold if the need arises.

It varies by region and the typical age of houses in a particular area, but the general rule for purchasing a property thats optimum for becoming a rental is a house less the fifteen years old with easy access to major highways and shopping areas. Homes should never be out in the middle of nowhere and always less then a forty-five minute drive to major business areas. Three bedroom houses that have central air conditioning and come with all major appliances (including a washer and dryer) are likely to fetch a higher monthly rent.

Many investors shy away from rentals because theyve heard the horror stories told by landlords who chose the wrong tenants. But that has become the exception to the rule. Most people who need to rent a home have good credit, a solid record of on time rent payment and solid employment. Some are professionals whose job requires frequent relocation. Others have purchased a new home and are waiting for it to be built. In places like Phoenix where I live, a population boom has extended the waiting time to move into a new home.

Finding qualified tenants has become easier with inexpensive credit and background checks. Anyone that wants to rent a house knows a credit and background check is all but mandatory. You can avoid tenant nightmares by refusing to rent to anyone with evictions, bankruptcies or judgments against them. Ironically, people with all those things on their credit report can actually purchase a home to live in or rent out with no money down.

There are a number of ways for anyone to purchase homes, apartment buildings or other properties regardless of credit or employment history. All it takes is the right information and persistence. The lazy need not apply, but the rewards are substantial for those who try.

more at http://billknell.tripod.com/buy/money.html

About the Author

A native New Yorker now living in Arizona, Bill Knell is a forty-something guy with a wealth of knowledge and experience. He’s written hundreds of articles on a wide variety of subjects. A popular Speaker, Bill Knell presents seminars on a number of topics that entertain, train and teach. A popular radio and television show Guest, you’ve heard Bill on thousands of top-rated shows in all formats and seen him on local, national and international television programs.

Keeping Real Estate Investing Simple

In real estate investment, do you know what the hardest deal to close out is?

The first one!

The challenge is such that most people eventually quit even before ever getting their first deal completed; in fact some would be real estate investors quit even before getting started!

With the glut in available information and the numerous real estate investment options available, getting started is as challenging as getting your very first deal!

Consider some of options that you can choose from if you want to invest in real estate.

Buy and Hold

Commercial space rental

Subject to the existing financing

Fixer Uppers

Flips

Foreclosures or Pre-foreclosures

Lease-Purchase or Lease

No Money Down

Single-family homes, condos, mobile homes or apartment buildings

Confusion arises when you are undecided which of the profitable and popular options as enumerated above you want to engage in.

Unless you are a very liquid and well-financed organization, you can engage in all of them. However, for ordinary investors, engaging in one or two investment options at the most is the preferred method.

If you are lucky enough to make up your mind in which real estate option you want to engage in, the next step is then to systematically search for and close your very first deal.

Again, there are several options open to you on how to close your deal and get to the bank in order to deposit the check of your deal.

The best way to invest in real estate is to find the option you are comfortable with and specialize in it! Learn everything all you can about your particular investment option.

If you have to, take informal courses related to it so that you will become knowledgeable and on the road to becoming a specialist!

Once you have mastered your specialization, take the necessary action in order to get and close your very first deal.

Then and only then, and only if you are serious in making money in real estate can you diversify and learn another real estate investment method.

In learning the ropes of real estate investing, either you choose to undergo a training course or do it on your own.

If you choose to take formal lessons, do not confuse the price of the program with the value of the program.

The cost of a training program is not related to the value it has and the methodologies and techniques you will learn.

About the Author:

Download A Free Ebook That Shows You How You Can Make $50,000 Per Deal From Real Estate Preconstruction: Free Preconstruction Ebook

Amazing Profits From No Money Down Real Estate Investing

You may have heard about no money down real estate investing before.

Perhaps when you first heard this message it struck you as some kind of get-rich-quick scheme.

You may have even thought that some slick sales person was trying to get you to purchase his video. While the latter may have some truth to it, it?s also true that no money down real estate investing is a possibility.

Many seasoned real estate investors will quickly tell you that it is possible to invest in real estate without having any kind of down payment. In fact, these investors will encourage you to find ways to invest in real estate without having to spend any of your money.

It may sound preposterous but no money down real estate investing is a possibility. There are many investors who have become successful using this method of real estate investing.

The reason that no money down real estate investing seems too good to be true is because people aren?t accustomed to getting something for nothing. In today?s society everything comes at a price, especially something as lucrative as real estate.

If you want to become successful at no money down real estate investing, you must put these kinds of thoughts out of your mind. Doubts will only cloud your judgment and hinder your progress in no money down real estate investing.

Once you learn no money down real estate investing, you can never again use the lack of money as the reason you can?t close a deal. Too many times, investors have lost out on thousands of dollars in profit because they didn?t have the cash needed to close a deal on the spot, or so they thought.

If a deal is a good deal, then it?s good whether you have the cash you think you need to close it or not. Money should never, ever be the reason that you don?t close a deal.

By now you are most likely wondering how exactly you should go about no money down real estate investing. This is the natural next question. There are many ways you can go about getting the financing you need for no money down real estate investing. Sources for funding exist is some of the most unlikely places.

One of the most popular methods of no money down real estate investing is through what is known as double escrow. In this process you buy and sell the piece of property simultaneously. In this method of no money down real estate investing, the investor sells the property for more than the purchase amount.

Since there are two closing processes within a relatively small amount of time, the investor uses the money from his sale of the property to also purchase the property. In this method of no money down real estate investing, there are some contractual details that must be worked out. Consult with an experienced real estate investor or an attorney before attempting a double escrow.

Another method of no money down real estate investing is through bringing in money partners. Each of these partners brings in cash for the deal and you work out an agreement to give back their principal plus a certain percentage before spitting the profits. Then once you?ve repaid the principal, you can then split the profit however you agree with the money partners.

When you are attempting a no money down real estate investing transaction, the key is to be creative in the methods you choose to ensure that you do not have to pay any money out of pocket.

About the Author:

Claim a free e-book that will show you a system used to control $4.1million worth of real estate for just $22 - and you can follow this system to do the same. Comes with resale rights from: Free Real Estate Fortunes Ebook

Amazing Profits From No Money Down Real Estate Investing

You may have heard about no money down real estate investing before.

Perhaps when you first heard this message it struck you as some kind of get-rich-quick scheme.

You may have even thought that some slick sales person was trying to get you to purchase his video. While the latter may have some truth to it, it?s also true that no money down real estate investing is a possibility.

Many seasoned real estate investors will quickly tell you that it is possible to invest in real estate without having any kind of down payment. In fact, these investors will encourage you to find ways to invest in real estate without having to spend any of your money.

It may sound preposterous but no money down real estate investing is a possibility. There are many investors who have become successful using this method of real estate investing.

The reason that no money down real estate investing seems too good to be true is because people aren?t accustomed to getting something for nothing. In today?s society everything comes at a price, especially something as lucrative as real estate.

If you want to become successful at no money down real estate investing, you must put these kinds of thoughts out of your mind. Doubts will only cloud your judgment and hinder your progress in no money down real estate investing.

Once you learn no money down real estate investing, you can never again use the lack of money as the reason you can?t close a deal. Too many times, investors have lost out on thousands of dollars in profit because they didn?t have the cash needed to close a deal on the spot, or so they thought.

If a deal is a good deal, then it?s good whether you have the cash you think you need to close it or not. Money should never, ever be the reason that you don?t close a deal.

By now you are most likely wondering how exactly you should go about no money down real estate investing. This is the natural next question. There are many ways you can go about getting the financing you need for no money down real estate investing. Sources for funding exist is some of the most unlikely places.

One of the most popular methods of no money down real estate investing is through what is known as double escrow. In this process you buy and sell the piece of property simultaneously. In this method of no money down real estate investing, the investor sells the property for more than the purchase amount.

Since there are two closing processes within a relatively small amount of time, the investor uses the money from his sale of the property to also purchase the property. In this method of no money down real estate investing, there are some contractual details that must be worked out. Consult with an experienced real estate investor or an attorney before attempting a double escrow.

Another method of no money down real estate investing is through bringing in money partners. Each of these partners brings in cash for the deal and you work out an agreement to give back their principal plus a certain percentage before spitting the profits. Then once you?ve repaid the principal, you can then split the profit however you agree with the money partners.

When you are attempting a no money down real estate investing transaction, the key is to be creative in the methods you choose to ensure that you do not have to pay any money out of pocket.

About the Author:

Claim a free e-book that will show you a system used to control $4.1million worth of real estate for just $22 - and you can follow this system to do the same. Comes with resale rights from: Free Real Estate Fortunes Ebook

The First Steps In Real Estate Investing

With all the stories of people making tremendous amounts of money in real estate it’s no wonder why so many are looking at real estate as an investment vehicle. It offers more security than the stock market, provides great potential returns, offers tax benefits and let’s not forget; it sounds cool to be ‘in real estate’. Everybody can buy and sell stocks from their phone or computer these days. But real estate, now that’s something else.

One of the challenges that many are faced with is putting up the money to acquire a piece of property. Although in reality this is usually not the biggest obstacle. You might say “Hey, what do you mean, not an obstacle. I would love to invest in real estate, but I just can’t afford to!” The point is that hardly anyone who buys a piece of real estate has enough money in their account to pay for it. That’s where your banker comes in. Let’s face it. Do you know anyone that owns their own home? I mean truly own it? Probably not. Sure, you know a lot of people that have a house to their name, but wait until they get behind on their monthly mortgage payments and you will soon find out who really owns their house. That’s right, the bank. So if these people can use the bank’s money to buy a house, why can’t you?

Now ‘owning’ your own home may sound like a somewhat obvious way to get started in real estate, but it is also a very good way to do so. You might say “Duh…” But apparently this little step is overlooked by a lot of people. Just take a look at how many people are still renting a property instead of buying one. Now of course the relation between rent and housing prices varies from country to country and even from area to area. But wherever you go you will still find people renting, because in their mind “they don’t have enough money to buy a house.” In reality it would be much cheaper for them to buy!

When you rent, you are pretty much flushing your money down the toilet. Of course you are getting the pleasure of living, but the point is you’re not building anything long term. Every dollar you spend on rent is a dollar you will never see again. Whereas if you own your own home, instead of paying rent you would be paying for your mortgage. Even though there is a lot of variety in mortgages these days, the basics of practically all mortgages are more or less the same. Every month you make a payment which consists of two parts: interest and principle. The interest part can be compared to rent. Those dollars are gone with the wind and you will never hear from them again. However, the part of the payment that goes to the principle is money you keep. Every dollar that is used to pay off the principal is a dollar you put in your own pocket.

So if you’re thinking about getting started in real estate and you don’t ‘own’ your own house yet… Change it, and get some experience. It’s a great first step towards building your capital and in many cases, it just makes more sense financially. It can also supply a range of opportunities for accelerating the process of building your net worth. When real estate prices go up, so does the value of your property. Whereas the money you owe the bank, your mortgage, remains the same. In other words this helps you build your net worth. Compare this to people that are paying rent… Their net worth does nothing. However their landlord’s net worth is doing very nicely in this scenario and he or she will probably love you for it. So if you get a warm fuzzy feeling about making somebody else rich at your own expense… Keep renting. If you would rather build your own capital instead… Buy your own house!

Many home owners have accumulated more money through appreciation of their property than by working a full time job for many years. Now before you go out and buy the first property you lay eyes on, don’t forget that some security measures are in order here. As you may or may not know, real estate prices do not always go up, and certainly not in a straight line. Yep, this can be shocker to some people, as well as an ugly reminder for those who overlooked this minor detail in the past. If for some reason you would have to sell your home in a down market, it can be a costly adventure. You wouldn’t be the first to end up with a house worth considerably less than the mortgage resting on it. So make sure to keep some slack. In the long run real estate prices have always been on the rise, but in any cycle there are down periods. By keeping some slack and being patient you will be able to sit through these times and profit from the long term up-trend.

About the Author

Jim Mack is an expert on business, health and well being. He regularly contributes articles on these subjects. The Best Investing Tips

Real Estate Investing: Buy To Rent, No Money Down

The market for rental houses is as strong as the demand for new homes. Why not have your cake and eat it too through buying to rent!
With home sales at a record high, it might surprise you to know there is an equally strong market for rental properties. A constantly moving population of business professionals and financial over extension in the 1990s are the primary reasons why an ever-increasing number of people will be renting suitable properties instead of buying a home this year. This is great news for real estate investors!

The robust house rental market is allowing smart investors to have their cake and eat it too. Instead of buying a home, fixing it up and trying to flip it for a profit, real estate investors can turn the home into a rental which provides a positive monthly cash flow. And the home is always there to be sold if the need arises.

It varies by region and the typical age of houses in a particular area, but the general rule for purchasing a property thats optimum for becoming a rental is a house less the fifteen years old with easy access to major highways and shopping areas. Homes should never be out in the middle of nowhere and always less then a forty-five minute drive to major business areas. Three bedroom houses that have central air conditioning and come with all major appliances (including a washer and dryer) are likely to fetch a higher monthly rent.

Many investors shy away from rentals because theyve heard the horror stories told by landlords who chose the wrong tenants. But that has become the exception to the rule. Most people who need to rent a home have good credit, a solid record of on time rent payment and solid employment. Some are professionals whose job requires frequent relocation. Others have purchased a new home and are waiting for it to be built. In places like Phoenix where I live, a population boom has extended the waiting time to move into a new home.

Finding qualified tenants has become easier with inexpensive credit and background checks. Anyone that wants to rent a house knows a credit and background check is all but mandatory. You can avoid tenant nightmares by refusing to rent to anyone with evictions, bankruptcies or judgments against them. Ironically, people with all those things on their credit report can actually purchase a home to live in or rent out with no money down.

There are a number of ways for anyone to purchase homes, apartment buildings or other properties regardless of credit or employment history. All it takes is the right information and persistence. The lazy need not apply, but the rewards are substantial for those who try.

more at http://billknell.tripod.com/buy/money.html

About the Author

A native New Yorker now living in Arizona, Bill Knell is a forty-something guy with a wealth of knowledge and experience. He’s written hundreds of articles on a wide variety of subjects. A popular Speaker, Bill Knell presents seminars on a number of topics that entertain, train and teach. A popular radio and television show Guest, you’ve heard Bill on thousands of top-rated shows in all formats and seen him on local, national and international television programs.

Real Estate Investing: Buy To Rent, No Money Down

The market for rental houses is as strong as the demand for new homes. Why not have your cake and eat it too through buying to rent!
With home sales at a record high, it might surprise you to know there is an equally strong market for rental properties. A constantly moving population of business professionals and financial over extension in the 1990s are the primary reasons why an ever-increasing number of people will be renting suitable properties instead of buying a home this year. This is great news for real estate investors!

The robust house rental market is allowing smart investors to have their cake and eat it too. Instead of buying a home, fixing it up and trying to flip it for a profit, real estate investors can turn the home into a rental which provides a positive monthly cash flow. And the home is always there to be sold if the need arises.

It varies by region and the typical age of houses in a particular area, but the general rule for purchasing a property thats optimum for becoming a rental is a house less the fifteen years old with easy access to major highways and shopping areas. Homes should never be out in the middle of nowhere and always less then a forty-five minute drive to major business areas. Three bedroom houses that have central air conditioning and come with all major appliances (including a washer and dryer) are likely to fetch a higher monthly rent.

Many investors shy away from rentals because theyve heard the horror stories told by landlords who chose the wrong tenants. But that has become the exception to the rule. Most people who need to rent a home have good credit, a solid record of on time rent payment and solid employment. Some are professionals whose job requires frequent relocation. Others have purchased a new home and are waiting for it to be built. In places like Phoenix where I live, a population boom has extended the waiting time to move into a new home.

Finding qualified tenants has become easier with inexpensive credit and background checks. Anyone that wants to rent a house knows a credit and background check is all but mandatory. You can avoid tenant nightmares by refusing to rent to anyone with evictions, bankruptcies or judgments against them. Ironically, people with all those things on their credit report can actually purchase a home to live in or rent out with no money down.

There are a number of ways for anyone to purchase homes, apartment buildings or other properties regardless of credit or employment history. All it takes is the right information and persistence. The lazy need not apply, but the rewards are substantial for those who try.

more at http://billknell.tripod.com/buy/money.html

About the Author

A native New Yorker now living in Arizona, Bill Knell is a forty-something guy with a wealth of knowledge and experience. He’s written hundreds of articles on a wide variety of subjects. A popular Speaker, Bill Knell presents seminars on a number of topics that entertain, train and teach. A popular radio and television show Guest, you’ve heard Bill on thousands of top-rated shows in all formats and seen him on local, national and international television programs.

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