Tags: Accumulating Wealth, Amount Of Money, Beaty, Buying A Property, College Education, Dilemma, Dollar Deal, Estate Deals, Estate Goals, Forward Progress, Hundred Thousand, Overnight Success, Proposal, Real Estate Agent, Real Estate Investing, Real Estate Investments, Realistic Goal, Retirement, Slow Pace, Smart Investor
Real estate investing tips tend to be a bit vague, like “invest in the right location,” or “make sure the numbers work.” Actually, tips like these are important principles to remember. However, since they have been well represented in other articles, I want to share a few more specific tips with you.
1. Listen to the market. The cabinet guy looked to me for a decision. I realized that I knew nothing at all about which cabinets people like, so I asked him which ones others were choosing, and he pointed to one that three quarters of his last forty customers had chosen. That’s the one I want, I told him. Why argue with the market you are trying to sell to?
2. Do your own research. The real estate agent might show you only the comparable sales that make the property look more valuable. Do your own research. Some counties have made it easy now, with sales prices online. You can also search any number of sites with MLS listings, just to get an idea about the asking prices of other nearby properties.
3. Partner carefully. When you do a deal with partners, be the money or the management, but not both. Group decisions tend not to work well in real estate, and will cause you much stress. Once you decide on and agree to a plan, step back if you are investing the capital, and let your partner do his thing. Of course, step up and take control if you are managing the project.
4. Negotiate openly. Just ask a seller outright, “What do you want to get out of this?” It is rare that someone is offended by this simple question, and it saves you from wasting valuable time talking about things that don’t interest him or her. Once you get a clear answer, you can decide if you can give them what they want, and still get what you need.
5. Invest safely. Investing isn’t gambling. There is always risk, but the difference is that the odds are in your favor. If not, you are gambling. This why you shouldn’t invest based on continued price increases. There is no guarantee that prices will continue up at any particular rate. Do deals that work even if prices go nowhere, and if values go up, you’re that much better off.
6. Run the numbers. It is about the numbers, and if it is income property, it’s about one number in particular: cash flow. Whatever the local formulas are, whether gross rent multipliers or capitalization rates or whatever, just be sure that after every last expense you’ll have cash flow from the very first month.
Rules, formulas and real estate tips are really just guidelines. Even the rule above about cash flow can be broken if you know that rents can be raised soon, for example. You have to use common sense and learn from experience, and you can’t replace good analysis with rules, formulas and real estate tips.
About the Author
Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
Tags: Cabinets, Comparable Sales, Gambling, Group Decisions, Invest, Mls Listings, Money, Nearby Properties, Odds, Price Increases, Real Estate Agent, Real Estate Investing, Real Estate Investing Tips, Three Quarters
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
Tags: Ecstatic, Investing, Investor, Investors, Lost Money, Major Construction, Math, Mentor, Mistake, Money Work, Quite Some Time, Real Estate Agent, Reply, Rich Dad, Robert Kiyosaki, Rookies
Real estate investing tips tend to be a bit vague, like “invest in the right location,” or “make sure the numbers work.” Actually, tips like these are important principles to remember. However, since they have been well represented in other articles, I want to share a few more specific tips with you.
1. Listen to the market. The cabinet guy looked to me for a decision. I realized that I knew nothing at all about which cabinets people like, so I asked him which ones others were choosing, and he pointed to one that three quarters of his last forty customers had chosen. That’s the one I want, I told him. Why argue with the market you are trying to sell to?
2. Do your own research. The real estate agent might show you only the comparable sales that make the property look more valuable. Do your own research. Some counties have made it easy now, with sales prices online. You can also search any number of sites with MLS listings, just to get an idea about the asking prices of other nearby properties.
3. Partner carefully. When you do a deal with partners, be the money or the management, but not both. Group decisions tend not to work well in real estate, and will cause you much stress. Once you decide on and agree to a plan, step back if you are investing the capital, and let your partner do his thing. Of course, step up and take control if you are managing the project.
4. Negotiate openly. Just ask a seller outright, “What do you want to get out of this?” It is rare that someone is offended by this simple question, and it saves you from wasting valuable time talking about things that don’t interest him or her. Once you get a clear answer, you can decide if you can give them what they want, and still get what you need.
5. Invest safely. Investing isn’t gambling. There is always risk, but the difference is that the odds are in your favor. If not, you are gambling. This why you shouldn’t invest based on continued price increases. There is no guarantee that prices will continue up at any particular rate. Do deals that work even if prices go nowhere, and if values go up, you’re that much better off.
6. Run the numbers. It is about the numbers, and if it is income property, it’s about one number in particular: cash flow. Whatever the local formulas are, whether gross rent multipliers or capitalization rates or whatever, just be sure that after every last expense you’ll have cash flow from the very first month.
Rules, formulas and real estate tips are really just guidelines. Even the rule above about cash flow can be broken if you know that rents can be raised soon, for example. You have to use common sense and learn from experience, and you can’t replace good analysis with rules, formulas and real estate tips.
About the Author
Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
Tags: Cabinets, Comparable Sales, Gambling, Group Decisions, Invest, Mls Listings, Money, Nearby Properties, Odds, Price Increases, Real Estate Agent, Real Estate Investing, Real Estate Investing Tips, Three Quarters
Real estate investing can provide you with positive cash flows, tax benefits and the satisfaction of having impacted your life positively. Just like in any other business, in real estate investments too, there are intricacies that are personal to it, and can cause negative impacts if ignored. Many first time real estate investors make the mistake of investing their hard earned money without understanding, and thereby risking their investments. There is a need in real estate investing of protecting your assets.
Avoiding the Errors:
It depends on why you are investing in a particular property. Do you intend to hold it for a long period, or do you intend to turn it around for selling at the earliest? Let us look at some of the errors that certain investors make, which you need to avoid to protect your assets, and ensure excellent returns on your investments.
Check the Property:
Do not get sucked into the excitement of investing in a real estate property. There are rampant claims of high return on investment in the real estate business. Check the condition of the property, and how much modifications, renovations, etc will be required. Ensure you have a right real estate agent who will not overlook all the seemingly insignificant but important details.
Inspect Thoroughly:
Have a professional inspector thoroughly check the property. You need to exercise sound business judgment, as you are ready to invest your hard earned money. If it is a rental property, check with the tenants regarding pest problems, structural damage or any reoccurring problems.
Check All Documents:
Documents involved in a property can be overwhelming: building permits; zoning laws; rental and lease applications (in case of rental property); underlying loan documents; CC&Rs (covenants, conditions and restrictions); by-laws; title policies; inspection reports; purchase contracts; insurance; the list is never ending.
Cash Flow:
If your real estate investing is in a rental property, you intend to hold on to the property for a longer period, as much as 15 to 20 years. You will need to ensure cash flow to take care of your property, vis-?-vis the property?s maintenance, repairs, improvements, etc. There will be times when your rental property will be vacant and not earning you a rental. You still need to have cash for the upkeep of your property.
Short Duration Investing:
If you plan to invest in a real estate property for a shorter duration, you may not feel the need to invest heavily on improvements etc. Sometimes, short duration investing could be risky, as the property may lose in value. Generally, property prices appreciate over longer periods.
To help you in real estate investing, there are professionals available, online as well as offline, who can guide you in protecting your assets.
Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.
Business Owners all across the country are joining “The Community of Small Business Owners? to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences.
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Tags: Business Check, Covenants Conditions And Restrictions, Estate Business, Hard Earned Money, Intricacies, Lease Applications, Loan Documents, Pest Problems, Professional Inspector, Protecting Your Assets, Purchase Contracts, Real Estate Agent, Real Estate Investing, Real Estate Investments, Real Estate Investors, Rental Property, Return On Investment, Sound Business Judgment, Title Policies, Zoning Laws
Real estate investing can provide you with positive cash flows, tax benefits and the satisfaction of having impacted your life positively. Just like in any other business, in real estate investments too, there are intricacies that are personal to it, and can cause negative impacts if ignored. Many first time real estate investors make the mistake of investing their hard earned money without understanding, and thereby risking their investments. There is a need in real estate investing of protecting your assets.
Avoiding the Errors:
It depends on why you are investing in a particular property. Do you intend to hold it for a long period, or do you intend to turn it around for selling at the earliest? Let us look at some of the errors that certain investors make, which you need to avoid to protect your assets, and ensure excellent returns on your investments.
Check the Property:
Do not get sucked into the excitement of investing in a real estate property. There are rampant claims of high return on investment in the real estate business. Check the condition of the property, and how much modifications, renovations, etc will be required. Ensure you have a right real estate agent who will not overlook all the seemingly insignificant but important details.
Inspect Thoroughly:
Have a professional inspector thoroughly check the property. You need to exercise sound business judgment, as you are ready to invest your hard earned money. If it is a rental property, check with the tenants regarding pest problems, structural damage or any reoccurring problems.
Check All Documents:
Documents involved in a property can be overwhelming: building permits; zoning laws; rental and lease applications (in case of rental property); underlying loan documents; CC&Rs (covenants, conditions and restrictions); by-laws; title policies; inspection reports; purchase contracts; insurance; the list is never ending.
Cash Flow:
If your real estate investing is in a rental property, you intend to hold on to the property for a longer period, as much as 15 to 20 years. You will need to ensure cash flow to take care of your property, vis-?-vis the property?s maintenance, repairs, improvements, etc. There will be times when your rental property will be vacant and not earning you a rental. You still need to have cash for the upkeep of your property.
Short Duration Investing:
If you plan to invest in a real estate property for a shorter duration, you may not feel the need to invest heavily on improvements etc. Sometimes, short duration investing could be risky, as the property may lose in value. Generally, property prices appreciate over longer periods.
To help you in real estate investing, there are professionals available, online as well as offline, who can guide you in protecting your assets.
Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.
Business Owners all across the country are joining “The Community of Small Business Owners? to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences.
|
|
Tags: Business Check, Covenants Conditions And Restrictions, Estate Business, Hard Earned Money, Intricacies, Lease Applications, Loan Documents, Pest Problems, Professional Inspector, Protecting Your Assets, Purchase Contracts, Real Estate Agent, Real Estate Investing, Real Estate Investments, Real Estate Investors, Rental Property, Return On Investment, Sound Business Judgment, Title Policies, Zoning Laws
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
Tags: Ecstatic, Investing, Investor, Investors, Lost Money, Major Construction, Math, Mentor, Mistake, Money Work, Quite Some Time, Real Estate Agent, Reply, Rich Dad, Robert Kiyosaki, Rookies
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