How You Can Get Started in Creative Real Estate Investing - Even If You’re Broke

Among the most frequent questions asked in creative real estate forums is the timeless classic “How do I get started?” It has become almost comical how often this question is repeated in the forums. You could nearly set your watch by it.Don’t get me wrong, I don’t intend to ridicule the people who post these messages. Rather, to point out how many of them there really are and how much demand there is for this information. In this article, I’m going to give you some idea of ways you can get started in the creative real estate business without using much (if any) of your own money.

Step #1: Develop A Plan

There is an old saying which goes, “if you fail to plan, you’re planning to fail.” While this may seem a bit clich?, truer words have never been spoken, especially with regard to real estate investing. It is crucial to have some idea of what you want to do before you begin doing it. Since this article is geared toward getting started with as little money as possible, let’s develop a plan for wholesaling. If you’re not familiar with the term, have a look at my article “Creative Real Estate Glossary” for more information.

When I’m putting together a plan, I like to start with the goal in mind. For instance, we can set a goal of making $20,000.00 in the next 30 days. An ambitious goal? You bet! An attainable goal? Absolutely! With the goal in mind, we can work our way back to the present by asking ourselves a series of questions. A typical set of questions may be:

What steps do I have to take to achieve my desired outcome (make $20,000 in 30 days)?
I have to find and assign 4-5 wholesale deals.
How do I do that?
1. Line up 4-5 buyers for my deals 2. Negotiate acceptable deals with 4-5 sellers

How do I line up buyers?
1. Call handyman services and small construction companies. Ask if they’d be interested in buying rehabs in my target neighborhood. 2. Place small ads in the “shopper” newspapers. The ad needn’t be fancy. I’ve seen great success with “Handyman Special. Cheap. Cash.”

How do I negotiate deals with sellers?
1. Get some basic business cards - OfficeMax sells 1,000 for $11. There are also places online which offer a small number of cards for free. Hand these cards out to everyone. The more people who know what you do, the better chance you have of meeting people who need your help. 2. Flyers - these are fairly inexpensive to copy and people tend to hold onto them for quite a while. Leave one at each house in your target area every couple weeks. 3. Word of mouth - Tell people you’re interested in buying real estate! You’ll be surprised how many people are either selling a home or know someone who needs to sell theirs.

Just keep asking yourself this sort of questions until every step in your plan is clearly spelled out. Once you’ve got it all figured out, move on to…

Step #2: Take ACTION!

Would you believe more than 90% of the people who buy creative real estate courses never take any action on them? That’s insane! Once you’re armed with the information necessary to achieve your goals, take the action you know you need to take! Folks, this is absolutely the most important thing any new investor has to do! Without action, you’re going to be stuck in “analysis paralysis” mode forever! Please don’t let that happen to you. Your plan says to hand out business cards and flyers, right? Do it now! Don’t wait another second! Take it from someone who has wasted more than his share of time dragging his feet. You don’t want to look back on this day 10 years from now and say “If I had take action then, I’d be a millionaire now.” Nothing is more expensive than regret!

Step #3: Measure Your Results

Did you know that a commercial airliner is off course 99% of the time? It’s absolutely true. Crosswinds and other forces acting upon the aircraft’s flight surfaces causes it to be off course to a small degree almost the entire time that aircraft is in flight. So how the heck to the pilots get it where it is supposed to go? They recognize when it’s off course and they make small corrections.

Sometimes things are going to go perfectly. You’re going to execute every part of your plan like clockwork and the big payoff will be waiting for you at the end of the journey. Maybe once in a lifetime….

In real life, things go wrong. Sometimes they go horribly wrong. When that happens, you have to be able to recognize it quickly so you can make “course corrections” and carry on. If you can develop this one precious skill, you’ll learn that there is no such thing as failure. If you recognize what isn’t working and change it, you’re going to achieve your goal sooner or later.

So don’t get all bent out of shape when things go wrong. In truth, things will go badly more often than they’ll go right, but with the right mindset, you’ll barely even notice. Notice when you’re off course, make small course corrections and fly on to your destination

What If I Don’t Succeed Right Away?

Thomas Edison didn’t invent the light bulb on his first try. He didn’t invent the light bulb on try #2, either. In fact, he didn’t even invent the light bulb on try #2,000! It took Mr. Edison over 2,000 attempts to get the light bulb just right. When asked about this laborious process, Edison didn’t lament the 2,000 “failures” he had endured. Rather, he remarked that he had “learned 2,000 ways NOT to make a light bulb.”

If you don’t succeed right away, allow me to congratulate you. You’ve just learned one way not to do a real estate deal. I bet you won’t do it that way again, will you? You learned a lesson or two and now you’re ready to try again. Good for you! As long as you get back out there and take that action, you’ll do Mr. Edison proud.

In Summary

We’ve taken a look at 3 steps you can take right now to get started in creative real estate. I didn’t go into detail regarding seller negotiation, flyer copy or any number of other things, but not because I want to withhold that information from you. I just don’t want to overload your brain in one article. You’ve also read about Thomas Edison and the 2,000 lessons which brought him to inventing the light bulb and how you can employ the same mindset to achieve results just as profound as Edison’s.

About the Author

Want more information? Visit Worth Repeating for free creative real estate articles and other resources

Real Estate Investing: Rehabs

For an experienced and clever investor, creative real estate investing is a technique that can bring in profits beyond our imagination. Many investors use rehabbing to build fortunes. These investors seek run down, neglected, ugly properties for very less, sometimes lot less than their market value because of their decrepit condition. They then fix the property keeping costs of repair as low as possible, repaint the property, giving them a face lift and manage to sell the property at an amazing price bringing them huge profits!

How to Rehab a Property: This field of investing in real estate is good for experienced and knowledgeable investors not recommended for novices. The investor seeking to rehab a property should study the location as well as the structural design of the house, paying attention to the kind of neighborhood it is located in, shopping facilities as well as transport facilities available in that locale. The investors should have a good idea of the local market, the current land value, must be experienced in rehabbing to judge what needs fixing, the ability to estimate the cost of rehabbing a property, should decide if he wants to rehab it himself or let a contractor do it for him. Consider all aspects to try and get the house at a greater profit and work things out that with minimum costs the property gets to look presentable and try and sell it for its current value or higher. The investor should have a good idea about the latest trends in color and interior decorations spending within a preplanned budget that will help make the rehabbed property more desirable to the buyers. It is better to do the rehabbing yourself as you can significantly lower costs cutting it buy nearly 50% than when a contractor is hired to do the job. It will be better if the investor is trained professionally to fix houses, as he will have a clear idea of the work that needs to be done and how to get it done at lowest costs possible.

Some investors make major money investing in and rehabbing commercial real estate, others are experts in rehabbing obsolete homes and make huge profits by selecting properties near a lake, yet others specialize in rehabbing condos in places, where there is significant demand for condos. Some investors rehab and sell their property at a good profit usually yet others rehab, refinance and rent the property to get better returns on investments. There are investors who acquire homes for say $100,000, rehab it for say $20,000 and sell it for $300,000! The sky is the limit for experienced real estate investors who invest in rehabs!

There are several firms available online to help you with rehabbing properties.

How You Can Get Started in Creative Real Estate Investing - Even If You’re Broke

Among the most frequent questions asked in creative real estate forums is the timeless classic “How do I get started?” It has become almost comical how often this question is repeated in the forums. You could nearly set your watch by it.Don’t get me wrong, I don’t intend to ridicule the people who post these messages. Rather, to point out how many of them there really are and how much demand there is for this information. In this article, I’m going to give you some idea of ways you can get started in the creative real estate business without using much (if any) of your own money.

Step #1: Develop A Plan

There is an old saying which goes, “if you fail to plan, you’re planning to fail.” While this may seem a bit clich?, truer words have never been spoken, especially with regard to real estate investing. It is crucial to have some idea of what you want to do before you begin doing it. Since this article is geared toward getting started with as little money as possible, let’s develop a plan for wholesaling. If you’re not familiar with the term, have a look at my article “Creative Real Estate Glossary” for more information.

When I’m putting together a plan, I like to start with the goal in mind. For instance, we can set a goal of making $20,000.00 in the next 30 days. An ambitious goal? You bet! An attainable goal? Absolutely! With the goal in mind, we can work our way back to the present by asking ourselves a series of questions. A typical set of questions may be:

What steps do I have to take to achieve my desired outcome (make $20,000 in 30 days)?
I have to find and assign 4-5 wholesale deals.
How do I do that?
1. Line up 4-5 buyers for my deals 2. Negotiate acceptable deals with 4-5 sellers

How do I line up buyers?
1. Call handyman services and small construction companies. Ask if they’d be interested in buying rehabs in my target neighborhood. 2. Place small ads in the “shopper” newspapers. The ad needn’t be fancy. I’ve seen great success with “Handyman Special. Cheap. Cash.”

How do I negotiate deals with sellers?
1. Get some basic business cards - OfficeMax sells 1,000 for $11. There are also places online which offer a small number of cards for free. Hand these cards out to everyone. The more people who know what you do, the better chance you have of meeting people who need your help. 2. Flyers - these are fairly inexpensive to copy and people tend to hold onto them for quite a while. Leave one at each house in your target area every couple weeks. 3. Word of mouth - Tell people you’re interested in buying real estate! You’ll be surprised how many people are either selling a home or know someone who needs to sell theirs.

Just keep asking yourself this sort of questions until every step in your plan is clearly spelled out. Once you’ve got it all figured out, move on to…

Step #2: Take ACTION!

Would you believe more than 90% of the people who buy creative real estate courses never take any action on them? That’s insane! Once you’re armed with the information necessary to achieve your goals, take the action you know you need to take! Folks, this is absolutely the most important thing any new investor has to do! Without action, you’re going to be stuck in “analysis paralysis” mode forever! Please don’t let that happen to you. Your plan says to hand out business cards and flyers, right? Do it now! Don’t wait another second! Take it from someone who has wasted more than his share of time dragging his feet. You don’t want to look back on this day 10 years from now and say “If I had take action then, I’d be a millionaire now.” Nothing is more expensive than regret!

Step #3: Measure Your Results

Did you know that a commercial airliner is off course 99% of the time? It’s absolutely true. Crosswinds and other forces acting upon the aircraft’s flight surfaces causes it to be off course to a small degree almost the entire time that aircraft is in flight. So how the heck to the pilots get it where it is supposed to go? They recognize when it’s off course and they make small corrections.

Sometimes things are going to go perfectly. You’re going to execute every part of your plan like clockwork and the big payoff will be waiting for you at the end of the journey. Maybe once in a lifetime….

In real life, things go wrong. Sometimes they go horribly wrong. When that happens, you have to be able to recognize it quickly so you can make “course corrections” and carry on. If you can develop this one precious skill, you’ll learn that there is no such thing as failure. If you recognize what isn’t working and change it, you’re going to achieve your goal sooner or later.

So don’t get all bent out of shape when things go wrong. In truth, things will go badly more often than they’ll go right, but with the right mindset, you’ll barely even notice. Notice when you’re off course, make small course corrections and fly on to your destination

What If I Don’t Succeed Right Away?

Thomas Edison didn’t invent the light bulb on his first try. He didn’t invent the light bulb on try #2, either. In fact, he didn’t even invent the light bulb on try #2,000! It took Mr. Edison over 2,000 attempts to get the light bulb just right. When asked about this laborious process, Edison didn’t lament the 2,000 “failures” he had endured. Rather, he remarked that he had “learned 2,000 ways NOT to make a light bulb.”

If you don’t succeed right away, allow me to congratulate you. You’ve just learned one way not to do a real estate deal. I bet you won’t do it that way again, will you? You learned a lesson or two and now you’re ready to try again. Good for you! As long as you get back out there and take that action, you’ll do Mr. Edison proud.

In Summary

We’ve taken a look at 3 steps you can take right now to get started in creative real estate. I didn’t go into detail regarding seller negotiation, flyer copy or any number of other things, but not because I want to withhold that information from you. I just don’t want to overload your brain in one article. You’ve also read about Thomas Edison and the 2,000 lessons which brought him to inventing the light bulb and how you can employ the same mindset to achieve results just as profound as Edison’s.

About the Author

Want more information? Visit Worth Repeating for free creative real estate articles and other resources

THE TRUTH ABOUT REAL ESTATE INVESTINGIS IT RIGHT FOR YOU?

D.You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials spewing out sales pitches for courses that teach you how to buy residential real estate no money down or for next to nothing. Furthermore, polished pitch men on the advertisement emphasize that it is so easy that anybody can do it. They smugly show you that it is simple as they pencil out on the back of a napkin how you will supposedly make a fortune in real estate. Then these real estate investment course promoters show actual interviews of people who have reportedly made gobs of money with the course system.
Although it is true that fortunes can be made in real estate it is actually more likely that it will be the guru owner of the real estate course than you! The reason is that real estate investing is a lot harder than most people realize. When you buy, rent, and sell real estate as opposed to stocks you are dealing directly with people and there is not organized exchange to keep things standardized. Dont forget that courts see it as their duty to protect the shelter of families even if they are non paying renters who are total deadbeats. Another problem is that many contractors who do odd fix up jobs for real estate rehabbers are drifters with as many personal and financial problems as bad tenants. They damage houses and are down the street as soon as they get a little cash out of the hapless real estate investor.
It also takes many years to learn how to properly assess value in a town or neighborhood and get the required experience in real estate closings to not have the big profits you initially think you see in a deal leak out. The key point is that real estate investing is a business. Like any other business it requires constant dedication and education. If you work full time it means losing your free time to your rentals and rehabs. If a property doesnt sell or if the tenant doesnt pay you will have to lose part of your salary to cover the mortgage. You should enjoy your regular full time job because you selected it. If you prefer cookouts and trips to the beach over collecting rent and repairing your residential real estate investment then the stock market is a better place for you. If you are interested in real estate investing I have a list of reliable real estate investing courses as well on my website!

About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. The Wallet Doctor, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term Irrational Exuberance. In 1998 he was shouting out to the world to get out of the stock market but now he is shouting to everyone that it is time to get in! The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Browns site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com

IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRYMatthew ParkinsonWHY WONT THE GOVERNMENT STOP IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRY?

It is not uncommon for credit card companies to offer credit limits of 10,000, 15,000 or even as much as 25,000 allowing you to effectively walk into a car dealership and buy a brand new car by signing on the dotted line and then driving away!

To whom do they offer these limits?
Anyone earning more then 100,000 per year?
Company Directors?
Solicitors?
Members of Parliament?

No.

They are offering these limits to retired widows, low-income families and single parents working 16 hours per week. People who have no ability whatsoever to repay such huge sums of money.

Hard to believe isnt it? But Payplan, a free debt management company who deals with thousands of individuals with debt problems each week, have come across many unbelievable cases of irresponsible lending over the last few years and the problem appears to be getting worse. There are now more than 300 different credit cards on offer in the UK all competing for your business.

They will use attractive offers to get you to sign up, such as cash back, 0% interest on balance transfers and purchases, loyalty points etc All designed to make you spend more on your cards so that you then pay them interest out of your hard-earned cash.

These offers are often deliberately confusing and complex in the hope that customers will fall foul and not qualify, resulting in interest being charged.

Britain’s personal debt is increasing by 1 million every four minutes.

Gone are the days where borrowing money involved making an appointment with your bank manager and turning up in your best Sunday suit to make a good impression then politely explaining why you needed the money.

But it isnt just the new credit card companies that are doing this the high street banks are guilty of overloading their customers with credit facilities too.

The former Big 5 Banks are probably most guilty of this; once a customer runs up a large overdraft they are quick to offer a consolidation loan, which may also incorporate any credit card debts. While this seems like a good financial move, many customers find that the interest rates charged by the banks are extremely high and the temptation of overdrafts and credit cards still remain.

Should the credit cards, store cards, catalogues and overdrafts start to creep up once again, the banks may intervene a second time and allow a large unsecured personal loan of up to 25,000 to clear some or all of the debts.

This only causes further problems and does not allow the customers a realistic opportunity to resolve the problems they really need budgeting advice, and LESS credit facilities.

Once these large loans have been taken then it means that all the customers eggs are in one basket this stops the customer from seeking professional help as there is only one creditor to negotiate with and they will require all the monthly surplus.

SO WHY DO THE BANKS LEND SUCH HUGE SUMS WITHOUT ENSURING THAT CUSTOMERS CAN REPAY?

We can only speculate but there could be several reasons:

1. Banks and credit card companies could take insurance against the risk that their customers become insolvent. Credit insurance premiums generally cost between 0.3 - 0.7% of annual turnover a small price to pay for a guarantee against irresponsible lending!
2. It may be that companies have calculated just how much extra interest can be earned from customers if they provide them with such high credit limits. By overcommiting customers they know that extra interest and charges will be added.
3. In light of recent comments from HSBC and Barclays who have been blaming bad debtors for their drop in share price it could simply be a diversionary tactic!

WHY WONT THE GOVERNMENT INTERVENE?

The wheels are in motion to make creditors more accountable for irresponsible lending, (Lloyds TSB have been in trouble recently for unsecured lending of up to 100,000!) but there is little rush from Gordon Browns Office as the UKs economy continues to hit growth projections aided by massive consumer spending.

Household final consumption expenditure is the largest single component of the expenditure measure of GDP, accounting for about 50% of spending.

In other words, the more money spent by the UK population, the higher the GDP (Gross Domestic Product) and this means more money is pumped into the economy.

If you feel that you have lost control of your credit card and loan repayments or that you have borrowed more than you can pay back, then give Payplan a quick call on 0800 716 239 or visit the website for further details www.payplan.com

Payplan are a free debt advice agency, who are able to provide a personal solution to anyone experiencing debt problems.

About the author:
I have been working as a Debt Advisor in the UK for the last 5 years, assisting families who have been overwhelmed with debt.

THE TRUTH ABOUT REAL ESTATE INVESTINGIS IT RIGHT FOR YOU?

D.You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials spewing out sales pitches for courses that teach you how to buy residential real estate no money down or for next to nothing. Furthermore, polished pitch men on the advertisement emphasize that it is so easy that anybody can do it. They smugly show you that it is simple as they pencil out on the back of a napkin how you will supposedly make a fortune in real estate. Then these real estate investment course promoters show actual interviews of people who have reportedly made gobs of money with the course system.
Although it is true that fortunes can be made in real estate it is actually more likely that it will be the guru owner of the real estate course than you! The reason is that real estate investing is a lot harder than most people realize. When you buy, rent, and sell real estate as opposed to stocks you are dealing directly with people and there is not organized exchange to keep things standardized. Dont forget that courts see it as their duty to protect the shelter of families even if they are non paying renters who are total deadbeats. Another problem is that many contractors who do odd fix up jobs for real estate rehabbers are drifters with as many personal and financial problems as bad tenants. They damage houses and are down the street as soon as they get a little cash out of the hapless real estate investor.
It also takes many years to learn how to properly assess value in a town or neighborhood and get the required experience in real estate closings to not have the big profits you initially think you see in a deal leak out. The key point is that real estate investing is a business. Like any other business it requires constant dedication and education. If you work full time it means losing your free time to your rentals and rehabs. If a property doesnt sell or if the tenant doesnt pay you will have to lose part of your salary to cover the mortgage. You should enjoy your regular full time job because you selected it. If you prefer cookouts and trips to the beach over collecting rent and repairing your residential real estate investment then the stock market is a better place for you. If you are interested in real estate investing I have a list of reliable real estate investing courses as well on my website!

About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. The Wallet Doctor, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term Irrational Exuberance. In 1998 he was shouting out to the world to get out of the stock market but now he is shouting to everyone that it is time to get in! The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Browns site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com

IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRYMatthew ParkinsonWHY WONT THE GOVERNMENT STOP IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRY?

It is not uncommon for credit card companies to offer credit limits of 10,000, 15,000 or even as much as 25,000 allowing you to effectively walk into a car dealership and buy a brand new car by signing on the dotted line and then driving away!

To whom do they offer these limits?
Anyone earning more then 100,000 per year?
Company Directors?
Solicitors?
Members of Parliament?

No.

They are offering these limits to retired widows, low-income families and single parents working 16 hours per week. People who have no ability whatsoever to repay such huge sums of money.

Hard to believe isnt it? But Payplan, a free debt management company who deals with thousands of individuals with debt problems each week, have come across many unbelievable cases of irresponsible lending over the last few years and the problem appears to be getting worse. There are now more than 300 different credit cards on offer in the UK all competing for your business.

They will use attractive offers to get you to sign up, such as cash back, 0% interest on balance transfers and purchases, loyalty points etc All designed to make you spend more on your cards so that you then pay them interest out of your hard-earned cash.

These offers are often deliberately confusing and complex in the hope that customers will fall foul and not qualify, resulting in interest being charged.

Britain’s personal debt is increasing by 1 million every four minutes.

Gone are the days where borrowing money involved making an appointment with your bank manager and turning up in your best Sunday suit to make a good impression then politely explaining why you needed the money.

But it isnt just the new credit card companies that are doing this the high street banks are guilty of overloading their customers with credit facilities too.

The former Big 5 Banks are probably most guilty of this; once a customer runs up a large overdraft they are quick to offer a consolidation loan, which may also incorporate any credit card debts. While this seems like a good financial move, many customers find that the interest rates charged by the banks are extremely high and the temptation of overdrafts and credit cards still remain.

Should the credit cards, store cards, catalogues and overdrafts start to creep up once again, the banks may intervene a second time and allow a large unsecured personal loan of up to 25,000 to clear some or all of the debts.

This only causes further problems and does not allow the customers a realistic opportunity to resolve the problems they really need budgeting advice, and LESS credit facilities.

Once these large loans have been taken then it means that all the customers eggs are in one basket this stops the customer from seeking professional help as there is only one creditor to negotiate with and they will require all the monthly surplus.

SO WHY DO THE BANKS LEND SUCH HUGE SUMS WITHOUT ENSURING THAT CUSTOMERS CAN REPAY?

We can only speculate but there could be several reasons:

1. Banks and credit card companies could take insurance against the risk that their customers become insolvent. Credit insurance premiums generally cost between 0.3 - 0.7% of annual turnover a small price to pay for a guarantee against irresponsible lending!
2. It may be that companies have calculated just how much extra interest can be earned from customers if they provide them with such high credit limits. By overcommiting customers they know that extra interest and charges will be added.
3. In light of recent comments from HSBC and Barclays who have been blaming bad debtors for their drop in share price it could simply be a diversionary tactic!

WHY WONT THE GOVERNMENT INTERVENE?

The wheels are in motion to make creditors more accountable for irresponsible lending, (Lloyds TSB have been in trouble recently for unsecured lending of up to 100,000!) but there is little rush from Gordon Browns Office as the UKs economy continues to hit growth projections aided by massive consumer spending.

Household final consumption expenditure is the largest single component of the expenditure measure of GDP, accounting for about 50% of spending.

In other words, the more money spent by the UK population, the higher the GDP (Gross Domestic Product) and this means more money is pumped into the economy.

If you feel that you have lost control of your credit card and loan repayments or that you have borrowed more than you can pay back, then give Payplan a quick call on 0800 716 239 or visit the website for further details www.payplan.com

Payplan are a free debt advice agency, who are able to provide a personal solution to anyone experiencing debt problems.

About the author:
I have been working as a Debt Advisor in the UK for the last 5 years, assisting families who have been overwhelmed with debt.

THE TRUTH ABOUT REAL ESTATE INVESTINGIS IT RIGHT FOR YOU?

D.You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials spewing out sales pitches for courses that teach you how to buy residential real estate no money down or for next to nothing. Furthermore, polished pitch men on the advertisement emphasize that it is so easy that anybody can do it. They smugly show you that it is simple as they pencil out on the back of a napkin how you will supposedly make a fortune in real estate. Then these real estate investment course promoters show actual interviews of people who have reportedly made gobs of money with the course system.
Although it is true that fortunes can be made in real estate it is actually more likely that it will be the guru owner of the real estate course than you! The reason is that real estate investing is a lot harder than most people realize. When you buy, rent, and sell real estate as opposed to stocks you are dealing directly with people and there is not organized exchange to keep things standardized. Dont forget that courts see it as their duty to protect the shelter of families even if they are non paying renters who are total deadbeats. Another problem is that many contractors who do odd fix up jobs for real estate rehabbers are drifters with as many personal and financial problems as bad tenants. They damage houses and are down the street as soon as they get a little cash out of the hapless real estate investor.
It also takes many years to learn how to properly assess value in a town or neighborhood and get the required experience in real estate closings to not have the big profits you initially think you see in a deal leak out. The key point is that real estate investing is a business. Like any other business it requires constant dedication and education. If you work full time it means losing your free time to your rentals and rehabs. If a property doesnt sell or if the tenant doesnt pay you will have to lose part of your salary to cover the mortgage. You should enjoy your regular full time job because you selected it. If you prefer cookouts and trips to the beach over collecting rent and repairing your residential real estate investment then the stock market is a better place for you. If you are interested in real estate investing I have a list of reliable real estate investing courses as well on my website!

About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. The Wallet Doctor, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term Irrational Exuberance. In 1998 he was shouting out to the world to get out of the stock market but now he is shouting to everyone that it is time to get in! The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Browns site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com

IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRYMatthew ParkinsonWHY WONT THE GOVERNMENT STOP IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRY?

It is not uncommon for credit card companies to offer credit limits of 10,000, 15,000 or even as much as 25,000 allowing you to effectively walk into a car dealership and buy a brand new car by signing on the dotted line and then driving away!

To whom do they offer these limits?
Anyone earning more then 100,000 per year?
Company Directors?
Solicitors?
Members of Parliament?

No.

They are offering these limits to retired widows, low-income families and single parents working 16 hours per week. People who have no ability whatsoever to repay such huge sums of money.

Hard to believe isnt it? But Payplan, a free debt management company who deals with thousands of individuals with debt problems each week, have come across many unbelievable cases of irresponsible lending over the last few years and the problem appears to be getting worse. There are now more than 300 different credit cards on offer in the UK all competing for your business.

They will use attractive offers to get you to sign up, such as cash back, 0% interest on balance transfers and purchases, loyalty points etc All designed to make you spend more on your cards so that you then pay them interest out of your hard-earned cash.

These offers are often deliberately confusing and complex in the hope that customers will fall foul and not qualify, resulting in interest being charged.

Britain’s personal debt is increasing by 1 million every four minutes.

Gone are the days where borrowing money involved making an appointment with your bank manager and turning up in your best Sunday suit to make a good impression then politely explaining why you needed the money.

But it isnt just the new credit card companies that are doing this the high street banks are guilty of overloading their customers with credit facilities too.

The former Big 5 Banks are probably most guilty of this; once a customer runs up a large overdraft they are quick to offer a consolidation loan, which may also incorporate any credit card debts. While this seems like a good financial move, many customers find that the interest rates charged by the banks are extremely high and the temptation of overdrafts and credit cards still remain.

Should the credit cards, store cards, catalogues and overdrafts start to creep up once again, the banks may intervene a second time and allow a large unsecured personal loan of up to 25,000 to clear some or all of the debts.

This only causes further problems and does not allow the customers a realistic opportunity to resolve the problems they really need budgeting advice, and LESS credit facilities.

Once these large loans have been taken then it means that all the customers eggs are in one basket this stops the customer from seeking professional help as there is only one creditor to negotiate with and they will require all the monthly surplus.

SO WHY DO THE BANKS LEND SUCH HUGE SUMS WITHOUT ENSURING THAT CUSTOMERS CAN REPAY?

We can only speculate but there could be several reasons:

1. Banks and credit card companies could take insurance against the risk that their customers become insolvent. Credit insurance premiums generally cost between 0.3 - 0.7% of annual turnover a small price to pay for a guarantee against irresponsible lending!
2. It may be that companies have calculated just how much extra interest can be earned from customers if they provide them with such high credit limits. By overcommiting customers they know that extra interest and charges will be added.
3. In light of recent comments from HSBC and Barclays who have been blaming bad debtors for their drop in share price it could simply be a diversionary tactic!

WHY WONT THE GOVERNMENT INTERVENE?

The wheels are in motion to make creditors more accountable for irresponsible lending, (Lloyds TSB have been in trouble recently for unsecured lending of up to 100,000!) but there is little rush from Gordon Browns Office as the UKs economy continues to hit growth projections aided by massive consumer spending.

Household final consumption expenditure is the largest single component of the expenditure measure of GDP, accounting for about 50% of spending.

In other words, the more money spent by the UK population, the higher the GDP (Gross Domestic Product) and this means more money is pumped into the economy.

If you feel that you have lost control of your credit card and loan repayments or that you have borrowed more than you can pay back, then give Payplan a quick call on 0800 716 239 or visit the website for further details www.payplan.com

Payplan are a free debt advice agency, who are able to provide a personal solution to anyone experiencing debt problems.

About the author:
I have been working as a Debt Advisor in the UK for the last 5 years, assisting families who have been overwhelmed with debt.

3 Good Reasons Why You Should use an Attorney for Your Real Estate Investing

Skimping on attorney fees could cost you more than you bargained for when investing in real estate. New real estate investors often save money on their rehabs by cutting corners, doing work themselves and trying not to spend any money to make money. When it comes to having a good real estate attorney though be prepared to spend away.

You have to ask yourselves what you are willing to pay for a piece of mind especially if you deal with tenants. A few good contracts written up by your attorney will easily be worth it after your first eviction or foreclosure.

You can find hundreds of template contracts and real estate forms on the Internet, but just how legal are they? Ask yourselves why they almost always recommend you have your own attorney look them over anyway.

There are hundreds of reasons to use a real estate attorney in your wealth building, but here are my three favorites:

Title opinions. In some states you are required to buy title insurance to guarantee the marketability of your property. In others it is recommended to get a title opinion. A title opinion is the opinion of an Attorney regarding the merchantability of title based upon the title examination and commonly is written to a lending institution who will rely on this title opinion for the validity and ranking of its mortgage. This process could get pretty complex especially when dealing with vacant, bank owned and estate property.

Tenant Forms. If you have rental units it is imperative that you have a real estate attorney look over your documents to make sure that the language is specific to your situation and state. Tenant law in Iowa may not be the same as tenant law in Nevada. Trust me, if any wording is wrong in your 3-day notice or eviction paper work the magistrate or judge will spout out some state statute, your tenant will get to stay and you will have to start all over.

Leads. Attorneys can be a great source for leads. Motivated sellers often come from extenuating circumstances like divorces, bankruptcies and estates. If you have a good relationship with a real estate attorney perhaps you can help his clients out when they find themselves in situations like any of the above.

If you are new to real estate investing a real estate attorney should be on your team anyway, if you don’t have one yet be sure to find one fast. Your realtor or banker should be able to recommend a good one for you.

About the Author

Robb Beltran is an active real estate investor and publisher of the Real Estate Info Network. The Real Estate Info Network promotes real estate education through real estate seminars, e-books and real estate investing courses. www.realestateinfonetwork.com www.belstarproperties.com

Tags: 3 Good Reasons, Attorney Fees, Contracts And Real Estate, Cutting Corners, Eviction, Foreclosure, Great Source, Investing In Real Estate, Lending Institution, Magistrate, Marketability, Merchantability, Piece Of Mind, Real Estate Investors, Rehabs, Spout, Tenant Forms, Tenant Law, Title Insurance, Wealth Building

Real Estate Investing: Rehabs

September 13, 2009 by Kenny Santos  
Filed under Real Estate Investing

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For an experienced and clever investor, creative real estate investing is a technique that can bring in profits beyond our imagination. Many investors use rehabbing to build fortunes. These investors seek run down, neglected, ugly properties for very less, sometimes lot less than their market value because of their decrepit condition. They then fix the property keeping costs of repair as low as possible, repaint the property, giving them a face lift and manage to sell the property at an amazing price bringing them huge profits!

How to Rehab a Property: This field of investing in real estate is good for experienced and knowledgeable investors not recommended for novices. The investor seeking to rehab a property should study the location as well as the structural design of the house, paying attention to the kind of neighborhood it is located in, shopping facilities as well as transport facilities available in that locale. The investors should have a good idea of the local market, the current land value, must be experienced in rehabbing to judge what needs fixing, the ability to estimate the cost of rehabbing a property, should decide if he wants to rehab it himself or let a contractor do it for him. Consider all aspects to try and get the house at a greater profit and work things out that with minimum costs the property gets to look presentable and try and sell it for its current value or higher. The investor should have a good idea about the latest trends in color and interior decorations spending within a preplanned budget that will help make the rehabbed property more desirable to the buyers. It is better to do the rehabbing yourself as you can significantly lower costs cutting it buy nearly 50% than when a contractor is hired to do the job. It will be better if the investor is trained professionally to fix houses, as he will have a clear idea of the work that needs to be done and how to get it done at lowest costs possible.

Some investors make major money investing in and rehabbing commercial real estate, others are experts in rehabbing obsolete homes and make huge profits by selecting properties near a lake, yet others specialize in rehabbing condos in places, where there is significant demand for condos. Some investors rehab and sell their property at a good profit usually yet others rehab, refinance and rent the property to get better returns on investments. There are investors who acquire homes for say $100,000, rehab it for say $20,000 and sell it for $300,000! The sky is the limit for experienced real estate investors who invest in rehabs!

There are several firms available online to help you with rehabbing properties.

Alexander Gordon is a writer for 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: Budget, Creative Real Estate, Creative Real Estate Investing, Current Value, Face Lift, Fortunes, Imagination, Interior Decorations, Investing In Real Estate, Investor, Knowledgeable Investors, Latest Trends, Local Market, Neighborhood, Paying Attention, Profits, Real Estate Investing, Rehabs, Structural Design, Transport Facilities