5 Killer Tips to Successful Real Estate Investing

1. Always do comparisons on property values and rents.

Do not rely solely on statistics. The best way to gauge a property’s market value is to check the sales prices of similar properties in the vicinity.

The same goes for the value of rents in the area. If the price is low, you can justify it with a decent rental value as tenants who can afford to pay high rent may well opt to purchase the property themselves.

Thus be reasonable on the rental prices.

2. Stay alert as tax laws may change

Don’t bet on current tax laws for your tax investment. The tax code is always evolving and regardless of the tax code, a great investment will remain just that; a great investment.

As a real estate investor, you should look for the right property with the right financing.

3. Be a specialist

Begin in a market segment you are familiar with. You can focus on one of the following:- Fix-uppers, foreclosures, low down-payment homes, starter properties, small apartment buildings, condominiums, etc.

By being a specialist in one of the market segments of real estate investing, you’ll surely benefit from the experience.

This is important for a successful real estate investing.

4. Find out all the costs involved

You must know the financial statements very well for example, operating expenses, loan payments, vacancy costs, taxes, etc.

Do not forget the cash flow statement. You must do this before taking the plunge and investing.

5. Find out where your tenants come from and their plans for the future.

Your tenants may consider moving if you increase your rent recently. If your tenants are renting for a short-term, it could be that they are staying there to attract unsuspecting buyers.

Do not forget to collect at least 2 months deposit as a security measure.

In summary, taking action is key to a successful real estate investing…

How Does Real Estate Investing Work

A question often raised by brand new real estate investors, and those who would like to be, is ?How does real estate investing work?? I will attempt to provide you with a brief overview in this article, and hopefully you will have a better understanding of real estate investing and how you might become involved.

First of all, when answering the question, ?How does real estate investing work?? it?s important to begin by stating that there are almost as many different types of investing as there are investors.

You could become involved in commercial real estate investing. This would include many different kinds of property and types of investing, from strip malls to mobile home parks, from malls to apartment complexes. You could buy commercial property at bargain prices, and sell for immediate gain, or you could buy income property and hold for the long term. You could also combine the two, and realize income from both the increase in value and the month-to-month rent. Commercial property is an important consideration when answering the question, ?How does real estate investing work??

You could also get involved in any of a number of different strategies involving residential property, from single family homes, duplexes, small apartment houses, even mobile homes. When it comes to answering the question, ?How does real estate investing work?? the possibilities are limited only by your imagination.

If you?re the type of person who enjoys projects, you might enjoy buying ?fixer-uppers? and rehabbing them. You could become a wholesaler or a bird-dog and find deals for other, more experienced investors, some of whom have already worked out the answer to the question, ?How does real estate investing work??

Maybe you like helping people? If so, working with buyers and sellers to solve their credit or payment problems will provide you with ample opportunity to profit from their dilemmas. You could also negotiate directly with the mortgage lender to buy houses, either in foreclosure or ?short sale? investing. A little investigation of these terms will give you a clearer picture of the answer to the question, ?How does real estate investing work??

Alternatively, you may have money to invest, but little or no time. You may find that investing as part of a group, or ?trust? is a good fit for you. These trusts can be very lucrative, and a good option for the less hands-on investor. Even very busy professionals find REIT?s (Real Estate Investment Trusts) a good choice when deciding for themselves, ?How does real estate investing work??

Hopefully, you?re curiosity has been piqued by this brief introduction to the question, ?How does real estate investing work??

Now, go make more offers!

Real Estate Investing- Four Ways to Eliminate Fear

OK, let’s face facts. It’s a big, scary, confusing world out there, and you can lose your shirt if you’re not careful. I’ve talked to investors who have been ripped off in every way you can imagine. Lied to, cheated, swindled, tricked, hoodwinked, bamboozled, and… well, you get the idea. There’s no shortage of ways to lose money.

One guy rented out his house and the tenants trashed it and disappeared into the night. A woman in the mid-west bought a house with an undisclosed gas leak, and it blew up the day she closed on it (thankfully no one was there at the time). A friend tried to flip a property and wound up losing several thousand dollars when the market tanked mid-flip.

I sold a mobile home to a couple who made two payments and decided that was enough. I lost a few thousand before I managed to get the home back- trashed of course.

There are problems with houses nobody could foresee, market ups and downs no one can predict, and sudden disasters few can imagine.

I know an investor in New Orleans that lost about half his entire portfolio to Hurricane Katrina.

Encouraged? You should be, and I’ll tell you why. Every one of the investors I just mentioned is STILL ACTIVELY INVESTING!

What Do They Know That You Don’t?

How is that possible, you ask? Simple. They know four things you don’t yet know.

For instance, the guy who had his house trashed has been investing just over 7 years. In that time he has purchased and rented out 17 single family homes and duplexes. He’s only lost money on one of them- the one I mentioned above- and even that is now re-rented to stable tenants. At the pace he’s investing, his portfolio will be worth $10,000,000 by 2010.

The Denver woman whose furnace exploded sued the person she bought the home from. After several months she settled out of court, collected the insurance money, walked away and purchased a small apartment building.

My friend the flipper has bought and sold between 30 and 40 houses since 1998. In that time, his annual income has shot from about 40k to over $300,000! Think he’s dwelling on the 2 or 3 houses he’s lost money on? I Doubt it.

And the New Orleans investor? He’s rehabbing many of the houses that were damaged by Katrina, still actively buying houses, and still collecting rents on the remainder of his portfolio.

So let’s talk about you. You may be saying, "That’s all well and good. They all have resources I don’t. I can’t afford to lose. What if something goes wrong on my first deal?" Or, maybe you’re thinking, "I don’t know enough. Those people are all experienced investors. I’m not- I’ll get killed by stuff I can’t see coming." Or perhaps, "If just one more thing goes wrong it’ll put me right over the edge. I can’t afford any more failures."

Those are all important and thoughtful arguments. They all have one thing in common.

They’re crap.

There are four main reasons for this. These four reasons also happen to be the four things that- if applied diligently and persistently in ANYONE’S life- will completely eliminate fear. Destroy it. Wipe it out. Obliterate it. Render it powerless. Get the idea? In short, WORK ON THESE and THESE WILL WORK!

Four Simple Ways

One- Clear thinking. Fear is a product of our thoughts, nothing more and nothing less. How we perceive a thing leads us to welcome it or fear it, or anything in between.

Experiment- Try this at home. Try to clearly remember the thing that scared you most as a child, something that really rattled your wits. Now think about when and why it scared you. Did it ALWAYS scare you, or was there a particular point in time that it STARTED to scare you? Why? What happened at that point in time to CAUSE you to become scared? Did the THING change, or did YOU?

Most people, when they think about it, find that their fear of something began at a specific point in time. Something happened that changed the way they perceived the object of their fear. Prior to the occurrence, they didn’t experience the same fear. After the occurrence-WHAMO! Fear, baby!

The thing that scared me most as a child were barking dogs. I couldn’t get near a barking dog without turning into a quivering bowl of jelly. It wasn’t always that way. When I was small I had a dog, and loved it. Then I was bitten on the stomach by a vicious dog, and my love turned to terror. What changed? Not dogs.

Dogs have always been the same- most are friendly, some are not. Some bite, most do not. Dogs didn’t change, I changed. Rather, my perception of dogs changed, based on one bad experience. Fear is like that- it’s icy grip is not based on logic, but on our "experience perception".

Experience perception is nothing more than the way our minds choose to think about and shape our memories. You can change your experience perception of almost anything by carefully crafting and choosing WHICH experiences to dwell on, and how to think about them. Choose to think about past failures and problems, and those will shape your experience perception. Choose instead to think about and clearly remember successes and victories and your experience perception will be increasingly shaped in strengthening ways.

Clear thinking about dogs has helped me overcome my fear. I remind myself of the pleasurable experiences I have had with MOST dogs. Soon, the ONE bad experience I had becomes insignificant. I no longer fear dogs. I like dogs.

Similarly, focus on your victories, think CLEARLY about your failures (were they REALLY failures?) and you will no longer fear failure- you will anticipate success. Make clear thinking a part of your mental training starting TODAY!

Two- Truthful self talk. Have you ever listened to the things you tell yourself? I did, and it wasn’t pretty, so I changed it. I caught myself saying all manner of ridiculous things that just weren’t true. One thing I told myself pretty consistently was, "You don’t DESERVE success." Maybe you can relate to that, or maybe you’ve got your own brand of self-deception. Whatever it is, you can change it.

We all talk to ourselves virtually non-stop. Pause and think- weren’t you just telling yourself something? Either you were agreeing with what I just said, or you were disagreeing, but you were saying SOMETHING to yourself. Learn to monitor carefully the things you tell yourself. I think you’ll be surprised by what you hear.

First, consciously force yourself to listen to your self talk. Then, when you are aware of it, write it down and dissect it. Think it through- is it really true? If not, why do you believe it? More important, why do you keep telling it to yourself? Focus on CHANGING your self talk, and start replacing all the lies with the truth. I mentioned one of those lies above. Remember, "It’ll put me right over the edge?" That’s a lie for sure.

After all, what exactly does that mean? Where is the "edge", anyway? Here’s another lie we tell ourselves- "I can’t take any more." Unless you’re dead, it’s just not true. Humans are nothing if not resilient. God created us that way. Somewhere somebody had gone through much more than you and rebounded from it. You can, too.

Replace the lies you tell yourself with truth. Where do you find these truths? The Bible is a great place to start. Articles like this one. Great books, websites, motivational tapes and CD’S. Start today.

Number Three- Education. Knowledge and skill breed confidence. As you increase your knowledge, you can feel your power grow and your fear diminish. For proof, consider an area you need to perform well in, but know very little about- like buying a car for instance. Many people dread buying a car. Why? Because of all the mystery involved. Funny thing, though. The more you learn about the product and the process of car shopping, the more confidence you have, and the less you will fear it.

Applied to real estate investing, the more books and courses you read and study, the less your fear will control you. Darkness gives way to light, and fear is always banished by the light. In fact, isn’t darkness often used as a metaphor for fear? There’s a very good reason for that. Things we can clearly see and understand lose their power over us- at least their power to cause fear.

There is a wealth of excellent material available on every conceivable real estate investing topic. You don’t need to go it alone. Somebody has already successfully done what you want to do, systematized it, and written it down. Buy books and courses. Read the free articles available here and on other websites. Start learning and never stop- you will see your fear diminish and your confidence soar.

Number Four- Faith. "Now faith is the substance of things hoped for, the evidence of things not seen." (Hebrews chapter 11, verse 1) When everything around you appears dark, and you can’t see the path in front of your feet- HAVE FAITH. When you know you’re supposed to be doing something, but you’re just too scared to do it- HAVE FAITH. When everybody says you can’t, but you know deep inside you can- HAVE FAITH. When you are all alone, even in a crowd- HAVE FAITH. When you don’t understand, and the world is a very confusing place- HAVE FAITH. When you are frustrated because you know you are right, but you are feeling so wrong- HAVE FAITH.

When you have blown it, and let everybody down- HAVE FAITH. When somebody else has blown it, and let you down- HAVE FAITH. When you are sick and need to be taken care of- HAVE FAITH. When you are well and taking care of everybody else- HAVE FAITH. When you are so tied up in knots, you feel like screaming- HAVE FAITH. When absolutely nothing is working- HAVE FAITH.

"Have faith in what?" you ask. Not what, but who- God. After all, He made you and He knows you better than you know yourself. He made you incredibly resilient, awesomely creative, wondrously imaginative, and highly intelligent. He has given you everything you need to be successful, and put everything into your hands you could possibly need. You only need to BELIEVE IT and start acting on it! That’s what faith is all about. HAVE FAITH!

These four ways to eliminate fear don’t just happen. You must actively cultivate each one. Anything worthwhile takes effort, but with the right kind of effort- applied in the right ways- you can overcome your fear! Remember- clear thinking, truthful self talk, education, and faith.

Now, go make more offers!

Real Estate Investing- Four Ways to Eliminate Fear

OK, let’s face facts. It’s a big, scary, confusing world out there, and you can lose your shirt if you’re not careful. I’ve talked to investors who have been ripped off in every way you can imagine. Lied to, cheated, swindled, tricked, hoodwinked, bamboozled, and… well, you get the idea. There’s no shortage of ways to lose money.

One guy rented out his house and the tenants trashed it and disappeared into the night. A woman in the mid-west bought a house with an undisclosed gas leak, and it blew up the day she closed on it (thankfully no one was there at the time). A friend tried to flip a property and wound up losing several thousand dollars when the market tanked mid-flip.

I sold a mobile home to a couple who made two payments and decided that was enough. I lost a few thousand before I managed to get the home back- trashed of course.

There are problems with houses nobody could foresee, market ups and downs no one can predict, and sudden disasters few can imagine.

I know an investor in New Orleans that lost about half his entire portfolio to Hurricane Katrina.

Encouraged? You should be, and I’ll tell you why. Every one of the investors I just mentioned is STILL ACTIVELY INVESTING!

What Do They Know That You Don’t?

How is that possible, you ask? Simple. They know four things you don’t yet know.

For instance, the guy who had his house trashed has been investing just over 7 years. In that time he has purchased and rented out 17 single family homes and duplexes. He’s only lost money on one of them- the one I mentioned above- and even that is now re-rented to stable tenants. At the pace he’s investing, his portfolio will be worth $10,000,000 by 2010.

The Denver woman whose furnace exploded sued the person she bought the home from. After several months she settled out of court, collected the insurance money, walked away and purchased a small apartment building.

My friend the flipper has bought and sold between 30 and 40 houses since 1998. In that time, his annual income has shot from about 40k to over $300,000! Think he’s dwelling on the 2 or 3 houses he’s lost money on? I Doubt it.

And the New Orleans investor? He’s rehabbing many of the houses that were damaged by Katrina, still actively buying houses, and still collecting rents on the remainder of his portfolio.

So let’s talk about you. You may be saying, "That’s all well and good. They all have resources I don’t. I can’t afford to lose. What if something goes wrong on my first deal?" Or, maybe you’re thinking, "I don’t know enough. Those people are all experienced investors. I’m not- I’ll get killed by stuff I can’t see coming." Or perhaps, "If just one more thing goes wrong it’ll put me right over the edge. I can’t afford any more failures."

Those are all important and thoughtful arguments. They all have one thing in common.

They’re crap.

There are four main reasons for this. These four reasons also happen to be the four things that- if applied diligently and persistently in ANYONE’S life- will completely eliminate fear. Destroy it. Wipe it out. Obliterate it. Render it powerless. Get the idea? In short, WORK ON THESE and THESE WILL WORK!

Four Simple Ways

One- Clear thinking. Fear is a product of our thoughts, nothing more and nothing less. How we perceive a thing leads us to welcome it or fear it, or anything in between.

Experiment- Try this at home. Try to clearly remember the thing that scared you most as a child, something that really rattled your wits. Now think about when and why it scared you. Did it ALWAYS scare you, or was there a particular point in time that it STARTED to scare you? Why? What happened at that point in time to CAUSE you to become scared? Did the THING change, or did YOU?

Most people, when they think about it, find that their fear of something began at a specific point in time. Something happened that changed the way they perceived the object of their fear. Prior to the occurrence, they didn’t experience the same fear. After the occurrence-WHAMO! Fear, baby!

The thing that scared me most as a child were barking dogs. I couldn’t get near a barking dog without turning into a quivering bowl of jelly. It wasn’t always that way. When I was small I had a dog, and loved it. Then I was bitten on the stomach by a vicious dog, and my love turned to terror. What changed? Not dogs.

Dogs have always been the same- most are friendly, some are not. Some bite, most do not. Dogs didn’t change, I changed. Rather, my perception of dogs changed, based on one bad experience. Fear is like that- it’s icy grip is not based on logic, but on our "experience perception".

Experience perception is nothing more than the way our minds choose to think about and shape our memories. You can change your experience perception of almost anything by carefully crafting and choosing WHICH experiences to dwell on, and how to think about them. Choose to think about past failures and problems, and those will shape your experience perception. Choose instead to think about and clearly remember successes and victories and your experience perception will be increasingly shaped in strengthening ways.

Clear thinking about dogs has helped me overcome my fear. I remind myself of the pleasurable experiences I have had with MOST dogs. Soon, the ONE bad experience I had becomes insignificant. I no longer fear dogs. I like dogs.

Similarly, focus on your victories, think CLEARLY about your failures (were they REALLY failures?) and you will no longer fear failure- you will anticipate success. Make clear thinking a part of your mental training starting TODAY!

Two- Truthful self talk. Have you ever listened to the things you tell yourself? I did, and it wasn’t pretty, so I changed it. I caught myself saying all manner of ridiculous things that just weren’t true. One thing I told myself pretty consistently was, "You don’t DESERVE success." Maybe you can relate to that, or maybe you’ve got your own brand of self-deception. Whatever it is, you can change it.

We all talk to ourselves virtually non-stop. Pause and think- weren’t you just telling yourself something? Either you were agreeing with what I just said, or you were disagreeing, but you were saying SOMETHING to yourself. Learn to monitor carefully the things you tell yourself. I think you’ll be surprised by what you hear.

First, consciously force yourself to listen to your self talk. Then, when you are aware of it, write it down and dissect it. Think it through- is it really true? If not, why do you believe it? More important, why do you keep telling it to yourself? Focus on CHANGING your self talk, and start replacing all the lies with the truth. I mentioned one of those lies above. Remember, "It’ll put me right over the edge?" That’s a lie for sure.

After all, what exactly does that mean? Where is the "edge", anyway? Here’s another lie we tell ourselves- "I can’t take any more." Unless you’re dead, it’s just not true. Humans are nothing if not resilient. God created us that way. Somewhere somebody had gone through much more than you and rebounded from it. You can, too.

Replace the lies you tell yourself with truth. Where do you find these truths? The Bible is a great place to start. Articles like this one. Great books, websites, motivational tapes and CD’S. Start today.

Number Three- Education. Knowledge and skill breed confidence. As you increase your knowledge, you can feel your power grow and your fear diminish. For proof, consider an area you need to perform well in, but know very little about- like buying a car for instance. Many people dread buying a car. Why? Because of all the mystery involved. Funny thing, though. The more you learn about the product and the process of car shopping, the more confidence you have, and the less you will fear it.

Applied to real estate investing, the more books and courses you read and study, the less your fear will control you. Darkness gives way to light, and fear is always banished by the light. In fact, isn’t darkness often used as a metaphor for fear? There’s a very good reason for that. Things we can clearly see and understand lose their power over us- at least their power to cause fear.

There is a wealth of excellent material available on every conceivable real estate investing topic. You don’t need to go it alone. Somebody has already successfully done what you want to do, systematized it, and written it down. Buy books and courses. Read the free articles available here and on other websites. Start learning and never stop- you will see your fear diminish and your confidence soar.

Number Four- Faith. "Now faith is the substance of things hoped for, the evidence of things not seen." (Hebrews chapter 11, verse 1) When everything around you appears dark, and you can’t see the path in front of your feet- HAVE FAITH. When you know you’re supposed to be doing something, but you’re just too scared to do it- HAVE FAITH. When everybody says you can’t, but you know deep inside you can- HAVE FAITH. When you are all alone, even in a crowd- HAVE FAITH. When you don’t understand, and the world is a very confusing place- HAVE FAITH. When you are frustrated because you know you are right, but you are feeling so wrong- HAVE FAITH.

When you have blown it, and let everybody down- HAVE FAITH. When somebody else has blown it, and let you down- HAVE FAITH. When you are sick and need to be taken care of- HAVE FAITH. When you are well and taking care of everybody else- HAVE FAITH. When you are so tied up in knots, you feel like screaming- HAVE FAITH. When absolutely nothing is working- HAVE FAITH.

"Have faith in what?" you ask. Not what, but who- God. After all, He made you and He knows you better than you know yourself. He made you incredibly resilient, awesomely creative, wondrously imaginative, and highly intelligent. He has given you everything you need to be successful, and put everything into your hands you could possibly need. You only need to BELIEVE IT and start acting on it! That’s what faith is all about. HAVE FAITH!

These four ways to eliminate fear don’t just happen. You must actively cultivate each one. Anything worthwhile takes effort, but with the right kind of effort- applied in the right ways- you can overcome your fear! Remember- clear thinking, truthful self talk, education, and faith.

Now, go make more offers!

10 Important Tips to Successful Real Estate Investing

Raja” Ahluwalia

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

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

1. Compare Property Values and Rents

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

2. Be Careful - Tax Laws May Change

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

3. Specialize In Something You Know

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

4. Know The Costs Going In!

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

5. Know Where Your Tenants Are Coming From

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

6. Assess The Tax Situation

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

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

8. Confirm Utility Costs

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

9. Consult Your Accountant

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

10. Inspect!

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

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

ABOUT THE AUTHOR

10 Important Tips to Successful Real Estate Investing

Raja” Ahluwalia

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

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

1. Compare Property Values and Rents

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

2. Be Careful - Tax Laws May Change

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

3. Specialize In Something You Know

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

4. Know The Costs Going In!

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

5. Know Where Your Tenants Are Coming From

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

6. Assess The Tax Situation

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

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

8. Confirm Utility Costs

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

9. Consult Your Accountant

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

10. Inspect!

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

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

ABOUT THE AUTHOR

Great Source of Private Money For Real Estate Investing

How would it be to have access to over a million dollars in private money for real estate investing? That?s just what a good friend of mine stumbled into when he did a very simple thing? something you can do in an afternoon.

My friend, Jim, has been investing in real estate for several years. One day, after a family get together, he decided to let his family know about his investing. He had been pretty successful with small apartment buildings, so he decided to send out a simple postcard to all the members of his family, telling them to call him if they knew of anyone wanting to sell rental property.

Lo and behold, Jim got a call the very next week from an uncle he barely knew. The uncle didn?t know of any property for sale, but he expressed curiosity in what Jim was doing, so the two men made an appointment to get together for lunch.

At lunch, Jim explained his investing strategy, and outlined some of the successes he had enjoyed. He talked about the simple things in his business, like buying value, and looking for positive cash flow. He enjoyed talking about it, and Jim?s uncle seemed genuinely interested.

Then Jim got the surprise of his life.

As they were leaving, Jim?s uncle leaned into the car window and said, ?Could you use a silent partner to help with the financing end of things??

Jim says, ?I think my heart skipped several beats before I answered.?

After Jim?s heart started again, he told his uncle he?d be happy to put his money to work. It turned out that Jim?s uncle was sitting on nearly $1,000,000 in liquid assets, assets Jim has used over and over again during the last few years to build a rental real estate empire.

The funny thing is, Jim didn?t set out to find relatives with money. He was just looking for some property, and along the way he found one of the greatest private lenders I?ve ever heard about.

What can we take away from this story? Well, you may not have a relative with anywhere near the available cash Jim?s uncle has, but the question is, how do you know? More importantly, how easy would it be to find out? My guess is, pretty easy. Could you find a creative way to ask, and let your family know what you?re doing? Of course you could!

Great Source of Private Money For Real Estate Investing

How would it be to have access to over a million dollars in private money for real estate investing? That?s just what a good friend of mine stumbled into when he did a very simple thing? something you can do in an afternoon.

My friend, Jim, has been investing in real estate for several years. One day, after a family get together, he decided to let his family know about his investing. He had been pretty successful with small apartment buildings, so he decided to send out a simple postcard to all the members of his family, telling them to call him if they knew of anyone wanting to sell rental property.

Lo and behold, Jim got a call the very next week from an uncle he barely knew. The uncle didn?t know of any property for sale, but he expressed curiosity in what Jim was doing, so the two men made an appointment to get together for lunch.

At lunch, Jim explained his investing strategy, and outlined some of the successes he had enjoyed. He talked about the simple things in his business, like buying value, and looking for positive cash flow. He enjoyed talking about it, and Jim?s uncle seemed genuinely interested.

Then Jim got the surprise of his life.

As they were leaving, Jim?s uncle leaned into the car window and said, ?Could you use a silent partner to help with the financing end of things??

Jim says, ?I think my heart skipped several beats before I answered.?

After Jim?s heart started again, he told his uncle he?d be happy to put his money to work. It turned out that Jim?s uncle was sitting on nearly $1,000,000 in liquid assets, assets Jim has used over and over again during the last few years to build a rental real estate empire.

The funny thing is, Jim didn?t set out to find relatives with money. He was just looking for some property, and along the way he found one of the greatest private lenders I?ve ever heard about.

What can we take away from this story? Well, you may not have a relative with anywhere near the available cash Jim?s uncle has, but the question is, how do you know? More importantly, how easy would it be to find out? My guess is, pretty easy. Could you find a creative way to ask, and let your family know what you?re doing? Of course you could!

Great Source of Private Money For Real Estate Investing

How would it be to have access to over a million dollars in private money for real estate investing? That?s just what a good friend of mine stumbled into when he did a very simple thing? something you can do in an afternoon.

My friend, Jim, has been investing in real estate for several years. One day, after a family get together, he decided to let his family know about his investing. He had been pretty successful with small apartment buildings, so he decided to send out a simple postcard to all the members of his family, telling them to call him if they knew of anyone wanting to sell rental property.

Lo and behold, Jim got a call the very next week from an uncle he barely knew. The uncle didn?t know of any property for sale, but he expressed curiosity in what Jim was doing, so the two men made an appointment to get together for lunch.

At lunch, Jim explained his investing strategy, and outlined some of the successes he had enjoyed. He talked about the simple things in his business, like buying value, and looking for positive cash flow. He enjoyed talking about it, and Jim?s uncle seemed genuinely interested.

Then Jim got the surprise of his life.

As they were leaving, Jim?s uncle leaned into the car window and said, ?Could you use a silent partner to help with the financing end of things??

Jim says, ?I think my heart skipped several beats before I answered.?

After Jim?s heart started again, he told his uncle he?d be happy to put his money to work. It turned out that Jim?s uncle was sitting on nearly $1,000,000 in liquid assets, assets Jim has used over and over again during the last few years to build a rental real estate empire.

The funny thing is, Jim didn?t set out to find relatives with money. He was just looking for some property, and along the way he found one of the greatest private lenders I?ve ever heard about.

What can we take away from this story? Well, you may not have a relative with anywhere near the available cash Jim?s uncle has, but the question is, how do you know? More importantly, how easy would it be to find out? My guess is, pretty easy. Could you find a creative way to ask, and let your family know what you?re doing? Of course you could!

5 Killer Tips to Successful Real Estate Investing

1. Always do comparisons on property values and rents.

Do not rely solely on statistics. The best way to gauge a property’s market value is to check the sales prices of similar properties in the vicinity.

The same goes for the value of rents in the area. If the price is low, you can justify it with a decent rental value as tenants who can afford to pay high rent may well opt to purchase the property themselves.

Thus be reasonable on the rental prices.

2. Stay alert as tax laws may change

Don’t bet on current tax laws for your tax investment. The tax code is always evolving and regardless of the tax code, a great investment will remain just that; a great investment.

As a real estate investor, you should look for the right property with the right financing.

3. Be a specialist

Begin in a market segment you are familiar with. You can focus on one of the following:- Fix-uppers, foreclosures, low down-payment homes, starter properties, small apartment buildings, condominiums, etc.

By being a specialist in one of the market segments of real estate investing, you’ll surely benefit from the experience.

This is important for a successful real estate investing.

4. Find out all the costs involved

You must know the financial statements very well for example, operating expenses, loan payments, vacancy costs, taxes, etc.

Do not forget the cash flow statement. You must do this before taking the plunge and investing.

5. Find out where your tenants come from and their plans for the future.

Your tenants may consider moving if you increase your rent recently. If your tenants are renting for a short-term, it could be that they are staying there to attract unsuspecting buyers.

Do not forget to collect at least 2 months deposit as a security measure.

In summary, taking action is key to a successful real estate investing…

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