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It’s not the easiest business having dealings with real estate and houses. Especially if your in the business for investment purposes trying to turn a profit. It’s a game, and just like any other game you need to learn the rules to play it the best. You need to know where the real estate hot spots are, and pay very close attention to market trends. Of course on the other side of the coin those that do know the game, are making a killing year in year out investing in real estate. Is it a gamble? Sure it is, but isn’t every investment partially a gamble? I think so. Consider Hollywood or New York real estate, do you have any idea what a modest home is going for in these areas? It’s not chump change that’s for sure. So have you ever considered entering the real estate investment game? It only takes one deal to make it happen, and it could be you making a killing this time next year.
My expectations are to invest in either New York real estate or Chicago. Both cities are witnessing exponential growth and a booming economy, why wouldn’t you invest in the area. Now while not the best comparison think about it they are the pizza competitors. What do I mean by this? Well the Chicago style is deep dish thick crust, versus the thin crust New York style, I guess not the same thing but everyone needs a starting point. It’s pretty much a given that any time you’re holding a prime piece of Chicago or New York real estate you stand to make a nice profit. Everything comes down to location, and the time at which you’re holding the property. If there are buyers searching for sellers and you have the real estate close to everything you’re sitting pretty. Of course there is always the chance of prices falling. Ohio is an good example right now their real estate market isn’t holding up so well. There are a number of reasons that this might happen, whether it be unemployment rates, schools, crime etc. You have to always be looking at the broad spectrum when thinking about investing in real estate there is more to consider then just the property, and neighborhood.
Are you one of those people that has a secret obsession with New York real estate? I’d have to say that almost anyone would agree New York is one of the most fantastic places to live. I mean how can’t it be, New York is the home of Manhattan. If you have the chance to purchase some prime New York real estate you’re almost sure to turn a hefty profit. Just remember it’s all about what’s close by. Take a look on the Internet, a quick search and you’ll see the high demand there is for New York real estate in todays market.
About the Author:
If you’re interested in Real Estate investing and would like more information please visit our real estate site at Real Estate Adventures
Tags: Booming Economy, Broad Spectrum, Chicago Style, Chump Change, Deep Dish, Exponential Growth, Hollywood, Investing In Real Estate, Investment Game, Investment Purposes, Market Trends, New York Style, Pizza, Prime Piece, Real Estate Hot Spots, Real Estate Investment, Real Estate Market, Thick Crust, Thin Crust, Unemployment Rates
For the uninitiated, investing in real estate can seem like a big, mysterious activity that you pretty much have to be born with a special gene to do. They don’t know that you can break it up into several smaller steps, and that it is only a matter of learning how to get through each one.
The following are seven steps you can follow in order to go from being an Average Joe or Josephine to being Joe Cool, real estate mogul. They will at least get you closer to the latter.
1. Realize that it is not outside of your grasp. As one step leads into another, you first have to begin thinking like a real estate investor. And real estate investors think about finding good deals. However, you may not know a good deal if it jumps up and bites you on the nose.
2. That’s why you have to learn some basic accounting. You don’t have to spend 10 years studying under ancient Chinese accounting master, but you should learn how to read financial statements. You should learn about cash flow. You should learn the difference between an asset and a liability, not just take your banker’s word for it.
3. Once you know how to read the language if investment, you will be in a position to learn how to recognize a good deal when you see one. This is a bit trickier. Although you should do plenty of reading on the subject, the best way to learn is through doing. Get out there and look for deals.
4. Learn about the markets you want to play in. If you are thinking about buying a specific kind of property, learn about the markets in the area you are interested in. The market should actually determine where you make your purchase. Look for a community that is progressive, for one thing. A place with a good quality of life. A place with a good economy.
5. Set goals. Determine what you want to accomplish and when you want to accomplish it. Make sure it is within your reach and then take the steps to actually make it happen.
6. Develop your team. You will need to hire professionals to help you with things like accounting and legal issues. You will want people who know more than you do about how buildings are put together to appraise property for you. According to Ken McElroy, author of ?The ABCs of Investing,? the worst thing you could do is skimp on this step and try to be a ?real estate do-it-yourselfer.? That may appear to save you money in the beginning but you will pay dearly in the end.
7. Make your first purchase. When the numbers add up, McElroy says, then it is a good deal. Don’t leap without looking, but if you’ve looked and the numbers add up, then it’s time to jump.
Of course, this is a simplified version of the process, but it is a good way to get an overview. Each one of these steps could be further mapped out. The trick is to do your research and take it at your own pace. Don’t rush. Learn the process. The first purchase will be the most difficult. After that, the real learning starts.
Tags: 10 Years, Average Joe, Basic Accounting, Cash Flow, Economy, Financial Statements, Good Deals, Grasp, Investing In Real Estate, Joe Cool, Josephine, Mysterious Activity, Quality Of Life, Real Estate Investor, Real Estate Investors, Real Estate Mogul, Set Goals, Seven Steps, Smaller Steps
Real Estate investing is not nearly as legally complicated, financially burdensome, or time consuming as you might think.
Every investor can invest for leverage, appreciation, income, equity and appreciation. The challenge facing every transaction is learning to recognize value.
Educated real estate investing is often knowing how to do deals. It does take time to get educated in this arena.
A typical real estate transaction involves understanding financing, negotitation and reognizing the risk and reward parameters of the investment. The truth is, real estate investing is a tough business, and even tougher if you’re not fully aware of the time. However, when approached correctly this is a very exciting and lucrative business.
Several years ago a very good friend of mine purchased a duplex which needed a great deal of repairs. My friend fixed the property up themselves and rented out one part of the duplex and lived in the other part. The tennants rent payment covered the entire mortgage which alloweed my friend to live rent free. Since the time fo the purchase the property has also appreciated considerably. This experience has led my friend to really get educated in real estate investing.
Real estate investing is a business that you can run yourself, with little overhead, and finally achieve the financial freedom you desperately desire. It is not limited to wealthy tycoons. To be successful in real estate investing is to build long-term wealth. Sensible investing is a sure way to wealth, but not necessarily overnight.
For the prepared individual, foreclosures give rise to circumstances for profit. In some cities competition for foreclosures is fierce. Investing in foreclosures is a very popular subject, especially with new investors. Learning the foreclosure market requires a great deal of time and energy but the rewards are certainly well worth it.
Done correctly, real estate investing is a great way to take control of your life, and gain financial freedom. Crunch the numbers and learn as much as you can about this exciting arena. There are opportunities to profit for almost every type of investing style.
About the Author:
David Medley is an active real estate investor and webmaster of http://www.aboutreal-estate.info/
Tags: Circumstances, Depreciation, Duplex, Financial Freedom, Foreclosure Market, Foreclosures, Good Friend, Income Equity, Investor, Leverage, Lucrative Business, Parameters, Real Estate Investing, Real Estate Transaction, Rewards, Risk And Reward, Sensible Investing, Time Consuming, Time Fo, Tycoons
Have you ever wondered about investing in realestate? Maybe one sleepless night you tunedin to one of those infomercials that promises you the moon.
You know the ones we’re talking about. They always show “Joe Slick” and his blonde wife and 1.5 kids basking by their Olympic sized swimmingpool behind a mansion that makes the Taj Majal look like a chicken coop!
They go on to tell you how you can do the samething almost immediately and all it will cost you to find out is five thousand dol*lars!
Yeah right and there’s a bridge for sale too!
Well, here’s your chance to get the real deal.
Real Estate Investment for Beginners is written by a successful veteran of real world Real Estate.
Get the answers to all your questions and do it without “Joe Slick” and all his phoney garbage.
If you’ve ever wondered whether it’s really possible to make mon*ey in real estate, here’s your chance to find out.
Check it out at: http://real-estate.web-reviews.org/
About the Author
Sal Vannutini has actively invested in real estate for almost 20 years.
His love of real estate and renovating has allowed him to secure financial freedom by the age of 40, and at the time of writing, he is retired from his “real job”, and spends his time renovating for fun and profit, as well as hanging out with his wife and children.
Sal’s experience also comes as a result of 11 years in the real estate profession where he has witne
Tags: 11 Years, Blonde Wife, Chicken Coop, Ey, Financial Freedom, Garbage, Infomercials, Insider Secrets, Investing In Realestate, Lars, Real Deal, Real Estate Investing, Real Estate Investment, Real Estate Web, Samething, Sleepless Night, Slick, Swimmingpool, Veteran, Yeah Right
One of the problems faced by many newbies (new investors) in the real estate business is lack of confidence. Confidence cannot be built without doing the activity that you are trying to build confidence in. This presents a problem with most people because real estate is not something that you can just practice, you cannot practice buying a house, or practice selling it. You could pretend to buy houses I guess, or pretend to sell houses, but pretending is for kids. This is where real estate bird-dogging comes into play. It gives you a reason to practice, you get paid. Now if money won’t make you practice then nothing will.
Instead of not getting paid for all those hours spent learning the market, you could be making thousands. I cannot think of a better way to learn real estate than getting out and looking for good deals, then finding good deals and showing them to buyers, who pay you for your services. Then after the buyers close you can follow the progress of the home and see if you made a good decision or not. The best part is that during your practice, even if you made a not so great decision you still get paid, and you do not lose a penny.
I started out my investment career as a Realtor. I built my confidence through selling investment properties to other people and watching them make money. After selling 9 homes to other investors and seeing them profit tremendously, I knew it was time for me to start making myself some money.
Eric Medemar is a realtor and real estate investor with 30+properties. He specializes in wholesaling, assigning, and flipping real estate. In 2007 He has already made close to $100,000 flipping properties. His goal is to help at least 170 people skyrocket their investment careers in 2007. http://www.BirdDogBiz.com http://www.TheMillionairesBlog.com
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Tags: Buying A House, Dogging, Eric, Estate Business, Flipping Properties, Flipping Real Estate, Good Deals, Guess, Investing, Investment Career, Investment Properties, Investors, Lack Of Confidence, Money, People, Presents, Real Estate Investor, Real Play, Realtor, Reason
If you’re thinking about investing in real estate to make money, you need to first determine your financial goals. Do you need to make money quickly, invest for your children’s college fund, or build wealth for your retirement? Once you determine your financial goals, you need to decide which type of investing strategy works for you.
Make Money in Real Estate - Fast Cash Strategy
If you’re low on cash, get started by finding a bargain house and selling the contract to another real estate investor. Join a real estate investing club to find investors willing to pay you for finding good deals.
Make Money in Real Estate - Income Property Strategy
If you want to increase your monthly income, look for income property that returns a positive net income from month to month. Start with single family house. Look for a bargain below market value. Fix up the house to generate top rental income. Find houses that will rent for more than your mortgage payment. You may need to go out from your home area to a location that supports this type of return on your money. You can’t pay $300,000 for a home with a mortgage of $1,500 that only rents for $1,000. You might start with a home for around $300,000 that rents for $1,750. You will need good credit to get a loan with good interest rates. In a few years, your rental income should go up. Many real estate investors enjoy thousands of dollars each month generated by income property.
However, some investors don’t like dealing with tenants and prefer to make money in other real estate ventures.
Make Money in Real Estate - Investment Property Strategy
If you want to make money focusing on profits, investment property offers a different strategy. Instead of worrying about rental income, look for property that you can transform and sell or property that will appreciate significantly over time. Besides fixing a house up, you can transform a property by changing it. For instance, some investors buy apartment buildings and turn them into condominiums. Many investors speculate in land and make money by holding the land until new development in the area increases the value.
Examine your financial situation along with your long term goals. You can get started by flipping properties, move onto income properties, and then make larger profits with investment properties. You might end up using a combination of all three strategies to make money investing in real estate.
Copyright ? Jeanette J. Fisher
About the Author: Jeanette Fisher teaches how to find, finance, fix and sell. Free ebooks “Credit Tips” http://worryfreecredit.com “Flipping Houses” at http://doghousetodollhousefordollars.com
Tags: Bargain Market, Financial Goals, Good Deals, Interest Rates, Investing In Real Estate, Investing Money, Mortgage Payment, Net Income, Profits, Property Strategy, Real Estate Investment, Real Estate Investment Property, Real Estate Investor, Real Estate Investors, Rents, Retirement, S College, Single Family, Strategy Works, Thousands Of Dollars
Real estate is everywhere. New homes being built, old homes being renovated, empty lots being sold all over the place. Real estate is even on reality TV. Many people know the merits and the potential of real estate investing. But is there some real estate investing training that might make the learning a little easier?
There are no hard and fast rules of real estate investing, but there are some tricks that can be learned to make the potential for success rise. You can even start training yourself to learn the ins and outs of real estate investing. If you?re looking for information on how you can get involved in this exciting, lucrative field, then your training has really already begun.
Investing, especially real estate investing, isn?t something that you can just jump into. It?s important to know about the real estate market in general, and have some ideas for investing in particular, before you get started. After all, if you don?t know what you?re doing then you probably won?t succeed. This is where real estate investing training comes in handy.
Train yourself by studying the market. Notice when and where properties are being bought and sold, and which properties take longer to sell than others. Some areas will be more popular than others ? know where these are, and know what might become available soon. When you get familiar with property values in your area, you have a much better chance of making a smart real estate investment. After all, the property you invest in is everything ? your entire investment depends on it! The good news is, most real estate investing training can be done by you, on your own time. All it takes is a little learning, and paying attention.
Real estate investing is also about knowing not just how much to spend buying the property, but knowing how much to spend getting it ready for sale. You want to have a budget that you can stick to, with room for extras because surprises always happen. Be prepared to go over budget, but try to stay on track with time. Have a time line (that?s realistic) and do what you can to maintain that time frame. After all, your profits depend on the sale. The sooner you can get your sale on, the better.
To learn more about real estate in general, or real estate investing in particular, there are online training courses and information that you can make use of. The Internet is always a great source of information, and a great place to connect with others. For those who want to learn more, or go through more formalized training, the Internet can offer you endless possibilities.
Tags: Better Chance, Budget, Handy, Ins And Outs, Lucrative Field, Merits, New Homes, Own Time, Paying Attention, Property Values, Real Estate Investing, Real Estate Investment, Real Estate Market, Reality Tv, Smart Real Estate, Surprises, Train
There’s a lot of deal killers that you’ve got to keep your eyes peeled for or else you’ll say “another deal down the tubes.” Some of these deal killers can include attorneys, realtors, and other investors.
However, I’m not going to touch those in this article. I want to go over one of the deal killers I see many investors making that have no clue there making… Talking numbers to quick.
The fact is you’ll dig yourself an early grave as investor by going in for the kill to early by talking about the house numbers. More often than not, investors talk money to quickly when meeting with sellers. And as a result, the seller’s door will shut, while the investor may never get the second opportunity.
So, you wanna increase your profits and the likelihood of getting an offer accepted?
Then get the motivated seller to like you first. When they like you, they’ll feel they can relate to you and a certain level of trust is earned and thus your chances of getting the deal closed just drastically increased.
Use the phone as much as possible to collect enough data to see if the deal is worthwhile, but when you meet in person, it’s better to get to know the seller and find a common ground before you ever talk about the house and the house numbers.
It’s better to back away from the money issue all together and build a strong rapport right from the gate. A couple of years ago, I was assisting a knucklehead investor in another market that was looking at a deal that had about $40K in equity. He’d met with the owners and got nowhere, so he called me to see if I’d meet with them for a percentage of the deal.
At the time, I had a few deals in the works in this area myself, so I agreed. He’d met with these people already and they’d talked by phone on several occasions but he couldn’t land the deal. I spent a little over an hour and learned more in that hour than he knew after three or four meetings. I took an interest in them by listening to their family history, how many kids they had, and yes I walked away with the deed. They did the deal because they trusted me because I invested in them first.
Make sense?
This is so simple to do, yet often overlooked. I know you can pull this off, so listen up.
Look for items that you can make small conversation with to build a level of rapport. Here’s a brief list:
- Awards on wall - Vehicles in Drive - Children pictures on wall - Diplomas displayed on wall - Artwork
It’s literally amazing how much you can learn by just looking at the walls and walking up the driveway. When walking up to the door, pay close attention to the gutters, the way front door looks, the mailbox, and the landscaping. Does it look overgrown, does it look in need of repairs. If so, the seller could be facing some financial hardships. Just be aware of what’s going on by observing what you see with your own two eyes. This alone could open the door for you conversationally plus let you know what type of situation the seller may be in.
About the Author
Derek Pierce is a full time real estate investor that got his start investing in real estate when he bought his first property in September of 2000. Now, he reveals the real estate investing secrets he swears by at http://www.thereisecrets.com
Tags: Attorneys, Clue, Common Ground, Deal Killers, Early Grave, Family History, Investing Guide, Investor, Investors, Likelihood, Lot, Money Issue, Motivated Seller, Occasions, Profits, Real Deal, Real Estate, Realtors, Tubes
As we now recover from the long holiday and consuming way too much turkey and stuffing, real estate investor minds come back to the plans that they will be making for 2007. Having talked to many investors during our recent appearance in NYC, I have discovered that many people have been in active in 2006 but are really planning on gearing up in 2007. Why? It seems to be a combination of a strong believe among experts and novices alike that 2008 will be the return of solid real estate market conditions and thus 2007 is a great year to pick up good values. Quite frankly, we concur.
In addition to the normal New Year’s resolutions that you make, I highly encourage you to add one more to your list that you will actually keep?.. LEARN TO BECOME A GOOD INVESTOR. During the time that our web site has been in existence, I have met many clients and investors who are all very bright and I know that they do some complicated things in their day job like surgery, education, law, etc., etc. What surprises me however is that many people feel that investing is rocket science. Having been a scientist and actually worked on a rocket, trust me when I tell you that investing is far, far from rocket science on the complexity scale. Most of real estate investing is just good old common sense that once you see it, you feel kind of silly for thinking that it was so complicated.
One of the common themes among many professional people I meet is that they are just too busy to learn what is needed. They go on to tell us that all they want to do is find somebody they trust and then take their advice?.. Kind of like I don’t want to learn medicine if I have a threatening ailment. While I agree with that for many things in life, for important issues like your health, your family’s financial future, your children’s education, etc., I believe a much healthier approach is to find a provider that you trust but learn enough to get comfortable with what they tell you. That way you have a much stronger conviction when you make a decision other than “gee, this doctor recommends this approach” or “wow, I will buy this property because Dr. Anderson sounded really excited”. ? I hate to be the bearer of bad news but for both those decisions, you will wake up one morning a few months down the road going “did I make the right choice?” If you understand why you made that choice, then that thought will rapidly disappear and not be a hurdle. On the other hand, if you don’t understand why you made that choice, you are in for some mental roller coasters.
As part of our push in 2007 to create a small, but extremely well educated investor community, let me now get off my soapbox and describe the next piece of investing by the numbers.
What You Need To Know
In our last article, we described the four key parameters that any real estate investor needs to know to evaluate a project. Just as a reminder, they are
1. Purchase Equity.
2. Annual Appreciation (%)
3. Annual Cashflow
4. Special Tax Situations
In our live workshop in NYC, we recently covered how you can sit at your desktop and get this information. For our projects, we provide this information to you but I believe it is really good to see one time how to actually do that and that it makes sense. Then, when you are looking at a property where information has been provided to you, then you can always go back and double check any piece that may not make sense. In late January early February, we will be conducting multi-city tours where you can come out and meet us live and we will teach this content. Please go to this page to tell us the large city that you live next to and give us a contact email if you would like to attend.
Calculating Cash On Cash Returns And Yearly Returns
One of the standard measures of many investments is what is called cash-on-cash returns. This is just a fancy word that says what % gain do I get for holding an investment. For example, let’s say that you plunk down $20,000 in down payment and closing costs on a real estate investment and let’s say in 2 years, you get back $65,000 after reselling with all expenses included; i.e., you have a $45,000 net profit.
The cash on cash return for this is simply:
COC(%) = 100%* 45000/20000 = 225%
One problem of this measure is that it does not take into account the time-value of money; that is, if I made that in 2 years versus 20 years, it makes a huge difference. So suppose in this example we plunked down $20K, got a simple interest return the first year, and then reinvested that gain with the same interest. Now what interest rate would accomplish this? A little more complicated to calculate but the annual rate of return to produce this is just a little of 80%. To see this, you can do the following:
Year 0: $20,000
Year 1: $20000*(1+80.2%) = $36,055
Year 2: $36055*(1+80.2%) = $65,000
If you are still in the mindset of 2004/2005 that you can plunk down $5,000 on something and make $75,000 in 6 months by flipping, then I wish you the best of luck. This is just not realistic except for a few needles in the haystack. On the other hand, if you are comfortable with making 30-40% per year on your money over a 2-5 year time frame, then that is very realistic and can be done with low risk.
So when we evaluate potential opportunities, one of the first parameters that we are looking at is this yearly return and we like to see 30%+. As we will discuss next week, this is not the only factor to consider but it is certainly one of the top 3.
Dr. Chris Anderson is the founder of one of the largest preconstruction groups on the internet today and is referenced in many venues including the New York Times and USA Today. Get access to wholesale property investments today
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Tags: Ailment, Common Sense, Complexity Scale, Day Job, Education Law, Existence, Financial Future, Investing By The Numbers, Long Holiday, Many Things, New Year, Novices, Real Estate Investing, Real Estate Investor, Resolutions, Rocket Science, S Education, Scientist, Surgery Education, Surprises
When a person purchases a home, a loan must be taken on a regular basis. The lenders, which are banks in general, keep the title to the home as collateral. When the person is ineffectual in paying the dues in time, the ownership of the home is transferred to the lender. The transfer of ownership is what is called foreclosure.
Buying foreclosure has been compared to playing poker. Considering as an investment, it has its own risks. First the lenders will check out if there are any junior liens. When they find any pending loans, they pay off everything so that they themselves have clear title to the property. Once this is done, the lender adds up all costs to the loan amount to be recovered, and again resells the property so that they can convalesce the expenses together with the loan amount. This is an ideal time for investors to buy such property. Buying a Tampa real estate property that has been foreclosed already presents many gains.
The foremost and well-known benefit is the fact that all Tampa real estate properties bought from lenders will have clear titles as well as ownership rights, thereby saving one the hassles of undertaking any research. In addition, the foreclosure is not meant for profit booking. Hence, when the lenders sell foreclosed property they need their money back, so they are ready to sell the property cheaper than what it could have obtained in open market under normal conditions.
The first step of buying foreclosed Tampa real estate properties is to collect some relevant information. The best thing to do is to create a database that allows one to segregate data on all the properties and markets in clear sets. The next step is to directly get in touch with the owners of the foreclosed Tampa real estate property and start negotiating with them.
First-time buying foreclosed property on your own can be risky. Thus, one must seek the help from real estate agents. One of the risks involved in buying foreclosure, particularly at an auction, is it gives just a week to deposit all the cash. If one fails to do so, all of the money that has already been deposited might be lost at particular instances. However, as one keeps on making investments, valuable experience will be gained regarding bad construction, poor soils, problems with septic systems, and the like.
Background reading of crucial information is very important before one gets into foreclosure investing. Foreclosure laws in Florida, priority of liens, bidding at auctions, title insurance, and bankruptcy are some of the key areas that one should be familiar with. One will be able to make better and safer decisions if equipped with the right knowledge.
Property investment is not an easy game, and must be played only with caution and care. Little concerns for the person whose property is up for foreclosure are necessary for this process. But one can easily cut down the process of foreclosures into three primary stages. The first stage is pre-foreclosure, second stage is foreclosure auction and the third and final stage is bank owned foreclosures.
As the foreclosure process unfolds, the potential for profit will belittle, the later one gets the foreclosure property. For those who are ambitious enough to attempt the full- time task of foreclosure investment, one must learn to have to learn how to find pre-foreclosures since these normally offer the utmost leverage and profitability that is crucial to the most discounted properties that are available from bank-owned properties.
Tags: Banks, Benefit, Buying Foreclosed Property, Collateral, Hassles, Investing In Property, Investors, Junior Liens, Lenders, Loans, Money, Person Purchases, Playing Poker, Profit Booking, Property Foreclosure, Real Estate Agents, Real Estate Properties, Real Estate Property, Tampa Real Estate, Transfer Of Ownership
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