Real Estate » Real Estate Investing

Is Real Estate Investing Right For You?

admin — Wed, 21 Jul 2010 21:51:53 +0000

The business of real estate investing, contrary to many late night TV programs, can be very complicated.
It is in no way a get rich quick project. For many, real estate investing is just another failed career and it may not seem clear why. However, real estate is an actual business and requires the same amount of time, effort and energy as running any other type of business.
There is a common misconception that when the real estate market is doing well, anyone involved can make a small fortune. Sadly, real estate investing is much more complicated than that.
If you are considering a career in real estate investing, there are a few things that need to be taken into consideration that will help ensure your have a successful and profitable experience.
First, real estate requires a lot of time. If you already have a job and you are not willing to devote an additional 4 to 8 hours per week establishing your new business, real estate investing may not be for you.
This is not something that can be done “only when you feel like it” and be expected to yield profits. The market is always changing and growing, so every individual investor needs to stay on top what’s happening in their local area. You can do that buy talking to a few home sellers every week.
You will quickly learn how to deal with sellers, but you will also find out if buyers are plentiful or scarce in certain areas. That is valuable information that can put you far ahead of other investors.
Money is a huge consideration when deciding if real estate investing is right for you. One of the exciting aspects of real estate is that anyone can get started with very little cash. When you don’t have money or borrowing power you must make up for that with hard work and continuing education.
One of the most popular avenues to successes is rehabbing properties. The key is learning how to buy single family homes or small apartment complexes and renovate them to increase their value. That not only takes effort, but at least some cash.
Short term loans from friends or family often make this type of business very appealing. But don’t fool yourself. You must have the self-discipline to work night and weekends until your project is finished. It’s hard work, but if you have the proper determination you will be very well rewarded.
Business skills are also needed for real estate investing. Generally, investors stay personally involved in the business they create rather than leaving everything in the hands of other members of their team. You will be making investment decision, dealing with sellers, negotiating contracts and managing tenants. Of course, you might consider hiring someone to do much of this work for you, but the more people you hire the less money will go into your pocket.
Yes, you can start small and work your way to a real estate fortune if you are willing to learn at the school of hard knocks. Most people make the mistake of never getting started in real estate, because they never believe they have all the required knowledge.
Here’s a news flash! You will never know every thing there is to know about real estate investing. You must learn on the job and to do that you have to begin talking to people who have property for sale. Ask questions and listen. Do that often enough and you will soon be able to recognize a good deal when you stumble across it.
Every investor should build a library of real estate investing material. It is something you will refer to again and again over the years. Do a little hunting in used books stores and online at sites like AbeBooks.com, BookDepot.com and Alibris.com. Or the Websites that specialize in real estate investing information like CashFlowInstitute.com.
You will pay just a few dollars for the same information that would cost you thousands at a real estate guru’s seminar.
Promise yourself you will begin talking with home sellers this week! Begin by asking why they are selling, what they will do after selling and what their plans on for the sale proceeds?
Do that often enough and you will soon be able to recognize a profitable purchase when you find it. You will be on your way to real estate investing success.

Is Real Estate Investing Right For You? is a post from: Real Estate

Discover the Hidden Funding Source for Real Estate Investing

admin — Tue, 13 Jul 2010 21:49:44 +0000

Real estate investing is a profitable and fulfilling business. Those who have the dream of real estate investing sometimes do not take the necessary steps to fulfill this dream because they lack the funds needed to begin a project.
What IS the hidden funding source for real estate investing?
If it is your dream to become a real estate investor, you do not have to give this dream up due to lack of funds. It is possible to begin your real estate investing journey with the help of the government through grants!
What exactly is a grant?
A grant is a sum of money that the government awards to real estate investors, or others starting a business. The best thing about a government grant is you do not have to pay it back! These grants are backed by federal government agencies, departments and other organizations sponsoring grant programs for different reasons.
Why has the government distributed millions of dollars to help real estate investors?
Basically, one of the major functions of the government is to provide housing for its citizens. Grants that are offered to real estate investors not only help the real estate investor, but are also a form of outsourcing for the government. These grants are distributed at all levels, which include state and federal.
Why should you consider applying for a real estate investing government grant?
Loans and investments to fund a new real estate investing project are hard to come by these days. Due to an unstable economy, banks and investors are concerned about the risk involved in funding such a large project. The government provides grants for real estate investing, not only to help you in your venture, but also so you can help in their job of providing housing for people.
*If you are able to comply with government requirements, you have access to an astounding amount of different grants. The possibilities are endless!
*You will not be charged interest, nor be expected to pay it back. Now, that will create a good return on investment!
*Applying is easier than you might think. As long as you follow directions and spend some time researching, you can make the application process simple and successful!
What can you use real estate investing government grants for?
You can use a grant for a number of reasons, including but not limited to:
* Acquiring properties
* Buying land
* Building housing
* Refurbishing properties and converting properties for residential use
You do not have to give up that dream of real estate investing from lack of funds. Don’t waste your time and money trying to get a loan from a bank you have to pay back WITH interest. Apply for a government grant and enjoy the benefits of not having to pay it back. Think of using this money as a way of getting your tax dollars back from the government. Plus, you are not only helping your real estate investing venture, but you also are helping the government do their job of providing homes! It’s a win-win situation. So, take advantage of what the government has to offer you today and begin your real estate investing journey!

Discover the Hidden Funding Source for Real Estate Investing is a post from: Real Estate

How to Manage Your Real Estate Investment Risk

admin — Mon, 05 Jul 2010 21:47:39 +0000

How to Manage Your Real Estate Investment Risk is a post from: Real Estate

Ethical Real Estate Investing in 2008. Profitable, While Helping Others

admin — Sun, 27 Jun 2010 21:53:03 +0000

Ethical investing is a bit of a buzz word. Get ethical and make money. However when you look behind the buzz there are powerful reasons why you should consider ethical real estate investing in 2008 as one of the best investments you can own. Because ethical real estate investing is still investing, and you need to make a good profit. Ethical investing should be high profit investing so that everyone, including the investor, wins.Real estate investing in 2008? Haven’t you got to be kidding I hear you ask? Real estate investing in 2008 is dead. Prices are crumbling and real estate can’t be given away. There’s Florida McMansions on eBay for starting bids of $1.Don’t let that put you off, real estate investing in 2008 is alive and well, if you do it right. Note I said that have to do it right. If you don’t then you can get burned.Can you do it right on your own? Yes, if you’re really good at it. However there’s a far better way to do it through a publicly traded US company run by one of Americas most respected businessmen, investing in socially conscious real estate.Socially conscious real estate investing? What’s that?I’d like to show you one of the best ethical real estate investments that you can own in these hard times.It’s ethical real estate investing that offers benefits to other people as well as the investor, specifically the people who live in the investment properties and the community.Let me explain further. One of the best real estate investment opportunities is investing in average homes for average Americans in who live in average suburbs in those cities that go together to make up our country. Homes with values of $100,000 or less, that millions of people live in right now. Homes that are STILL in demand even in the middle of the credit crunch, because – people still need to live in them.Imagine a company that selects the most promising suburbs for investments, buys large numbers of homes in those suburbs from government our councils at well below market, invests in those suburbs by building social resources like parks and playgrounds and other improvements to improve the overall living standards of those who live there, and refurbishes the houses they buy to a high standard.All this increases the attractiveness of the suburb to live in, and at the same time increases the value of the homes in those suburbs. They then sell those homes to investors at well below market value, organize the loan, provide the tenant, guarantee the repayments of 2 years, and the investors profit.And the local community profits big time too, because of the renaissance created by the newly refurbished homes and community facilities, so everyone wants to live there.It’s socially conscious real estate investing on steroids. The investor profits, the local residents benefit, and the tenants of the properties benefit.It’s real and it’s available right now for ordinary investors, or IRA or 401k investors, from a respected US public company.

Ethical Real Estate Investing in 2008. Profitable, While Helping Others is a post from: Real Estate

Real Estate Investing: Do Your Homework Before You Start

admin — Sat, 19 Jun 2010 21:57:55 +0000

Real estate investing is easy. Thatâs what all those tv reality shows would have you believe. But in reality, real estate investing is risky business. And like most investments, the riskier, the higher the return. Itâs true that the returns on investment are incredible for the savvy real estate investor. If you do your homework properly, a little cash and some sweat will buy you a property that can be flipped for a healthy profit. However, there are many that have lost lots of money in real estate investments because they were not careful in planning stage. There is a very steep learning curve for those starting in real estate investing. Here are some things to keep in mind before you get started on your journey. The first investment you should make is that of time. Take your time to determine what are your financial goals and the time frame in which you want to achieve them. Remember to be realistic. With the current real estate market, chances are you will not become a millionaire in six flips. Today, more than ever before, the beginner investor can get burned and lose a lot of money in the process. Just like with any business venture, you should write down a business plan. Determine how much time and financial commitment you are willing to give to this business. Make a five year plan with detailed goals, particularly for the first year. Review this plan after six months and again two years later. This will help you stay on track. Your financial commitment is a crucial element of that business plan. Estimate how much money you have to invest. This amount will differ if your first investment is your primary residence or a flip property. If you only have limited capital, say $10,000, then your best option may be to buy a home for yourself to renovate and sell within a year or two or to buy a quick flip âfixer upperâ. In some places, you can get financing for a second property with no money down as long as you have good credit and money for the closing costs. This is a risky proposition because the lending costs will be high. You would have to buy and sell quickly, and the real estate market would need to be in an upward climb. You should be mindful of the legal and tax consequences of this type of financing for your investment. The alternative would be a regular mortgage or private financing where the loan would cover the cost of the purchase and maybe some of the renovations. Your homework on the property and the market will be extremely important because you stand to lose big. You will be legally responsible for the whole amount of the loan if something goes wrong. Another important aspect of your business plan will be to determine what level of risk you are comfortable with. Be honest with yourself and write down how much risk you are realistically willing to take. If you are normally very careful with your investment and try to always protect your capital, donât try to get into high risk real estate investments. Another important aspect of your plan will be to decide how much time you are willing to commit to this. Will you be doing the renovations yourself or supervising contractors? Now would be a good time to start establishing relationships with lenders and contractors. Learn about the market in the area you are looking to invest. Familiarize yourself with the contracts, insurance, tax impacts and legal requirements of real estate investing. With some careful planning and homework, you too can generate a healthy additional income from real estate investing. You may even be able to make it a full time job. Real estate investment is one of the highest paying investment there is. Look at it as an adventure. Be willing to learn and make mistakes and you too can make money investing in real estate.

Real Estate Investing: Do Your Homework Before You Start is a post from: Real Estate

Real Estate Investing – An Alternative To Traditional Stock Market Investment

admin — Fri, 11 Jun 2010 21:47:25 +0000

From a historical perspective, investing in real estate is almost as old as the construction of property itself. Indeed many business owners who created their wealth through companies then went on to diversify into real estate investments. In fact, over the years real estate investments have produced similar returns to those found in the stock market. Let’s take a look at some of the reasons:

First of all, and most obviously, the supply of building land around the world is limited, even when taking into account landfill opportunities. Since the world’s population is growing and the demand for housing ever increasing, then there would seem to be a never-ending and increasing requirement for real estate of all types.

Now let’s take a look at the mechanics of buying property. Here it can be seen that investing in real estate is quite different from most other traditional investments such as stocks. With real estate you can often borrow up to around 80 percent of the value of a property, sometimes even the full value and beyond under special circumstances. Thus a more modest investment of say 20 percent of the value can be used to buy and control the full value of the larger investment. Naturally, if the value of your investment increases, I.e. property prices rise, then the value of your real estate investment also increases. If so, then you are into profit, including that on the money you originally borrowed.

Naturally, there will be costs associated with real estate investing (such as legal fees and property maintenance, taxes, etc), but these are usually small in comparison with the potential gains.

Borrowing in order to invest in real estate makes real estate a type of leveraged investment. But if you know anything about leverage, you will realize that leveraged investments can also go against you. What, for example, if the property you purchased for $300,000 decreased in value to $240,000? Even though the value only dropped by 20 percent, you actually lose 100 percent of the original $60,000 investment. And if you have a mortgage on this property making up its full purchase price, you will actually need to pay money to the mortgage provider in order to cover the costs of selling the property. That’s in addition to the loss of the whole of your initial investment.

So, as you see, investing in real estate is something to be taken very seriously and should not be done with money which you might need for other things in the near future. Investment in property is more secure as a long-term investment. In the above example, if you could have held onto the property and not sold it, the loss would purely have been ‘on paper’. In all likelihood, over time the value of the property, unless grossly overpriced when you originally bought it, will rise and you will likely not only recover the full value of the initial investment, but also possibly make a nice profit when you do come to sell.

Another reason that real estate is a popular investment is that there are profits to be made from it whilst you are the owner. In addition to the tax-saving benefits (in that any tax due on the property’s increase in value doesn’t become due until it is eventually sold), you can also make additional money from renting out the property. This can often cover all your running costs of the property, plus providing a profit on top.

Unless you make a large down payment, early on during your ownership the monthly operating profit from your property business is likely to be small or non-existent. But over time this profit will increase as the amount of rent you can charge increases at a higher rate than the running costs. Naturally these profits will be subject to normal income tax rules.

A further benefit of investing in property is that you might be able to purchase cheaply a run-down or ‘distressed’ property and fix it up or develop it further. Properties like this can still be found if you look around carefully. Naturally, investing in this type of real estate can still produce large gains. This is something you certainly can’t do with traditional stock market investments.

However, returning to the initial question about whether real estate investing is still a viable option when current prices seem to be nearing their peak: yes, it can still be so, but you might need to be more creative and prepare to be in for the long haul. Property ‘flipping’ methods that worked extremely successfully yesterday, might not work at all well tomorrow.

You might also consider diversifying into overseas real estate markets. Whilst this will require greater study and analysis, and there are many more legal issues to consider, seeking out what appear to be undervalued international real estate opportunities has the potential to be highly profitable if handled correctly.

Naturally, you should always seek the advice of professionals, both financial and legal, before investing in properties of any description, particularly when considering investing overseas. There might be major implications to your overall taxation. Risks can also be substantially higher when you are not there to oversee your investment in person.

Real Estate Investing – An Alternative To Traditional Stock Market Investment is a post from: Real Estate

Real Estate Investing Strategies

admin — Thu, 03 Jun 2010 21:47:47 +0000

Investing in real estate market carries risk. The reason for this risk statement is that, it carries fluctuation. Investing in the real estate market without having adequate knowledge involves high risk. With initial investment, a realtor can get succeeded in real estate investing by finding more profit and wealth augmenting business. The influence of market trend has been carried forward towards the real estate investment. A knowledge investor can obtain profit from the real estate market in despite of the fluctuations. Fluctuation can be classified in many terms. The fluctuations can be called as hot versus flat, rising versus falling and buyer versus seller. A Knowledged real estate investor will have to use a right strategy to make profit in the fluctuation. Comparable to the stock market, real estate investment does not find rapid fall in the investment. This is the main factor of real estate investing. To make the real estate venture more profitable some basic strategies should be used.

Study the local market:

Study of local market is the important factor, because local market study is the indicator of the national or international market. The local, national and international trends always have a good influence on each other. The experienced and professionalized real estate investor will always guide you for more information regarding the real estate investment market. This information will highly help you while making a decision on any profitable venture. The main function of the realtor is to be up to date with the real estate investment. Proper organization on the real estate market will give a clear view on investment.

Economies financial structure:

Economy or finance plays the major role in determining the value of the property. Because when economy comes down then the value of the property also comes down. While economy is high then the value of the property will be top listed. When number of properties has been offered in the real estate market for good price, then it is a good indicator for the changes in the market trend. If property listed in the market becomes low, then prices increases due to the demand of property. This price increase is more profitable for the sellers because they enjoy more income from the property. But the buyer finds difficult because they have to pay more consideration for the property. Price fluctuation occurs depending upon the season. So, this listing finds a good fluctuation depending upon the changing trend in the economy.

Fluctuation:

Real estate investor should be up to date with the real estate market. The real estate investor must know that within a few time the market may change with an extraordinary deals or transactions. When the real estate market finds destruction in the price of the property then the value of the property may come down. Due to this fluctuation the sellers or buyer may enjoy with the market. In some case the prices of the property may falls down in the market, in such a situation the buyer finds the venture more profitable. Sometimes the prices may increase due to demand of real property, in such a situation the seller finds more profitable with the market. So, there are alternative for both the seller and buyer to enjoy in the market. Therefore every real estate investor finds his real estate investment more profitable.

Property decision:

The main factor of the real estate investor is to be careful while making a decision in purchase or sale of property. The investor should analyze the property before he/she decided to purchase the property. The realtor should be up to date with the market trend and he should know the changes in the prices of the property. Property decision should be taken after proper analyzation and absorption of the market. In case of appreciation or depreciation of the value of the property the prices should be paid properly.

Uncertainty:

Real estate markets have changes at any time, since changes are uncertain. The changes may occur due to rising interest rate, tax rate, demand and supply, depreciation or appreciation in the value of the property and standard of living of people with unemployment will surely determine the value of the property. These are the main factors that determines the value of the property or changes in the market trend. After these changes the real estate investment market may have development or diminishment. Therefore a knowledged investor should find solution for the problem faced by the real estate market against any losses.

A good real estate investor should plan the strategy for purchase or sale in the real estate market. He should not make guesses in the real estate business. He should have to take decision and then only he should generate. Real estate markets are not ideal in nature. They get changes at any time in the property market. The investor should have ability to adopt the situation and change accordingly to make his venture more profitable.

Real Estate Investing Strategies is a post from: Real Estate

Five Key Principles To Real Estate Investment Riches

admin — Wed, 26 May 2010 21:47:37 +0000

Real Estate Investing is the craze today with people involved in the Carlton Sheets program spending money on courses to find out how they can make money in no money down real estate investing. This article hopes to help you create some sort of mental picture of five key principles that can help you make more money with real estate today.
Principle #1- The money is made in the purchase
Real estate investing is like value investing in stocks and you want to purchase the real estate during a period of a real estate slump. The reason for this is so that you can get a huge capital appreciation when the real estate market heats up again.
Spending time doing real estate valuation is critical since if you cannot satisfy yourself on the maths that is a viable proposition, there is no way that your real estate investment would be a good one.
Principle #2- Monitor Cash flow
Real Estate investment typically have a monthly rental income which then is used to pay for mortgage instalments and other problems with the building like a roof leak. You would thus have to keep a close watch on interest rate hikes since they can potentially erode any calculated return on investment quite quickly. Once you have enough cash coming in, it is suggested that you then keep some of it in a rainy day fund in case some of the rental tenants do not renew their property and then take the rest and consider investing in another real estate investment property.
Principle #3- Leverage on other people’s time
Remember that no one can do everything, so the key is to focus on what you do best. If your strength is in negotiating deals, spend time looking for property and then get professionals and contractors to handle all the rest of the deal for you. Similarly, if you are good at decorating property, then find deals and focus on the interior design of the property. By focusing on what you do best and getting other people to do the rest of the work, you are leveraging on their time and you can then make more money from each new real estate investment that you undertake. Spend your time to build your team of advisors and employees who work for you and you will see your profits start going up. Remember that by rewarding them financially, you will get a group of dedicated people helping you make more money from your real estate investment.
Principle #4- Learn how to use leverage with a good rainy day cash balance
Did you know that many real estate investors started off with very little money to invest? Even large real estate developers like Donald Trump have learnt the power of leverage when investing in property deals. You want to leverage as much as you can so that you can control property worth many times more than what you own. Remember however to keep a rainy day fund containing a portion of the rental payments so that you can hedge yourself against a possible period where unit occupancy of your real estate investment is low. Leverage when used well can make you lots of money but if managed badly, will bankrupt you. Thus planning your cash flow and learning how to use debt is critical before you start serious real estate investment.
Principle #5- Spend time networking with real estate professionals
Do you want the latest real estate investment deals? The best way to learn of them is to break into the local real estate professional group and make friends with them. Learn some real estate investment lingo and spend time making friends with them because they are your eyes and ears on the ground and they can tell you about recent developments and changes in rental, property and infrastructure of their geographical location. Having the first player advantage is what many large real estate investors have and by spending time to network with real estate brokers, you will substantially close the gap.
In conclusion, spend time looking at these five principles and determine how they can be applied to your real estate investment and you might start seeing an increase in your real estate income.

Five Key Principles To Real Estate Investment Riches is a post from: Real Estate

Starting Out In Real Estate Investing

admin — Tue, 18 May 2010 21:56:07 +0000

If you’ve been thinking about beginning real estate investing for awhile, but haven’t made any actionable steps toward making the first start, you’re not alone.
It can seem daunting at first, but try and learn from others. Joining a real estate investment club is a good idea. You can find plenty by searching the internet.
There are many people who would like to get started in real estate investing but keep putting it off for one reason or another. Some people are intimidated by the thought of getting involved with something as obscure as real estate.
Most people only purchase one house during their entire lifetime and even this is being generous. There are some people who never purchase real estate. It is likely that this is the kind of thinking that causes you to procrastinate beginning real estate investing.
If you want to make progress towards your goal of beginning real estate investing, you must first put aside everything that is hindering you from making the first step.
The first thing you need to do is figure out what has been keeping you from beginning real estate investing. Once you know this underlying reason, then you can begin taking steps to become more comfortable with beginning real estate investing. There are some obstacles that are common among new investors.
Lack of training and understanding is one thing that might be keeping you from beginning real estate investing. If you feel like you don’t understand the world of real estate investing well enough to make a start, then you can take steps to familiarize yourself with the components you do not understand.
There are a number of resources available to provide you with the information you need for beginning real estate investing. You can purchase books, use the internet, or attend a training event to get more information about real estate investing.
Another reason that many people are afraid to take the first step in beginning real estate investing is because they feel they do not have the cash necessary to get started. One thing that you should understand before beginning real estate investing is that there are many ways you can get started in real estate investing without having any money.
In fact, many experienced investors will tell you that you should never have to put any of your money into a deal. There are many creative real estate investing techniques you can use so you never have to come up with cash yourself. Conduct research on some of these techniques to learn more.
One way of beginning real estate investing without much risk is to first work as a birddog. Essentially, a birddog is someone who informs other real estate investors about investing deals. The investor then pays the birddog a referral fee once the deal has closed. Being a birddog gives you experience with locating investing deals. Once you are comfortable with locating deals, then you can begin closing the deal yourself.
Beginning real estate investing is not as easy as it first may seem. There are a lot of details that make many new investors weary of getting involved. If you first figure out the aspects of investing that cause you to be fearful, then work on settling those issues, it will make beginning real estate investing easier.

Starting Out In Real Estate Investing is a post from: Real Estate

How to Choose the Real Estate Investing Course That’s Right for You?

admin — Mon, 10 May 2010 21:47:32 +0000

If you are interested in discovering all the insider secrets of
real estate investing, the good news is that there is likely a
real estate investing course that can teach you all the ins and
outs of real estate simply, and in minimum time.

The problem?

There are so many workshops, courses, and classes about real estate out there that choosing the right one can be a problem.

To find the right real estate investing course for you, look for
something that offers:

1) A knowledgeable expert.

The person teaching the real estate investing course should be a respected expert with years of real estate investing experience.

2) A focus that relates to your interests.

Whether you are interested in foreclosures, pre-construction, or “fix and flip” real estate investing, make sure the real estate investing course you choose offers you specific information that shows how to quickly generate cash, and also build long-term wealth without taking up too much of your time.

3) An easy to learn format and price.

Make sure that the real estate investing course you choose doesn’t eat up money that you could be investing into real estate.

Also take the time to determine how you learn best.

A great real estate investing course should give you reading materials, monthly case studies, and access to live calls with the experts. You can learn about real estate investing by attending workshops,online classes and other methods from the comfort of home.

Bottom line, choose a real estate investing course that offers a learning environment that you’re comfortable with.

4) A good track record with other real estate students.

Ask around and find out where other investors learned about real estate investing. Ensure there are testimonials and endorsements about the real estate investing course you’re interested in.

Then, sign up for the real estate investing course that seems to create actual investors who are happy (and profiting from) their experience.

Now that you know how to choose the right course, it’s “back to school time” for you!

Yours for Massive Profits & a Rewarding Life!

Cheers,
Mary Wozny

“Helping 100,000 Women & Families Achieve Financial Freedom!”

About Mary:

Mary and her son, Brad, are a mom and son real estate investment team who transacted $14 Million of real estate across North America in their first two yeras.

Now, Brad & Mary teach women & families around the world how they can add $40,000 to their bank account (or become a millionaire) in one year, working an hour a day or less.

Aside from numerous student testimonials, their real estate investment course is endorsed by Mark Victor Hansen (co-Creator of “Chicken Soup for the Soul” series of books).

To preview Mary’s real estate investment course and receive a $147 free gift, click this link now

http://www.MillionaireRiches.com

How to Choose the Real Estate Investing Course That’s Right for You? is a post from: Real Estate