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Posts Tagged ‘Real Estate Investing’

Investing in Real Estate How and Why

December 21st, 2009 CheapFlatsLondon No comments

If you are thinking about investing in real estate how and why are two very important questions that you should ask.

To begin with how… You need to find sources of information that are going to provide you with all the information you need to get you started with on your investment. You can use resources such as…

- The internet for research. If you utilize this tool it can be your starting point in respect to investing in real estate. Contemplating investing in real estate how and why are the two important questions to ask because It’s your money and you don’t want to lose it. That’s why starting your research from the bottom up will lead you in the right direction.

- Reading Material. There is excellent reading material regarding real estate investment that can be obtained from the internet as well. Then you can also purchase this from book stores. Even the financial papers will provide you with some excellent information.

- Online courses. Once you begin thinking about investing in real estate how and why are the two questions that you not only need the answers to, but you must understand the concept of the answers. This can easily be achieved through many of the great online courses that are available for real estate investment.

- Ask the experts. Don’t be afraid to ask questions of every expert that crosses your path regarding real estate investments. The majority of them would be more than willing to answer them. You can refer to professionals such as bankers, loans officers and other investors.

As we mentioned if you are thinking about investing how and why are two important questions, and after answering the how its important to address the why.

Why should you invest in real estate… To begin with its one of the safer types of investments. Stocks can be volatile. If the economy is bad then one stands to lose their entire investment. With investment in real estate in a bad economy most often you can just weather out the storm and hold onto your investment until things get better.

Its also an investment that you can maintain control over. You are the one making the decisions about your investment. Most often when you are involved in stocks the decisions are being made by the portfolio manager.

As you can see there are many advantages to real estate investment. This can be done with even a minimal amount of funds.

The first thing in investing in real estate

December 19th, 2009 CheapFlatsLondon No comments

Real estate investments can be extraordinarily profitable provided one is aware of the several keys to successful real estate investment deals. Investing in real estate has become increasingly popular over the last few decades and many investors are finding great opportunities in real estate for making big gains. But beginners in real estate investing need not be disheartened as they will learn through experience and eventually become adepts at closing profitable deals. There are some fundamental skills that one has to acquire for building a sound real estate investment business.- The investor must continuously look for information about desperate home/property sellers who are facing emergency situations and identify hidden opportunities.- The investor must become a master negotiator for favorably closing the real estate investment deals. – The investor should acquire the uncanny knack to accurately analyze each real estate investment deal and learn exactly when to proceed with the deal and when to retract. – The investor must gain expertise in all areas of real estate investment and understand what is meant by lease options, cash sales, wrap mortgages, foreclosures, auction sales and such other aspects of real estate investment trade. – The investor should understand all the financial risks and benefits of investing in real estate. – The investor must become conversant with the real estate laws of the state concerned and the federal income tax lawsYour confidence levels will steadily grow as you gain experience and successfully close a few real estate deals. Like in any other business, there are no get-rich overnight schemes in real estate investment. Over a period of time you will surely find yourself managing a profitable and growing portfolio of investment properties. The opportunities to build wealth are definitely there in the real estate market and with a fair knowledge of the market you can go for the kill. Understanding real estate investment is crucial because it usually involves a substantial investment and a long-term one. Besides, the real estate market can quite often be unpredictable. There are a number of ways in which an investor can participate in the real estate market.One can opt for real estate investment with an aim to rent the property out to a tenant. This is a safer bet and the investor will then have a steady rental income from the tenant, though he will be responsible for paying the mortgage, taxes and other expenses associated with maintaining the property. The owner also benefits from capital appreciation when he decides to dispose off the property. Be careful to whom you rent because your property must be well-maintained. There are real estate investment groups that are similar to mutual funds. While an investor may own many rental properties, a professionally managed company acquires builds, maintains and lets out all the properties in exchange for a small percentage of the monthly rent. This can save you a lot of bother.Real estate trading is of course where the money lies. Traders buy and hold properties for a short span of time and then sell them off at a profit. This process is called flipping properties and investors buy significantly undervalued or very hot properties.

Three Reasons Why Now is the Best Time to Invest in Real Estate

December 14th, 2009 CheapFlatsLondon No comments

 

1. The “F” Word.

Foreclosures are at an all time high. Just about every one of us can think of a family member or friend in foreclosure, or at least a neighbor. While this is a sad result of the mortgage meltdown and the current job market there are still silver linings to every cloud. Banks are more willing to offer deals on REO (Real Estate Owned) properties that they are holding in their over inflated non-performing asset portfolio. They need to move these properties to stay properly capitalized and your chances of getting a good deal are getting better and better every day.

If you have not started to track foreclosures in your market you need to begin today. Keep an eye on homes that go into foreclosure. Then you can identify the homes with the most potential of being a good deal. If the home goes all the way through the foreclosure process make sure you follow up with the bank before the home makes it on to the open MLS market. This will help you develop relationships with the banks and find some real nuggets along the way.

2. The “I” Word.

OK so maybe it isn’t as easy to get a mortgage as it was a couple of years ago. We all know the market has tightened up. The fact is there are still a lot of people with jobs and good credit that can get a mortgage. Fannie Mae recently loosened their rules on the number of homes investors can finance from 4 up to 10. 10 homes is quite a few if you are just starting out.

Even more exciting is that interest rates are at an all time low. If you can get a good deal on a home in foreclosure and secure a 5.5% interest rate then it becomes extremely easy to cash flow on a rental property. Many experienced investors have been making it work for years at 10% interest rates. We should all be able to hit a home run at nearly half of that! Check your credit and find a good investor friendly mortgage broker and find out what you qualify for today.

3. The “T” Word.

Back to the number one reason to invest today, foreclosures. So many people are in foreclosure or have recent job losses it is making it extremely difficult to become or continue to be homeowners. While this may not be a permanent situation it does make the rental market one of the best we have seen in years. I have many clients who are prospering in the rental market. Even better are those tenants that would like to be homeowners today, were yesterday and will be tomorrow. These tenants have the potential to lease a home right now with the opportunity to buy it once their situation has improved and the mortgage market has opened up again. This is the wholly grail for real estate investors as we can cover cash flow today with the big pay off in the future when we sell the home.

I am not saying that it is easy to invest in real estate today nor do I think this is the kind of market where you are going to flip three houses a month and become a millionaire in six months. For those with vision and with the proper training you could be setting yourself and your family up for amazing wealth over time. So many people have kicked themselves for not getting into the market fifteen years ago. Don’t be that person fifteen years from now.

 

Investing in Real Estate With No Money Down

December 12th, 2009 CheapFlatsLondon No comments

There are actually several different methods people use to invest in real estate with no money down. There are those who have maintained a great relationship with hard money lenders so that they will fund any deals that are necessary, as well as access to quick cash when you are close to a real estate deal. By being pre-approved by money lenders you are making it easier for clients to have faith in you, and work out a deal with you.

A great method of no money down investing is to assume the sellers existing mortgage. With this method an investor is not required to make any down payments, but only assume the responsibilities of the home owner’s existing mortgage. This type of action can only be done with the approval of the mortgage loan company that funded the home. Make sure that with these types of deals that there isn’t a due-on sale clause because it can cause some issues.

Another method of no money down real estate investing is the when the seller or owner offers financing. Rather than accepting a down payment the buyers agree to pay a higher monthly rate or can also lend the money for the down payment to the buyers at an increased interest rate.

Today’s investors have realized the importance of knowing hard money-lenders and maintaining relationships with them. This is especially beneficial when you are trying to invest in real estate with no money down because you have the ability to use your home equity line of credit or a home equity loan to pay your down payment. You have to be especially careful when agreeing to such loans and be sure to make your payments on time every single month. Always have your goals in mind and keep your budget at hand.

7 Steps To Investing In Real Estate

December 8th, 2009 CheapFlatsLondon No comments

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.

Investing in Real Estate – Do You Need a Property Manager?

December 6th, 2009 CheapFlatsLondon No comments

There are many decisions that you will need to make when investing in real estate. One of those choices, for those handling rental properties, is whether or not you need a property manager. Property managers have many purposes and are a great idea for those who have several properties to handle and want to have a life away from their real estate investing business. A property manager is your buffer between your tenants and your family.
The benefits of a good property management service are quite numerous. To begin with you will find that they eliminate the need for tenants to have your phone number. If you’ve dealt with rental properties before without the buffer of a property manager, you are surely aware that it doesn’t matter what time of night or the morning things go wrong, you are the first person your tenants call to patch up those things. It also doesn’t matter to the tenant whether the issue is very minor and could easily wait until a decent hour to report. A property management service is able to deal with many things for you while letting you sleep through the night. It’s no small favor when you think about multiple tenants as you purchase more properties. A few late night phone calls and many rental property owners are almost ready to get out of the business of renting properties.
Property management services often have a qualified staff of maintenance people that can deal with many of the things that go wrong with rental properties. The fee for these services may be included in your fees for the using the property management service in general or certain services may charge additional fees. Regardless, your property manager or property management team is often the best source to find contractors to handle the repairs they cannot make for you, as well as the repairs that they can. It’s nice to know that you won’t be getting up bleary eyed in the morning calling around for a plumber on the first exceptionally cold day of winter. Moreover it’s nice to know that someone else can deal with some of the negative things about owning rental properties.
My personal favorite reason to seek the assistance of a property management service is that they are qualified to handle the legalities of taking care of tenants who cannot make the rent for months on end. This is after all a business and while you can relate to the circumstances that leave some people unable to pay their rent, you need the income from their property in order to pay your bills. It’s much easier to leave some of the less pleasant tasks to someone else, especially if you are a softy for sob stories.
Property managers also handle the advertising for your property and the cleaning up and retouches that are essential between tenants. They also allow you to take vacations assured by the knowledge your properties and tenants are in good hands even when you aren’t there to watch over everything.
If you are going to invest in real estate, this is one of the most worry free ways you can do it. The more properties you have, the more sense it makes to utilize the services of a reliable property management team. Copyright 2008 Promotions Unlimited – websitetrafficbuilders.com. All rights reserved

Investing in Real Estate – is it All That Itâ??s Hyped Up to Be?

December 6th, 2009 CheapFlatsLondon No comments

First of all, I am going to start out by saying yes, investing in real estate may be the fastest way to get rich. There is no cap on the amount of money that can be earned in real estate. Most jobs have a salary or an hourly wage that you earn for performing your duties of that position. It takes a long time to increase your pay. In real estate, you are in control. Your motivation is a direct correlation to the size of your paychecks. If you are willing to work non-stop, constantly educating yourself and performing deals you are going to make a lot of money. Here are a few reasons to invest in real estate:

1. Where else can u make a full yearâ??s income in less than three months? When I was nineteen years old, I was working 30 hours per week for ten dollars per hour while going to college. This same year I started putting my knowledge into action and began investing in real estate with many of the â??no money downâ? techniques I had been studying. Iâ??m sure you can guess what happened. That year I went on to make more than four times my yearly income. I am now only twenty three years old and this is still true. In one monthâ??s time I am able to purchase and renovate a house. By the time I close and receive my paycheck it is typically a two to three month process. On average I earn a profit of thirty thousand dollars on each flip. I also do more than one at a time. Now, even doing only one at a time I would be able to make an average of thirty thousand dollars every three months. Not bad right? How many people are currently putting in forty hour work weeks to earn a salary of thirty to forty thousand dollars for the entire year?

2. Secure your future retirement through buy and hold strategies. Investing for the long term is a popular saying and the best way to do so is to buy and hold real estate. On average, statistics show that the market value of properties double every ten years. I am currently in my early twenties and I own a few multi-family rental properties. I intend to own at least ten more within the next five years. This is aside from flipping houses every day for a living. This is going to create a nice payday twenty or thirty years down the road. These properties will be owned free and clear and the value will have gone up drastically. This is a pretty simple way to make yourself a millionaire when you retire. If the properties are rented out for enough money to cover the mortgage, then your tenants have paid off your loans! Of course being a landlord can be tedious, but isnâ??t it worth it?

3. You are working for yourself, not reporting to a boss. For many people this may be the single most important benefit to being a full time investor. You are free to live your life as you want to. Take a lunch break for as long as you want. If you donâ??t want to get up for work on Monday you donâ??t have to. You will have the opportunity to spend time doing what is most important, enjoying your life. Personally, I enjoy being able to create my own work schedule, however, at the same time I work twice as hard knowing that itâ??s for my own benefit.

Investing In Real Estate – Top Three Secrets From The Gurus

December 5th, 2009 CheapFlatsLondon No comments

If you want an investment that goes only one way- upwards- you should consider investing in real estate. Other avenues are either low-return or high-risk ones. This means you are either stuck in an unprofitable allocation of your money or walking a thin line with potential risk of bankruptcy. You can avoid both these extremes with real estate.
Property investment is a systematic activity and you attain proficiency over a period of time. There are no shortcuts or instant solutions. Investing in real estate brings continuous cash flow in the form of rental income and capital appreciation through surge in market demand.
Here are a few tips about how to become successful real estate investing:
• Have a clear vision. What is it that you would like to achieve with property? A better home for the family, great lifestyle, peer acceptance or mere monetary gains? It is an elusive concept to begin with. But, as with everything nice, it acquires a firm footing with passing years. Your vision determines the type of properties you would pick up. Decisions made in line with your vision turn out to be profitable while a lack of clarity could saddle you with heavy financial burden.
• Be persistent. You need great patience to track the industry, compare past figures and predict the future trend. Persistence also means keeping your networking skills in top gear. You need to stay in touch with others in the industry – homeowners, developers, real estate agents, brokers and lenders. Repeat transactions make you reap rich bargains.
• Make your moves quickly. It is not enough to be a keen observer. For successful investing in real estate, you need to act and act real fast. Choose areas with growth potential and be an early bird when a large project is announced there. Watch out for interest rates and move out of high interest to low interest commitments. Sell the property just when the market is peaking. A slight delay here would mean loss of bargaining power.
Copyright © 2006 Joel Teo. All rights reserved.

The Current Environment for Investing in Real Estate

December 4th, 2009 CheapFlatsLondon No comments

Present conditions involving the country’s political and economic stability have prompted most potential investors to review the viability of investing in real estate. As the world political arena continues to be a volatile environment, it is not surprising that people no longer feel confident in acquiring investment properties. However, with all the variables in place, it is still a reasonable to assume that in the decades to come, real estate owners will continue to build their wealth and enjoy the appreciation of their investments despite the fluctuations in other markets.

While it is true that analysts have noted a decline in the real estate market, this is not predictive of future performance. Several factors remain in effect, supporting the steady rise in investment property prices. A careful study of these environmental factors will prove essential in accurately assessing the potential of investment properties.

First and foremost is the yearly population increase in the country. Every year, as the number of people who need shelter grows, so will the demand for quality homes and real estate. In addition to these, the portion of the population that left home to begin their own families will put an added pressure for property owners to supply them with more options for accommodation.

Another factor affecting the environment for investment properties is urbanization. The country’s metropolis areas are growing at an exponential rate, with more and more people competing for a space in the increasingly crowded cities. As such, owners of investment properties stand to gain the most from the high and continuous demand.

Globalization is also another factor affecting the environment of investment property buyers. With people increasingly capable of moving to another country to pursue their dreams, they bring with them the increase in demand for space and shelter. It is curious to note that countries can no longer consider their populations as based on their indigenous people but in combination with the other ethnic groups that have travelled from other countries.

Development in urban areas has steadily increased over the past few years. Although the majority of potential buyers remain fearful of the overlying economic state, a select few have recognized a rare opportunity for buyers of investment properties. There is still the rise of demand for properties for rent or lease. Also, developers are consistently offering better and better packages to inject enthusiasm in the market. In the middle, the buyers will ultimately benefit the most, enjoying attractive incentives from the developers as well as a constant stream of renters for their investment properties.

Considering all these factors, it can be said that the current environment for investment properties acquisition remains positive and optimistic. In the face of political and economic uncertainty, it is reassuring to see that sound investment judgment can still lead to profitability and success. The basic demand still exists and opportunities should not be missed. And despite some investments being highly affected by temporary trends, buying investment properties remains a sound financial strategy for prosperity.

Get Started Investing In Real Estate With These Two Secrets

December 1st, 2009 CheapFlatsLondon No comments

Real estate investing and acquisition is a very lucrative opportunity.
There are how to courses, books, and other information you must master in order to succeed. But there really is two secrets that can help make Real Estate Acquisition so much easier.With these two secrets, you will be able to invest with confidence, and obtain maximum profits every time.
Let’s start with secret number one:
Take Action…or the success mindset. This sounds easy, but then why are only 10% of the world’s adult population millionaires then?
If you purchase a course in real estate, are fortunate enough to obtain mentoring, or other solid advice…then use it immediately. Don’t trap yourself into thinking that you can’t.
Don’t make excuses to yourself, justifying why you “just can’t do it right now.” You can, it isn’t complicated…just detail – oriented. Always look to implement new techniques into your business. But do not hesitate, if you put something off…you may never get back to it again.
Put it all into your plan as to when you will accomplish something.
Secret number two:
Assemble your team. You will need the services of a competent real – estate attorney…and a Certified Public Accountant.
This is not an option if you want to continue to succeed in this business, period.
Don’t be cheap and do it yourself. Seek out the professionals that will be able to make your profession easier by being able to provide the answers you need to move the process of investing along much faster and with the results you seek.
The amount you have to invest in the services of these professionals will be minimal compared to the potential headaches you can encounter in real estate investing without them.
These are crucial success secrets to your new found career investing in Real Estate.
BONUS TIP:
Get a Real Estate License in your state. It establishes credibility.