Month: October 2015

When people think about investing they almost always reference the stock market which I would say if fairly typical. In the past the stock market has been considered one of the best investments out there, especially if you’re planning on investing for any decent amount of time. With the current state of the economy however stocks have been a more risky investment and people are looking for some other options to invest their money. They always say that when one type of investing is down, another is up and it this case that investment type is real estate. With such a large amount of foreclosure going up for sale you can now purchase real estate at a very low cost and from there you’ve got quite a few ways to leverage that real estate to make money. Today we’re going to take a look at two of those ways.

Buy – Renovate – Sell

This is one of the best investments that works very well in a down market. The basic idea behind it is that you can purchase a distressed property from the bank for an extreme discount compared to what the home would be worth repaired or in a good market. I use the work extreme because I’m seeing homes go for over 50% less than wha they are worth in my area and I’m sure that is the case in most areas at this time. Once you’ve found a home that you feel is worth purchasing and can be resold for a profit you put in an offer. Using a real estate agent to do this is a very good idea, they can offer a lot of good advice during this process. It’s also important to put a budget together on the total cost of repairing the home. This is without a doubt the most important part. Make sure you get accurate and realistic numbers on what the renovations are going to cost. If you don’t you could turn the best investment into one of the worst. The difference between the purchase price plus renovations and the sale price is your profit. In the state I currently live in you can buy quite a few properties for as cheap as $20,000 dollars. The typical repair costs is between $10,000 and $15,000 dollars. Giving you a total investment of around $35,00 dollars. That home can now be resold quickly for a price of around $50,000. That means you stand to make around $15,000 dollars in around 90 days. Not bad if you’re willing to put in the work.

Rental Property

While our first way of making money with real estate way geared towards the short term, buying rental property is definitely more of a long term investment. Depending on your cashflow however you can actually follow the steps mentioned above, and then hold the property to rent out to tenants and let the property appreciate. You wouldn’t however put quite as much money in as mentioned above because tenants tend to be a bit hard on rental property. Typically for rental properties you are looking to find a property that you can buy and move tenants into that will still cash flow every month. That way what is happening is the tenant is actually paying off your mortgage for you. If your mortgage payment on a place is $500.00 per month and you can put a tenant in that property for $750 per month, you would be paying off your mortgage and you’re still making another $250. These are actual numbers from properties that friends of mine own, not made up numbers to make real estate investing look like a good deal.

I don’t want to make investing in real estate seem like this easy way to get rich. It is however one of the best investments for 2010. The trick that even the most seasoned real estate investors will tell you is simple, plan ahead. Don’t get sucked into making a quick decision and if something seems to go to be true, it might be. It’s amazing how many people get excited and forget those simple tricks.

Paul B has been involved in real estate for almost 10 years. During that time he’s seen some of the best investments [http://investmentpropertyspecialists.net/best-investments/] around. He’s even started a website about the best investments for 2010 [http://investmentpropertyspecialists.net/] and real estate is definitely one of them.

Everybody knows that no wealth-building strategy is complete without real estate, right? You’ve read all the experts who say you simply have to invest in real estate to earn the kind of money you need to make your dreams a reality.

oYou’ve heard all the statistics…
oMost millionaires and billionaires get rich primarily through real estate investments.
oLand is one of the safest, lowest-risk investments you can make.
oTax benefits make real estate a “government sponsored” investment…and makes April 15th a lot more bearable.
oReal estate consistently out-earns traditional investments like stocks and bonds.

And you are probably aware that right NOW, as you read this,
is one of the best times in history to invest in land.

In fact, there may never come a better day in your lifetime to get started in real estate investing…it’s a “perfect storm” for real estate investors…

Here’s why…

oInterest rates plummeting to historic lows make it very easy for you to buy NOW!
oOver-stretched propertyowners facing balloon payments are highly-motivated to sell to you below market value TODAY!
oDifficult economic times mean more “distressed sellers” enter the market each and every day…needing to fix their financial problems FAST!
oA huge crop of “For Sale” signs makes right NOW one of the best “shoppers’ markets” you’ll ever see.

Have you ever heard yourself saying…
“No, I haven’t invested in land, but I’ve been meaning to”?

Well, now you have no more excuses.

Just take a look at our property today and you can easily determine the simplest, safest, most affordable way for you to get started realizing your real estate dreams.

All the age-old objections have been shattered…creating a “perfect storm” for would-be real estate investors to finally get in the game.

What’s been holding YOU back?

oCan’t afford to invest? Not a problem. Low monthly payments, small down payments, and a SUPER LOW 5.9% interest are all available, so you can get started today.
oWorried about credit issues? Not a problem. With optional 100% owner financing there’s no hassle, no application, no credit check!
oDon’t want to waste hours, days, months trying to find the right property? Not a problem. Just signup for our FREE “Land Alerts ” and we when we get that perfect property ill notify you.
oDreading those long, drawn-out approval processes? Not a problem. Just enter your name, address, e-mail, and phone number and get started today.
oNot sure where to start? Not a problem. Just request your FREE “Land Needs Assessment” and step your way through to the right investment to fit your needs.
oWorried about closing cost, commissions, hidden fees, balloon payments or fine print? Not a problem. No costs to pay and no fine print to read.
oAfraid of getting stuck with a “problem property”? Not a problem. You get a “Lifetime Free and Clear Title Guarantee” that covers all of your investments and insures you against hassles and headaches.

NO RISK, NO HUGE DOWN PAYMENTS, NO HASSLES, NO FEES… and lots of beautiful properties to choose from… now what’s holding you back?

This “perfect storm” of a real estate market won’t last forever…so be sure to take advantage of this historic opportunity now!

Here’s what you’ll discover today…

oBeautiful land at 40% to 80% below-market prices.
oSafe investments that provide steady cash for your bottom line.
oA profitable investment at terms that are perfectly suited to your financial situation.
oYour choice of residential, commercial or agricultural land…find the right land for you!
oA sense of personal pride in owning your own land.
oGreater wealth for you…and an inheritance to pass on to your loved ones.
oHow you can “control” a property for only a small down payment and minimal monthly payments.
oHow to exploit real estate to save more money on your taxes this year.

“Don’t wait to buy land, buy land and wait.”

FYI: Anyone can buy cheap land online right now with 100% owner financing at: http://www.landsalesco.com

With people losing their homes and jobs at record numbers, choosing to invest in real estate may not be the best choice at present.

Only five years ago, the American public were in to the ‘ownership society’. It almost seemed that everyone and anyone was obliged to purchase that dream home. The value was certainly there and there was a lender on every corner, ready to make your American dream come true. At the time, investment advice was kind of skewed towards home ownership at any cost.

Even though the mortgage brokers, who knew a particular client was not qualified to assume such a large debt, gave the client real estate investing advice designed not so much towards the borrower’s benefit, as towards making a deal. When home values were rising and interest rates were relatively low, it wasn’t hard to convince a buyer that his or her best move was to buy a home, no matter what. Today, we are all reaping the results of such misinformation.

Even while the $700 billion bailout funds remain in limbo as to how the money will be distributed, and to whom and under what conditions, there are a lot of properties on the market, and as many homeowners facing foreclosure, and possibly, homelessness.

There is no doubt that it’s a buyer’s market. Given the current credit crunch, qualified buyers must either have an almost perfect credit score or tons of cash. If you’re prepared to pay cash for a property, the only real estate investing advice you need or, that matters, is to buy at the bottom. However, the buyer who applies for a mortgage based on his excellent credit, still runs the risk of buying a property that loses value in the near future. The few remaining people who can afford to take such a risk, are not relying on investment advice to guide them. It’s a bottom line proposition.

Bank foreclosure properties are ripe territory for the cash-rich buyer’s objectives. Purchasing a home at bottom dollar affords many opportunities in a rental market. If you have the cash, there are many auctions where you can bid on a bank foreclosure property. Buy cheaply and rent for a fortune. The cash rich buyer, is indeed, in the catbird seat. There isn’t much need for any advice.

The ordinary home buyer, going through conventional channels, must now put at least 20% down and have excellent credit if that borrower hopes to secure the loan. These guidelines would have been sound investment advice, five years ago. However, in these uncertain times, what if this borrower is laid off and cannot make his mortgage payments for three months? Based on a home value of $100,000, he will lose his down of $20,000. What happens if the value of his home declines further? What happens if circumstance forces him to relocate and he’s unable to sell the home?

To wrap it up in a nutshell, unless you can pay cash, the current market is fraught with risk, to the degree that the only sound real estate investing advice is to just stay out of this market until prices stabilize.

But then again, on the other hand, if no one is buying, how will home prices ever become stable enough for qualified buyers to take the plunge? Clearly, there must be a better plan.

Brett Muscio writes and publishes articles on a range of subjects relating to business and real estate investing [http://www.moreinformationon.com/]. More articles on real estate can be found at [http://www.moreinformationon.com/]

If you had a hundred thousand dollars right now, where will you invest it in? A lot will surely try investing in stocks because they sound like big money. Others will open their own businesses. Smart ones, however, will start investing in real estate.

There is no better time to make money in real estate than today, experts say. Backing this opinion is a recent survey that showed that real estate is among five best investment destinations in times of an economic slump. Although the country is officially out of the recession, the economy has yet to recover from its effects. It is still recuperating from the battering it took. This gives investors a perfect opportunity to make huge money by investing in real estate.

While many investors are shunning this market, others are literally scooping cash in this sector. Skeptics fear that it is too risky to venture into real estate nowadays because the required capital is huge and the market has yet to recover. Even property prices have yet to pick up. Little do they know that this current market condition is actually an opportunity to buy properties at bargain prices.

Wise investors came to realize this and are now snapping up properties for investment. They sell these properties low buy they still earn money because they bought them at even lower costs. Studies suggest that the country will be hit by what experts call a “foreclosures tsunami” in the next year or two. This is a surge in the properties are will undergo or have undergone the process of foreclosure and is a wave of potential profit investors are hoping to ride.

These properties are swarming bank inventories so lenders have no choice but to let go of these assets very economical prices. They cannot afford to maintain the properties they repossessed from owners who failed to pay mortgage or other financial obligations. Lenders also face sanctions from regulators if they keep a long list of these properties.

Doubters can say that investing in real estate is still a hard thing to do because of the required capital. This should not pose a problem for those who are determined to make a fortune. You can secure loans from traditional lenders like banks or you can borrow from private individuals. Learn more on how you can do investing in today’s market at REIwired.com. The website contains videos and articles about real estate investing [http://reiwired.com/download/].

Although we live in a time when many people are shying away from owning real estate, it is actually an excellent time for you to get into the game. Here are the top reasons to invest in real estate and why now is the perfect time to do so.

Value – As property values continue to drop, this gives you the opportunity to pick up an investment property at its lowest cost. Even if they dip a little bit further, they are sure to turn around in the near future whenever property values begin to rise again.

Leverage – The banks will still loan money for investment property, provided you have everything prepared in advance. It will also give you leverage in the future, whenever banking regulations loosen and you find that you own property with quite a bit of value over what you paid.

Taxes – With the right tax attorney, investment property is still an excellent way for you to be able to hang onto all of the money that you possibly can. Although you may not have liquid funds, the properties that you own are really going to add to your bottom line.

Investment – Real estate has always been an excellent investment, and that has not changed. Yes, property values have dropped in recent years but they have dropped in the past as well. When you buy at the low point, you are sure to receive the benefits whenever the market turns around.

Long-Term – Some investments will come and go, but an investment in real estate is something that will last you and benefit you for many years to come.

Don Cramer has been selling real estate in the North Port, Port Charlotte Florida and surrounding areas for over 10 years. Visit our website for more real estate information and eBooks at: http://www.bestchoicerealty.net/.

Investing in real estate is a good option, most of the time.
You will need to do your homework though to make sure that
you have the best knowledge about what you are doing and
what the market is doing. Not all times are good times for
real estate investing. Finding the right options is quite
important. Here are some tips to help you when it comes to
making the right decisions in real estate investing.

· Take the time to learn about real estate in general.
Take a class or just research on the web. You need a
fundamentally sound knowledge of terminology and how the
real estate market works to make good decisions here.

· Get to know prices. This may seem hard for you, but
watch prices continuously so that you can learn what
property is going for. If you plan to purchase a piece of
property low to sell it high, then you will need to see how
well others are doing at this in your area. And, you will
also want to know what is available out there as well.
Keeping a watchful eye on the real estate market is a great
way to know what is happening over the course of time.

· Determine your budget. If you plan to take out a
mortgage on the property that you purchase, make sure that
you can afford it if the property doesn’t sell. Also, you
will need to make sure that if you plan to make upgrades on
the property that you include those costs as well. You need
to remember that there are no guarantees in the real estate
market.

· Look at the trends. If you are purchasing
commercial property, is it in the right area and are people
renting out other commercial property in the area? Are you
purchasing a home to remodel and sell? If so, make sure the
markets are doing well there as well or make the needed
adjustments so that you can pay for it if it doesn’t sell
right away.

· Talk to lenders to get the money you need. Shop
around for the right lenders that are offering you a great
rate and terms. Make sure that you qualify for the loan if
you need it.

· Shop around for properties using a real estate agent
that knows the ins an outs of the business. Make sure that
they know what you are looking for and can help you to find
the best options available to meet those goals.

It is important that you set up a strategy as well as goals
when it comes to investing in real estate. Throughout that
area, you need to make sure that you have the flexibility to
ride out market trends that are going one way or another.
You need to be able to invest wisely so that your credit
doesn’t end up ruined on what you thought was a steal!

Stephen A. Doyle writes for AdviceAboutInvesting.com [http://www.adviceaboutinvesting.com] where you can find more articles about investing in stocks [http://www.adviceaboutinvesting.com].

Government grants for real estate investing are a under utilized method for real estate investors to obtain funding for their ventures in real estate projects. Billions of dollars are distributed as grants to invest in real estate by governments at all levels, including state and federal.

Why is all this free money available for businesses and non-profits to put into real estate? Well, providing housing is a major function of the government and offering grants to invest in real estate is a way for them to outsource part of the job and spread the workload.

Which things can be funded through grants exactly, and can you obtain a grant for investing in real estate? There are certain programs to acquire properties, buy land, build houses, refurbishing and converting properties to dwellings, among all.

On top of the grants to invest in real estate there are also low-cost and forgivable loans available. A forgivable loan is a loan that essentially converts into a grant and need not be paid back. Many of these real estate grants and loans can be accessed for investing as long as they meet the requirements that the government sets down.

Some grants to invest in real estate are available to for-profit investors also but some are available only for non-profit organizations. But there are some ways for the smart investor to get into these offers of government grants and loans.

For example, if a grant is aimed at helping seniors through a non-profit, a savvy investor might approach them to partner on a project so that the investor offers the housing expertise and the non-profit can provide specific expertise about the needs of the seniors. They may also bundle in some of their regular non-profit services.

Many real estate investors wondering about funding options may have overlooked an option – government grant for investing in real estate. Thegovernment grants for real estate investing are available for buying land, building housing, rehabbing, converting properties for residential use etc. Other forms of available assistance for investing in real estate include low interest loans and forgivable loans. Forgivable loans often get converted to grants and therefore don’t need to be paid back. It is possible for the intelligent investor to find creative means to qualify for a number of government loans and grants to invest in real estate.

Definition

Real Estate involves the purchasing or selling of commercial and/or residential properties and renting them to tenants.

Introduction

Though people consider real estate to be about buying and selling homes, there is more to it than meets the eye. Venturing in any opportunity in the real estate industry may result to very high returns provided you understand how and when to make your investments. This industry has quite a number of complications since you have to analyze a number of investment options and decide on the most appropriate.

Rental Properties

Real estate is about procuring property and leasing them out to potential tenants. Landlords are fully responsible for mortgage payments, maintenance costs as well as the taxation costs. A common strategy would be to charge the tenants enough rent in order to take care of other expenses. Once the mortgage payments are completed, the landlord may begin to enjoy the profits until they decide to sell the house to another party. During the mortgage payment period and beyond, the property appreciates and this translates to very high profits when sold.

The maintenance costs heavily depend on the tenants, who are prone to damaging property. This explains the importance of finding suitable tenants who are less of a risk. Not every investor in the real estate industry makes profits- those that have a problem getting tenants are likely to experience negative cash flows. This is very risky especially if the mortgage payments are not yet completed. The lending company is likely to repossess the property failure to making the mortgage payments as agreed. To avoid getting into such situations, it is wise to purchase property in areas where there are very low vacancy rates.

Demand is normally high in areas where there are low vacancy rates and vice versa. Maintaining such investments requires you to contribute much of your time and energy. In case of any property damage, the tenants are likely to contact the landlords for repair services. If one cannot conduct the repairs, they may have to hire property managers to take care of the maintenance issues.

Investment Groups

These are diminutive mutual funds that deal with rental properties. They are suitable for people who want to invest in real estate rental chattels but cannot or do not want to hold the position of a landlord. Such companies build real estate properties and then advertise for investors to purchase them via the company. The groups normally allow the investors to own multiple units, though the management takes care of interviewing tenants, advertising and maintaining the property.

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Have you ever wondered how investors make money from real estate deals? The answer is simple, they add value. They add value by making improvements to the property before they sell it. These improvements can be by way of additions to the building, renovations, land sub division, strata titling or turning apartments into condos and other such activities. But what do you do if you own a property and have little or no experience in how to make valuable improvements?

One way to do this is to advertise your property for sale and look at doing a joint venture deal with a prospective buyer. Many investment property developers are happy to do joint ventures. A joint venture is where an investor joins forces with the owner of the property to optimise the potential return on the property. This can provide the owner with access to development skills from the joint venture partner that the owner does not have themselves. Skills that can be readily translated into additional profits for both parties to the joint venture.

Let me give you an example of what I mean. Let’s assume that you have a property consisting of say 10 apartments and you want to sell them as one sale. Let’s also assume that the property can be strata titled or turned into individual titles be they condos or where I come from, units. However, due to the lack of knowledge or skill, or money, or time, the owner, you, wants to sell them as one sale for simplicity sake. So an investor comes along and agrees to purchase the property from you. They will try and obtain an option over the property so that they can get all their permits in order prior to any settlement if possible. If not they will settle the property and then do a simple sub division and on sell as individual condos/units and hopefully make a profit for themselves.

This process is quite strait forward but it has one very large flaw. The flaw is that by doing a deal this way the two parties to the deal, i.e. the owner and the investor are incurring huge costs that could possibly be avoided. Costs that provide no direct value to either party and in fact could be saved and added to the bottom line profitability of the project. Some of the costs include local, state and federal government taxes that may apply on the transfer of property, mortgage costs, insurance costs, selling costs and advertising costs, not to mention holding costs for the investor. These simply can add up to tens of thousands of dollars. Trading in real estate is not an inexpensive exercise to say the least. What then is the alternative?

One alternative would be to find a joint venture partner who has the expertise and or capital required to optimise the property as it is. By joint venturing the deal the owner effectively keeps control of the property until such time as all development or subdivision activities have been completed and the property sold as 10 individual sales. The sales go from the original owner to the end user as a direct sale and not through the investor. This will save tens of thousands of dollars of potential profits from being expended. Clearly there needs to be adequate legal protection for both parties in the joint venture and independent legal advice should definitely be sought by both parties.

Before entering into any joint venture agreement you would be well advised to seek professional advice from your legal and taxation advisors to assist you in protecting your interests and optimising your net return. This can also be a good source of finding joint venture partners. Many legal professionals and accounting/taxation specialists have clients who specialise in property development and could maybe even make an introduction for you to find a joint venture partner. This works for both sides of the equation whether you are the owner or the investor.

Joint venture property deals have been around for a very long time and with sound advice and a well designed plan there are more profits available to both parties if you can take the time to seek them out. This is one very good way to make more money from your next property deal. You may not only make more money but you will also learn some valuable new skills that you can use again and again in the future.

Having spent over 25 years as a professional financial planner and property developer I have developed a very unique set of skills which I use to help Australian residents to acquire property, even without deposits. I have a mission to assist as many people as possible to get into their own home and stop renting. Basic information about the service I offer can be found at http://www.davidhnolan.com.

These days, a lot of attention is put on how to find money to do your real estate deals. But what if you’re someone with a bit of money to invest? How do you know what makes a good deal?

One of the easiest ways to invest in real estate when you have the cash to invest is to partner up with someone that has a great track record, is investing in the kind of deals that work for your goals and can offer you a deal that makes sense for your money. But how do you find them? And how do you screen them to make sure they are a good fit for you, and for your hard earned cash?

These days the easiest way to find prospective joint venture partners is to do a search online. Most of the folks running an investment business have a website or blog dedicated to explaining the types of deals they do and providing some sort of education and information. You could do a search for real estate investment opportunities and your area to find someone local.

But, personally, I think the best way to find someone to invest with is to drop into a couple of your local real estate investing club meetings. You can also ask your friends and family if they know of anybody successfully investing in real estate.

Once you find a few different people, meet with each of them face to face. In my opinion, you are investing as much, or more, in the person’s ability to manage the deal as you are in the deal itself. You want to make sure the person you’re investing your money with checks out.

Ask yourself and your prospective partner:

Does this investment fit my goals? If you want to learn about real estate along the way you might want to find a partner that is willing and able to teach you as well as invest your money. If you really want to be hands on with your deals then you will be looking for somebody that will work with a hands on partner and perhaps give you a greater share of the deal in exchange for your efforts. Or if you want to wash your hands of the whole thing, make sure you find someone capable of making good decisions once you’ve turned over your capital. You have to know what is most important for you – and then check whether this prospective partner and the deals they are doing will fit with your goals.

What is your track record? Past performance doesn’t always indicate future success but how this question is answered can tell you a lot about someone. We’ve earned one of our partners over 700% return on his investment in six years. We also earned the same partner 110% on another investment in five years. I rarely mention either of these examples to prospective partners because I don’t want to set expectations that high when much of that return was thanks to a rapidly increasing market. Instead, I will tell them that there are no guarantees in anything, let alone real estate but because of x, y and z I feel pretty comfortable suggesting a 15% – 20% return on most of the investments we do.

Listen carefully to how someone answers this question. If they tell you about their best deals and don’t mention the worst, dig into the bad deals they’ve done to get a sense of how they have learned from their past experiences. And to get a sense of how honest and upfront they are. Look for a decision making process and an ability to take responsibility for the bad deals. That’s far more important than finding someone who made a 700% return on someone’s money one time.

What is your credit like? Can I get a copy of your credit report? If you’re going to turn your money over to someone to manage I think you have every right to understand how your prospective partner is managing their own money. I would never trust someone else with my money if they can’t even manage their own. Nobody loves MY MONEY as much as I do so if somebody else isn’t loving their own money how can I feel comfortable they will give mine the attention and care it deserves?

Do you have references? Ask to speak with one or two of the people they’ve partnered with before. If they’ve never partnered with anyone you could speak to present or past coworkers. I believe a good indication of how someone will handle themselves in their investments is how they handle themselves at work. If they were good decision makers and got along well with others at the office then there is a very good chance they will get along well and make good decisions on your deals.

Asking these questions is a good start but it’s not enough. ALWAYS go and check out the deal yourself. It’s not about second guessing the expertise and experience of the person you’re working with, it’s about covering your butt. Look at the property to identify work that might be required in the near future. Walk the neighbourhood to make sure it’s a good market to invest in. And ask any questions you might want to know about how the property will be filled with tenants (who is doing that, how do they screen tenants, what do they look for in tenants).

Finally – determine if there are alternate exit strategies for the property. Are there other ways to get out of this deal if the proposed strategy doesn’t work.

Once you’re satisfied with all of the above then you can feel comfortable and confident moving forward to discuss terms of the deal and possibly get into real estate with a joint venture partner.

Dave Peniuk is a full time real estate investor with a passion for helping other investors succeed. Get his Real Estate Investing Starter Tips Guide free when you sign up for his weekly real estate investing newsletter at http://www.revnyou.com.