Recent Posts
By admin On January 5, 2009
No Comments
Is Real Estate Investing for you? Maybe So, maybe Not! In this day and time we all want to make money. I want to learn how to make money in real estate. I’m sure you know quite a few people that want to know all about making money with Real Estate Investing. Well folks it’s simple. Join one of those get rich quick money programs and sit back and watch the money roll in.
Ok, now that we have left that dream behind and come back down to REIality, let’s get down to it. It’s like any other investment you make. First, find something you can buy with the money you have. Look at what it would take to fix it up. Next depending on if you want to sell it or rent it how much you going to charge? If you sell it you got to take the brokers percentage into it and how much it would sell for. Subtract all the money you put into it and what you get from it and bingo you made a profit. Now if you want to rent it how much money can you charge a month? Remember you got to pay the mortgage and put back for repairs. So you have to charge enough for all of that and hopefully you’ll have a little spending money left.
Now I hope your dreams aren’t ruined, but folks this is a hard job. It takes determination and a 
mindset aligned with achieving Real Estate Investing Success. I know you see all these people on TV making tons of money while there on vacation, but lets get real for a moment. If you worked at McDonald’s do you think they would pay you while you played and never came to work? This is a job not a fantasy. This is the mindset that you need to retain. I’m not saying that you can never have any FUN in this business, but don’t ever think of Real Estate Investing as ALL play with NO work. It just does not realistically work that way.
Don’t go into Real Estate Investing with your blinders on, thinking you’ll be the next millionaire. Most fortunes are made from real estate, but as I mentioned, it WILL take Work! Your just making yourself look like an idiot and wasting peoples time if you don’t have the right mindset and approach. Read and study long before you ever think of buying your first house to invest in.
Think about the house you’re in now. How much do I pay for this house? How much did it take to build this house? How much money do I spend on repairs? Can I afford to lose my money if this doesn’t work out? What happens to the house I’m in? Will I lose my house going after a dream?
So with all your questions answered your ready to buy. Wrong! Are you sure you know what you’re doing? Ask around and see if any of your friends have done this or thinking about doing this? Bring them into the group let them help and split the difference. If you do make it the profits will be a little less but better than losing all your money.
Join the conversation.
By admin On January 5, 2009
No Comments
Real Estate Investing has been highly popularized in recent history due to the explosive success of reality TV shows based on the process of ‘flipping’ houses. These programs are highly successful in depicting the design aspects of real estate investing; however, they fail to depict the financial side of the business, and thus, many come into real estate investing with a skewed view of future prospects.
The rise of reality television which overly simplifies the real estate business has contributed to the downfall of many wide-eyed financially stable individuals looking to invest locally. One must be extremely knowledgeable not only with the skill of management, but also with financial matters in order to be successful in real estate. One of the biggest mistakes made by amateurs is having overly optimistic views with regards to time and money. The assumption that one can quickly make money by buying a few houses, renovating them, and then selling them has been the downfall of many entrepreneur –minded optimists.
The current economic crisis complicates the housing market in many ways. The recession has smothered the employment rate, consumer confidence, and bank ‘lend-ability’. Since one needs an income in order to pay mortgage, the housing market is slowing down because eligible buyers are suddenly jobless, and many of those who are financially capable of buying houses do not trust America’s economic system enough to invest in it.
Those who are ready and willing to buy are unable to because of the lending standards which banks have imposed as a result of loan defaulting. Of course, the general public does not realize these facts about the housing market, so they will continue to believe that they can effortlessly transition into the real estate world without major consequences.
The creation and distribution of overly simplistic views of the housing market as assessed by the media has led to the myth that success in real estate is fairly easy to achieve, especially considering the fact that America is now in a down market. Of course, it is true that if one is looking for a long term housing investment, now is the time to invest, because it is a buyer’s market.
However if one is only interested in obtaining quick money, then real estate is not the market to turn to. It is risky, unpredictable, and varied from region to region, making it quite possibly the worst place to invest for those who are interested in obtaining security for the future. Many fail to recognize that real estate is a long term investment of gambles, waiting, heartaches, failures and successes which make it not only frustrating, but also addictive. Success as a real estate investor is contingent on knowledge, flexibility, and fickle-minded consumers. Although it is an attainable challenge to achieve great success in the current market, long term ventures in real estate can be quite rewarding and fulfilling.
By admin On January 4, 2009
No Comments
Yes, the credit market is frozen and yes, the real estate market is square in the middle. You are wondering if your dream of becoming successful in real estate investing has come down to just one question, “Do you feel lucky, Punk?”
Just because there was a big crash and your path appears blocked, does not mean you cannot get past get past this apparent real estate investing hurdle? The conventional thinking of buying a home, flipping it, and making a profit just needs to be tweaked and retooled just a tad bit. The demand for rental property has risen sharply due to the lack of mortgage loans availability. This will not slow down as a place to live is something that everyone has and will Always have a demand for. This current demand for rental housing has actually been beneficial to us as real estate investors, as the rental “rack rates” on average have appeared to increase across the United States as of lately.
People still need a place to live, they still want to pay the very least that they can for the very most housing they can purchase, and there is no reason why they cannot get that from you. The current housing market has affected the lower end of the spectrum the least and that should be your aim - searching for residence foreclosures, reposition, and tax seizures that fall into the low end of the price.
These houses are not pretty, most are ugly, except on paper. Houses that qualify for a home equity loan are a safer bet for lending institutions and allow you to create an income opportunity based on solid demand. Lending institutions qualify property for home equity falling in a low appraisal or tax value, although a good credit history is still required.
Most equity lines do not provide for homeowner insurance or appraisal, but the payments are usually much lower than normal mortgage rates and with greater flexibility in terms.
The trick is finding the homes that fall into this category which do not require a large investment to restore to a complete rentable state. It is exciting to begin a new project but easy to envision the next Taj Mahal, so remember the price range that the property will command and the time that will be required for completion.
There are also a few things to keep in mind when dealing with older properties. One must be mindful of foundation or structural damage that could tie up more capital than anticipated, or any outstanding liens that may be present.
The good news is that these houses qualifying for home equity loans are generally located together in one area, and finding and securing one will often lead to the opportunity for a second or third home in the same area. This will save you money in restoration costs, will provide much-needed housing in an otherwise defunct neighborhood, and provide residual income until the market is stable enough to return to the days before the market became unstable.
Join the conversation.
By admin On January 3, 2009
No Comments
Today’s real estate market is becoming increasingly difficult to survive in; and, if you watch the news, it’s even worse. However, for those determined to find that sliver of silver lining in the clouds, it could be said that now is a better time than ever to become involved in real estate investing.
With property values at the lowest they’ve been in decades and the number of foreclosures rapidly rising, the current real estate environment could be a possible gold mine for savvy investors willing to take some risks to reap substantial reward. The old theory of “buy low, sell high” is the underlying theme in the messages of advice offered to beginner investors, lately in the form of suggesting the purchase of pre-foreclosure homes.
“Because lenders are under pressure to liquidate bad loans rather than take the property back, large discounts can be negotiated,” says Ben Innes-Ker, author of the Motivated Seller Magnet: Automatic Lead Generating System and full-time real estate investor for 7 years.
“When you look at how easy pre-foreclosure makes it to buy houses cheap and resell for five figure profit checks, all the while helping people out of agonizing life circumstances, it makes little sense to pursue real estate investing any other way,” he says. “By buying houses from people in pre-foreclosure, creating 30%+ equity spreads on houses often in good condition is not a difficult thing to do.”
After hearing such advice, the question then becomes: How long will it be before I’m able to witness a profit on my investment? Well, while most investors won’t hold on to a property for this long, according to www.creonline.com, real estate values have displayed trends of doubling every decade or so.
“About every ten to twelve years, as an average, real estate values tend to double in most major metropolitan areas,” says William Bronchick, J.D., attorney and president/co-founder of the Colorado Association of Real Estate Investors.
He gives the example of original colonial homes selling for just under $2,500 in Long Island, New York in the 1920s.
“Since we now know based on history that nearly all real estate prices will double again, it’s not a matter of if, it’s a matter of when your existing houses will sell,” he said.
He continues that sharing these facts with prospective buyers will put them in the right frame of mind to buy now versus next year if they plan on staying in the home more than five years.
“If a buyer is apprehensive about being the right time to buy,” says Bronchick, “ask him if he’d like to buy his parent’s home for the price they paid for it–the answer will be obviously yes.”
In addition to becoming educated about the real estate investment business, another important step that potential investors can take to is to join their local real estate investment association (REIA) group. To join or find out more about your local REIA group, visit www.nationalreia.com.
There is Real Estate Investing Hope!
Join the conversation.
By admin On January 3, 2009
No Comments
Well, one can not simply buy REITs. One can however invest in one. In order to do this, one must know what in the heck REITs are. To put it as simply as possible, they are, Real Estate Investment Trusts. Now to the Average Joe Investor, you still may not have a clear definition as to what exactly REITs are? Let me try to break this concept down a little further, so you will be know more about this concept of Real Estate Investing.
REITs work somewhat like the stock market. You have a company that invests in real estate by using share holders for funding. They make money from rising rental property or the sale of real estate. They then pay dividends to the stock holders. Kinda nifty if you ask me. Now there is a down side to all this, as there is to any investment. The market does rise and fall, but has stayed steady throughout recent years. This can be a plus for the real estate investor. they can be even more of a plus , if you are trying to invest in the all too changing housing market.
To make a quick turn-a-round in this market can be tricky, not to mention it depends on what section of the country you live in. If you live in the Southeast, the market appears to be improving. If you live in the Pacific West, then the trends are showing a downward movement. Therefore, REITs can be a stable investment. Another plus side to REITs is that they can be quickly liquidfied for quick cash flow.
Unlike the housing market, where a person may have to wait at least 120 days before a sell. If this is the case, then the long wait for a turn-a-round could eat into your protential profits. Unless you have purchased the house outright, the mortage still has to be paid. Just remember, banks and lending institutions still want their money ( and interest) reguardless if you make a profit or not. We all know that the main reason for investments is to make money-not spend more! So are REITs the right investment for you versus the housing market? Only you can decide. There are plus sides to both.
REITs offer you a solid investment regardless of where you live. On the other hand, if you do invest in a house for a quick turn-a-round, since you have a problem with trusting a REIT, then you could profity handsomely in a short period of time, if the property sells quickly. You also may want to consider, it may take a long time for this to happen and you must be financially able to “sit” on a housing investment. If you are a person who likes the idea of Real Estate Investment Trust, then they do provide a stable market and one can profit quickly. One must remember, such as paying the stock market, it could dip below profit margins, but they stay remarkablly stable throughout.
To buy or not to buy a REIT is indeed the question. I for one, have convinced myself to at least investigate further these mysterious REITs. I am sure there is a penalty fee for early withdrawal, since there usually with most investments. I am also convinced that the so called trends in the housing market, are simply projections. They may or may not come true. I have witnessed this as my time here on planet Earth contests.
No-one can say for certain if the housing trend in the Southeast will continue upward, or if the Pacific West will be an investor’s nightmare. The reverse could be a possibility. My advice to anyone investing is to gather as much infornation as you can pertaining to that investment, and make the best one for you.
Whether you invest in a Real Estate Investment Trust or in a piece of property with tons of profit protential. The main thing is to prepare for the long haul and to make money not to spend more!
Join the conversation.
By admin On January 3, 2009
No Comments
An interesting trend seems to be emerging in the real estate investment business. In lieu of the volatile expansions and contractions of property values in popular, rich, safe, suburban neighborhoods, many investors are gravitating to low-income neighborhoods to invest in distressed properties.
Investors are attracted to these types of properties because of the often extremely low selling prices of the homes, which when rented out generate a steady and very profitable cash flow. While not for the flamboyant investor who wants to impress others with their prestigious portfolio of properties, these distressed properties are for the professional landlord who isn’t afraid to get his hands dirty, and has one goal in mind: cash flow
Low purchase prices, and a proportionally high ratio of renters in low-areas means high cash flow for investors in these areas, which encourage the monopoly of entire neighborhoods. Often these neighborhoods are struggling with crime and blight, which leads one to ponder whether the reason why these neighborhoods are blighted at all is the fact they are owned by investors only interested in cash flow.
When properties are seen as investments rather than homes, any aesthetically pleasing aspects an old house may have had naturally become burdens to maintain either get altered to maximize profitability, or removed altogether. A perfect example of this trend is to look at the old Victorian sections of any city, and look at the properties. Once grand mansions are severed into apartments, and bay windows are boxed in to maximize square footage. Old houses deemed too dilapidated to renovate are bulldozed, and unimpressive apartment complexes are erected in their place to maximize profit.
Eventually, as an initially desirable neighborhood slowly gets bought up by investors, one property after another is transformed from home to investment, property values fall, and voila: a blighted neighborhood. And anyone unfortunate enough to still live there after all these transformations sells their property and moves away, leaving even more properties to the investors.
With cities all over this country struggling with urban blight, one wonders what solutions can be implemented to prevent the phenomena. Should investors be responsible for keeping properties properly maintained, or is letting someone rent a dilapidated hovel standard capitalist procedure? Should investors be responsible for letting drug dealers reside near inner city schools, or is that beyond his realm of responsibility?
Join the conversation.
Land Investment property has year after year proven to be one of the best methods of Real Estate Investing. This “Top 25″ list has been compiled to contain some of the largest owners of American soil. They may or may not have a “media magnet” name in similarity to that of Donald Trump, etc, but there is one thing for sure, they own a heck of a lot of land here in the United States.
