Category Archives for "Real Estate"

Real Estate Investing for Beginners

If you have heard about real estate investing, but don’t know where to begin, consider yourself lucky for two reasons.

1. Anyone can invest in real estate.

Anyone can invest in real estate. Some of the biggest real estate investors are high school dropouts or college dropouts. These guys are clearing five figures a month net profit.

My journey as a real estate investor

In 2005, I started researching investment properties in the area of West Palm Beach, Florida. I soon discovered that real estate in South Florida was out of my price range. So, I decided to look elsewhere. I researched North Florida, using a technique that I had learned about in a real estate investing book.

2. Investing in real estate does not require using your own money.

You can use someone else’s money. What do you bring to the table? Your skills and knowledge. In exchange, you earn a percentage of the profit from the deal. Any risk can be ameliorated (lessened) by your research into the deal. In real estate terms, this research is called “due diligence”.

Here is a ten step plan anyone can use to invest in real estate.

1. Find your market

(geographical area, location, close to your current address is preferred)

Finding your market means finding your target area, the geographical location, of where you want to purchase real estate. Ideally, it’s best if you purchase property within a 10-20 mile radius of your home. The closer you are to your investment property, whether it’s a house, mobile home, or vacant land, the better.

Choosing your market will be determined by the amount you can make, known as the Return On Investment (ROI), minus your expenses, when you sell or rent the property. And your ROI will be effected by a number of factors-current market values of the existing properties in this area, upcoming developments planned for the area, proximity to landmarks or bodies of water, crime rates for the area, employment opportunities for the area, and a lot more.

Visit the area at night. During the day, an area with a few abandoned houses or commercial buildings may appear like an opportunity. At night, however, these buildings may be a haven for criminal activity or a camp for homeless people. Talk to the people that live in the area to get a feel for what’s going on there.

2. Determine or choose your investment property type

What kind of real estate property would you like to invest in? Buying a house? Buying a mobile home? Buying land? Buying commercial property?

How would you like to buy the investment property? Buy it outright, or put the down payment on it in order to secure the mortgage? Securing the mortgage of an investment property allows you to save money while, also, getting control of the property.

Okay, you’re probably wondering “but I don’t have the money to buy the property, what about the money?” We’ll get to that.

3. Find five properties

Find five properties (houses, mobile homes, land, commercial properties) investment properties to purchase, rent for profit, or flip for profit.

Research. Study the area where you plan to purchase a property. How? Follow these steps.

1. Search online for “___________ ________ tax assessor” and “_______ _____ tax clerk” and “______ ______ property appraiser”. Fill in the blank with the county in which the property is located. Fill in the second blank with the state.

For example, if you’re searching for an investment property in Gilchrist County, Florida, search for “Gilchrist County, Florida tax assessor” or “Gilchrist County, Florida tax clerk” or “Gilchrist County, Florida property appraiser”.

Research the area. Find out what properties are selling for, how long they’ve been on the market, annual taxes, appraised values, etc.

Study the area. Determine the comparable market values of real estate. Become an expert and this will enable you to forecast, or predict, trends so you’ll understand where to buy and when to buy and where to sell and when to sell.

4. Develop your strategy. Lay out a plan.

* Buy and rent for profit?

* Buy, fix up, resell for profit – buy and flip? You make money when you buy! You can find a buyer before hand by using the internet classified ads and social and classified ads in local newspapers. Find out who’s willing to buy and what they are willing to pay before even making an offer on the property you want to buy.

* How are you going to find the money? We’re getting to that. Once you have an action plan or a plan-of-action, then finding the money becomes easier.

5. Establish a back-up plan.

Just what it says. Set up a plan in the event that everything goes wrong, in case of a situation in which everything goes south. Establish a contingency plan. You’ve made it this far, now make a backup plan. You can do it.

This-making a backup plan-will lessen any worries you have, enabling you to move forward, to take action, to make things happen. Action eliminates fear

6. Determine your exit strategy.

In order to know where you are going, first decide where you want to end up. What’s your end goal? How do you plan to exit this RE deal with a handsome profit, and with all parties (buyers, sellers, investors) satisfied and happy?

7. Present your plan to investor or investors.

Read over your notes and reduce everything to a simple plan of action. Then, write down this plan of action and reduce it to numbered steps… 1, 2, 3 and so on. Set the dates of when you’re going to do what. Make copies of this, both PDF copies and hard copies.

Get everything in writing, signed, in the presence of a notary public.

8. Execute your plan.

Take action. Action eliminates fear.

Start putting your plan into action by taking action.

9. Get people competing to buy your property.

When selling or renting the investment property, gather a crowd by scheduling a specific time. If you want to rent or sell a property, set up a specific time frame in which to show the property, preferably on the weekend. Schedule an open house on Sunday, 2pm – 4pm, gather a big crowd. Get a mortgage broker at the place to, in order to set up mortgages for people who want the place.

10. Put your exit strategy into motion.

Collect rents. Sell the property. Keep records of everything (video, audio, paperwork, keep backup paperwork).

Top 4 Property Investment Tips

While property is a very lucrative and successful investment, it’s not without its risks. it’s turning into more and more popular these days, especially after the economic recession and stock marketinvesting still being comparatively risky. making a successful property investment portfolio canalways require a good information of the property market, the location, and also the current economic climate, so you must always determine as much as you can before buying a property. There are also a variety of property investment options, so it’s worthy to think about some property investment tips before you start searching for the proper investment property.

1. Research the property market

The first essential step you must take before selecting a property for your investment, is to do yourresearch. Join a property club, register for a seminar, or just simply read as much about the basicsof property investment as you can. This can enable you to identify moneymaking opportunities and deals that are absolute to be unsuccessful. You’ll need to verify as much as you can about the financial factors of a real estate investment and about basic strategies. You’ll also got to be informed about current economic trends, to be able to make informed decisions, and researchpopular or emerging property locations.

2. Set out your aims and survey your financial resources

While finding out potential investment properties, you must also clearly set out your aims, profit expectations and also survey your financial resources. Firstly, the kind of property investment canindeed greatly depend on the initial amount you’ll be able to invest. If you’ll be able to afford to buyan expensive property you can naturally expect larger profits, but you can definitely keep returns on a smaller budget as well. you’ll also have to make a decision if you’re searching for a short term or a long term investment, which can be dependent on your chosen investment property and exit strategy.

3. Decide what kind of investment property you are looking for

The process of selectingan investment property willseemfrightening the inexperienced investor. The 2 main property typesare residential and commercial properties. While residential properties offersmoreflexible investment options, commercial properties needa larger initial investment butwillcause higher yields. Buyingan overseas property is another choice, which means that risks will potentially be higher, butyou’ve gotmore flexibility and a far betterchance of securing higher profits. BMV properties, or below market value properties also arepopular, as they allow investors to gethigh returns from a small initial investment. A buy to let property is along termand comparatively safe investment, where your main source of incomeis the rent paid by your tenants. Alwaysthink about the advantagesand disadvantages of all these property types and your required outcome before creating a final selection.

4. Don’t forget the location

Location is probably the one most important factor once it comes to property investments. A bad location can almost invariably lead to failure, while a good location is the basis of success. Economic stability, smart living standards, and economic developments are always positive signs. If you’reinvesting in a buy to let property, it’s also essential to buy the property in a smart neighbourhood, with many local amenities, otherwise it will not be an attractive property for potential tenants. It’s also worthwhile to research emerging markets, where property costs are still low, but new investments are sure to lead to future property appreciation.

To get more information, you can go to the link below :

http://bit.ly/TipForEarningMoney

Tips To Do Well In Real Estate

A lot of us invest money on diverse income sources such as the amusement sector, stock trading, manufacturing and real estate. Some people vacillate to invest in realty since they believe that it’s a more risky investment. Any investment assessment has some extent of risk, not just in real estate investments. But we can reduce the menace by playing the game by knowing the rules better. However, many investors make faults along the way and end their investment with major failures.

Below are some regular mistakes by many property investors.

  • Absence of a polite plan – Many people start and make a lot of transactions. Then they try to contest up the property with their plan. However the wise thing to do is to buy a property which fits with your accessible plan.
  • Not asking for help – Some people occupy in the realty industry on its own without having any knowledge regarding this sector. Whenever you manage alone, odds of getting conned is higher.
  • Some make important procures without any frontiers.
  • Real estate investment commands some money to be sustained.
  • To make assets without the basic understanding.
  • Some keep only one option. This can be very menacing because there are not any means to calculation.
  • A few real estate investors the make wrong estimations of property.

A few words to help you circumvent the most common mistakes and accomplish success in the property investment.

  • Don’t spend massive cash at first. This will keep you from trailing too much.
  • Pay for real estate only when thinking about their present and future significance. Don’t buy properties that are approximate to get more costly.
  • Join a group. Put a real estate manager, appraiser, legal professional, inspector and a lender to your group. This will likely stop you from making big blunders.
  • Ventures in real estate is often a long-term project. Keep more than one selection available.
  • Acquire property that may sell for different use.
  • Get as much information about this sector as possible. Always be aware about recent market movements and failures.
  • Usually look at the numbers such as income, maintenance costs, rentals, and vacancy rate. It will help you to calculate and estimate the money-making process.

The reality is that if investing in property were easy, everybody would be doing it. Fortunately, many of the struggles that property investors bear can be avoided with due carefulness and proper planning before the agreement is signed.

 

Lease Options

As more and more properties go to foreclosure and more and more banks bound their lending restrictions we are going to see a growing trend of people selling their homes using lease options. Quite frankly lease option has been around for a very long time but never have been given the publicity that perhaps they should. the whole mortgage/real estate industry spend a lot of money trying to convince you that their way is the only way of doing business.

rent-to-own1

chaddmatthewsonblog

First of all it opens up the amount of potential buyers that you can market to, which being in a buyer’s market is a good thing. we would like to provide ourselves the most effective chance possible to sell our properties for top dollar all the while protecting our equity. In these circumstances we’ve got two options…open up the amount of potential buyers or pay the real estate agents more to sell our property. some of you might be thinking that paying your agent a lot of shouldn’t matter but let me tell you it does. If they can make 7-8% instead of 5-6% commissions you better believe they will be pushing to sell your property.

Secondly it preserves equity that you would probably be paying to a real estate agent, closing costs and price reductions. Throw it in your local classified ads instead of paying for a real estate agent to market the property for you saving yourself the 5-8% commissions that are commonly charged. Besides that when people buy your property they expect to be able to negotiate the purchase price somewhat, but with a lease option this is a less likely scenario. i would always recommend that you involve a lawyer in the process to make sure that the lease and the choice are both well documented for your local laws.

Lease Option

carsonvalleyland

Thirdly you can ask for first and last month’s rent a rental deposit and options consideration. The first and last month’s rent and the rent deposit are all a part of the rental/lease contract and are probably refundable. What you are doing not want to be refundable is that the options consideration and that is why you want those contracts to be separate.

Lastly you’ll charge future value for the property and top dollar in rent. By fixing your contracts, and i suggest that they be 2 separate contracts, one being the lease and the other being the option you’ll get away from any confusion about the people renting your property actually purchasing your property using vender finance. Therefore by making the distinction you’ll ask for future value of the property and that can be a part of the choice contract. On the other hand you’ll charge more than market rent for the property because you’ll have some of the rent go towards the down payment and closing prices when they exercise the option.

lease-buy

realestateforvirginia

Just bear in mind that you simply don’t want to give your renters the option of extending their contract while not paying another option consideration. you also want to make sure that with any contract that there ar some teeth in their so that if they don’t perform that there are some serious consequences. you may also want to consider putting in the contract something to the effect that they are completely responsible for all utilities and maintenance of the property and if they alter the property in any way that they’re solely responsible for the costs.

Conclusion…Lease options are a great way to sell your home in a buyer’s market (in any market) because you will be able to sell your home more quickly, while conserving your equity and creating monthly cash flow through rents. not to mention the choice consideration and any other fees you deem necessary you get to keep regardless if they exercise the choice or not.

Source: ezinearticles

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