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Real estate investing education for free
Every experienced real estate investor understands that to succeed in property investing you need to study special texts, learn different investing techniques and never stop searching for new information.
But what if you just recently decided to start investing?
You would like to improve your financial situation and build serious wealth using the oldest, most reliable form of investment on earth but have no idea where to start. Maybe you think it's a good idea to attend a "super" seminar for $10 000.
Will it be just a plain waste of money and time? What if at the end you decide that fixing toilets and arguing with tenants is not your favorite kind of hobby and would rather do something else? Great, but you just lost a valuable time and money in the process by learning something that you will never really use in your life.
I have some very good news for you. You can start learning different ways of real estate investing completely for free by using many valuable Internet resources described below. In most cases the information presented is completely free, but in some instances you will have to provide your e-mail address.
One of the easiest and safest ways to start gaining real estate investment experience and some spare cash for your future deals is by bird-dogging, or in other words, providing qualified leads to more accomplished investors. You don't need money or good credit to start as a bird-dog and you will learn a lot working with real investors and real deals.
The Real Estate Jobber Course written by Barry Grimes is devoted exclusively to all aspects of real estate bird-dogging. It includes five massive volumes with over 1,000 pages of material.
Download the first volume for free by clicking here: http://www.shop.reidepot.com/Grimes/
The Lease Option (Lease Purchase, Rent To Own) method of real estate investing also doesn't need a large amount of initial cash investment and good credit ratings. It also can be done in your spare time without excessive risks, but this technique is more involved from the procedural point of view and needs a higher level of knowledge and experience than bird-dogging.
Several years ago two famous real estate authors Peter Conti and David Finkel released a very practical and informative book called "How To Create Multiple Streams of Income Buying Homes in Nice Areas With Nothing Down!" devoted mostly to the Lease Option method acquiring and controlling real estate without actually buying it. You can buy this book in your bookstore for about $20.00, but why would you want to do that when you can get this book for free from the author's web site at: http://www.resultsnow.com/freebook.php
Arguably one of the most profitable ways of property investing is buying foreclosures or pre-foreclosures. A foreclosure or distressed sale begins when the owner stops making mortgage payments. Thousands of investors make a business out of buying foreclosures for profit. The main problem here is that you have to know what are you doing if you want to avoid big and costly problems.
To download the popular book "How to Buy Foreclosures", plus an additional book which will help you to fix all your credit problems, just trade your email address here: http://www.reidepot.com/subscribeform.html
Many homeowners with little or no equity at all have big difficulties selling their property because they have to come up with additional cash to pay for real estate agents' sales commission and so they are ready give up this property for free.
If an investor takes this property without qualifying for the new mortgage and continues to pay the original owner's mortgage payments he is taking this property "subject to existing financing". Some lucrative deals could be done here.
Again, instead of buying the very informative book by Bill Gatten called "No Down! No New Loan!" in the bookstore, download the electronic version of the book for free from the author's web site at: http://www.landtrust.net/articles/index.jsp
You can make hundreds of thousands of dollars by buying a run-down house at the right price, using the correct finance structure, fix it up for the least possible cost and then sell it for maximum profit, or hold and use the newfound equity to help fund your next property.
To read several free chapters from the bestselling book "Fixer Upper Profits" by Sal Vannutini please visit this web site: http://www.fixer-upperfortunes.com
I barely scratched the surface here. If you are persistent enough, you can find much more free valuable real estate investing educational materials, including more free books, reports, real estate forms and even free audio and video presentations. Fire up your computer and start searching.
Here are two more links that you will find very helpful:
The first link is an internet forum called "Links to every free real estate ebook known to man" belonging to the author of the best-selling book "Magic Bullets In Real Estate" by Dan Auito.
http://www.magicbullets.com/forum/forumdisplay.php
?f=38
By following this second link you will find a page where many other free real estate investing books, courses, reports and audio recordings are listed. http://www.reidepot.com/links/freebies.html
The real estate industry has created more millionaires than any other area of business; so don't let the lack of money stop you from learning this enormously profitable way of life.
Good luck!
Alex Bezborodko
Private equity funds boost real estate market
Private equity funds boost real estate market
>From Business-Standard.com
The real estate market in India is driven by Asian real estate funds, Singapore developers and domestic private equity funds dedicated to real estate, according to Mridul Upreti, head, corporate finance and investments at Jones Lang LaSalle.
However, new players |are rapidly emerging among US opportunity funds, UK private equity and venture capital firms. "This increased institutional investor interest is expected to push the market to higher 'efficiency' levels," he added.
With this investor interest in India, Jones Lang LaSalle expects exponential growth in foreign investments across four to five key markets. The focused areas are suburban business parks, large residential schemes, and city centre mixed-use schemes with hotel/serviced apartment components.
There could be further acceleration of investment interest in shopping centre development projects in India, in the wake of the expected easing of foreign investment rules in the Indian retailing industry.
"The clearance of the proposal for 100 per cent foreign direct investment (FDI) in construction and development projects in India, which was announced early this year has given a boost to foreign investments in the country," said Upreti.
Global investment in real estate increased by 12 per cent to
$457 b in 2004 (on 2003) according to a report published by Jones Lang LaSalle (Global Real Estate Capital - Travelling Further to Return Stronger). Of this, Asia Pacific accounted for
11 per cent at $48.3 b.
The Asia Pacific investment is a 74 per cent increase over 2003.
Of this, 24 per cent came from cross-border investment, which has grown by over 146 per cent to reach $11.5 billion, said Richard Johnson, managing director of Asian Capital Markets Group at Jones Lang LaSalle.
The bulk of the cross-border activity came from North American investors who traded $5.1 billion of assets and invested a net $700 million in the Asia Pacific region. Amongst all the real estate sectors, the office market was the most highly traded asset, accounting for 45 per cent of all capital market flows in Asia Pacific.
According to Johnson, "The globalisation of real estate investment is more than simply an extension of booming local and regional investment markets or a 'theme for the medium term'. It is here with us, now, and we believe it is here to stay. Not only is there a vast weight of capital flowing between regions, sophisticated global investors are exerting an increasingly significant influence on local markets through competition with domestic and regional players."
This article is sponsored by: www.indiarealestateblog
.com
Wholesale Real Estate Investing
Copyright 2005 Brad Eden
Consider these parameters for a real estate deal:
Property Value: $250,000 Purchase Price: $160,000 Repairs: $2,500
If you analyze the numbers, you see that the equity available in this deal is $87,500 (Property Value minus Purchase Price minus Repairs).
So here's a hypothetical question for you: Assuming that the information above is accurate, and the property is located in an area that you view as acceptable and/or favorable, then:
If I offered to give you this deal in exchange for $10,000 in cash, would you do it?
Remember - this is hypothetical. The real question here is this:
Would you exchange $10,000 in cash for $87,500 in equity?
For most savvy investors, the answer is: Absolutely YES!
This is called "Wholesale Real Estate Investing" - the process of buying a lot of equity at a very significant discount from another real estate investor who has already done the hard work of finding a deal and getting it under contract.
Just think about that - consider how easy real estate investing would be for you if you had a network of real estate investors in your area (and maybe even all over the country) who, several times each month, offered you the opportunity to purchase significant amounts of equity for a severe discount...
...It would be quite easy to become wealthy, fairly quickly, wouldn't it?
The answer again, is: Absolutely Yes, it will.
It is through smart "wholesale real estate investing" that you can increase your net worth by $20,000 to $100,000 on every real estate deal that you do.
...Now the burning question becomes, "Where exactly do I find these wholesale real estate investing deals?"
I know of at least 3 solid sources...
You've got to admit - it will be a pretty wonderful thing when you know how to find great real estates deals in which you can trade a small amount of cash for a large amount of equity without even having to find the deals yourself...
...And that's exactly what "wholesale real estate investing" is all about.
So let's get right to it. Here are 3 places to find wholesale real estate deals:
1.) Visit the local real estate investing club in your area.
Almost all of these clubs have networking opportunities to work with other investors who wholesale deals regularly, and this is an easy way to find great opportunities.
2.) Watch for ads in the newspaper, television, and in other media that advertise slogans like, "We Buy Houses", or "Sell Your House in 9 Days" or anything similar to that. Most of the time, these people are real estate investors, and they are happy to wholesale deals to people like you.
3.) Watch your email-box. Why? Because if and when you choose enrollment in various free e-courses online, such as that via tm-RealEstateInvesting.com, you'll be provided with automatic notification about great local and national deals as they become available. But be forewarned - you've got to act quickly whenever these deals are announced, because obviously the response is always significant.
Happy Hunting!
No Money Down Real Estate Investing Programs
Nothing in the last thirty years has excited the would-be real estate consumer as much as "no money down," " no down payment,"
real estate investing for which we all have to thank Carleton Sheets. Then along comes Ron Le Grand offering "cash back" at every closing! Can either be true?
Most people don't believe either claim. Yet, ever year thousands invest hundreds of dollars in Sheets' program and potentially thousands in Le Grand's. So what is the answer? Are the claims true?
Like a politician my answer depends on whom I talking to. Some people will positively be able to buy real estate with "no money down," "no down payment," they're the ones with money for closing cost. For most dreamers with no money in their pocket or the bank the answer is a definite no! A wise man once said "it takes money to make money" that's almost always true!
In real estate as in life there a few absolutes, you noticed my hedge words "most" and "almost," but there is more than one way to hedge your words. When reading the ads or listening to the TV real estate gurus you heard "NO MONEY" but they say is "no money down," "no down payment." There are lots of ways to buy real estate with "no down payment" but only a few to buy with no money.
So if you are asking is what the TV gurus say true? The answer is a definite, absolutely, positive, yes! If on the other hand, you are asking is what I heard true? Just how naive can you be?
I bet you still believe in Santa Clause and the Easter Bunny!
The answer is definitely, absolutely, positively, no!
Non-owner Occupied lenders normally require the investor to at least pay his closing cost. 100% seller financing is going to have some closing cost! Most states picked up the deed stamp tax when the Fed. dropped it! Here in Nevada a $200,000.00 deed will require $510.00 tax plus $7.50 / page just to record. So even the most simple "deed subject to the existing mortgage" with "no money down," "no down payment," is going to take several hundred dollars to close.
Most real estate gurus, myself included teach buying distressed properties, which is really a misnomer, we mean buying from distressed sellers! Distressed sellers seldom (another hedge
word) have the ability to pay you! There are legal ways to borrow cash out on N/O/O purchases, I write about the best one in chapter 1 of my book "One House At A Time / Finding and Buying Single Family Rentals." The key word is "legal" there are many people preaching fraud, don't get involved. Why invest just to pay a defense attorney?
What about the claim "cash back at every closing?" I've been in lending and real estate since 1969. I've been a hands-on real estate investment consultant since 1973. I write about and teach real estate investment. I write about getting cash out in "One House At A Time / Finding and Buying Single Family Rentals," but I couldn't promise cash out at every closing! But, it's true! I ask the man himself. I stood up, I had him, an undeniable lie!
Asked how can you promise cash out at every closing? He looked me straight in the eye, as sure of himself as I was sure I had him, and said, we teach that if you can't get cash back don't close. I settled back into my chair and consider sliding under the table. It's true, you can get cash back at every closing!
Only my wife to my right and one of my students to my left realist how many good deals that advice would kill.
The question was, are the real estate gurus claims, true or false? My answer is, yes! I've been in the business for nearly
35 years, and except for the puffery I believe them. I question the morality of the approach of many programs. I doubt that most people will get much out of the programs. I question the value of the programs, several total over $30,000.00, but one good deal could cover that several times. I write about a more people friendly approach at a reasonable price. But, for me the answer is I believe them.
7 Big Reasons To Invest In Pre-Foreclosures
Looking for an "in" to real estate investing?
Working a nine to five job swapping time for money can be incredibly dispiriting. After the futility of it all hits home, it's all you can do to limit the number of home business opportunities you investigate to twenty per week.
One of the more compelling home business opportunities is real estate investing. Real estate investing is the perennial wealth builder, and the transition from working a job to achieving wealth through real estate investing is becoming increasingly well documented.
You've probably thought about investing in real state yourself but you've not gone for it because you thought you needed tens of thousands in savings for a down payment, and perfect credit along with strong banking relationships.
Well, you can get all that together if you want. It doesn't hurt to have those resources. But it's not necessary to have a huge pile of cash and perfect credit to buy a house cheap and resell it for a profit.
It's especially not necessary in the preforeclosure market.
Preforeclosures are houses in the default phase of foreclosure; where the bank has filed initial foreclosure papers but the Sheriff Sale or Trustee Sale where the bank auctions off the property, or repossesses it if no-one buys at the auction, hasn't occurred yet.
Buying during the preforeclosure period is one of the best ways for anyone to get involved in real estate investing. With little more than a few hundred dollars and some specialized knowledge you can buy a house at a substantial discount and resell it retail picking up a five figure profit check in the process.
Don't believe it?
Well, let me give you seven reasons why it's true:
1) When people are in default on their mortgage they have stopped making payments to the bank. So when you are negotiating with the seller, and the bank, right up until the point where you buy, no-one is making the payments. For novice investors worried about holding costs this is a huge advantage.
2) Preforeclosures are a very well defined niche market. One of the most deadly mistakes rookie investors make is trying to be a jack-of-all-trades, going after any and everything they can lay their eyes on. The result of this lack of focus is they are soon back at their jobs. By being a very defined market, preforeclosures allow you to develop focused marketing campaigns and standardized processes to get deals completed and closed.
3) One of the fundamentals of real estate investing is contacting and talking "only" to motivated sellers, and avoiding all the rest. Sellers in preforeclosure are some of the most motivated sellers you will find. Their world has been turned upside-down, they are about to lose their house, and their motivation is such that they just want out of the house and the bank off their back. By buying houses from people in preforeclosure, creating 30%+ equity spreads on houses often in good condition is not a difficult thing to do.
4) Buying houses in preforeclosure enables you to create unusually large equity spreads. Recent economic uncertainty has caused a lot of foreclosures, and rising rates will cause more in coming years. If banks had to take back all of the properties that went into foreclosure the FDIC would shut them down. They know this, so they try not to take properties back they don't have to. By requesting the Lender discount what is owed on their payoff, large spreads of equity can be created on houses that are totally "maxed out" with loans. This can't be done on loans not in default.
5) Because Lenders are under pressure to liquidate bad loans rather than take the property back, large discounts can be negotiated. After becoming familiar with the issues that cause Lenders to discount, larger and larger discounts can be achieved as you hone your negotiating skills.
6) If your plan is to buy and hold the property, having good enough credit and financials to get bank financing excludes a great many people from getting into real estate. On top of that, if you do get a bank loan, your financial exposure is at it's maximum when everything is in your own name and personally guaranteed. Buying houses in preforeclosure allows you to simply take over the existing financing already in place. No qualifying needed. You can take title to the property in a Land Trust, begin making payments on the existing mortgage(s), and still get all the tax advantages, appreciation, depreciation without any of the risk of being personally liable for the mortgage and the property.
7) If you have ever bid at auction for property at the courthouse steps, you are only too aware of the competition breathing down your neck. Lots of mind games. The 40 thieves are talking trash to you trying to get you not to bid. If you are Larry Bird, no problem. Make sure you have $500K on your credit line though. However if you are not the 'Bird' and you don't pack half a mil' of credit, you can sneak in and avoid this NBA showdown by buying the house during the preforeclosure period...
before the auction.
Make no mistake about it, there are many ways to make healthy profits in real estate investing. But when you look at how easy preforeclosure 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.
Ben Innes-Ker is a full-time real estate entrepreneur, best-selling author, and real estate investing warrior. He has developed the "Foreclosure Investing Letter" to help real estate entrepreneurs and investors do more deals with less effort and increase profits. To learn more about this powerful step-by-step program and receive your free 5 part mini-course, go to http://www.the-foreclosure-investing-letter.com/
7 Reasons Why Real Estate Options Are Ideal for Beginner and Advanced Investors
Copyright 2005 Alex Nghiem
Whether you are an advanced real estate investor or just getting started, real estate options can be an ideal investment technique. A real estate option is a way to control a property without owning it and it locks in the buying price for a specified time.
Most investors don't understand how to use a real estate option, which is unfortunate because it is one of the most powerful tools in real estate investing. In fact, super successful investors such as Donald Trump routinely use real estate options for maximum leverage.
Here are 7 reasons why options are ideal for real estate investors, beginner or advanced.
1. Since you don't own the property, you are not obligated to make house payments. You also don't have to deal with repairs, holding costs or tenants. Imagine how flexible you can be if you don't have to deal with monthly mortgages or on going repairs.
2. Getting started with real estate options doesn't require a lot of cash. In many cases, we have controlled a $100,000 property for $10. This is especially important for a new investor since startup capital is often an issue.
3. Options are great at generating quick cash. Once you have the option locked up, you can market the property to create quick cash. You should focus on making at least $5,000 per option deal, and there's no practical upper limit to how much you can make (one of our colleagues made over $300,000 on a land option deal)...all without having to deal with tenants, repairs or holding costs.
4. Using options is a great way to enter the luxury home market or control properties in hot markets. Since these are higher priced homes, you should expect to pay a higher option fee. We have controlled $500,000 properties using $100 to $1000. In many markets, a $500,000 is a starter home but the point is that you can control a lot of real estate for a very modest fee.
5. Options are scaleable because a single real estate option can be used to control a small deal or a large one.
6. Options offer multiple exit strategies. You can either exercise the option to buy the underlying property; you can sell or assign the option to another party; or you can ensure that the seller has to pay you off because the option creates a flaw in the title.
7. Using options allows you to convert dead leads into viable ones. For an experienced investor, this alone can add tens of thousands of dollars to his business because most deals that are not viable with other techniques (foreclosures, short sales,
etc.) are often great candidates for real estate options.
8. BONUS REASON: Real estate options are very flexible and can be used with all types of properties including single residential homes, multi-units, apartment buildings, commercial properties and land. You can also specify the option period, which offers additional flexibility. In many cases, you can even extend the option period, often for an additional modest fee.
In summary, using a real estate option is an ideal investment technique for beginners because options don't require much cash and can generate cash quickly. For advanced investors, using options to convert dead leads into deals can add tens of thousands of dollars per month.
Condo Conversions
The past few years has seen a boom in condo conversions, which allows buyers to generate cash-on-cash returns within a short period of time. This, in turn, allows prior apartment owners to cash out at the top of the market.
The condo conversion craze began with the low interest rate affliction that was crippling apartment fundamentals. Condo developers were willing to pay a premium to buy and turn rental properties into condos.
The cash-on-cash returns that successful condo sales can generate are between 15% and 30% or more in a matter of months.
Another benefit seen from condo conversions is the creation of more affordable housing in areas famous for steep single-family home prices.
Condo conversions can be a double edge sword, however, as conversions likely will hurt most rental markets. While condo conversions benefit multifamily owners by shrinking the supply of apartments, condo buyers are typically renters, so conversions won't necessarily lead to a jump in occupancy rates.
In fact, some conversions directly compete with apartments because they end up as rentals. Also, many renters currently living in an apartment when it is bought and turned into a condo cannot afford the price of the condo. They are left searching for a new place to live. If they can afford to stay and choose to buy the condo, they are most often offered a much cheaper price than outside buyers.
Despite any controversy that condo conversions have created in the real estate market, it is still a smart, beneficial way to invest in real estate.
To learn more about condo
conversion loans visit Security National Capital.
Here's a 'Secret' (and Free) Way to Get Your Home's Value
Special Announcement: The Internet has become an integral part of the homebuying process.
In fact, over 70% of all homebuyers use the Internet to search for their home. Of course, we all knew that, right? It's been all over television, the newspapers, and, of course, the Internet.
Well, here's a little known "secret" I'd like to share with you.
As easy as it is to find home listings when searching for a new home, it is just as easy to get information on the value of your current home...for FREE! That's right...F-R-E-E!
Yes, there are some sites that charge for general sales information. But how accurate could this information be if it is just general value information for your town. Each neighborhood has its own characteristic, its own flavor. More importantly, each neighborhood also has its own market value, too. One neighborhood, for whatever reason, could vary in value greatly than a neighborhood adjacent to it. So it is very important to get specific property information about your particular home in your particular neighborhood.
How do you do that? Easy! You have a professional real estate agent run a market analysis of your home and email you a copy.
Any professional real estate agent would jump at the chance to have the opportunity to create a dialogue with a future homeseller. And any homeowner should be excited about getting such information in a non-threatening way. Think about it. You get a value range of your home at your convenience without having a real estate agent breathing down your neck or shoving a contract under your nose. This is especially useful if you just want to keep tabs on your home's value or you're just thinking of refinancing. Why go through stress unnecessarily. As a real estate professional, I wouldn't want you to go through that and I'll bet there are probably others who think the same way as I do.
But do me a favor for sharing this "secret" with you. When this professional shows you the respect of sharing this information about your home's value with you, show him or her the same consideration by placing him or her on your short list of agents when you do consider selling your home. Or when you consider buying a property. Heck, whenever anyone in your sphere of influence thinks of doing the same thing, repay him or her for the respect shown. It's only fair, wouldn't you agree?
Mortgage vs. Real Estate Lead Generation
It is fairly common for real estate companies and mortgage brokers to use leads. There is a difference between mortgage lead generation and real estate generation. Mortgage lead generation deals with people who need to refinance their homes or apply for loans, while real estate lead generation is a service that connects potential buyers with real estate agents.
Mortgage leads are generated in a number of different ways. One way to create the leads is for the lender, that is the mortgage broker, to appear in a paper or online directory. This lets potential customers make the first contact. The lenders give information about themselves, like the interest rates they charge and types of lending programs they offer, along with their contact information. This allows potential borrowers to search out the lender that is best for them.
Real Estate lead generation is somewhat different. It involves connecting prospective buyers to real estate agents. It is usually a good idea to use a real estate lead generation service that uses only inbound leads, meaning that the buyer contacts the lead generator looking for a real estate agent. This way, the lead generator can get the most information possible from the buyer in order to find the most appropriate real estate agent. Many lead generation services use tricks to lure prospective buyers.
Mortgage lead generation helps lenders and borrowers find each other. This service benefits everyone involved. Some of the most successful businesses on the Internet are lead generation agencies.
Choosing The Right International Real Estate Investment
In this article I am addressing real estate and investments internationally. There are a multitude of opportunities in the real estate market in the world, ranging form great deals on retirement homes to investments for appreciation, project developments, and rental investments.
Success in entering the real estate market internationally depends on being clear on what you want from your investment.
Let me illustrate how you can clarify your real estate or investment objectives.
Are looking for a retirement home? There are many retirement friendly countries with a wide variety of locations from the city to gated communities, beach front property or up in the cool mountains. I feel it is wise to spend some time in the country you are interested in to get a feel for what it is you really want from your investment.
>From an apartment in downtown areas, such as Paris, there are
many places in the world where you can walk to a different restaurant every night for weeks, and still discover new ones.
Spend some time in the city of your interest and get to know it.
The more you explore, the more you will find yourself delighting in its offerings and its people. The whole of the world is there for you to discover the best place for you to live. Some great spots are a bit far from the city. Stay awhile; get to know the country and yourself before buying that dream home.
Looking for an investment requires a very different approach.
Investments are done by numbers not purely love and feelings.
With investments a priority is to look long and hard at the numbers. Location is always very important. With investments one must be realistic. Making a 15% to 20% return is very good return and the higher the return the more work and risk one has to take. So you must become familiar with risk reward assessment.
One of the great things about real estate is that it generally is a very safe investment. Being that it is very safe, you do not often get 40% or 50% annual return on your money. It is a longer-term solid investment with a minimum amount of risk if done right. You want to do a risk reward assessment of every investment you do, know what the risks are and the potential rewards.
There are two main categories of real estate investment. One is often referred to as flipping or development real estate. This entails buying real estate, alter it in some fashion such as a development, or fix up an older property and resell it for a profit. The time frame for these is often one to 5 years depending on the scope of the project. With development type real estate investments you can expect to make between 15% to 30% net gain per year so a 4-year development could easily net you a 100% over the full four years. If real estate continues to go up in value you could make even more.
The profit is made for the most part from the work that is being done to improve and change the land or building. This takes work. It can be done with you doing all the work or by joining an investment group that is run by a manager that does most of the work. The less you do the less the return, although some people do much better working with someone else to get the work done. You need to assess your interests, abilities and available time. What are your resources and what do you want to spend your time doing?
The second category of real estate investment option is solid value investments. You buy a market ready investment property that has a steady return such as a rental or timber properties.
With rental properties your net return on cash invested is often about 4% to 5% from rent net cash flow. In addition to this you accrue over time the increase in the value of the real estate, which could be another 3% to 10%. Some years could yield more but on average real estate has appreciated at about 3%. This gives a very nice total return of 8% or more. If you enter a market that is just starting up and remains strong you can get a return of 14% to 15% for a period of time.
There are a number of world locations where it appears to be the case at this point. Rent increases over time add up as the years go by further increasing your long-term return. This is a very good long-term steady investment. It is one of the safest long-term investments. Once a property is purchased and put into proper management it requires only minimal attention. It builds solid asset wealth. It is well protected from inflation or deflation of the currencies of the world, as rent and asset values tend to adjust upward as currencies go down. It is a very sound value investment. Many commodity investments fall into this category.
Timber investments are also very productive real estate type value investments. There is the land and trees that are constantly growing. Every year there is more wood so through the annual harvesting of timber it is similar to collecting rent, except without tenant negotiations. You get the wood growth plus the appreciation of the asset value.
Many real estate investments are a combination of the two. You purchase a property, put some work into it and rent it out.
Doing this can give you some quick appreciation form the initial time and effort invested and the long term steady return from the rent and appreciation starting from the improved value.
With investments and in particular real estate, I feel the first search one needs to do when looking at real estate is an inward search as to what they want from the investment. A home for personal use brings the greatest value in the form of the smile it puts on your face and in your heart; in contrast to an investment where cash return is the main objective.
In the first case it is easier just take time to listen to your heart and observe the life of the place, relax and you will know when you are in the right spot. In the second case you have to look at your financial goals, your time frame and your personality.
How much time do you have to invest, what is your knowledge base? Do you want a slow steady return coming in every month? Do you want it to start as soon as possible or can you put off the return for another 5 to 9 years then have an even greater deferred return that starts to come in just as you are really getting into your retirement. Are you looking to double you money in 4 years in order to have it all available for something else? What is the risk assessment and your comfort level with the risk of each investment.
Take the time to consider what you want and be realistic as to what your return will be. You can get a mix of the options above but know to what degree it falls into which category and is that serving what you really want.
In the end, be clear on what you are looking for. Is it a new home to live in, a long-term steady investment, or a more aggressive growth investment? How much time to you wish to put into the search and development of the investment? Do you want an investment with minimal future work so that you can devote your time to other things?
Finally, have a team working for your interests. International real estate will impact such important areas as banking, currency exchange rates, foreign or domestic tax considerations, and operational expenses. For all matters of finance, have a qualified professional who is experienced in the relevant international issues or can consult with an associate who is.
Legal considerations such as how to hold title, formation of necessary foreign or domestic entities also demands you have competent and experienced counsel.
As to the real estate services, you need a full service company, who have a presence and personal and professional familiarity with the market you are interested in, and can provide you the information and knowledge of available inventory, as well as the important and relevant collateral information you will need to understand.
How To Find A Good Realtor To Help You Through The Home Buying Process!
This will be one of the most important decisions you make in the house buying process. It's almost as important as selecting the right house. The right realtor can make buying a house seem simple. The wrong realtor...well, take my word, and find the right realtor. You'll be making LOTS of contacts and spending lots of time with your realtors, so find someone who is right for you.
What makes a "good" realtor?
* Knowledgeable...about real estate, about the area you want to look in, and about your specific needs.
* Accessible...responds to your phone calls or emails, is willing to work around your schedule.
* Ready to help YOU first, make the sale second...sure, realtors make their living on commissions from the sale of houses, but if they help you get what YOU want, they will then get what THEY want.
On the other hand, a poor realtor will bring you to houses that DON'T fit the criteria on your list. WON'T work around your schedule. WON'T return your phone calls promptly. And WON'T put your best interests at the very top of the list!
So don't think that ALL realtors are alike. Unfortunately, we learned the hard way.
If it takes awhile to find your perfect house, you'll spend a lot of time with your realtor, and you want someone who is willing to work with you until you are comfortably moved in to your new house!
Where can you find a good realtor?
The first step is to ask people you know who have bought or sold a house recently about the realtors they used. You can also look in your local newspaper, phonebook, or on the Internet.
Make sure to ask lots of questions before hiring any realtor to represent you. There are a lot of details that go into buying a house. Once you get started, remembering all of those details will get harder and harder. A good realtor will be organized, and help you remember what you can't remember when the house buying process gets complicated.
Then, ask for references of former customers - if you have the time, contact a few of them to find out first-hand about the realtors you are considering before you enter into an agreement.
There is no "exact science" to hiring a good realtor. But it's not a decision to take lightly.
And, if you end up making the wrong choice, feel free to walk away and find another realtor - its your choice!
Beat the Crowd when Investing in Real Estate
Copyright 2005 Peter Dobler
We all are thinking about it and some of us are actually taking action and getting their hands on real estate investment properties. The longer the NY Stock Exchanges doesn’t produce desirable returns the more people are starting with real estate investments.
For most of us the obvious choice of properties are single family homes. Although you can invest in real estate without owning a home, most people follow the experience they made while purchasing their own home. This is familiar ground and the learning curve for doing a real estate deal of this type is pretty slim.
Of course there’s a drawback with this approach. The competition is fierce and there are markets where investors are artificially driving up the cost of the properties while completely discouraging first time home buyers. If this is the case, the burst of the real estate bubble is just a matter of time.
How do you avoid these situations and still successfully invest in real estate? How do you get ahead of the competition and be prepared for bad times in real estate investments as well? The only answer I have is commercial real estate.
Why commercial real estate you might ask? Commercial real estate is a solid investment in good and bad times of the local real estate market. The commercial real estate I’m referring to are multi unit apartment buildings.
Yes you will become a landlord and No you don’t have to do the work by yourself. You are the owner and not the manager of the apartment building. The cost of owning and managing the building is part of your expenses and will be covered by the rent income.
Apartment buildings are considered commercial real estate if there are 5 or more units. To make the numbers work you should consider to either own multiple small apartment buildings or you should opt for bigger buildings. This will keep the expense to income ratio at a positive cash flow. Owning rental properties is all about positive cash flow.
With investing in single family homes it is easy to achieve positive cash flow. Even if your rent income doesn’t cover your expenses 100%, the appreciation of the house will contribute to the positive cash flow. With commercial real estate the rules are different.
While single family homes are appraised by the value of recent sales of similar homes in your neighborhood, commercial real estate doesn’t care about the value appreciation of other buildings. The value of the property is solely based on the rent income. To increase the value of a commercial real estate you need to find a way to increase the rent income. The formula on how this is calculated would be too much for this short article.
I listed a few very helpful books where you can find all the details.
What’s another advantage to invest in commercial real estate?
Commercial real estate financing is completely different than financing a single family home. While financing a single family home you are at the mercy of lenders who want to make sure that you are in the position to pay for the house with your personal income. Commercial real estate financing is based in the properties ability to produce positive cash flow and to cover the financing cost.
After reading all these information about commercial real estate you want to go out there and dive into the deals. Not so fast.
First, you need to learn as much about real estate as possible.
In commercial real estate you’re dealing with professionals. If you come across too much as a newbie you will waste these guys’s time and your commercial real estate career ended before it actually started. Second, no commercial real estate lender will lend you any money if you can’t show at least a little bit of real estate investment experience.
What’s the solution to this? Go out there and do one or two single family home deals yourself. It doesn’t matter if you make huge profits to start off with. Most newbie investors are loosing money on their first deal anyway. If you can manage to show positive cash flow with your single family home deals you are ahead of the pack.
My advice, buy a small single family home in a decent neighborhood and rent it immediately. This will keep your out of the pocket expenses at a minimum and you will have rent income to cover for your monthly expenses. Bonus, you gain experience as an investor and as a landlord.
Here’s another observation I made during my real estate investment career. Most people like to analyze, learn, discuss and analyze some more. They never actually got to do a real estate deal. They love to talk about real estate investments, but never did it themselves.
My approach to real estate investment was simple.
- I bought some books about real estate investment.
- I read every single one of them.
- I put together a simple plan on how I want to get started.
- I started looking for properties.
- I bought my first investment property 30 days after I started reading my first book.
- I made positive cash flow with all of my properties so far.
What is my point? You have to go out there and practice what you’ve learned. The only valid credential in the real estate business is practical experience. Having a couple of deals under your belt, you can go out there and start looking at commercial real estate and even impress seasoned investors with your knowledge. Because you made this experience by yourself and you know what you’re talking about.
Book reference for commercial real estate investments:
Gary W. Eldred, PhD: “Make Money with Small Income Properties”
Jack Cummings: “Real Estate Financing and Investment Manual”
You will find these books and many more on my real estate investment website at http://www.suncoastrenttoown.com/author_directory.htm
Sincerely, Peter Dobler
Finding Motivated Sellers
Motivated sellers? My wife and I were trying to keep the renters happy, the rent coming in and the house repaired - while living 2100 miles away. You bet I was motivated. We just sold our house last month, and even got a good price, but I'll tell you a secret. We would have sold the place for... well I don't want to stress out the buyer if he reads this. Let's just say we would have sold it for much less.
There's your first clue on finding a motivated seller. If his property isn't where he is, he's probably ready to deal. How do you get this information? By asking. Talk to the real estate agent, the neighbors, and anyone else who might know something useful. Here are some other things to watch for that may indicate a motivated seller.
1. Relocation. If you hear that the seller is relocating for work, ask when he will be moving. He may already be worrying about those double payments.
2. Divorce. Divorce or relationship problems create many motivated sellers. Often a house payment needed both parties, and will have to be sold quickly.
3. Financial problems. A failing business, too much debt or other financial problems often force a sale. Find out if the owner is behind on payments.
4. Tenant problems. It is easy to get tired of being a landlord. It is also common to want to get out at any reasonable price.
5. Probate. If the house is in probate, and the heirs are all waiting to get their inheritance, they may be more interested in a quick sale than a great price.
6. Up-sizing or down-sizing. Owners moving into a larger or a smaller home may already have one in mind and need to sell quickly.
More Clues For Finding A Motivated Seller
Another way to find motivated sellers is to pay attention to the wording of ads in the classifieds. Statements like, "Need to sell," "Must sell," and "Will look at all offers," are good indicators. "Must have a good job," in a rental ad may indicate a landlord that is tired of tenants and ready to sell. Some other methods:
1. Find neglected properties. If they aren't maintaining the property, they may be short on cash, tired of it, or out of town
- all good motivators.
2. Use property tax rolls. Go to the county records, which are open to the public in most places. What you are looking for is properties that list an owner with an address far away. You could have found us this way, and bought our place for less than we got.
3. Use timing. Just before school starts, people are motivated to get their house sold so they can get their kids enrolled in the new school where they are moving. If an apartment building has been sitting there for sale for the whole winter, the owner may be tired of the bills and ready to get it sold fast.
The bottom line is to use your eyes and ears and look for the clues. Talking to people helps a lot. However you find your motivated sellers, the next step is to motivate them even more, by giving them what they want. Start by negotiating for a fast, easy closing for them - and a good price for you. That, however, is a topic for another article.
How To Find A Real Estate Agent
It's easy to find a real estate agent. Just put a for sale sign in the yard and wait for the phone to ring. The question is, how do you find a GOOD real estate agent? You can start with newspaper.
Pick up the Saturday or Sunday paper - whichever day they have all the homes for sale in your area. You can also collect a few real estate guides to look through. Browse the listings to find properties similar to yours. If you are selling a cabin, you want to look for cabins for sale. If you are selling a lakefront mansion, look for those.
When you find similar properties, note the names and numbers of the agents that are selling them. The idea here is to find a real estate agent that has experience with your type of property. An agent that has all the million dollar homes may not be the best to sell your mobile home, for example. You want agents that have sold or are selling several properties like yours.
What To Ask A Real Estate Agent
1. When you call the agents - and it's best to call several - you want to verify that they do have experience selling properties like yours. Ask for examples.
2. Ask what they do to market a property. Any agent can place an ad and put your home in the multiple listings. Do they have existing leads - people looking for properties like yours? Do they let other agents know about your property?
3. Do they show their listings very often? Many agents just list real estate for sale and let others sell it for them. It's more profitable for them, but not for you. If they are a good salesperson, you want them to be going through the house with potential buyers.
4. Do they do their own closings? Again, it may be better for them to delegate this part of the process, but it isn't better for you. You want the same person to be there through the whole process. You want one person to call. Things go wrong all the time in real estate, so don't complicate it further by having more people involved.
Most real estate agents will probably argue these points. That's okay, but be aware that there are other things they won't tell you too. For example, did you know that open houses are primarily a prospecting tool for real estate agents? In fact, new agents (not the listing agent) are often given the job of hosting your open house, so they can find buyers to work with.
It isn't expected that they will sell your house in the process.
Also understand that when you see ads for homes for sale, and they don't have prices, it is a prospecting technique. When that buyer looking for a $100,000 home calls on your $300,000 home, the agent isn't going to make him able to afford your home. The whole point was to get him to call so he could sell him ANY home. Meanwhile, other potential buyers for your home skipped over the ad - there are enough homes WITH prices to look at (insist that ads for your property have the price listed).
Trust your intuition when choosing an agent. If you don't feel comfortable with an agent, it's possible potential buyers won't either. And ask the right questions. You don't just want to find a real estate agent you like. You want to find the right agent for your property.
What to Do When Your Real Estate Agent Lies to You
This could have been the shortest story ever written. If you truly have evidence that your real estate agent has deceived you, you should immediately contact his broker, and if necessary, your state's licensing agency. And if it is early enough in the process, you should fire him immediately.
Now, sometimes it is not possible to fire your agent, but you would be surprised how many people continue working with that agent when it is. All you can do is scratch your head, and ask "Why?"
Some people feel it's a hassle to look for another agent. They figure they might as well continue with this guy. Their logic being a known hell is preferable an unknown situation. And what makes this logic worse is when it is coupled with the belief that all real estate agents are the same. "They all lie, don't they?" they would reply. Well, nothing could be further from the truth. And it is that belief that gets them in trouble.
Now I am not excusing such behavior, but the public does deserve some of the blame. When you accept these lies without any proof being presented, you are not acting on logic, you are acting on emotion. The lying agent knows this and uses this against you.
He knows you only believe what fits what you want to hear, not on reality, as it should be. Let's face it, we often know when we're being lied to. There is something in our gut that lets us know that something just doesn't ring true.
But another important reason why the public must take a portion of the blame is because when an agent does tell the truth, backed up with facts, they get their heads taken off and prospective client goes in search of the "truthful" answer--one that fits into their "reality." This puts an agent in a very difficult position: Tell the truth and lose out on a transaction or lie and possibly gain a transaction. What would you do?
Well, I know what I would do and some might consider it stupid.
You see, for the honest agent, there really is nowhere else to go. Honesty is a way of life. If it can be easily changed over money issues, then it's not a way of life. It's just lip service. I don't like being in that position, but I will make the "stupid" decision. It's difficult, but right. I sleep well at night and that's fine with me. But keep this in mind, the less-than-honest agent also sleeps well at night. And that fine with him, too.
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