Tag: Investing

Commercial Property Investing – Ready To Pull The Trigger?

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If your tolerance to risk is not aligned with your selected strategy, you will either have many sleepless nights, or feel frustrated because you feel you are not maximising opportunities and could be buying more property.

When people think of buying property, they often think of numbers. They ask about the price, discounts, interest rates, loan terms etc. Very few experts (and real estate books for that matter) point out the importance of identifying motives. Because believe it or not, knowing the motives of the seller is crucial when negotiating for a reasonable deal.

It is important that you make this decision of investment in a wise manner. There are a number of glaring mistakes which people commit when they are on their journey to buy new homes. Firstly, people tend to compromise on comfort and space, just for saving some money. Refrain from buying on impulse, as it can prove costly in the future. Many of us get carried away when we see a new property, and without understanding the intricacies, just go for it, only to realise what a bad decision we have taken. When you want to buy a new home, set apart your emotions. View the entire process logically and practically and then arrive at a decision.

Doing such amazing feats, however, takes a lot of practice. Successful property investing involves trial and error and successful investors don’t become millionaires overnight. It takes a lot of hard work on their part, coupled with patience, dedication, and having the right knowledge on real estate investing, to get where they are currently at.

Get in touch with a lawyer who can draft a master broker’s contract. This is a legally binding agreement to establish your business terms with the buyers. It indicates your finder’s fee and what you need to get accomplished in order to earn a particular amount.

You might have thought that the real estate industry has greatly suffered during the economic recession but you’re wrong. In fact, it was only the fear of the investors that got in the way of success. Most of the investors were uncertain and didn’t want to invest because they thought that it was too risky. Why don’t you look at the history of the real estate market and you will surely be surprised to find that over the years, the trend is constantly going up. Even during the economic recession, the same rule applies!

You don’t have to buy with your own cash. It is actually simpler to get financing on apartments than on single family homes. The more you borrow the less they look at your credit. You can cover any cash requirements with private money you raise.

More Profitable Property Investing: Be The Best That You Can Be

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The fact is that the first action a resolution investor should take is to dedicate themselves to education in the real estate game. Seminars, books, educational programs, and real estate blogs are offered through many channels, including the website listed below, and are absolutely needed to help transition from “Resolution Investor” to a “Real investor”.

The most obvious benefit is that someone else is paying your mortgage and building equity for you. If you buy a property that has a positive cash flow and use a good strategy to make sure your vacancy rates are very low, the income from the property will cover your mortgage payments. Over a period of time you build equity with little effort on your part as the loan pays down the principle. This is the easiest method in the world of building wealth and why owning rental property is the number one strategy of most of the worlds wealthiest investors.

Real estate offers greater profit potential, compared to other forms of investment. Not every piece of land will always turn out to be a winner. Despite the great potential in profit, some cases are high risks. So you will want to be sure to carefully research and study your real estate investments.

Property Inspections. Driving slowly past a property does not constitute a buildings inspection. Moreover, looking at a property brochure does not constitute a buildings inspection. You need to get it independently checked out to ensure things like hidden fire damage, structural problems etc are identified. You will be spending large sums of money on the property so make sure you are fully aware of what you are buying.

I would never encourage any investor to jump into such a project. To turn such an investment around requires a building with sound potential for value, really deep pockets and a very good understanding of the renovation game and construction contractors. Poor Jane thought she could do this on her own with her boyfriend, who might have good looks but has no previous construction experience. Occasionally, they would hire a tradesman to do the work they could not, but this is no plan. Everything backfired, even their own relationship was destroyed in the end, as a result of all the unmet expectations, pressure and constant arguing on what should be done. And let’s be realistic, their expectations were unreal from the outset.

If you are a new in this field, you will want to refrain from doing any speculation until you become more informed. You will need to devote a considerable amount of time to study and research your property investment prospects. It is also wise to network and consult with others who are doing things, especially specialists.

When you’re out property investing, here are some common questions a real estate agent will ask: “Hello Mr. and Mrs. Buyer, are you buying, selling or looking?” And if they say, “Oh, we’re just looking.” The agent will ask, “How many properties have you looked at so far?” The buyers may respond that they’ve looked at a couple of properties. The agent will ask if they made an offer on any of the properties they’ve looked at. If the buyers answer no, the agent will inquire why not? This line of questioning just rolls off the agent’s tongue. The buyers get bamboozled. They don’t even know that they’re being qualified. And if the agent decides the buyer is too difficult, they will put them into the “too hard basket”.

That wasn’t his sole error. In addition, he had not even bothered to make a visit to his investment property before purchasing it, so he hadn’t the faintest idea it was filled with deadbeats and criminals. He had neglected to engage a team of real estate experts who would have been quick to advise him not to invest in that neighborhood, which was also filled with criminals. It was not a good neighborhood, and he should’ve known to avoid it. In fact, he could have avoided it very easily if he had just done his research.

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Investing In Commercial Real Estate 101

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Property valuation, the historical operating financials and potential of a property can help in determining the ultimate value to an investor. Always request the historical operating statements, current rent roll and operating pro-forma in your searches for viable commercial real estate investments. These values cannot be anticipated or calculated precisely enough, a substantial diverse in the valuation procedure must be properly done instead.

It also safeguards your property, content, buy to let property, commercial property etc. You could also seek guidance on home Information pack, if you are looking forward to sell your property. You can get away from paying exorbitant amount of money for repair, due to some damage to your property.

Right now there are plenty of forced redemptions from funds that are heavily indebted and simply need to sell the asset. Few buyers equals depressed price hence the vulture like movements above to gobble assets at their cheapest price.

Remember, sellers hire brokers to represent them in the sale of their property. They want the advantage of exposure to the largest audience and to sell their property for more than they could on their own, which means when you’re calling brokers, you’re talking to the people that owners want you to.

Your Credit. Your credit is a key part to the real estate financing process. The better your credit score is, the better your opportunity to obtain the financing that’s important to you and affordable to you as well. Improving your credit will help you qualify for less costly loans.

What’s Out There. Interest rates, terms and the costs of closing on a home mortgage all play a role in helping you to obtain a loan. The more affordable these are, the more likely you are to obtain the home loan you want. Comparing several companies can help you to get the lowest costing loan specific to your needs.

Always have a lead story from the local market. This will attract the reader’s attention. The lead story should have a photo or image to grab more attention.

If your own Financial Statement is weak, you may consider getting a strong partner for the deal. This person is sometimes called a “sponsor”. You then get to add your sponsor’s financials to the package.

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Investing In Real Estate For Newbies

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Less Competition: There are less people in the market so you almost stand out as someone who could be a real buyer. Realtors are ready and willing to take time with you. You are not just one investor in a crowd of many investors. Realtors need to make that commission and with few buyers they have a lot less commissions and less money in their pocket.

If you are not an expert in such things there are ways to get to be an expert. You can team up with an expert, get training from experts, and get advice from others who are part of the process. They include realtors, bankers, joint venture capitalists, appraisers, and even government offices in your area.

The value of income properties is based on the income. It is a function of the net operating income and you can create value by increasing the rents and lowering the expenses. You will then understand how to best make use of your money and time.

Allow kids – Many landlords do allow kids in their properties, but at the same time one would not believe how many don’t. A property owner should be encouraging families to live in their homes, not discouraging them. It is much harder for a family to pack up and leave than a single person. Keep this in mind, as families tend to stay longer than singles.

On the other hand – this is what people consider a buyer’s market. The prices of homes are more affordable than than they were a year ago. Interest rates have fallen, and because less people are buying there are more homes to choose from. The concern is that it will take too long for the market to see an up-swing; and that real estate investors will lose money while they wait for the market to head back uphill.

Property investors are also offered great tax benefits. All expenses for the house are tax deductible. Furthermore, if you are unable to get a tenant and your house was bought on loan, meaning you have to make mortgage payments, your property will not be taxed for that year. Moreover, if the value o maintenance and repairs exceed the amount the property is bringing in, then you are also exempt from paying taxes for that year.

The first advantage with property investing is that they are easy to run. In the beginning, it may be a bit hectic, as you will have to look for a great house that is in a demanding market. If you are building from scratch, it will be even more tedious as you will have to deal with contractors and make sure that things are moving well. Once you actually have the building, you will also have to look for tenants. However, once you’ve done all this, the rest is easy. In fact, you can opt to get a property manager to take care of any real estate you may own. This will relieve any pressure from, as you will only have to go pick up your checks.

Apartments equal cash flow even with nothing down, meaning there is one roof with maybe 20 apartments underneath it as opposed to one house with one roof. Houses are made for homeowners to buy and sell. Houses can be changed into rental properties but apartments are designed to be income-producing properties.

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Real Estate Investing For The Average Person

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The last few years have given us a market that many investors have never seen. Property is selling for prices that a few years ago seemed impossible to get. Foreclosures are at an all time high. Banks are starting to lend money slowly. So these seem like good ingredients for an investor to get into the property game. However, there are factors that you need to consider before making that leap into (or for some of you, back into) the real estate market.

Wait for the end of the redemption period. The end of the redemption period will be your golden time. Mortgage companies have already bailed out mortgaged property at this point, leaving free and clear property. The owners that are left, either can’t pay their taxes or don’t want to. It’s easy to buy houses for back tax from these folks.

Lack of a clear goal is a huge mistake and is the single biggest error I see investors making, seasoned ones too. An investor without a goal is like a 4 year old without arm bands who’s wandered into the deep end of the pool – not a pretty site.

Generally when buying a property out of town, you normally will get more land attached to the property. In built up areas where space is limited, you will find many high rise structures that have been built to maximize the space. Although many of the town and city houses have identical plots of land, the actual property will vary. Large plots of land usually divide the houses when they are being constructed.

When you are just starting out in property investing, you don’t usually start by buying a stable home. This is not a very practical way to start your business life. Indeed, purchasing a small apartment house can be a good way to gather money. Through this, you can eventually buy your own property in a place where you want to live. Of course in buying properties, you should be careful enough and plan well before making a move. You don’t have to make a direct property investment. There are many property syndicates which can take advantage once you make a careless decision.

Repair or replace the driveway if it is cracked or damaged. A driveway that appears very old or damaged will make the property itself seem like it wasn’t taken care of.

If you do a little research on the subject, you would find a few books have made it into the mainstream financial press. But most consumers of investment products do not know the basics of how to invest in this government backed and federally funded process of collecting on delinquent taxes.

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