Tag: Opportunity

Property Investing – The Millionaire Opportunity

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Know your long term goals before investing. This is not a get rich quick method of asset appreciation. Most liens will only come due once a year. So if you are looking for short term make money fast action this is probably not it. But to compensate for the time factor involved, you’ll be blessed to gain 16%25 and more on your investment capital.

One thing to remember is that it doesn’t matter where that belief came from. All that matters is that I recognised I had it and now I can focus on how I can succeed and to help me with that I will look for the evidence of that.

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.

A second benefit is that of rental property tax deductions. Owning real estate investments as a business venture allows you to treat many items as business expenses. Shifting some of your expenses for your cell phone, Internet service, auto and even your home is possible with a real estate business. Depreciation “expense” usually allows you to show a “loss” of value when in fact your property may be increasing in value. When you sell, capital gains taxes are often at a lower rate than comparable wage income. Overall, the tax benefits of owning real estate may allow you to live a better lifestyle while showing a lower income.

Jane’s story, and the multitude of stories like hers, is exactly why I created The Zen Investor. I wanted to help other investors – both beginners and pros – take advantage of my hard-earned property investment experience, my wisdom and passion for real estate. To locate properties which offer fantastic value, ease of entry, stability, and very strong cash flow. Add to this a pre-arranged management system and voila! You have a Zen investment, a problem free and a passive income stream that would even please the Buddha! Remember, investing is supposed to be fun and exciting as we build up our wealth, investing in additional properties increasing our portfolios and cash flow. Unfortunately for Jane this will not be the case.

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.

In present-day current market, you can get a number of areas through which it really is a great deal cheaper to get than to rent. In lots of of those spots, it is not uncommon to find out investors recover from 20%25 return on hard cash movement by yourself. Through the bubble decades, the reverse was true. For those who acquired a house as an expense throughout this period, then you certainly know 1st hand the rents you obtained did not even cover the house loan payment. You had to feed the home each month considering the fact that you failed to have sufficient income flow to cover the expenses.

Going into business with the wrong person can be even worse than buying the wrong property – they can take years to remove from a company (if you even can) and can cause untold problems beyond your worst nightmares. Never go into business with anyone you have not done due diligence on, or who does not have an excellent reputation for honesty and results and with whom you have a wholesome personal chemistry.

Property Investing – The Millionaire Opportunity

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Marriage and personal problems are only exacerbated under financial pressure. Many larger decisions must be made when investing and this process can expose underlying insecurities and belief systems that need resolving as soon as possible.

A number of years ago I decided to begin investing in commercial real estate. While I had experience in buying and selling single-family investment properties I had no experience in multi-family property investing. A new acquaintance of mine, Mike, owned an apartment building. I knew Mike would be a great mentor for investing in a new asset class of real estate.

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.

This approach gave me a great opportunity to start a dialog and to give Mike an idea how much I would appreciate knowing how he became successful and to find out what he would do in similar a situation, how he handled the same challenge I was currently faced with.

Obtain the tax-delinquent owners’ contact info. There are a ton of sites on the internet that can help you accomplish this. You can then contact them however you like, but calling always works best.

One problem that many real estate investors face is lack of liquidity. Liquid assets are those that can be easily converted into cash. This is similar to stocks and bonds. Most real estate investments can take years before you can actually make a profit. So it is not the best decision to tie up all of your assets in real estate investments. Your financial situation will be an indicator as to how much you can wisely invest in properties and real estate.

Buying run-down homes and restoring them for selling or renting purposes can reap profits. The advantages of selling are that you can build up equity. The advantages of renting are that you can build a stream of positive cash flow. But, before you do this, you will need to consider some factors and do the math including a margin of safety.

It is not difficult to imagine the prodigious amount of money he put into rehabilitating the property-money he would have saved just by budgeting for the real estate experts he needed. There was no way to fix the problem of the building’s location, therefore the property didn’t have the potential to fetch much rent.

How To Analyze A Commercial Property Investment Opportunity

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Find other agents sale or lease boards in your area and market your own real estate services to the adjacent and nearby properties. It is remarkable how adjacent properties would like to compete with an existing listing.

Before you even think about making big cuts in expenses, have an idea of what your retail industry averages are for your type of retail business. A comprehensive comparison will help attain clarity and will be the basis for a new retail profitability plan. Now that you know what to aim for, let’s move forward. Let’s say that after your comparison you have found major issues with the following expenses. What steps will you take to cut expenses and improve profit?

To have a chance at getting approved for a commercial loan, you need to have the income to prove you can afford the payments, and a down payment of at least 20% of the loan. Also you need to have a good credit score. A bad one may not cost you the loan, but it will cost you thousands of dollars with higher finance charges. To fix that simple go with a credit repair company. Credit repair is fast, simple, and effective.

12. The ideal stage to move the list of properties through can be displayed in a Gantt chart. This helps the client see the path of progress and results.

Many commercial property investors purchased properties years ago. Those investments have produced income and appreciated over the years. An accounting function of the commercial real estate business is each year your accountant has been depreciating the property’s value on a tax basis. You now want to get out of the business or maybe relocate and you need to decide, should you pay the gains tax or create an exchange, an exchange which could be tax free! The first question I must ask myself is what will I do with the money? How will I structure the sale? What options do I have?

Ideally you’re looking for entry level to lower mid-range housing, 15 – 50 years old. It’s OK if the area is a little blighted as long as things are on the upturn. Look for visible signs of redevelopment.

These are especial loans for making a beginning in a trade. You are going to start a new business. Therefore, you may not be having any record of taxes or bank statements in the name of your trade. This is where the lenders become over cautious. In the absence of these records, the lenders cannot assess your capability of running a business. Therefore, you are a risk. To counter this, you should make a plan of investing the loan. You should clearly apprise the lender that how you are going to prosper through the loan.

Turning A Business Crisis Into An Opportunity

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Before applying for these loans, keep all the documents of your business ready for producing them before the lenders. They will also like to know about your repayment capability and prospects of your trade.

Property developers require the assistance of real estate agents from time to time. The best way to connect with these people is to provide them with new development stock from which they can build.

Rather than visiting the person, you can save a substantial amount of time by looking online. You can also make a choice quickly. The broker will perform the task on your behalf. You can even seek insurance quotations and compare before opting for any one. Based on the details furnished, you can choose the best quote. This could also save you from the burden of paying fee to an agent.

One client came to us and required an industrial building in the greater Boston 93/128 interchange market. Out of 50 potential properties in existence, we sourced 6 sites that could be purchased, and the client selected 3 to seriously consider. Of the original 6, 20% were listed for sale by the owner or with a broker, while the rest of the properties were off-market.

Employees – It is hard to let go of any employee. You have invested time and resources in them. However, the time is now to cut the unproductive part of your wage expense. Review each employee and ask yourself this question: is this person good for my company? If the answer is yes, hold on to them. If the answer is no, get rid of them now.

There are auction houses that specialize in commercial property. It is good to check out these commercial auctioneers and see what they can offer since this is what their business is all about. They will have licensed agents that can help with the buying or selling process.

At any rate, stay away from “war zones” with large tracts of run down, vacant houses, high crime rates, etc. These areas can be tempting because people do live there (generally renting) and the ratio of rental income to property values provides the landlord with a much nicer “spread” than is achievable in nicer areas. Some investors literally make a fortune in these neighborhoods. However, it’s probably the toughest segment of the business to operate in. And, alas, 90% of us cannot pull it off.