Tag: Starting

One Mistake To Avoid When Starting Out In Property Investment

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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.

The reality is challenging situations do happen. Your tenant moves out, the hot water system needs replacing, one of your properties won’t sell and/or interest rates go up. Do you have ready access to cash to help you through difficult times?

My friend Lee was referred to Jane Doe by one of his investor clients; her carpenter had just quit and left her in the middle of an unfinished renovation on two new 1 bedroom basement apartments. She was visibly upset, stressed out and running out of money really quickly, in what she referred to as “an endless money pit”. As mentioned, this was her very first real estate investment; she had no previous experience of renovation projects first hand. To her, this experience was supposed to be easy, fun, and trouble free . after all, she was supposed to make more money for herself than she was making in the stock market and in mutual funds, right?

Now I want to state clearly that while I’m an advocate for anyone taking that first step and commend anyone who wants to improve his or her life through investing in real estate, it should be noted that many of these first timers are also last timers. In my experience, these ultra-enthusiastic investors start off with a bang then crash and burn with their investments, only to never try again. The truth is that these investors, who I’ve dubbed the “Resolution Investors”, really didn’t have a chance because they avoided the proven track record to success in real estate investing.

It’s easy to learn the basics of the real estate property investing. Read magazines or check out websites online. These tools can help you but only if you invest time and effort.

These are all quick and easy ways to increase the value of a property. They require very little upfront investment, allowing you to squeeze the most profit out of every investment. The main thing to remember is that a home needs to look like a home. If people can’t picture themselves and their family living in the home, they aren’t likely to buy it.

One thing that you can do is to check the history of capital growth of the area where you are going to purchase the estate. You have to check if it is steady and there are no significant risks involved. Speaking of location, it is also necessary that you make sure that the estate is very close to all the major establishments and modes of transportation. You should also be certain that it has a tight security and the estate itself is well maintained.

Starting A Property Investment Business

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The bottom line is–if you do not understand basic real estate terms like “short sale”, “wholesaling” and “wrap deal”, then you are at a serious disadvantage. Also if you don’t know how to negotiate with contractors, realtors, loan officers, sellers and even the government, then you are a statistic waiting to happen. However, I believe that the investors who make the mistakes noted above are still better than the investors who analyze and then analyze and then analyze without ever taking action. Mistakes will happen, that’s inevitable, but learn from them and that mistake becomes invaluable.

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.

One last word. and, I cannot repeat this enough. Always express gratitude. Even if someone can only give you ten minutes of their time, thank them. You have made a great contact with someone whose expertise you value. Tell them so.

You need someone who understands you and your history and is close enough to you to be kind, supportive and yet brutally honest. It is best if they are also an experienced investor, businessperson or property developer. If possible also join an online or face to face group of property developers to brain-storm ideas, facts and figures. Do not go it alone.

Take a look at your results and ask yourself if they are what you want. If not, there’s a 90%25 chance that you have some unconscious belief holding you back. My unconscious belief was that I could not be successful and I proved that over and over again by my results, creating an even stronger belief that was self-perpetuating. Coaching helped me to look at my results with an objective non-judgemental view and tell myself “Ohhh, so that’s what my belief was”.

In reality the answer is probably no.you wouldn’t be able to purchase 130 properties in 3.5 years. Not because it isn’t physically possible, but just because it requires a hell of a lot of dedication to be able to achieve that in such a short period of time.

It’s easy to learn the basics of the real estate property investing. Read magazines or check out websites online. These tools can help you but only if you invest time and effort.

After the class was over, the young lady stayed in touch with me. I had asked her to keep me informed as to the progress of her deal. It took her around three months, but in those 3 months she successfully purchased the property, fixed up the property, marketed the property, and made a profit of ,000! By the way, she had no money, no credit, and no job, but she was still able to make this kind of profit.

How To Research The Market Prior To Starting Any Property Development Project

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Like other home-based industries, home inspection has its share of frauds and phonies. It’s safe to assume they represent the minority, but it still pays to ask about certification. A professional home inspector will be happy to tell you about his certifications.

Once you know exactly what you want, you need to find an agent who is best suited for the job. For example, if you want to find property for sale in Spain you will want to find an agent who specialises in the particular area you want to purchase it. Real estate agents in Spain can be a big asset as long as you get one that is familiar with the area you need.

Also, you will pay more for commercial property use. This is generally due to the heavy duty materials that a project like this can handle. The larger size may also be a point.

Refraining from the pre-qualification and the pre-approval process will create problems in the future. These procedures show the true state of your finances and tell you if you are fit to buy a house.

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.

Check out the properties that were purchased about 4 or more years ago. History shows that they will be in the next group of properties to come on the market for sale.

Often the Seller will simply stop maintaining the Property when it is under Contract. Tenants will put in work orders and the Seller will just ignore them. They just let the Property “Die”. If you don’t catch them, you may take over a Property where there are literally hundreds of active work orders on the day you take ownership. The tenants will be pissed and it will cost you a fortune to do all the repairs.

Selecting a broker before you need one is a good idea. This will allow your broker to perform additional research for your property type and loan options before you are ready. Commercial mortgage closings sometimes need to happen quickly and the last thing you want to do is be caught without someone looking out for your best interests. Pay close attention to the last thing I said, someone looking out for your best interests. Ensure the broker you select is working for you and not serving the interests of a lender or themselves. You want to go into this process with your eyes open so be sure to ask about their process, the points they charge, fees, and how many lender relationships they maintain.

Starting A Property Investment Business

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Friends, Family and Others – Those around you will not necessarily agree with your choice of occupation or investment, some may even consider you crazy and try and talk you out of it. This is a genuine way of earning an income and some people do very well out of it. You need to remain positive and focused. It is often futile trying to make all your family and friends understand what you are doing or why as no amount of explanation will make them understand or agree with you. Learn to accept their view but not adopt it.

There are a couple of lessons in this example. First do your homework when you’re property investing. That means you know where bottom of the market it is-before you meet the real estate agent. Secondly, do some rapport building with an agent. Now some of you may be wondering how Roger could make an offer of 0,000 to the agent. Roger presented himself as a serious buyer.

As the buyer, it’s your job to know the primary motives of the seller. Understand what he or she is aiming to accomplish by selling the property. If you can give the impression that you can help the seller achieve his or her goals, then the seller will be more accommodating when negotiating with you. And when you have the trust of the seller, it becomes much easier to come to reasonable terms. At the end of the day, it becomes a win-win for both you, the buyer, and the seller.

Less competitors. Given that they lack specialized knowledge and lack mindset, you will find fewer people out doing multifamily deals than single family deals.

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.

However, an investor is not guaranteed to get a good return by investing in real estate. Let’s look at the 2008 financial crisis. Some unfortunate investors purchased property just before the crisis hit. They probably observed the housing market and believed that prices would continue to increase. Unfortunately, most of them lost out.

The bottom line is–if you do not understand basic real estate terms like “short sale”, “wholesaling” and “wrap deal”, then you are at a serious disadvantage. Also if you don’t know how to negotiate with contractors, realtors, loan officers, sellers and even the government, then you are a statistic waiting to happen. However, I believe that the investors who make the mistakes noted above are still better than the investors who analyze and then analyze and then analyze without ever taking action. Mistakes will happen, that’s inevitable, but learn from them and that mistake becomes invaluable.

You do not need a lot of money to start with, or know a lot about real estate. I started out with no clue about real estate and only a few thousand dollars to invest with.