Get Into Real Estate and Why the So-Called Money Experts Around the World Are Out Dated

Right now, we are living in the middle of a severe financial storm, and yet we are still being told by so called financial experts get a Job, live below your financial means, save money, work hard, get out of debt etc,etc. It's OLD and it's out of date and leads most people to poverty.

We have to act smart and think exactly like the rich, which means we have to diversify and create wealth through having money work for us. One thing really important to remember is that money never sleeps, but we have to. That means we lose income when we don't work, can't work or even sleeping. Wouldn't it be nice to have your money working for you 24 hours a day,7 days a week building you financial security like the rich people enjoy today?

So what can we do to make that happen? In my opinion, one of the best ways to create new streams of income is in real estate, and in any good or bad economy. People always need places to live and work Right? which means when you invest and buy real estate, you can rent it out, or resell at a profit, either way, you make money.

Now, if you buy and hold for rent, your renter pays the monthly mortgage, so no out of pocket expenses, and normally earns you a couple of $100 extra a month on top, but the real money's made as the property grows in value month after month, year after year creating long term wealth for you and your family for life.

You have now taken control of your long term financial security, created an extra stream of income every month, and have money working for you even when you sleep just like the rich people do.

Most of the richest people in the world have created it through Real Estate investing, so why not learn all you can about real estate investing online to secure your future. Good hunting and good luck.

Between Real Estate and Reality Or Between Realty and Reality

You hit the ground running hoping to sprint your way to the finish line. You may have gotten winded with the realization that real estate investing is a marathon and not a 50 yard dash. Or you may have tripped over the start line coming out of the gate. Either way, your investing career is going nowhere fast. You've got a full time job that's getting in the way of your big plans. Being a full time real estate investor is closer than you think. Here's how to work around your full time job and build towards a better tomorrow - today.

First, change the way you look at your 9 to 5 job. Think of the paycheck you earn as a consulting fee - income for your real estate investing business. It covers your basic needs while providing you with some of the cash you need to keep the doors of You, Inc. open for business. When your consulting day is over you simply move into the next phase of your day: prospecting for new business opportunities.

Every day I want you to do something to drive your investing career forward. So set aside a block of time for these activities. If all you can spare is 90 minutes per day, make the best use you can of the time you have available. Look through some of your on-line resources to quickly locate properties that meet your investing criteria and then follow through. Don't make a list and call it a day.

If you systematically do small things that move you in the direction of making a property purchase, you will succeed. You can and will make that first - or fiftieth - property purchase, regardless of your employment situation. It will take some planning on your part to make it happen. But, you also need to find a good way of motivating yourself to take action.

When you pulled the trigger and fired on a new real estate investing career, your eyes were glazed over with child-like wonder at the possibilities that real estate investing gives you. Don't be afraid to admit it. You had a target in mind when you pulled the trigger. You had a tangible goal of some kind or you never would have taken that first step.

Every one of us had - and probably still does have - a dream we're working towards. It might be to donate $1 million to fight AIDS in Africa, to build a Little League ballpark with your name on it, or even something less altruistic: A desire to get very rich. Real estate investing is still the best vehicle for achieving your dreams. Whatever they are, I want you to capture the essence of those dreams; a photograph or something that symbolizes what you can do with the fruits of your labor to create a vivid daily reminder of your goal.

Place that reminder in a conspicuous place - on a bathroom mirror or a counter top - as a daily reminder of what you want to do with some of your real estate investing proceeds. If it's too large for a mirror, take a picture of it. This is an important step because it will help to motivate and reinvigorate you when you begin losing your focus. Look at it several times a day beginning first thing in the morning.

Your dreams - whatever they are - provide the fuel you need to take action on those days you'd rather just be a channel-surfing couch potato. You will achieve your dreams, but you may need additional ammunition in your arsenal to make it happen. In addition to having a dream you should:

- Set specific goals for yourself - These goals should be specific, quantifiable and attainable. Instead of having a goal that says, "I want to be rich within five years." you should put a firm number on it. "Within five years I'm going to own 15 properties with a monthly cash flow of $15,000 (or whatever figure you set).

- Create a vision - On a daily basis look at the symbol of your dream. If it's a picture, carefully look at it - really LOOK at it - and declare your commitment to achieving your dreams.

- Believe in yourself and your abilities - It's sometimes easy to listen to naysayers and negative people. Avoid these people like the plague. They're like a cancer that will eat away at your dreams if you let them. Don't allow it to happen. You can achieve your dreams and your goals if you believe it can happen and you take action.

One final point: If you're waiting for a telegram from destiny telling you that it's time to step up and make it happen, this is it. Your success is waiting for you. No day will be absolutely perfect. Today is better than yesterday because yesterday is dead and gone. Tomorrow hasn't yet been born. By living in the magic of the moment you can seize your real estate investing destiny, lay claim to your future, and begin the process of consigning your 9 to 5 job to the annals of history.

Real estate investing is kind of like the lottery. You've got to get in it to win it and you can't really get into it sitting on your couch thinking about how you're going to spend the money when you finally get up and get started.

So go ahead.

Put the remote on the coffee table and take the first step.

Real Estate - Distressed Property Terms

With the volatility in the real estate market, an entirely new terminology has been thrown into the already complex process of buying real property. These terms have been used within the industry for quite some time but were not commonplace until recently. The definitions below will assist the home buyer in understanding this new vocabulary.

Bank Owned Homes - The bank or lender foreclosed on the property through a Trustee Sale and now has full ownership of the home. In essence, foreclosure, bank owned homes, and Real Estate Owned (REO) are synonymous with one another.

Foreclosure - A foreclosure is a legal proceeding in which the Mortgage Company (Bank or Lender) terminates their relationship with the homeowner after the homeowner has defaulted on the original terms of the Deed of Trust. The ownership of the home then reverts back to the Mortgage Company. In Arizona real estate, this is known as a non-judicial foreclosure. Once the property is owned by the Mortgage Company, they will attempt to sell the home or parcel of land in the future. The term foreclosure is also referred to as Real Estate Owned (REO) homes or Bank Owned homes.

Loan Modification - The lender, bank, or Mortgage Company who holds the note on the loan agrees to modify the original terms of the loan. An example might be a reduction of the interest rate or changing the length of the loan from 30 years to 40 years. One of the main requirements to qualify for a loan modification is to prove to the lender you have a "hardship". If the lender agrees to modify the loan, they seldom will reduce the principal balance of the original note.

Pre-Foreclosure - A pre-foreclosure occurs when the homeowner is at least 90 days late on their mortgage payment and have been given a Notice of Default by their Mortgage Company. This creates a window of time for the homeowner to bring the loan current, successfully complete a short sale, or have the home sold at a Trustee Sale. The Trustee Sale is an auction typically conducted on the courthouse steps.

Short Sale - In Real Estate, a short sale home is one where the homeowner owes more than the property is currently worth. The homeowner could have one, two, or even three mortgages on the home. The seller or homeowner must make arrangements with their Mortgage Company or companies to accept less than what is owed on the property if the seller decides to sell.

Trustee Sale - A Trustee Sale is an auction open to the public. It is held by the trustee, who acts as a third party on behalf of the lender. The lender is also known as the beneficiary. The lender prepares a credit bid, also referred to as the opening bid. Trustee Sales occur several times throughout any given day. They have specific restrictions and rules that must be followed to the letter of the law, to avoid legal ramifications set forth by the trustee.

The terms and definitions above are the most frequently used when purchasing distressed real estate in today's market. As the real estate market continues to evolve, we are certain to see additional language added in the future.

Real Estate and the New Series LLC

There is a national trend developing. Today, more LLCs are being formed in the USA than corporations.

Necessity, it is said, is the mother of invention. Given the simplicity, protection and flexibility of the Limited Liability Company ('LLC'), some states have begun to adopt the new 'Series' form of LLC. Starting 10 years ago with the concept of 'cell' captive insurance companies used offshore, the states of Delaware, Nevada, Oklahoma, Iowa, and now Illinois have embraced the new 'Series' LLC. It may be very well-suited for certain types of business and investment holdings -- such as multiple income-producing real estate, aircraft leasing, container vessels such as tankers and cargo ships, franchise business enterprises (i.e. multiple fast food stores), trucking and transportation fleets, and companies having operating divisions that need to enhance the liability shield to better protect one portion of the business activity from another.

THE CONCEPT MAKES SENSE.

Use of multiple LLCs for property owners is a conservative and safe way to go. However, instead of registering a traditional LLC, forming a new 'Series LLC' may be a smarter way to go for real estate investors. The concept is simple. It's based on the model of the Cell Captive Insurance Company used in other countries.

Even though one LLC 'mother ship' entity is formed, each separate cell within it (called a series) can be separately accounted for, and each can own assets and operate as a separate business enterprise. The idea behind the legislation is that the liability of one cell does not infect the others so long as guidelines are followed.

So now, instead of using land trusts or numerous traditional LLCs, a less expensive option may be to hold several rentals or fix-and-flip properties in one Series LLC -giving each cell within it a separate business designation, i.e. 'Valley Properties LLC Series I or Series II or Series III' or 'Valley Properties LLC Series A or Series B or Series C' for example. This simplifies formation and reduces legal and tax costs, since only one registration is made with the state and one single consolidated tax return is prepared. To keep the paperwork clean, each series will need to separately identify itself as distinct from the others in all business and tenant transactions -- including lease and rental agreements, deposits, bank accounts etc. in the name of that particular series as opposed to the 'mother ship' LLC or any of the other series. Of course, it will need to register as a 'foreign' company in any other state in which it holds properties - but only once.

WORKING THE NUMBERS.

Real Estate investors 'work the numbers' every day. Acquiring an investment property, doing fix-up, advertising and insuring the property, attracting stable tenants, maximizing the tax advantages and working the cash-flow management are all part of how you build a portfolio of income-producing real estate. To save costs, rather than paying for multiple 'traditional' LLCs, consolidating through a single 'Series' LLC can offer significant cost savings.

Let's consider one case example. If an investor has 20 properties and uses the new Series LLC, even if the franchise tax is applied the savings in multiple entity formation costs and tax preparation may be significant. The difference could be better spent on acquiring more income-producing rental properties and marketing for new paying customers, don't you think?

WHAT ELSE TO CONSIDER?

o The Illinois-type Land Trust (sometimes called the 'Real Estate Privacy Trust') is effective for protecting privacy and avoiding probate, but it is not a liability shield. It is only a 'privacy mask'. Some real estate investors in the past have used multiple real estate privacy trusts built around LLCs to save franchise tax fees but now that the Series LLC has arrived, that practice will fade away as did the 8-track tape and the Beta video system. With the Series LLC you can have privacy and protection in one entity.

o Using the Series LLC won't make sense if there are a large number of un-related parties - because the flow-through considerations might be quite a burden to your accountant. After all, simplicity is what's behind the new Series LLC. Real estate investors will want to take advantage of the Series LLC as a preferred form of property ownership, particularly where the LLC members are single owners, married couples, maybe a family trust or a family limited partnership.

o After your Series LLC is registered and the Members have signed the Operating Agreement, be sure to then sign separate 'Series Agreements' for each cell they choose to use. All future transactions should reflect that particular series' name so that you reinforce the 'separate' quality of each of the series units or 'cells'. As long as the revenue and expenses are separately accounted for (perhaps using Quicken® or QuickBooks®) and one single consolidated tax return is prepared, the fact that multiple properties are under the umbrella of one 'mother ship' (sub-designated as Series One, Series Two, etc.) it makes it easy to track revenues, costs, tenants, fees, property taxes and profits of each Series.

WHERE SHOULD I FORM MY SERIES LLC? About seven (7) states so far have adopted the Series LLC. However, four (4) other states have adopted legislation which strictly limits creditors of LLCs to a 'sole legal remedy' known as the 'charging order' (a passive lien on distributions). However, of all the 50 states only Nevada has done both. Once your new LLC has been formed, if you're going to use it in another state, simply register it as a 'foreign' (out-of-state) company with that secretary of state's office. Once it is registered to do business, we can show you the smart way to guard your liability risks and lawfully manage your tax costs so that you have more to put into your retirement accounts for the future.

Afterwards, in your business transactions, be sure to have each individual Series clearly distinguished from the others. Treat it as a separate business. Consider having each series use separate brokers, separate lenders, and maybe different banks just to make it clear they are separate. Rental agreements and all other paperwork will need to reflect the series designator so that it's clear the tenant is not doing business with the LLC 'mother ship' but rather with one particular Series as a distinct business enterprise.

LOOKING AT THE 'BIG PICTURE'.

Forming an LLC to hold investment property is a positive step in the right direction. However, it's one step. Keep the 'big picture' in mind: what are you trying to accomplish by investing in real estate in the first place? You're trying to build - and preserve - secure wealth that gives you cash flow and a future for your loved ones. Keep in mind that each property you acquire is part of a building process that is dynamic. You are using a system to find, acquire and finance each property. Use the tools that empower you and don't be overwhelmed by the small details that can sidetrack you if you let them. Use professionals for tax preparation, property acquisition and finance, and keeping adding to your portfolio with focus and discipline. Use professional advisors as a support system but remember they work for you so that you can enjoy what you do best -- acquiring more income producing real estate.

Devonport Development Plymouth, Devon - Real Estate and Property Investment

Many people may be wondering if England is still a healthy and vibrant place in terms of property and real estate investment. If England is still highly investable and can still offer good returns on investment in the future, then you will more than likely be wondering where the best investments can be found. Have you heard about the English partnerships redevelopments projects? Read on.

Certain areas of England, as I am sure you are aware, are in need of regeneration, and some more than others. This is where the National Regeneration Agency comes into play. This organisation who to work in partnership with the government, get involved in regenerating areas such as the former Sideway Colliery in Stoke-on-Trent (pumping £8 million pounds into the area in a project which will be finished by 2010). The group are also involved with the massive Devonport Development in Plymouth. The group are heavily involved with regenerating the South Yard Enclave on the Devonport Dockyard, into a housing development with affordable housing. The plan is to build more than 500 homes and to build a health centre, some shops and some office spaces. It is strange to think that the South Yard enclave will become a housing area, when ones thinks of the thousands of people who used to work in this high security MOD area in the past. Since the 1970s, with the decline in the numbers of people in the British forces, has meant that Devonport Dockyard has dramatically declined as a thriving place of business.

The Devonport regeneration is a part of what the government call their 'Neighbourhood Renewal Strategy'. This strategy combines affordable housing and employment opportunities for local people. The reality is in fact that people from outside of Plymouth are investing in Plymouth. From an investors point of view it is all very interesting particularly what is happening in Plymouth. A huge new shopping mall has been built at Drake Circus (a monstrosity some may say perhaps) and many investors from outside of the Plymouth area have been buying up property and real estate. Some projects in Plymouth have been receiving EU funding, in addition to the regeneration agency funding. The university has continued to expand in size and many student bars and pubs, and also many new outdoor cafes etc have been created. Valeria Lo Iacono, an Italian resident of Plymouth reports that "(Plymouth) is changing fast and it is an interesting place to be, although worryingly, prices for Plymouth residents are rising too fast".

For investors though, Plymouth is worth looking at. When you consider all of the money being pumped into the area, the growth of the university the regeneration of certain areas, it becomes clear that the city is definitely undergoing a facelift. After being neglected for 20 years and going downhill, it is visible noticeable when I return to Plymouth every year, how it is changing. Plymouth Argyle's stadium has been modernised, new baseball pitch and facilities in Central Park, the new shopping mall, European style outdoor cafes in the city centre. The city is clearly changing. Is it worth investing in? I plan to.

4 Tips For Succeeding in Real Estate and Getting the Best Deals Possible

When starting out in real estate investing, it can be tough. Whether you're selling your home or a property that you bought to sell, the process can be both daunting and exciting. However, marketing a home that doesn't sell at all isn't fun, so it's important that you do your homework to make sure that you know as much as possible about selling your home fast.

In this article, we will look at some tips that will help you to sell your home as quickly as possible. All of these tips work if you follow them, but if you don't, you will find that you have a home that's on the market for 30 days or more. Let's get right into it with tip number one:

1) Learn as much as possible

You don't have to go to college or real estate school to learn everything about real estate. You can simply use readily available free tools that will allow you to educate yourself on the matter. You should take advantage of the internet and the library to find books and articles on real estate investing, just so that you can learn everything.

When listing your home for sale, do proper market research. Stay on top of the market and see how much homes in your area are selling for. This will give you a great idea for how much you should be selling your home for. You can also employ the use of real estate agents to help out in your journey of selling your home. Here's tip number 2:

2) Get your financing right

A lot of beginners start off by getting the property first, and then getting their financing right - this is the wrong order. You should start off by getting your financing first, then go and search for your property. You should go to either a bank or a lending company and tell them how much you're looking forward to invest.

When you do so, they will require some information about you. To come up with how much they'll be willing to give you, they'll need your income and credit history to come up with the right ballpark figure.

3) Get your property

Now after you've gotten your financing, it's time to go and get your financing. But you should be cautious when doing so because finding real estate deals can be a little daunting if you've never done it before. You want to look for foreclosures, homes that say "for sale by owner" or even for rent properties.

4) Talk price

Now that you gotten your piece of real estate property, it's time to talk business. You want to negotiate the best possible price for it. Don't expect that you'll get it for a steal. Most sellers are looking to get the best money for their property as possible, so you will have to be flexible. You want a win-win situation for everyone, so be proactive, but don't be greedy. You never want to miss out on a deal just because you wanted a lower price than the seller was willing to give.

Use these 4 tips to get the best property as possible. They will be sure to come in handy when you do so. Good luck.

Real Estate And Tax Lien Certificates

Real estate in the same breath as tax lien certificates are not a big deal to most people, but to a savvy investor they can resemble $$.

Lets take that bad word named "tax" and turn it into lien certificate holder and the owner of this lien certificate will have a big smile on his face. He may not tell you why as not many investors share their guarded secret of investing.

Real Estate And Tax Lien Certificates is one of the safest types of investments you can make with generally a good above average of return. It is not hard to invest in certificates and if you are in the know how they are usually quite profitable; however investing blindly without sound solid advice can cost you money.

For example buy a tax certificate without research on commercial property for $500 and find out it is next to a pig farm your choices for that property use becomes severely limited and selling it might be a hard proposition.

So how do you know if investing in real estate and certificates is a wise decision?

A lien is levied against a property owner who has not paid his taxes on time by the government against the non-payer's property until he pays his bill.

This lien (if sales are allowed in that sate) should be make public and give the opportunity for investors to bid on tax certificates. When you bid and become owner of the certificate you have agreed to pay the taxes for the non-payer that did not pay them and in return you have won the right to collect the delinquent non-payers taxes that he owes plus a surcharge in the form of an inflated interest fee for the non-payer not paying his bill on time, mind you this does not give you rights to anyone's property. This fee is an interest rate which depending on the state could up to 18%, now that's a high interest rate any investor would love. The rate could be lower but it can also be even higher. This late penalty fee is an incentive to taxpayers to pay their taxes on time and the reason investors buy certificates.

Now the good part, nothing is guaranteed in life but buying lien certificates might be the closest thing that is and here's why. If the property owner after a certain length of time still has not paid his back taxes the government will auction off his property to get their money, what does this have to do with you the owner of tax lien certificate? No one wants to lose their property outright so 98% of the delinquent non-payers pay their late bill, so you not only get your investment back you get the interest penalty the delinquent non-payer paid to settle his debt.

I bet you are starting to see the incredible opportunity investing in real estate and tax lien investing has to offer.

Investing in Real Estate and Making Profits From it During the Good Times - But What Now?

During the good times, we hear of people striking it rich and earning huge big profits from real estate investment. In fact, going into property was one of the in-things and getting real estate leads were not in the least difficult. In fact, real estate investment was known as one of the biggest income earner for a lot of savvy investors. However, now times are really bad. People are losing their jobs. Income is plunging. Property prices are plunging. Affordability is also plunging. Even as these go down, bad debts increased. Many houses were repossessed due to unpaid mortgages. People were left literally homeless as their financiers swoop in and take their homes to reclaim the monies they owed.

Many naysayers are warning investors to be smart and to stay away from risky investments including the real estate industry where plunging prices and less affordability teamed together would mean less buyers. Although there are sellers aplenty, there is really no point amassing the properties when you can sell any of the properties now. Then all your funds will be tied to the properties and you can't use it for other uses. While there are other property investors who thinks they can still make a profit from real estate by buying the properties cheap and then waiting for the housing industry to recover, you can only do this if you have the extra funds that you do not need.

Of course, you could always purchase properties cheap due to the plunging market conditions now and then rent it out for some monthly income. To go into the buy-to-let industry, you will need a different set of skills and conditions. You will need to check the suitability of the property and the area so that you will be able to find tenants easily. Most importantly, you will need to know if there are a lot of demand for rented properties in the area before purchasing the property or else it would be a total waste of time and money. Just imagine purchasing a property with the intention to earn monthly income by renting it out and you later find out that there is no market for it. Or that there is no demand for rented properties in the area. Or that the area is simply too far from amenities like public transportation for people to consider staying there. Or that it is just too far from the business district or any schools. Whatever the reasons, it is always best to do a market research before buying a property with the intention to buy-to-let.

Even when you make a property investment with the intention to rent it out, you will need to get good real estate leads and in such a market conditions as now, it may not be easy at all. So, you will also need to work doubly hard to get tenants for your property so that you could make monthly profits from real estate. The global recession has caused the real estate investment business to plunge so it is always wise to be careful when investing in property.

Sydney Real Estate And Property Management

Recent research indicates that the real estate market in Sydney remains expensive when compared to other areas throughout Australia. That does not mean, however, that there are not excellent opportunities for those looking to purchase, rent or invest in real estate. The gap between Sydney prices and those in other areas is closing somewhat, as the rise in costs appears to be moving more slowly in Sydney than in surrounding cities.

Many homeowners have seen prices and values dip slightly over the past few years in Sydney, while values have grown in other areas. This provides a significant opportunity for those looking to add real estate to their holdings, whether as an investor or owner. Whether one is looking for moderately priced housing or high-end residences, there are many places available. In fact, several suburbs throughout the Sydney area are showing great growth and prestige after a lengthy hibernation.

Areas such as Pymble, Killara, Gordon, Warrawee and Bremon are showing invigorated prices and activity. The options are prestigious and costly for many, but for those with the funds, the areas are expected to stay quite desirable. In terms of more moderate housing, many agents throughout the Sydney area are looking to Erskineville as the suburb to watch. Prices are still manageable for many families and the area shows excellent opportunity for capital growth and rental yield. The population in the area is growing and all indicators are that the housing throughout the suburb is likely a good investment.

While some are looking to rent or purchase in an area that is already found to be pricy and prestigious, others are seeking areas thought to be more of a hidden gem. Some would say Darlinghurst, for example, is an area to explore since it is often overshadowed by Surry Hills. Redfern is another area that is often being thought of in the same regard. Surry Hills is becoming a very popular area with its urban living and convenient selection of restaurants and bars.

Those with a budget available can find many opportunities throughout the Sydney area. Apartment rentals are readily available in a variety of price ranges, and the home-buying market is a good place for buyers at the moment. Investors can certainly find excellent opportunities, especially in a number of neighborhoods that are on the verge of transforming into high demand areas. While Sydney has had the reputation over the past few years as being more expensive than other nearby areas, the market is achieving some balance and this works in the favor of those seeking a new home.

Families looking for both rental and ownership opportunities throughout Sydney often are seeking a good value, proximity to the city and a smaller, village-type atmosphere. Some specifically want the more prestigious areas of the city, while others are open to developing hot spots or areas that are less prominent with the potential for improvement. Experienced agents can help tailor each family's needs and budgets to explore the Sydney real estate and apartment market to find the perfect match.

How to Buy Real Estate and Never Need Any Money

I was listening to an investor talk about how he had bought over 100 properties and was able to secure 20 different bank loans. He went into elaborate details of the loan applications, cross collateralization, personal guarantees, consolidating LLCs and various gyrations the lenders made him do to get the money. He did a lot of work for not a lot of money.

Another investor who had bought and sold twice as many properties balked and explained how he never borrowed any money - what was the difference between these two investors? The second investor actually couldn't borrow any money so he had to get creative. When the declines of 2007 - 2008 happened, the first investor got wiped out and went into multiple foreclosures and ultimately bankruptcy.

The second investor who had borrowed other people's money went through the same market conditions, but didn't lose any money or any points from his credit score because it wasn't his money. Hindsight has 20/20 vision and as the second investor bragged about his experience, he failed to mention that he had already been through two bankruptcies and was dead broke when he started his real estate investing career.

Personally, we sold every investment property we had in December of 2006 simply because of the heated conditions of the market and the mortgage resets that were coming. This move was the culmination of about 15 years of buying real state with creative financing techniques and using other people's money (OPM).

Depending on the sales ability of an investor, he may be able to talk potential investors into lending him money to buy and sell properties even if he hasn't actually done any deals. Generally, investors are easier to work with if the investor has a track record of any kind. If you are telling people about your history in real estate investing, tell them the truth rather than lie about your experience. This may lose you some funding but it is better than to raise the investor's expectation to an unreasonable level.

Your competition for the investor's "safe money" is saving accounts and certificates of deposit. Interest rates on these bank instruments are at 25 year historic lows so your cost of money needs only to be in the 6% to 8% range. I always offer 6% interest paid monthly or 8% paid when the property is sold.

As examples, on a borrowed $100,000 at 6% payable monthly, the interest only payment would be $500. On the same borrowed $100,000 held for six months, the payoff interest amount would be $4,000. Paying the interest at the closing helps the investor's cash flow during the rehab and selling period. Usually the more informed individuals will choose the 8%, while the less trusting lenders want to see a check-a-month to feel secure.

In summary, becoming long term successful as a real estate investor, with minimal personal risk, will require using other people's money to do the purchases of your target properties. Most people will turn you down initially, but stay in touch and tell them of your progress, most often greed will bring them back to you. In the worst of circumstances a few private lenders may want more interest on their money or a part of the profit from the property. Stick to your guns about what your offer is but make sure you ultimately get private lenders' money to finance your deals. Be careful of advertising in newspapers because you could be construed by the regulatory people as making an unregistered public offering.

In Real Estate Owned Properties, an Opportunity to Get a Real Cheap House

Real estate owned properties are those whose ownership is still held by the bank (or other real estate lender), in the aftermath of an unsuccessful foreclosure auction.

Normally, when bankers and other lenders lent for real estate development purposes, they get the property they are financing as 'security' for their loans. This is to say, in event of the borrower being unable to repay the loan used in developing the property, the bank (or any other lender in question) would repossess the property, and then auction it to recoup their money.

But it so happens sometimes that upon the borrower failing in their obligations for the property, and the house being put up for sell through an auction, it is still not bought; for one reason or another. Such a property is now held by the bank/lender in question, and it is referred to as a 'real-estate owned' property.

Banks (and other lenders) are of course not in the business of real estate. They typically don't have the interest to go about managing properties - and are therefore usually keen to sell the properties that happen to be in their possession as real-estate owned properties, as soon as possible.

Indeed, real-estate owner properties reflect on the bank's/lender's accounts as 'non performing assets' - and this is a bad reflection. Banks and other lenders are usually keen to have as few of these 'non performing assets' on their books as possible. The 'non performing assets' of which real estate owner properties are an example are effectively money that is 'frozen' from the banks'/lender's perspective. Indeed, as the bank continues holding the real estate owned properties, it is aware that they are likely to be depreciating, meaning that it is not only 'freezing' its money in them, but actually also losing money through the depreciation of the real-estate owned properties. As such, it is the in the banks' best interest to get rid of the real estate owned properties as soon as possible.

In a bid to get rid of the real-estate-owned properties as soon as possible, it becomes imperative to lower its prices, and it is here that the opportunity to get an otherwise great house being sold for a song lies, if you go shopping for real estate owned properties.

To be sure, many of these real-estate owned properties do tend to be in run down conditions. Yet even taking this into consideration, the difference between the prices at which they are sold and the prices of similar properties in the market tend to more than make up for the costs to be incurred in the repair of the properties.

There are two methods through which banks and other lenders sell real estate owned properties: through the real estate brokers, or by advertising the properties, and then selling them off themselves.

So the next time you see an advert for real-estate owned properties, see in it the opportunity to own what can potentially be a very nice house at what can turn out to be truly fantastic price.

Real Estate and Return on Investment

You'd be surprised to know how few people actually make the connection between real estate and return on investment. Many starting out in the field simply think that if they own real estate, it will just go up in value just by sitting there with the passage of time. True enough, that does actually happen in rare and isolated circumstances, but one just can't expect real estate and return on investment to be synonymous with each other. Many leave out one important part of the equation, which can be work, ethical craftiness, experience, brains or even timing.

It takes work and diligence, or at least well tuned brains to successfully prosper in real estate. And return on investment should be well thought out and planned as well. For instance, if you could see large profits from one big deal, but barely need to make much of an investment at all for it to work for you in the first place, then there you go! There is your real estate and return on investment - invest low, and profit high.

So how can one invest small amounts for large returns? There are many techniques and strategies out there, and not the tired old "no money down" methods that everyone and his brother has heard about or even tried. There are ways of investing considerably small amounts of capital for large properties, and credit needn't enter into the picture... nor are there any needs for loans or even dealing with banks at all in order to invest in real estate. And return on investment can be quite substantial as a result.

Capitalization Rate in Real Estate and How to Calculate It

Capitalization pace is the percentage figure utilized to find out the current importance of the property according to a figure of future net operating revenue. When divided with the capitalization rate, the net operating salary of an actual estate property will offer the approximate market place benefit of the property.

When figuring out the capitalization charge of an asset, the rates applied to genuine estate attributes from the identical nature marketed most recently is made use of. When identifying the capitalization pace, the sales importance of an asset sold most lately is divided because of the profits it generates decisions. This provides an extra objective way of valuing real estate attributes which could be utilized not only by the seller but also from the buyer alike. It will assist the seller get the appropriate piece for his investment while the buyer prospective buyer will use it to make informed decisions as to whether or not the price with the house is correctly estimated.

This acts as a very good base for estimating the worth of earnings generating real estate attributes when purchasing or selling. By looking at the product sales cost and profit of other related attributes located in similar environment, you'll be able to come up with an acceptable capitalization charge that will enable you decide the importance of one's asset determined by the existing profits.

Identifying the capitalization price need to have not be an arduous task. You'll be able to begin by collecting the statistics of lately sold attributes in similar or the exact same locations as your home. The chosen residence must correspond with that of your residence. You have to decide with high degree of accuracy the net realizable rentals with the owners with the home. For instance, you could take the net rental salary realized through the owners to be $30000.Get the sale price within the asset and divide the net profit from the revenue selling price. This will give you the capitalization fee. If in this case the house was sold at $900000,you have it divide with the net earnings of $30000,the resulting figure will probably be 0.33.Then convert this figure to percentage points by multiplying it by 100.This will give you a capitalization price of 3 percent.

Capitalization pace have become a fantastic aid to the owners of residence owners who have the intention of promoting them. Without capitalization price, it can be difficult to value Real estate assets. Several persons can be deceived to accept lower costs through the buyers of the same qualities. Since you can use other properties that are independent from yours when operating out the capitalization pace, you will probably be assured of your far better return when you finally decide to dispose your house. The determination of this price need to have not be a headache. The procedure is very easy. Get the net revenue of a legitimate estate residence offered in recent times and divide it using the product sales importance. Then you convert the figure obtained to percentage form. This figure will aid you in operating out the actual market benefit of your respective asset.

7 Critical Considerations for a Real Estate Investment Property Purchase

If you are considering an buying an investment property, there are 7 important items to consider.

1. Financing, typically lenders will only lend up to 65 percent of the value of the property when it's for investment purposes. This limit is in place because lenders consider an investment property a higher risk

If you have equity in your current principal residence or in other property, then you may wish to borrow from those sources to maximize your mortgage and financing Generally speaking your investment property. The reason for this objective is because you are allowed to use mortgage interest paid on your investment property to reduce the amount of income and hence tax paid on your investment property.

2. Another important consideration for your investment property is choosing the best location. If you are considering a townhouse or a high-rise condo for your investment, then you want to ensure that it is located close to major shopping, transportation and schools and amenities that will appeal to prospective tenants. Often tenants will only have one vehicle and require these types of amenities to be located close to the property. You will usually get higher rent when your location is desirable.

3. Generally speaking, a high-rise condominium will allow you the most flexibility and least amount of effort and maintenance during the tenancy compared to any other type of property. Once a high-rise condo is rented, it is nearly a hands free investment. This does not come without any cost, as the maintenance fees associated with a high-rise condo will be much higher compared to a townhouse or other type of property. Your second choice for maintenance free investment property may be a townhouse. The reason is that all of the exterior maintenance, such as snow shovelling and lawn and garden maintenance will be taken care of by the condo corporation and not the tenant. The only items that you and/or the tenant will have to take care of are the interior items and these are usually minor in nature.

A freehold townhouse, semi or detached home will require more maintenance and effort on your part and the tenant throughout the year. This may be more desirable or not, depends upon your circumstances. Many investors choose freehold properties for their investment properties as they have the time or prefer to do some of the maintenance themselves or at least have control over the entire property compared to condo type properties.

4. As a continuation of the items considered in number 3, these different properties will appreciate at different rates, all things being equal. For example, if a high-rise condo has an appreciation of 10% in a year, then a townhouse may appreciate 12 to 14% and a freehold property may increase 15% or more. This larger appreciation would be offset by the fact that more maintenance may be required by you the owner.

5. It is important to consider all the expenses when you purchase an investment property. The obvious expenses are the principal and interest costs associated with the mortgage or financing on the property, the annual taxes and any monthly maintenance fees if the property is a condominium.

You may wish to consider regular maintenance items to protect the value of your investment property and the systems that are associated with your property. Other expenses you may incur are regular maintenance items such as furnace cleaning and maintenance and inspection. This is a very important item if your investment property is a freehold. Other items such as the condition of the roof, foundation, interior and exterior walls and windows, appliances, lighting and window coverings, electric garage door openers and any other systems or items that are mechanical in nature should be checked on a regular basis to not only protect the value of your investment but also to prevent the failure of these items as opposed to regular maintenance.

6. Once you have purchased your investment property your other major consideration is finding a good quality tenant. In my nearly 20 years of experience I have found that there are two major considerations in your tenant. The number one consideration is that you find a tenant who has the ability to pay the rent and if possible can show a good history of paying the rent. The second most important item is to make sure that your tenant will take care of the property for you in your absence.

Other items you will have to consider are that you must investigate the credit worthiness of the tenant, their personal and credit history, their employment status and confirmation of employment. You may contact their previous landlord and personal references that they supply on the application. These items can be critical and will give you insight into your prospective tenant. In my experience, the degree to which a prospective tenant completes all fields on a rental application and provides all the information you request and is straightforward and forthright with all answers to your questions and inquires will give a good indication of the quality of the tenant that you are looking at.

7. You have to decide to find the tenant yourself or use a real estate agent. When you attempt to find the agent yourself, you can personally meet the tenant ahead of time and see the type of people that will occupy your property. You will have to do all the credit and personal investigations of the tenant. I have found that when you use a real estate agent to find a tenant for your property, the quality of the tenants are usually better than through private means. The reason for this is that tenants who are relocating with their company or those tenants that have better employment and personal history know that the properties on the mls are better compared to the private properties and will utilize the mls to find their property. As well, the mls is a much more efficient method of finding a rental property and many tenants use the mls to find their next rental.

Of course, a real estate agent can find you a good quality tenant and perform all of the credit and personal investigations on your behalf. In the Toronto and GTA, the typical fee to have your property rented through the mls is one months rent commission.

Conclusion

As you can see, there are many important items to consider with an investment property that you are considering to purchase. Your personal situation, financial ability and degree of involvement in your investment property will ultimately determine the type of property that you will purchase.

Real Estate Commercial Property - Top 3 Tips For Buying That Commercial Real Estate

When it comes to buying commercial real estate, the rules are a bit different than when buying residential real estate. Commercial real estate is purchased to be used for the sake of a business. This business needs to make sure the property will fit the needs of the company and that the area is right for their business. The deal can be tough to attain, but well worth it when the business succeeds beyond the dreams of the company.

1. When buying commercial real estate, the buyer must first look at the local clientèle. The customers that will be driven into the business will largely be dependent upon the residents of the area. If the commercial property is in an area that is not thriving and the business is based upon a more affluent crowd, the business may not have the following the business needs to make it successful. A careful look at demographics and median income can tell the buyer a world of information about who will be shopping, or not shopping in their business.

2. After demographics, local area businesses are the next most important factor to weigh when deciding on the purchase of a piece of commercial real estate. If there are 30 coffee shops within a 10 mile radius of the property, opening another coffee shop may not be the most appropriate business decision. A buyer must also look at the local rules and regulations regarding the number of similar businesses allowed within a given area. Many state and local governments impose rules regarding the types of businesses that can be opened within an area.

3. The size and space provided is the third tip for buying commercial real estate. The space, no matter how centrally and perfectly located, will never meet the expectations of the business if it is simply not large enough to hold the business needs. The total overall square footage of the space and the layout of the building will weight heavily on the final decision on whether or not to purchase the commercial real estate. Local regulations regarding certain business types will also need to be researched. Not all area is zoned to accommodate every style of business. The zoning laws can be attained from the local government offices in any given area and will tell the buyer just what type of business the area or property has been zoned to handle.

Commercial real estate is a high dollar purchase and the company needs to take these tips into careful consideration before finalizing the sale. There is nothing worse than finding the perfect spot for that next business venture only to have the space not provide exactly what the business needs. Commercial real estate comes in a wealth of shapes and sizes. From old buildings to new constructions, each offers a different style and shape of space. Carefully looking at all aspects of the space is important to the final decision. If all the arrows point toward a successful piece of commercial real estate, take the plunge and open that new business with hopes of making it big.

Understanding Real Estate and Property Life Interest

The life interest is the least estate of freehold known to law. This estate gives the owner the right to enjoy the land only for a lifetime, usually his own. At the end of the lifetime, the estate ceases to exist, so that there is nothing which can be inherited by the heirs of the late owner. The two main types of life interest are:

(1) An interest for the life of the tenant himself; and

(2) An interest for the life of someone other than the tenant. For example, to A for the life of B, or where X who is the owner of an interest for his own life, makes over his interest to Y: if this is done, since X cannot grant an interest greater than he holds and he only holds an interest for his own life, Y can only take an interest for X's life.

The Tenant for Life at Common Law

As a tenant for life had such a limited interest in the Jamaican land, he was not permitted by Common Law to treat the land entirely as if it were his own: he had not the absolute powers of enjoyment allowed to the owner of an estate in fee simple or fee tail, because it was considered that he must use the land only in such a way as not to do it any permanent injury which might affect those entitled on his death.

The rights and obligations of a tenant for life may be summed up as follows: He may take the annual profits but must not take or destroy anything that is a permanent part of his inheritance. He is entitled to fruits of all kinds, but must leave unimpaired the source of the fruits. He has certain positive rights and one negative duty which is prescribed by the doctrine of waste.

Emblements

The profits that arise from the land, whether they arise continuously, periodically or occasionally, belong to the tenant for life. A particular hazard, however, that confronts him is that after he has sown crops his tenancy may end unexpectedly before they are ripe. In this event he is entitled to re-enter the land at harvest time and to reap what he has sown. This is known as the right to emblements. This takes place constantly with foreclosure homes in Jamaica.

Waste

The position of the tenant for life on the negative side is governed by the common law doctrine of waste.

Waste at common law consists of any act or omission which alters the nature of the land and is usually considered under these two heads:

1) Voluntary waste

2) Permissive waste

Voluntary waste

This is any positive act by the tenant which alters the nature of the land. For example:

o opening a mine

o cutting down timber

o pulling down or altering buildings

Technically, any alteration in the nature of land is waste, even though the alteration is an improvement, that is, it might enhance the value. Such voluntary waste which improves the land is known as Ameliorating Waste and no action will lie for its commission.

Permissive Waste

This consists of an omission to do what requires doing to keep the land in proper condition, such as failure to repair a house.

Equity's Position on Waste

The rule has long been that any tenant who commits wanton or extravagant acts of destruction will be restrained by injunction and ordered to rehabilitate the premises. Wanton acts of destruction are said to constitute equitable waste. Understanding this concept will prepare investors for houses in Kingston Jamaica for rent or sale.

The Boosting Lahore Real Estate and Its Prime Property Projects

The city of Lahore is one of the most vibrant real estate sectors in Pakistan. It holds a prominent position in the country because it is a political, cultural, entertainment as well as an economic hub. Lahore is undoubtedly the cultural heart of Punjab and features various historic sites that are known worldwide for their rich history and grand architecture.

Lahore has a boosting real estate!

The city is densely populated due to better law and order maintained by the authorities. Since, as compared to other cities, people find Lahore secure, modern and affordable, the demand of Lahore property has always remained high. This is why the influx of people in Lahore is increasing with every passing day.

Over the past one decade, many industrialists and businessmen from cities such as Karachi, Faisalabad, Gujranwala, Sialkot and Gujrat have migrated to Lahore to enjoy better lifestyle and secured environment for their families. But the city experienced real boost when People migrated from Karachi migrated here. The value of property in Lahore real estate has increased 30% in last one year. In order to accommodate the growing population, Lahore is expanding with various new property projects in its outskirts becoming part of the city.

Three prime areas to live in Lahore!

I have been living in Lahore for more than five years and I have seen almost all housing societies the city. Despite the fact that many lush and luxurious property projects have now been added in various parts of Lahore, I would prefer living in DHA, Bahria Town or Gulberg. It is because life at these areas is convenient and comfortable and value of property here is not affected by economic and political turmoil observed in the country.

Defence Housing Society

DHA Lahore, a rich class housing society, was originally built for providing residence to the army people but now it has become a premium society for the potential residents and businessmen alike. DHA Lahore Pakistan features elite residences and perfect commercial properties in its various phases from 1 to 10 with phases 9 and 10 currently under construction. Lahore DHA is home to various branded stores, restaurants, schools and universities, hospitals, medical centers, gyms and gift shops. The wide streets, clean atmosphere, high security, and better infrastructure in DHA Lahore explain why it is the most popular society in Pakistan.

Bahria Town Society

Bahria Town is also one of the posh societies of Lahore where property prices are devoid of fluctuating with dropping value of Pakistan real estate. The society is primarily built to provide perfect housing solutions to the rich and middle class people in Lahore. Divided into various sectors, there are elite and modern residences segregated in phases. From farm houses to traditional bungalows, and from economic houses to luxurious houses, you will find all types of properties in Bahria Town. The society also delights its residents with great health facilities, entertainment venues, parks, and the best commercial and business opportunities.

Gulberg, Lahore

Gulberg, Lahore is also one of the oldest and prime residential and commercial areas in Lahore. The area focuses on providing best dwelling and business opportunities to the elite class. Located at the centre of the city, the town is known as the fashion and cuisine hub in Pakistan. It is an exclusive area which features high end bungalows, urban shopping centers, gyms, fitness centers, swimming pools, sport centers, restaurants, and café's, offices and branded shops. Being ideally located in the centre of the city, the residents enjoy easy access to the various important shopping and business areas of Lahore.

Jhansi Real Estate and Hotels

Jhansi is a fascinating historical city along the Northern India's Uttar Pradesh State. It is also the Jhansi Division and Jhansi District's administrative seat. It is also regarded as the major rail and road junction.

The city is known for the act of courage and bravery of Jhansi Ki Rani Laxmibai during the so-called freedom struggle against colonial rule. Even the name of this is city can promote national pride and patriotism amongst its residents. Aside from this, the city has beautiful sites, holy temples and magnificent excursion areas tourists adore.

Jhansi Real Estate
Properties in Jhansi seem to draw more and more real estate investors since the focus of developmental work is more on the smaller towns and cities now. Land is depleting fast, even in the metro areas, leaving only little scope for more construction work.

There is currently a rejuvenated effort to bring world class and hi-tech construction experience to the city. The government is also supporting private players actively in order to achieve their endeavors to improve infrastructure and the amenities you will find here. This will then guarantee the future growth of commercial and residential properties in Jhansi.

With the promising future of Jhansi in real estate, more and more offshore buyers are seeing it as a good option for long term investment. Hence, the easy inflow of money on commercial and residential properties, builders of apartments and houses are also gaining enough profit.

The growing demand in Jhansi property led to the creation of scope by a host of real estate professionals that cater to various aspects of real estate. This would include real estate agents, property dealers, interior decorators, architects, building material suppliers, building contractors and home loan providers.

Jhansi Accommodations
Jhansi has many lodging accommodations to offer. There are both government-approved and private hotels alike. Most of these are located in the most premiere sections of Jhansi.

Hotel Sita
This is a 3-star government-approved hotel. It is located along Shivpuri Road, near the Gwalior Airport, the Jhansi Railway Station and the Jhansi ISBT. The hotel has 29 rooms that have a fridge, ironing board and safe among others. The hotel also has a foreign currency exchange counter. For reservations, you can call them at 0517-444691.

Jhansi Hotel
This hotel is located along Shastri Marg. It is only 100 kilometers from Gwalior and 3 kilometers from the Railway Station. They have a doctor-on-call, money changer, laundry facility, travel desk and banking facilities. Each room is equipped with H/C running water, 24-hour room service, a telephone, TV, fax machine and a coffee maker. They also have an Executive lounge, green lawns, banquet/conference facilities, courier service and a beauty parlor. For reservations, you can call them at 0517-470360.

Other hotels in Jhansi include the Prakash Guests House, Hotel Rishabh, Kanika Hotel and Aparna Guest House. For those who are on a tight budget, you can go to Hotel Highway, Samrat Hotel, Krishna Hotel and Central Hotel as well as Chanda Hotel and Hotel Bhawana.

Tourist Information
There are some important offices and numbers worth knowing during your stay here. First, there is the Tourist Information Center located near the Railway Station. You could inquire here about the prominent attractions of the city worth visiting.

The UP Government Tourist Office is located at Hotel Veerangana. You can call them at 441267. You could also go to the MP Tourist Information Center also found near the Railway Station. You can call them at 442622.

Real Estate and the AMT - Overview

The Alternative Minimum Tax is a very important consideration for taxpayers who own real estate, because many of the rules that apply to real estate are different for the AMT than they are for the Regular Tax. This article is the first of a four-part series on Real Estate and the AMT. We'll start with an overview of the differences in the rules, and then will drill down into the details in the three different situations taxpayers find themselves when they own real estate:

1) the taxpayer's residence;
2) a rental/investment property; or
3) property used in the taxpayer's trade or business.

These articles will be updated periodically to reflect future changes in the tax law that affect the Regular Tax and AMT treatment of real estate.

Here are the things we will be looking at:

Interest expense

Except for anyone who travels in the Buffet/Gates social circles, every purchase of real estate will be financed. Financing, in turn, means that interest will be paid. In general, the tax law allows a deduction for this interest for Regular Tax purposes, although a number of different limitations can apply. These limitations vary, depending on whether the property is a residence, or is rental/investment or business property. The separate AMT limitations that apply to real estate also vary among these categories.

Property taxes

Property ownership brings with it the obligation to pay property taxes. In general, for Regular Tax purposes real estate taxes are deductible regardless of the reason for holding the property. This is not the case for Alternative Minimum Tax payers, however, for whom the deduction may be totally disallowed in some situations, yet allowed in others, depending on which of the three classifications applies.

Depreciation

Depreciation is a deduction that allows a taxpayer to recover the cost of an investment in property, depending again on the taxpayer's purpose for holding the property. If depreciation deductions are allowable, the AMT has a set of rules different from the ones that apply for purposes of the Regular Tax.

Active/passive investment rules and the "at-risk" rules

In some cases the tax law's active vs. passive investment rules, and/or the at-risk rules, will apply to individuals owning real estate. These are overarching rules that supersede the other individual tax law limitations. Even if they do apply, however, an AMT payer still must keep track of the separate AMT calculations required by the other limitations.

Sale of the property

Very few taxpayers hold on to property for life; at some point in the future it can be expected that the property will be sold. A number of special Regular Tax rules apply to the sale of real estate, and, in most cases, an AMT payer will have a different set of calculations to make.

Conclusion

Real estate is one of the biggest purchases most taxpayers make, and it is likely there will be a number of real estate purchases and sales throughout the taxpayer's lifetime. The Regular Tax rules are complicated enough, but additional wrinkles exist in the calculations for Alternative Minimum Tax payers. With a little knowledge, however, these complications and wrinkles can present some real tax planning opportunities for AMT payers.

Things That Make La Jolla Real Estate Prime Property

There are many things that make La Jolla, California a great place to purchase real estate property. The natural landscape of La Jolla is, simply put, quite gorgeous. Buying property in La Jolla will give you access to some of the most beautiful natural landscapes, beaches, and reserves. La Jolla is a seaside resort community in Southern California, occupying a long stretch of land along the Pacific Ocean. Imagine how beautiful the beachfront properties of this place could be, with three of its sides surrounded by beautiful beaches and ocean bluffs.

One of the attractions is the Children's beach or what is also known as the Casa Beach. The beach has a sea wall which was built in 1931 and serves as a structure that breaks the waves of the beach. It was created so that children can enjoy swimming in a beach with gentler waves, making it safer for them.

Another attraction is the La Jolla Cove which is a popular spot for people who love to swim, dive, and snorkel. This beautiful cove also happens to be part of a marine refuge area which is the San Diego-La Jolla Underwater Park.

Another beautiful landmark of this place is Black's Beach, which is being managed by the California Department of Parks and Recreation. Black's Beach is a popular tourist destination for a particular set of people. It's one of California's largest nude beaches, catering to nudists and naturalists. It's also a popular surfing destination to a lot of surfers. For people who love surfing, another great destination is the Windansea Beach where the waves can reach up to eight feet high.

There are many other tourist spots here which adds to its attractiveness to the local real estate market. Add to this the fact that it has a lot of upscale shopping and dining areas in different districts as well as beautiful golf courses. One of the most famous golf course in the United States can be found here. The Torrey Pines Golf course hosts several golf tournaments all year round, including the PGA Tour's Buick Invitational tournament.

There are so many perks to consider when buying a property here, especially when buying a beachfront property. It is, after all, a resort community. The highlight of living here is being able to enjoy the perks that go with having a home that's near to the beach; beach parties, having a great time with your family and friends, watching the beautiful sunrise and sunset, and many more.

Real Estate Investment Properties - Financial Tips For a Useful Asset

The sub-prime loans meltdown in the United States has almost fully run its course. But even if more write-offs of the sub-prime loans ensue, the real estate sector will still continue to blossom as evidenced by the industry's overall health amidst economic crisis. So if you are one of those investors considering putting in their funds in real estate investment properties for whatever rationale and intent these assets may serve you, mulling over the whole course and process is crucial. You don't want your currency be put to waste should you fail to stop and think before hitting the green light. Hence, for further guidelines, here are some investment must-dos:

Choose a real estate property that still boosts perfect structure and form. If the purpose of the property you're eying is merely for resell, you really have to make an effort to select an asset that requires bare minimum upkeep. If the maintenance would be sinking your money, then you're better off looking for another one. Same thing goes for a property meant for personal and long term investment. Remember, if the value of the property will equate with the overall outlays for repairs and upholding, then its best to just let go of the property. Perfect structure condition + Low-maintenance = Valuable property investment to boot.

Consider the property location. A property's marketability is oftentimes dependent on the asset's site. Simple considerations with the likes of the real estate being convenient and situated near major business districts, marketplaces, and schools, an asset considered low-risk, and a property located in a decent neighborhood. You wouldn't want to sacrifice ease and expediency; safety and security over a location that will put your life into incommode and grave danger. Thus, an upscale environment is still the best place to go.

Determine your main objective in buying a particular property. Try to ask yourself these questions? What is the main reason that convinces me to buy the property? What will I do about it? Will I have it rented? If it's a rental investment, how soon will I get a return? These are just few of the many questions you have to ask yourself. If you have solid answers for these queries, then you're good to go. If it goes the other way around, then you probably need some time to think.

Weigh the positives and the negatives. Buying real estate investment properties is no joke. It's not only your financial resources that are riding on it, but it could also be your entire livelihood that is in jeopardy. Therefore, you need to decide if the property you're eying is really the one that you want, is worth your funds, and will be of good use to you at present and in the years to come. Remember, this is going to be long term, so you really have to make the right decisions now or suffer the consequences of your impulsiveness and recklessness later on.

Finally, do yourself a favor. Choose the one that is within your own pocket's reach. Otherwise, your invested property will just end up foreclosed and shut out for good. And, you wouldn't want that to happen, don't you?

Impact of Government Fees on the Real Estate and Mortgage Industry

The governmental policies have a major role to play in the Industrial sector. Any changes that take place in the government affect the whole Nation. So the changes in the government fees have deep impact on the real estate and mortgage industry as well. Many residential builders have stated that the excessive charges of the municipalities to offset the cost of development result in higher home prices. As a result the lower income buyer cannot take part in this rat race and is forced out of the housing market.

The rates of house prices are always fluctuating in the market. Real estate industry, in the recent years is booming in all its five different sectors - Residential, Commercial, Retail, Industrial as well as Investment. We can witness this through economic indicators like stable rates, falling dollar, changing demographic trends, rising stock market. Recently, the wavering housing sale is expected to leave a deep trace in housing prices.

A recent study reveals that 80% of the home buyers purchase using mortgage. In California 0.8% of the total of 597,597 households can afford a median-priced home that cost $849,022. The hike of $1000 in house prices will automatically cut 313 households. In the Salinas, California 3.5% of 123,630 households can actually qualify to purchase a median-priced new home at $669,091; a price increase eliminates only 31 of them. On the other end, in West Virginia 66.9% of 125,779 households are eligible for a median priced house which cost $85,804; raising the price by $1000 will cut 463 households out of the market.

The government fees indirectly control the community impact to the real estate and the mortgage industry. This may be in the form of a drop in federal and state funding, changes in the tax-exempt-bond, and even unwillingness of the public to pay higher taxes for services necessitated by development. If there is an increase in the home prices the government fee itself will be increased. Recent study shows that the construction financing cost and real estate agent fees rose to about 22%.

The increase in the construction fees of $819, an average annual interest rate for construction financing of 10% and the total time span from the authorization to the sale of the property would add another $80.54 to $819. This will in turn add up to the average brokerage fee to about $23.75, and the builder's compensation and the profit of 9.30% to an approximately $76.17. This adds to a total of about $999.45.

However, mortgages in 2007 are very promising. Since 2004, The Federal Reserve Board (The Fed) raised the fed funds rates which would in turn influence mortgage rates. The fed-fund rate was raised to about 17 times, upping it from 1% to 5.25% as a result the housing market slowed down. There are speculations that The Fed might soon cut the rate. But this may lead to a decrease in home sales.

The road ahead in housing market looks promising. It is anticipated that this year the house market will perform better, unless employment drops or the Federal Reserve is compelled to boost interest rates.