Thursday, January 16, 2014

Real Estate Investing? 5 Ways to Buy a Perfectly Priced Real Estate Investment Property

Looking for the "perfect real estate investment property?" Is there such a thing? Yes, but you have to find it first.

There are few investors who would argue the old adage that "every profitable investment begins with a bargain purchase." That's not to say that you can't buy at regular retail price and still make a profit. It just reduces that profit margin, or makes it more difficult to sustain.

With the goal of a buying a property below market value, where should a real estate investor look for properties?

1. Your own website. There are certainly value buys through wholesalers and other property marketers. However, getting to a distressed homeowner when they need you with an offer to help them avoid foreclosure or bankruptcy is the most direct route. If you buy directly from an owner, you won't be passing along some of your profits to someone in the middle. Put up a small free or inexpensive website with articles about how you help homeowners by buying their homes.

2. Ads and area signs. You've seen them. The "I buy homes" signs and classified ads. The reason you see them a lot is because they work. You must be consistent though. Run a classified ad continuously, and in the same area of the paper.

3. Foreclosure websites. There are a number of national foreclosure websites. You'll find listings placed there by lenders. They can be old, so check on new listings promptly.

4. Wholesalers and "flippers." Though we've placed someone in the middle, this is still a useful approach. Those who have excellent resources can locate properties that you may never find on your own, and their markup to flip them to you can still leave an excellent return on investment.

5. Realtors and MultiListing Service listings. Though the least lucrative for you, there can be bargains listed on the MLS. You might also create relationships with agents who list properties in your chosen locations. They may tell you when their desperate homeowner client is about to go into foreclosure.

Though you may find that you can hone one of these approaches to a fine art, keep them all on your list to avoid missing that perfect real estate investment.

Wednesday, January 15, 2014

Indian Real Estate and Property Market

Indian real estate and property market has received huge investment in recent years. The growing Indian economy is still attractive to both national and international investors and will continue to be so for the foreseeable future.

As the spending power of Indians increases, there is a growing demand for high-end properties. Besides the software industry, other IT enabled services and outsourcing services industry has driven up the demand for real-estate. Another key contributor that is fuelling this growth is the retail industry. Retail industry is itself projected to grow by more than 25 per cent for the coming years.

The huge and growing, Indian middle class is another driving force causing increasing demand for real-estate. Large number of shopping malls, multiplexes and other public recreational establishments are being built all over India. These construction activities are not just limited to the metros and bigger cities such as Mumbai, Chennai, Hyderabad, Bangalore, Kolkata, Chandigarh, and the National Capital Region (NCR), but also smaller and upcoming cites and towns.

Every major international firm is trying to get involved with the Indian Real estate market. Unlike many other businesses in India, real estate is a low maintenance and high return of investment business opportunity. Before investing, you should make sure that the location is to your liking. If you are buying just to sell it later then location is the most important aspect in selecting property, followed by infrastructure and connectivity. If you are planning to reside then other factors, such as basic amenities, proximity to markets, schools, hospitals etc. also needs to be considered.

For more, visit the Indian real estate and property market website.

Tuesday, January 14, 2014

You Too Can Make Fast Money In Real Estate - And Pigs Will Fly!

It's time for some tough love. Contrary to what you may have learned on TV shows such as 'Flip This House', you are in all likelihood never going to make fast and easy money by snapping up houses and spending 30 minutes renovating the kitchen (less 12 minutes for commercial breaks). While you may watch Donald Trump on The Apprentice, you are not Donald Trump. And in any case, Donald Trump doesn't make his money by flipping houses.

Here is your absolute best strategy for making money in house-flipping: write a book titled 'How To Make Money Flipping Houses', and sell it to others.

The promise of fast and easy money has always been the huckster's most effective lure. Don't fall prey to that siren call! If you are considering pursuing real estate investment, then make sure you aware of these typical novice investing mistakes...

Buying on a whim - "Gee, honey, that seems like a good deal. Let's buy it!" Bad move. You need to do your homework first, since you're embarking on a journey which may last for years. Better make sure you are really committed to all the work involved. You can't just take your investment property back to the store for a refund if you later decide it's too much work.

Assuming all the profits will come from growth in property value - TV shows and hucksters always dangle the capital gains carrot in front of starry-eyed beginners. In reality, the operational profit earned while you own a property is arguably more important that the capital gain you earn when you sell. Why? Because if your property is profitable for you every month, you will never be forced to sell. If the market tanks and you can't get as much for the property as you prefer? No problem... you can hold it for a few more years, collecting profitable rents the whole time.

Don't pay attention to the cash flow - This is an extension of the point above. There's a temptation to focus on the potential capital gain when deciding whether to buy or not. But it's really more important to focus on the property's cash flow. They say 'cash is king' for a reason. Maybe, for strategic reasons, you decide to buy a property which has negative cash flow. That's fine. But you have to be certain you will be able to handle putting out that amount of cash (or more!) for the time you own the property. Better to know about the commitment you are making up front, before you get yourself committed to a situation you can't endure. Just read the newspapers lately for some examples of why that is good advice.

Not prepared to manage renters - If you are going into the business of managing renters, it should go without saying that you need to be of the proper temperament for managing renters. Alas, many landlords find out too late that they are just not cut out for it. The timid and easily bullied should think twice about applying for this job. Landlording bulletin boards are filled with horror stories about collecting rent from tenants and dealing with damage. Read up on them before getting into the business, and ask yourself "Is this for me?".

Bad timing - Nothing like buying at the market peak to take the wind out of your sails. The news media is awash in stories of investments gone bad and miserably under water. Unfortunately, there's not a whole lot you can do about timing, regardless of what anyone tells you. That being said, if you do your homework, you are less likely to be hurt (or will at least limit the damage) if the market turns against you.

Lack an exit strategy - While we advise you against planning on quick flips, we do recommend that you spend some time thinking about the end game before you make the investment. Don't count your chickens, but do think about the scenario in which you would like to sell, and then evaluate it for whether it is realistic or not. For example, there is a Pennsylvania town called Centralia which is located directly over a coal mine. For decades, the coal mine has been on fire. Gradually, the town has withered, as the government tried to get all of the residents to move so that the town can be closed. You might be able to get a good deal on an investment property in Centralia... but that doesn't mean you should buy it, since who in their right mind would ever buy it from you?

Real estate is a 'buy-and-hold' game, not a 'quick flip' game. You should aim to buy low, make money while you own the property, and then, years later, sell high. In other words, Get Rich Slowly. It may not have quite the same allure as getting rich quick, but you have to admit, it still has a nice ring to it!

Monday, January 13, 2014

Real Estate and Stock Market Investing Require Different Strategies

It may not seem obvious to many people, but the strategies involved in real estate investing and stock market investing are different from each other. Many people, disenchanted with the lackluster performance of their stock portfolio, first become interested in real estate investing after someone they know makes a large sum of money in real estate in a relatively short time.

If that sounds like YOU, be warned: investing in real estate in the hopes that the market will increase rapidly and steadily is, and always has been, a risky strategy, and can cause severe difficulty if you guess wrong about a piece of property--or if the entire real estate market begins to collapse, as has happened many times in the past.

If you can afford to buy real estate and hold on to it for five to fifteen years, you will nearly always realize a substantial profit. If you are savvy enough to buy a significantly discounted piece of property and then sell it within a year, you'll make money, too. But buying an investment property at its fair market value that only gives you a break-even cash flow (or worse yet, loses money every month) can sink you in a relatively short time if you don't have the wherewithal to feed it until you CAN make money on it.

It's like riding a horse. If you don't know how to ride, you'd better take some lessons before you sign up for a rodeo! The results could be disastrous if you make a mistake. And if you haven't done your homework, you WILL make a mistake. The wrong real estate investment could cause not just financial hardship, but also financial ruin.

So know your real estate market, inside and out. Know where it is in its overall cycle, because all markets, no matter how hot, have ups and downs within the overall trend. There are always bargains available, regardless of the market. Watch your local housing market so you know how much rental income to expect and if there is a vacancy glut on the market. Two years ago you could buy an apartment building in Las Vegas for zero down because investors couldn't rent the apartments. Some investors who could afford to make up the negative cash flow each month made a killing in appreciation. Investors with financing or cash who transformed the apartments into condominiums made even more money.

Finding the lowest-priced financing also helps make the most return on your investment. Unlike stock investing, you need strong credit to use other people's money to finance investment property.

Even if you're frustrated by a lackluster stock market, don't expect to make a short-term killing in real estate to make up for it. In both cases, one of the best strategies is to buy excellent examples--and then hang on for awhile. It's also a good strategy to maintain a cash reserve, especially when it comes to real estate. That way, even if the market heads south, you won't find yourself being overwhelmed while you wait for the inevitable rebound in prices.

Real estate investing can carry more significant consequences than stock market investing if you guess wrong, since there's generally a great deal more money involved. So take it easy, do your homework, and don't rush into anything until you've learned as much as you can about how to become a prudent real estate investor.

Copyright © Jeanette J. Fisher

Sunday, January 12, 2014

Commercial Real Estate and What You Ought to Know About It

If you have a business, you will need to settle various aspects that can affect the income that you can generate from it. With this, you will also have to remember that one of the most important factors would be the commercial real estate property that you might want to rent or buy. This is a big factor that it can affect your actual profit in the long run.

This is an important decision that you will have to make so you can simply choose amongst the Florida commercial real estate properties that are available and decide when you are sure of the option that you have. You cannot afford to have a mistake so it would be better if you are going to spend just enough time before making any kind of deal.

There are various opportunities in the Florida commercial real estate market. It can be the right place for your business but you should also consider that there are other things that might affect your profit. You will only have to remember that the property that you will buy will have an impact so you should be wary of your choices and the decisions that you will have to do.

You should also know that there are various types of Florida commercial real estate properties available. To be able to get the best one, you will have to know each time. When you learn about the qualities of each type of property, you can assess the different kinds that are available and you will be able to check if there is a type that suits the needs of your business.

Just remember that the property has to have the right location, size and reach to the people that you can cater to. This will be the qualities that you will need to watch out. Once you know the different Florida commercial real estate properties, you can now decide if there is a kind that you can really want and it can be a perfect match for your business.

The kinds of properties will have an effect on the prices so you should also be careful in getting one. Business means that you will have to prefer a property that costs less but you should also consider a property that may not be cheap but if it can generate enough output, hence it can still be considered as a right decision.

A Florida commercial real estate that you will choose will affect your business because it can play a big part in getting in touch with the people that might need your products or services. If you want to get the best out of this business, you will have to ensure that you know your options well and you have considered each type. This way, you can say that you are prepared and there are valid reasons for each decision that you will make.

Saturday, January 11, 2014

How to Invest in Apartment Real Estate and Take Year Long Vacations While Collecting Rent

Benefits from apartment and multifamily real estate investing are great but also take great responsibility, especially the responsibility of managing cash flow. If you're involved in apartment and multifamily real estate investing, then you may as well be considering the job title of landlord. While investing in apartment and multifamily real estate is a great way to invest and make a lavish living, you must consider several matters prior to assigning yourself to this job.

Prior to starting the process of any investment, including apartment and multifamily real estate, you'll want to minimize risk and make certain that you are able to earn positive cash flow as a landlord.

This entails determining a few key factors if you want to take year long vacations while rent is collected and wealth is building.

1 - Find the right place for potential tenants To avoid head ache and wasted resources, make sure you take the time match the tenant with the right place. A tenant that feels good and is highly enthused about their place will take the time to care for it as their own.

2 - Marketing your apartment and multifamily property It is to your advantage if you have the ability to market and find out the proper demographics that you may desire residing in your property. I once heard a saying "millionaires build networks, the rest look for jobs." The ability to network with the correct people will assist you whenever you're considering leasing space and investing in other property.

3 - How to manage cash flow and pay off loans against property True positive cash flow is not reached until you own your apartment or multifamily property free and clear and not having to use rents to pay mortgages. Savvy investors manage cash flow and use banking strategies that increase equity and pay off property free and clear in a fraction of the time.

4 - Do you have what it takes? If you choose to be a landlord and invest in apartment and multifamily property, examine the chambers of your heart and make certain you are made for it. Ask yourself if you are strong enough to put up with the different personalities. Issues like paying rent late, having no concern of the property, and other troubles will often come up. Successful apartment and multifamily property owners address different situations effectively. Make certain that you are able to find the correct solution to handle the different needs of everyone.

For certain being a landlord and owning apartment and multifamily property can earn you massive wealth. When you have proper people in proper places, there is no work. You just collect rent. Most apartment and multifamily property owners, if they have a larger number of properties, put in place property managers to take care of extra concerns that come up. If you're able to invest, mature and manage cash flow efficiently with multiple properties, then you will earn the ability to take a year long vacation while the rent is collected.

Thursday, January 9, 2014

What to Look at When Buying Real Estate Bargain Properties

When looking into real estate investing, home foreclosures and bargain properties are typically the place to look at first. While you do want to save money on a home and possibly fix it up, you also do not want to purchase a home that is irreparable. Here are a few essential principles to keep in mind when buying real estate bargain properties.

The first thing you want to look at is the overall price. You want to make sure to never buy for less than the market price until you know why it is at the price it is. Find out what the sellers motivation was for cutting the price. If it is not because they are in financial problems or are moving, chance are there may be something wrong with the property.

The next thing you want to focus on when buying real estate is the terms and conditions. If you know what you are doing, you can pay full price and use this to negotiate lower interest rates or a smaller down payment as an investor. What you will find is that over time the rental cash flow will far outweigh the initial payment due to the generous terms given.

Something that every investor must know is the local market. If you can learn the local market and understand it better than the seller, bargains are bound to emerge. You want to know from research that upgrades, enhanced security, or location next to a park can up the price and a lack thereof can decrease the price.

As mentioned above, fixer-uppers and foreclosures are something many investors start with. These are the houses that are going to need repairs to some degree. What you need to do is discount the costs of the repairs so they are still profitable in the end.

With some small repairs like painting, basic flooring and minor landscaping, profits may be there. However, profits are more significant with homes that are extremely distressed. The reason for this is because the home will be selling for far less than it would if it were in decent shape. You will find that the seller may ask for 50 percent of the market value so that you can take over and repair it as much as you want.

Buying real estate bargain properties can be a great way to make a large profit. If you take the time to do your research and select the property carefully, you can make a great deal of money.