If you have never purchased a property before you may find that information regarding real estate may be very helpful. In this article, we will provide you with some basic advice for making a financially sensible real estate purchase.
If you are purchasing real estate and require the services of an agent, it is important to make certain that the agent you hire has a good reputation. You can research agents online, as well as look up their standing with the well respected Better Business Bureau. Your most valuable references will always come from first hand sources, such as your friends or co-workers.
If you have sufficient funds, avoid purchasing a house that is in front of or behind a busy road. You might be saving money, but you will soon find out why the price was so low. Although you might be comfortable with the noise associated with a busy road, others are not. This will make it more difficult for you to find a buyer later on.
Do not purchase a home that has a fireplace in
Many people are feeling the budget crunch, not to mention being tired of their 40-60 hour a week job. Because of this, they are looking into other ways of making a living, such as real estate investing. Real estate investors can sometimes make tens of thousands of dollars per month working only ten hours a week! But whatever business is right for you, there are several principles that will make the difference between success and failure.
1. You have to find customers. In real estate investing, these are your prospects – people who have the right kinds of homes they want to unload, or people who want to purchase the kinds of homes you can find. You can be an expert in the real estate business, but if you don’t find these prospects, you won’t be making any money.
Similarly, in any other business, you have to generate awareness of your services and find those people who want what you have to offer. This is why virtually every business expert stresses that you must plan for at least some investment
Unlike the offerings from Wall Street, investment real estate is not limited to future appreciation or dividend pay out (rental income can be construed as the same as a stock dividend for comparative purposes) for its value/profit creation, nor is real estate investing as speculative and/or volatile as the stock market (if done properly).
Here are the ways a real estate investor can profit from investment real estate:
1). Rental Income. The cash flow or rental income derived from investment real estate is a dependable source of income, with the potential for future growth and has an effective safeguard against the profit eroding natures of inflation. When comparing investment real estate to other investment options remember this—an investment that fails to deliver sufficient income (whether it be stock dividends or rental income) will in time suffer in value—conversely, investments that yield higher cash flows will show higher rates of appreciation. Don’t buy an asset, buy the current and future cash flow.
2.) Accelerated Mortgage Payoff. Anytime you pay off the mortgage on an investment property early, you create an
If you have a bitter experience of dealing with real estate agent and don’t want to engage one to assist you in making a decision on real estate transaction, just chill. Online property sites provide you all possible information on properties around the length and breadth of the country, at a few mouse-clicks.
Of course, the online real estate services provided by various portals have been transforming the way property transactions take place in India, in fact the whole world.
You no longer have to run around an agent, or friends or relatives to get information on properties around. Simply log on to a good real estate portal or 99-acres and get going. You simply have to select the desired city where you want to buy, rent or sell out a property, in order to get information on various properties available in the segment.
Here, we list out a few other advantages that these services bring you as a package.
Speed: Online Real Estate services offer you instant information, unlike property agent services that you may find irritating. You don’t have to chase a property broker, who works at his own pace and many
A part of the process of buying real estate is dealing with a credit check. The credit check pertains to the credit history of the buyer, which plays a big role in deciding whether one qualifies for a mortgage or not.
To ensure that the credit check comes up positive, one should have a good credit history in the first place. As a rule of thumb, clean up your credit report at least six months before applying for a loan to buy real estate such as a house.
Do not open any other additional line of credit while you are still in the process of cleaning up your credit history and even more so during the mortgage application process. You would want to have as much chances as possible of qualifying for a good program with the lender in terms of having lower interest rates, for example.
It is recommended to avail of the services of a mortgage broker to save time and money. While it is indeed possible to run your own credit check online, more often than not what comes up may be incomplete as brokers and bankers use a different system than
Real estate purchasing and investment can be a tricky business – and a daunting one if you have no market experience. Since the global financial crisis hit, it has become even harder for first home buyers and real estate investors to acquire and build a property portfolio. However, if you are prepared to do solid market research, investigate your best finance options, manage your debt wisely and invest some time and effort before deciding on a property to buy, buying real estate investment can be quite a rush!
There are many ways to find a bargain, and some very useful tips and strategies to apply when conducting your market research, no matter where in the world you are looking to buy property. However here are a few ideas on how to look for and find a real estate bargain:
Know Your Target Market
When looking for real estate investment, do not restrict your market to your neighbourhood – the whole purpose is to find a hot property market where you will have consistent value and rental income without expensive operating costs. Typically, tourist hot spots are property goldmines, particularly if they are near to a
It looks like every real estate professional on the planet is looking for fresh marketing ideas! At any one time we have a number of ideas and concepts in play to make sure our clients keep the edge in their local area. So I made some notes and want to share some thoughts and ideas with you that you can begin using today to attract more business.
I’m continually astounded at the lack of quality marketing produced by our industry to promote real estate services.
The amount of money wasted each year must be in the hundreds of millions. I notice Radio, Television, Billboard, Newspaper and Internet ads that cost a fortune but generate little or no response and this is before we consider the dismal quality of most letter drops and marketing cards.
Advertising experts all agree that the power of re-stating a message is a whole lot more effective than introducing a new message at every opportunity.
Notice how a new ad on TV gets played and replayed until the advertiser is sure we get the message? It’s not ten different ads in ten different spots. Corporations spend millions testing their marketing
METHOD 1: The Education That Never Ends
Get yourself an autoresponder service, or “drip email” as some people call it. Basically, you are going to setup a series of emails that will go out to your clients at predefined times, automatically… forever.
This is NOT a new concept, but it is something that few do consistently. And that is where the real power is.
The important thing is that the emails need to be of real VALUE to your clients, even if they aren’t buying or selling in the next six to twelve months. And you MUST set the stage by letting them know in advance what you are about to do for them.
Something like, “Most of my competition will drop you like a hot potato after your deal is done. They will be on the lookout for the next piece of business and you may never hear from them again. But I take a much more long term approach to my real estate business. I expect that you will call me again when you or a friend need real estate services, so until then, I want to continue offering you value and
Whether you own one investment property or 100, having a good property manager is an important key to your success. These 15 questions are absolute “musts” for finding the right manager for your investment real estate. First and foremost; ALWAYS ALWAYS ALWAYS ask experienced real estate investors in your area who they use for property management. If they don’t use a manager, ask them if they have heard of any good managers other real estate investors they know use.
There are plenty of managers in any decent sized metropolitan area, so there is no excuse for just hiring the first person who is willing to manage your properties for you at a reasonable rate. Houston has a few managers that are good, and one company that several buy and hold real estate investors I know use. Message me and I’ll happily share their contact info with you. The following is the list of questions I ask a property manager when I first interview them over the phone before setting up a meeting. If you don’t like their answers, it will save you from wasting your time on a face-to-face meeting.
1) What are your property management
As a real estate agent for many years, I have seen some very special skills that require performance excellence if you want to be master of your real estate sales craft and a top performer in your local area. It is these special skills that bring you the business and allow you to convert more listings and commissions.
It is not the agency that you work for that brings in the business. It is the individual salesperson that finds, converts, controls, and closes the business.
Some real estate salespeople are master of a few skills on the list; rarely will you find a salesperson that can do all to an exceptional level. They can however be practiced, developed, and refined to your property situation and market. There are no hurdles here, just opportunity should you choose to do the work required.
In order of client and listing involvement they are:
Prospecting for new listings from the local property owners, investors, and business owners
Presenting your services and offering to vendors, landlords, and business leaders
Inspecting a premises for sale or lease with care and detail
Preparing listing documentation with accuracy and due diligence
“Ten Real Estate Service Standards of Top Real Estate Agents in Maryland Were Polled for Core Real Estate Practices of Service”
Have you been looking for the BEST Real Estate Agent to help you close your investment deals? Well, from working with various real estate agents, I was having a hard time finding an agent that practiced all of the service practices that I found invaluable. I decided to re-activate my realtors license and service real estate investors with what they need most.
So whether you work directly with me or not. This is what you need to look or in an agent. The Best Real Estate Agents Educate their clients. When you work with your real estate agent, you should Learn Real Estate Sales Strategies for Maryland or your specific area. If you are an investor, you want your agent to have experience investor so that they understand your needs. Contact Me and Get Your House or Investment Sold Today! Read My Personal Service Standards Below:
1) CLIENT-AGENT RELATIONSHIPS
At the beginning of my client relationship, I will explain my client-agent obligations, noting that my client is my employer and pays my fee.
If you happen to watch cable or satellite television on the weekends, you can find between 20 and 30 channels early in the day with get rich quick infomercials hawking everything from books, tapes, seminars and even personal coaching services. Most are centered around real estate and I am not sure they are worth the time it would take you to order them by phone. I have spent thousands of dollars on real estate home study courses through the years and will continue into the future. I am always looking to further my education and understanding of what is really working in the investment real estate world.
Because of the time, energy and dollars that I have spent in the past, I have a pretty good idea of what a real estate investor wants to avoid as well as the best steps to take for a successful start. Education definitely plays a role in the success of a real estate investor as well as business savvy, attitude and at times, luck!
Here are a few detailed steps that an investor can take to improve the chances for success.
– Learn the basics of real estate
A commercial real estate brokerage, or real estate brokerage house, is a firm designed to assist clients in their commercial real estate transactions. You will find various services available at a commercial real estate brokerage. Some specialize in a specific facet of real estate, such as office, retail or industrial properties. Some offer leasing only while others are strictly investment, and then there are those that offer both commercial leasing and investment. However, a quality brokerage house will have some level of all services available to a client.
It is suggested that a client look for a commercial real estate brokerage house that provides multiple levels of service. Some of those service levels include:
INVESTMENT & USER ACQUISITION: Buyers are represented by the commercial real estate brokerage with the goal of best location, price and terms.
Determination of Client needs.
Compilation of properties that meet acquisition criteria.
Identification of those properties that best meet established goals.
INVESTMENT SALES: Owners are represented by Arizonacommercial real estate brokerage with the goal of maximizing asset value.
Aggressive, credible, strategic pricing.
Preparation of custom designed marketing materials.
Qualification of prospects.
LANDLORD REPRESENTATION: Landlords are represented by Arizona Commercial with
If you’re a new real estate investor who has thought about real estate investing but have been due to a nagging feeling that you are certain the market will collapse once you step in and you will lose all your money; guess what, you’re not alone.
Fear grips every new investor; and no one successfully investing in real estate today would state otherwise. It’s common for potential real estate investors to miss out on incredible opportunities for no other reason but an overwhelming sense of fear.
Okay, so let’s address some of the most common fears and see whether we can help you to become less anxious, and maybe take the plunge into real estate investing after all.
Negative Cash Flow
Hey, the idea behind investing in real estate is to make enough money to cover operating expenses and loan payment with some left over to deposit in the bank. Having to feed a property won’t cut it; no investor wants to feed a rental property.
Believe it or not, this fear one might be the easiest to manage because it’s straightforward: simply run the numbers before you buy. Obtain the property’s last
Many investors are moving from stock market to owning rental real estate. Buying rental property is a good way to build wealth. Once you have decided to buy rental property, your real work begins. Finding a profitable rental property usually takes plenty of time and research work.
Some people buy and sell investment property within the short period for profit. Some buy and let to achieve a rental income and accumulate equity, for long term. Decide how long you would like to keep the rental property before owning it. The longer you keep the property, the more you have to invest in maintenance, repairs and improvements. If you’re thinking of buying a rental property for a shorter time horizon, you may lose value of the property if you’re buying in an overheated market. For small investors, long term ownership is better.
Careful consideration must be given to location. Decide whether you want to invest in your local area or invest in a hot location which may provide more attractive investment options. Property price must also be considered, with widely varying properties available at all levels of investment. A lender can advise you on how much you
When considering real estate investment, many people fail to consider the hidden costs of maintaining the property. They happily calculate the initial outlay of capital and then start dreaming of the cash flow it will generate. The problem is that these investors fail to consider all of the financial costs as well as monthly bills, regular maintenance, emergency repairs or upgrades, and the risks inherent in vacancies. Without proper planning, an investor could end up in serious financial trouble.
The upfront costs of a real estate investment are easily recognized in terms of the down payment and the interest on any mortgage necessary to secure the property. Many investors also understand that if they pay down the mortgage faster, they will save money in interest. However, investors also need to take into consideration insurance requirements and property taxes. Insurance may be a part of the mortgage and property taxes need to be paid semi-annually.
Then there are the monthly fees associated with running a real estate investment. These include such things as fees for sewer, water, and trash removal. Some properties may have additional costs such as electric or gas
Great, you finally made the decision to become a real estate investor and to purchase an income property or else you are a real estate agent and ultimately decided that you need to service investment property. Whatever your objective, kudos to you for understanding how real estate investing can benefit you.
Okay, now that you are actually face-to-face with your first investment property, you need to evaluate whether it’s profitable enough for you to pursue a purchase or just a waste of your time and effort to further consider the property as an investment. Here are some suggestions to help you get started before you submit an offer to purchase.
1) Evaluate the price. Review the APOD or other marketing data you were presented paying close attention to the property’s cap rate. Cap rate (or capitalization rate) is one of the most common returns used by tax assessors, appraisers, and real estate professionals to evaluate rental property price and is a good way to make a quick determination whether the property appears priced to sell or not. If you’re working with a real estate professional than he or she can point it out for you and
There are many benefits to owning investment property. Pride of ownership, portfolio diversification and direct management control are just a few. However, let’s face it, if investment property didn’t contribute to our personal bottom line, few would find it attractive.
So what do successful investors know that others don’t? The secret is to understand the four ways investment real estate increases your net worth. Let’s get started:
1. Cash Flow
The most basic and understandable method to make money owning real property is cash flow. Cash flow is simply defined as the net change in dollars in your checking account during a period of time (such as a month) that occurs as a result of owning and operating real estate. Put another way, cash flow is equal to the money that is left over after you collect rents and pay all the bills, including the bank note. Having a positive cash flow is crucial to the ability to hold an investment in the long term.
2. Price Appreciation – with Leverage!
The appreciation, or increase, in the market value of property is many times responsible for the lion’s share of the profit from
Once you reach the point that you seriously want to start investing in real estate, it’s time for you start searching for the real estate investment that best fit your investment goals.
In this article, I want to discuss why it could benefit you to develop a working relationship with an investment Realtor to help locate investment property, the qualities you should look for, and how you can find that person.
Why Use a Professional?
Let’s start at the top. Why would you want to use a real estate professional when you can find your own rental properties?
Foremost, because the right Realtor can guide you from your initial goal setting phase through the selection, acquisition, and subsequent management of your investment. They can direct you into investments you may not have discovered on your own and then negotiate the purchase for you (generally more easily than when a buyer and seller meet face-to-face). Moreover, they are equipped with the tools like real estate investment software and the expertise to help you crunch and interpret the numbers.
Who is a Right Realtor?
Most importantly, you are not looking for a licensed agent
Few investors (if any) would ever shell out money on investment real estate unless it generates a favorable rate of return. Placing capital in real property with the expectation of generating a return is the hallmark of real estate investing and it is simply smart for any individual investor to consider all the returns of owning investment real estate.
In this article, we want to discuss the returns an individual investor can expect to receive from both monetary and non monetary sources associated with income producing property as investment (not the ownership of personal residences). Both sources of which, though not necessarily a moneymaker in its own right, are returns to the investor nonetheless.
Monetary sources of benefits include those that can be directly measured by costs or returns of that component. In other words, how much money (in dollars and cents) can be made by owing the rental property?
First, there is income. Rental income that remains after operating expenses, debt service, and taxes is cash flow that becomes your income. Naturally, there are factors that might influence the rental income you receive over time such as the competition in the