real estate

Real Estate In Different American States

2008-11-19T07:28:00.001-08:00

Due to the upcoming expansion of the state of Oklahoma, neighborhoods around the city of Tulsa had forecast the rise of their homes’ value.

In Scranton, Pennsylvania, houses are expected to rise in value due to the efforts of the mayor to improve its neighborhoods and convert vacant homes into much more saleable empty lots.

The exterior of the house also affects its asking price. In Alabama, where people take pride in their southern heritage, lawns are kept well-manicured and the houses are well-maintained. Prices are expected to steadily grow.

In Texas, builders still show their confidence in the market through the steady inventory of new homes, especially in Edinburg where land is quite inexpensive. However, prices are expected to be more or less the same due to the prevalence of low-paying jobs in the area.

Real estate agents in Florida are expressing confidence over the strength of the local economy and are expecting market stability as result of low interest rates.

In Nevada, however, prices are expected to drop due to rising inventory, with exception of houses near amenities like golf and spa.

California real estate is expected to maintain its tight inventory as population continues to grow.

The recent slump in house prices, however, have affected several states in the country. Due to several layoffs especially in the manufacturing industry, houses in the Midwest area are lowered in value and homes with price tags of more than a million may be discounted just to get it off the market.

If you are looking for value in your real estate investment, it might pay to determine first which localities are considered most ideal. According to a survey done by CNN, the town of Fort Collins in Colorado is chosen as the best town to live in, followed by Naperville, Illinois and Sugar Land, Texas where diverse communities abound. http://www.States-RealEstate.com provides essential resources for buyers, sellers, home owners, real estate professionals, real estate investors, or any one seeking to connect with the world of real estate.

Melbourne Commercial Real Estate

2008-11-16T10:55:00.000-08:00

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For selling by concealed shrivel A chattels in Elizabeth-boulevard, very contiguous to Flinders-boulevard. This chattels is admirably able to newly indoors mercantile gentlemen, as a comfortable and elegant house, and large and well constructed supplies form the premises. Application to J. Purves Collins-boulevard

THIS tiny advertisement appeared in the docks Phillip Gazette of Wednesday 30 September 1840. It is classic of notices for chattels sellings in the Gazette, which I read in forced volumes. The page on which the advertisement appears faces the first page of the Gazette for the ...

We hope that the first part of this article as brought you a lot of much needed information on the subject at hand.

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The CEO of the factual Estate Institute of Victoria says larger regulation of the real estate activity may be required. Enzo Raimondo was responding to gossip that a house in East Melbourne, which was advertised for selling at "$4 million-good" was accepted in at mart last weekend for $A7.1m. Raimondo said the Institute would look into the lawsuit. The agent treatment the selling, Warwick Anderson of RT Edgar, said that the chattels had been sold to the mart's ultimate bidder, demonstrating that the recommend was not a "dummy bid"

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Alberta Canada Real Estate Market Scenario

2008-11-14T01:24:00.000-08:00

Nature of the Canadian real estate market

The real estate market in Canada is a traditional and well established one. This is certainly not an emerging market. The return on investment here follows a cyclical pattern. This serves as an indication of the cyclical growth trends of the country’s underlying economy. However, this is considered as a profitable market for all seasons provided the investor makes a timely move and adopts a targeted investment plan.

The investors in the real estate market in Canada are lured to invest in the state because of the financial reliability and owing to the (growth in) popularity of Alberta or any other region. The investor in real estate in Canada can buy either the property having long term growth prospects or that providing scope for making short term gains or even that which has prospects of ensuring sustainable income. All this is dependent on the position of the real estate market cycle at the particular time and the area of the country concerned.

The property market is at present riding at record highs in the main Canadian cities. So, investors cannot expect to make short term profits in such a market having surplus supply and low demand. But then this is also the market in which there is a great demand for the buy to let opportunities which can be gainfully utilized by the investor.

Special advantages of investing in real estate in Canada

The Canadian real estate market provides two special advantages to the real estate investors which are indeed worthy of consideration by the investor-

A large number of expatriates who are wealthy are attracted to the country and are on the lookout for residence either for spending their retirement years or for joining the key jobs under the Canadian Immigration Department’s skilled worker programs. So, the seeking of property for rent or resale by such persons creates an investment focus in the cities and areas most popular with this group (like Alberta).

With holding emerging markets within its borders and having gained in economic strength Canada is being considered as a safe and neutral country. This has led to the growth of many business sectors and the physical expansion of many Canadian cities like those in Alberta thereby calling forth the development of residential and commercial real estate sectors in these. This is proving to be of immense gain for the investor either for resale or for buy to let purposes of the real estate. Besides, Canada’s tourist sector, though already well established, is expanding further- gradually creeping inward and moving further northwards. This is contributing to opening up opportunities for aiming at profitably investing in second home markets and tourist accommodation markets in many more towns of Canada than before.

REO’S in Santa Monica Market Real Estate Market

2008-11-11T19:46:00.000-08:00

What is an REO?

With today’s changing Santa Monica real estate market, we are beginning to see not only foreclosures but numerous properties dubbed REO’s as well. Many times here at RealEstate-SantaMonica.com we are asked “What are they?” So we thought we’d give a helpful explanation.

The term REO first of all means “Real Estate Owned.” These homes are very similar to foreclosures…and technically the homes have already been foreclosed upon, but they didn’t sell at a foreclosure auction. Because the homes didn’t sell at auction, the lender (the bank) became the owner of the property.

As you can well imagine, most banks aren’t interested in hanging on to a large portfolio of these homes because they are not in the real estate business. Banks just want to make the loans and take their mortgage checks. That’s why REO’s are potentially good deals for home buyers.

Why buy an REO?

For home buyers thinking about purchasing either a foreclosure or an REO, it’s good to remember that these transactions are a little more complicated than your regular home purchase.

One advantage to buying an REO instead of a foreclosure is that the buyer doesn’t have the pressure of dealing with a home auction. These tend to be frenzied affairs and sometimes peoples’ emotions get the better of them, and before you know it, you’ve paid more for a home than you wanted. With an REO, you write an offer just as you would a regular home.

Another plus to buying an REO is that the buyer gets to do a physical inspection. This is key. Unless you are a real estate zen master, you do not want to be out there buying homes unless you inspect them. With an REO you know up front whether something is wrong with the property and you can make an informed purchasing decision.

What should I be wary of when buying an REO?

REO’s can be great deals for home buyers, but some deals really are too good to be true. So just be mindful of a few things when venturing into one of these purchases.

First make sure that the property is in acceptable shape. Get a physical inspection! We mentioned this above, but it bears mentioning again. You do not want to be getting a home that appears to be an amazing deal only to find out later that it needs $75,000 in foundation repairs.

Also be mindful of the title. Make sure the bank gives you a title report so that you know that the bank truly owns the home. You don’t want any gray area here.

Another heads up…make sure there are no liens on the property. The bank should be able to field title and lien questions, but it is your responsibility to ask.

Why are REO’s priced to low?

As crazy as it sounds, banks price REO’s to sell quickly because banks are not in the real estate business. It could be argued that banks at this point should have some brokers working for them full time, but that’s another discussion entirely.

Banks really want to cut their losses and get these homes off of their books as quickly as possible. The federal government usually penalizes financial institutions for every REO they acquire, so it behooves them to sell these homes fast. Now banks certainly won’t give the homes away but there are definitely some great deals to be had.

Should I buy an REO?

Yes and No. If you are the type of savvy buyer who does his/her homework, REO’s can be an amazing way to go if you want to save money. However, if you are the type of homeowner who just wants to buy a house as easily as possible, perhaps a more traditional home buying transaction is for you.

So in closing, there are many REO’s out there. If you are interested, all of us at RealEstate-SantaMonica.com would be happy to help you out.

Property Market in Portugal

2008-11-10T01:02:00.001-08:00

The Property Market

Why not choose to base yourself in an area with over 3000 hours of sunshine each year and give yourself the quality of life you deserve?

Portugal is an attractive location for house buyers, with the Algarve being the most popular area for British buyers, mainly due to the weather, golden beaches, and the abundance of golf courses. It is Portugal’s busiest, most developed region and it is reported that 90 percent of all property sales to foreign buyers are in the Algarve.

The age of Internet and ADSL means that mobility of labour is very much a reality and it is easily possible to maintain instant contact with colleagues anywhere in the world. Satellite TV means access to English language television and VOIP systems give you a U.K. telephone number and U.K. calls at low rates.

There are excellent air connections to anywhere in Europe and intercontinentally from Faro or Lisbon airports, making it perfectly possible to base yourself in Portugal and ‘commute’ back to the U.K. Many of the ‘budget’ airlines fly into Faro from Stanstead, Luton, Bristol, Gatwick, Heathrow, East Midlands, Dublin or Manchester and offer excellent value charter fares. Additional routes come on stream during the summer months.

Where to Buy

The Portuguese property market is showing consistent growth, strong rental demand, relative living costs and safe environment.

There is a wide choice of great properties in wonderful locations and often less expensive than the equivalent in France or Spain.

Remember that the summer months in the Algarve, especially August, are very busy in terms of traffic and there are visitors from the north of Portugal and from Spain as well as holidaymakers from all over Europe, all expecting good access to the beach. Unless you enjoy being part of the crowd you may appreciate being a little removed from the bustle. Being just a few kilometers inland can have considerable benefit.

Don’t forget to take into account your proposed usage of the property, if you are expecting to live in Portugal permanently then the factors that affect your decision on what to purchase will vary from those required if you are planning to rent the property out for part of the year.

Many properties inland or ‘up in the hills’ do not have mains water or drainage. Instead they rely on a system of cisternas (tanks) to collect rainwater and store water brought in by or pumped from a ‘furo’ (a bore-hole), whilst a ‘fossa’ or sceptic tank contains and treats sewage waste.

All of these facilities are reliable and capable of many years of unattended operation. Bear in mind if you plan to re-plant the garden, water can be at a premium in the summer months and a new garden may require a bore-hole to be drilled to obtain the necessary extra water needed for irrigation.

Drilling companies charge per metre for drilling and then the cost of the pump, control equipment and electrical installation must be added.

At Exclusive Algarve Villas, we try our hardest to give you the latest and most up to date information on the Portugal property market and costs.

Please feel free to question our consultants about anything to do with buying and investing in Portugal, in person, via email at info@eavillas.com or on the telephone (+351) 282 353 019

Portugal remains an exclusive location, with fewer of the ‘over development’ problems of some of its neighbours. The opportunity to buy quality property in a great location remains excellent but, like all good things in life, availability can’t last. Portugal is slowly but surely being ‘discovered’ and if you’re going to do it, now could be the perfect time to step in to this beautiful country!

Portugal is an utterly charming country and relatively speaking still overlooked by second-homebuyers.

Many areas have an exclusive feel and second-homebuyers and investors are waking up to the advantages of buying in a country which has not suffered the mass development of other parts of Europe, which is quick and easy to get to, and where the cost of living is still relatively cheap.

The Portuguese market is very active, with purchasers from across Europe. There are plenty of Dutch, French, Spanish and Scandinavians buying, as well as the British. This means that to buy your dream property, quick and decisive action is often required. New developments are selling particularly quickly at the moment and many properties are sold from plans.

Mortgage Payments Vs Rent Payments

2008-11-10T01:01:00.001-08:00

There is an age-old debate on whether or not it makes more sense for people to rent or buy. Though it is hard to really understand why there is a debate at all. You will definitely hear arguments from both camps that appear logical but if you do a little digging you may find that some of the arguments are thin at best.

The simple fact of the matter is you are always better off making a mortgage payment over a rent payment if you can afford to do so. It is not uncommon for mortgage payments to actually be lower than many rent payments are. So the key is to understand an important, fundamental difference between making a rent payment and making a mortgage payment.

Rent payments are made on a monthly basis for the most part. That money gives you the right to live in the house or apartment for the specified period of time, typically one month. You receive no other tangible benefits from that rent payment. It does not improve your credit score, it does not produce equity, it simply gives you the ability to live in the residence.

A mortgage payment, first and foremost, also gives you the ability to remain in the residence, however, it does much more than just that. First, the mortgage payment helps you build equity in your home. Equity is the difference between what you owe on the property and what the property is worth. That equity can be used for many things including debt consolidation, home improvements, extra funds, etc. Equity becomes a powerful tool in your overall financial plan.

Mortgage payments also include interest payments which can be tax deductible, helping your overall bottom line at the end of the year. Rent is not tax deductible in most cases. Your mortgage payments will also help improve your credit score if you continue to make payments on time. Mortgage payments are tracked if your lender reports the loan, which most lenders typically do. Your overall financial outlook can improve dramatically with an increased credit score resulting from on-time mortgage payments.

Some will argue that you are tied down to a home if you buy it, while renting gives you more flexibility. Though it is important to remember that if you rent a residence you are typically obligated for a specific period of time, typically a year. If you own a home, however, you are able to sell and relocate any time you wish, or you can rent the residence and relocate any time you wish. This is an important and fundamental difference between the two. It is true, however, that how quickly you are able to sell your home will depend on the location, its value, its condition and the market at the time of the sale. You do have the flexibility, however, to sell anytime you find a willing and able buyer.

One time where renting may seem like a more logical choice than buying is if you are going to live in a particular area for only a short period of time. In order to determine if it makes sense to rent or buy in this type of situation you really need to analyze your overall financial plans. You need to get a full understanding of any and all costs associated with you buying the home, the likelihood you would be able to sell it or rent it when you were relocating from the area, etc. For some, even in a short term situation the better financial decision may be buying, especially if they are able to rent it and build equity on their tenant. This may, however, impede them buying a second home, though if they have adequate credit and income they may not have any problem buying the second residence as well.

It is difficult to come up with a scenario that makes renting the clear cut right decision. It seems in most situations buying, if an option for you is the better decision financially. Though consulting with a mortgage professional is the only real way to help determine these things as they can give you a clear understanding of what is and what is not possible for you. Your financial advisor can also assist you in making this decision.

Owning your own home has many non-financial benefits as well, however, only you can evaluate those. You know what is and what is not important for you. You know what obligations you are comfortable having and which you are not. The key is to evaluate your personal situation rather than listen to those who are convinced that one or the other is right for you.

Investing in Rental Properties

2008-11-05T18:31:00.000-08:00

In some ways, rental properties are like reptiles. They don't need to be fed every day, but periodically, they do require a rather substantial meal.

For example, let's say that you have a pretty decent rental with about $200 per month in positive cash flow. Great! That's $2,400 extra dollars of income a year! But...not so fast. This extra money is critical to your success as an investor, but it should be looked at as part of the reserve you should keep on hand to feed your rental when it gets hungry.

So, let's say that in your pretty decent rental, you have a pretty decent tenant that pays their rent on time every month for two years. Great! That's $4,800 extra dollars in the bank. But, like I said before, not so fast. During these two years, you were only plagued periodically with small maintenance items. There was a little trouble with some ants which cost you $95 in pest control. Then the plumber had to pay a visit - that was $200. And, of course, the furnace needed to be serviced which ran you close to $300.

Still, not so bad, $595 from your $4,800 leaves you up $4,205. But then your tenant moves out. The good news is that a portion of their security deposit covers the clean up as was mandated in the lease. The bad news is that you need to replace the carpet and that's going to cost you about $1,500. Between getting it fixed up and placing a qualified new tenant, your rental ends up sitting vacant for about a month, which means another $700 going out for your mortgage payment.

But still, you're at a healthy $2,005 profit for this property. Not too bad. But then, and here's the kicker, a nasty winter storm blows through and causes the roof to sprout a leak. The contractor comes out and tells you that your roof was already in poor condition, and it's time to put a whole new roof on.

The cost for this? $5,000. Ouch. No more profits left, you come out of pocket $2,995 because, after two years of sparse meals, your rental property is hungry.

What exactly am I trying to say here? Only this: investing in rental real estate is a long term commitment.

Should you acquire properties that cash flow? Absolutely! Should you expect this cash flow to supplement your income in the short term? Probably not, unless you either got an extraordinarily good deal (above and beyond what most investors get), or you put a significant amount of money down.

Investing in rental real estate has many benefits, but, in my opinion, short term income is usually not one of them.

Real Estate Investor Seminar

2008-11-03T05:32:00.000-08:00

Have you noticed that many property investment courses have started offering a Free Real Estate Investor Seminar to try and get clients in the door? Over the past few years the financial education industry seems to have gotten a bad name. Unfortunately many investment seminars have been run by less than heroic people who have simply been looking to scam people for their money. This is very unfortunate because it alienates the general public from investing and more importantly from gaining a financial education. Nobody likes to be scammed, it makes you feel stupid and you resent the person or thing that did that to you. In order to stop this client backlash many real estate investor seminars are offering you a free ticket to see their event. Let's have a look at why they are doing this, if you should attend and if you do - which one should you attend?

By giving away free Real Estate Investor Seminars the investment companies are effectively getting rid of your risk. A common technique is to give you a free ticket to a 1,2,3 or 4 day property investment course and then offer you a package that will either continue your education or help you with the hands on task of buying an investment property. So what should we make of these Free Real Estate Investor Seminars? Should we steer clear of them or should we take advantage of the free information that is on offer?

First of all lets look at the most common question that I get asked about buying your first investment property. "Can you tell me how to become a real estate investor and teach me all the special tricks that I need to know"? If you look at this question it has basically answered my own question about whether or not we should attend these Free Investment seminars. People want to gain the right knowledge so that they can become successful real estate investors and the best and quickest way to do that is to learn form somebody who has already achieved the results that you are looking for. So Yes, I definitely think that everybody should take advantage of the great free real estate investing seminars that are out there at the moment. What better way to learn that to immerse yourself into a weekend of pure Real Estate. Now of course not all Real Estate Investor Seminars will be great but the best thing about them being free is that you can leave at any time and it won't have cost you a penny.

So Which Real Estate Investor Seminars should you attend? There are probably some of you out there that are saying "What free real estate investing seminars - I don't see any"? Well you simply aren't looking hard enough. There are plenty of websites that are dedicated solely to free investment resources. Now if you are lucky enough to find a few Real Estate Investor Seminars that are being run in your state then how do you choose which one to go to? My personal advice would be to go with your gut feeling, it's normally right. Most importantly just make sure you actually go! The worst thing that could happen is you waste a morning of your life - Whereas on the positive side you might learn that one bit of information that you needed to give you the confidence to become a successful real estate investor.

Benefits Of Buying An Orlando Condo

2008-10-31T07:02:00.000-07:00

Have you heard of an Orlando condo before? While a large number of individuals associate Orlando condos with rentals, did you also know that you could buy your own Orlando condo? Although that sounds pretty nice, you may be wondering whether or not you really should by yourself a condo in Orlando. If that is the case, you may want to take the time to examine the benefits of doing so. Just a few of the many benefits to owning an Orlando condo are outlined below.

One of the greatest benefits to owning an Orlando condo is the multiple uses. For instance, a large number of Orlando condo owners choose to reside fulltime inside their condos, but other only use them when they regularly travel to the Orland area, whether that travel is for business or for pleasure. Should you choose to buy an Orlando condo, you can use it as however you see fit. Essentially, this means that whether you would like to live in your Orland condo year round or only on occasion, it is your right to do so.

Another one of the many benefits to owning an Orlando condo is the selection that you have to choose from. Orlando condos come in all different sizes, shapes, and styles. In fact, in the Orlando area, there are a large number of condo complexes, which each hold numerous condo units. Whether you are looking for a condo that has one bedroom or four of them, you should be able to find at least one condo in the Orlando area that can give you what you need.

In keeping with the above mentioned benefit of choice, you also have a choice when it comes to deciding where in Orlando you would like to buy a condo. As it was previously mentioned, condo complexes can be found all over the city of Orlando. If you are looking to live in Orlando fulltime, you may want to find an Orlando condo that is located close to your place of business. Should you only be interested in visiting Orlando while on a vacation or even if you are looking to retire in an Orlando condo, it may be a good idea to examine local activities or attractions that you would be interested in participating in or visiting. A conveniently located condo is one of the best ones to have.

Cost is another benefit to buying an Orlando condo. While many individuals consider the cost of condos, including Florida condos, to be quite high, it is important to remember what you are getting. It has been said that condos represent a combination of a house and an apartment. They have many of the rooms that a traditional home would have, but they are compact like many apartments are. For that reason, you will find that many Florida condo prices are consistent with the average selling prices of homes in the area. When compared to renting an Orlando apartment, you may very well find yourself saving money, overtime, with the purchase of an Orlando condo.

Isn't it amazing that there are so many benefits to buying an Orlando condo. What is even more amazing is that the above mentioned benefits are just a few of the many that exist. If you are interested in buying a Florida condo, particularly an Orlando condo, it is advised that you do a little bit of research to first get your search started. When doing so, you will want to examine Condodomain.com. Condodomain.com is your one stop resource for buying a Florida condo, including a condo in Orlando.

Real Estate Values after a Flood

2008-10-28T10:38:00.001-07:00

For those currently in the midst of dealing with water damage, it might not seem like time to worry about real estate values but the fact is…the decisions you make now regarding water damage repair and restoration can dramatically impact your future. Learn how to preserve the value of your home during this critical time period with these important considerations:

1. Protect the value of your home! When faced with major water damage restoration it can be tempting to save money by doing some of the work yourself or trying to take a few short-cuts. It could be one of the most costly mistakes you ever make. Remember, the largest single investment most people make is in their home. Cutting corners might save a little money today but could hurt the resale values of your home for years to come.

2. Set the record straight. In the past, major work performed on a home was rarely reported but with modern technology, insurance companies, building departments and other agencies and institutions responsible for the safety and security of a home keep track of everything done to a home…or not done to a home. For example, the C.L.U.E Report stays with a house forever – so anyone selling a flood damaged home in the future will need to demonstrate that all work was performed to the highest standards. Working with a reputable water restoration company is also a good way to help keep insurance rates low after a major loss; insurance companies want to know the work was done right – without the risk of mold or mildew claims arising at a later date.

3. Remember the write-offs. This is one tax deduction that most people never want to qualify for but keep track of receipts and water damage repair documentation just the same. It might help with annual taxes as well as keeping track of the cost basis for the property when it comes time to calculate Capital Gains taxes on the sale of the home in the future.

4. Go with quality. Without a doubt, the most important decision you can make when it comes to Galveston water damage services is going with a company like Kiwi Services known for quality. Not only will it make submission (and payment) of insurance claims much easier but working with a vendor who is certified by the Institute of Inspection Cleaning and Restoration is vital to protecting the value of your real estate in the future.

Real Estate Shutterbugs

2008-10-28T10:37:00.001-07:00

The majority of today's home buyers are starting their search for real estate on the internet. They are able to look at the available inventory from the comfort of their home, 24 hours a day. And with so many properties on the market right now, buyers can be exceedingly selective with which properties they choose to view in person. They're able to save a great deal of time by shopping online for desirable houses rather than relying on their agents to find ones that may or may not be what they're looking for. With this is mind, it's imperative that you grab the attention of buyers, and make them interested enough in a property to make the trek to view the estate in person. To do this you not only need a well-written description of the property, but you also need quality listing photographs.

Photographs enable buyers to instantly decide whether a property is worth considering or not. Photographs reveal so much more about the character of a home than words can, and they provoke an immediate emotional response from viewers. People know right away whether a property is a hit or miss when they see a photograph.

While you can't influence everything, you can control your listing photographs, and what kind of first impression they make. Real estate agents have two choices: to take all photos themselves, or to hire a professional photographer. Certainly it costs more on the outset to hire someone, but in the end a photographer's skills can directly impact how quickly a property is sold, and for how much.

Studies have shown that well composed listing photographs can make potential buyers think that the property is worth more than if the photos are mediocre. In addition, if the photos are of poor quality, then no one will be interested in calling the agent and touring the home. If no one sees the property, no one will buy the property.

The importance of quality photos seems to be lost on some agents, as there is still a prevalence of poorly lit, out-of-focus shots displayed on the Multiple Listing Service. Here are a few things to keep in mind when taking your listing photos:

1.) Prepare the house before you start snapping pictures. Have the homeowners clean the house as thoroughly as possible, and remove personal items such as cereal boxes, shampoo bottles, and the like. Personal effects remind potential buyers that the house is currently being lived in by someone else, which can make it hard for them to visualize themselves in that space.

2.) Think about the picture before you take it. You want to be able to capture as many architectural features as possible, while keeping the photo well composed. Make sure that there is adequate lighting when taking inside shots. If there is too much light outside the windows, the room can appear dark, but if your shot is cluttered with house lamps, you may give the impression that the room doesn't get any natural light.

3.) Update your listing photos regularly to avoid suggesting that the property is difficult to sell. If your shots were taken in the winter and the property hasn't sold by July, it's time to update your listing to reflect the current season. In a similar vein, try to take your pictures on nice sunny days, as weather can have a huge effect on first impressions. If, for example, your shots are taken on a rainy day, the house will appear gloomy and uninviting.

4.) The debate about wide angle lenses. Wide angle lenses allow you to get much more inside a photo than a regular lens, which can make a place look more spacious than it actually is. This can lead to disappointment if the buyer visits the house in person and sees that the pictures were deceiving. You want your listing photographs to show the property in its best light, but also in an accurate light. Don't use too much Photoshop and other technologies to make the house seem like something that it's really not.

Be thoughtful and plan ahead when getting ready to take your photos, and if possible, hire a professional photographer so you can concentrate your efforts on other marketing strategies.

Best Real Estate Financing Tips

2008-10-23T18:51:00.000-07:00

Whether you're seeking a home mortgage for the first time or you're a seasoned buyer, you want to save every penny you can. Often people don't realize they can save money on their real estate loans by doing some comparison shopping, which I'll get to further on in this article.

You want to keep in mind when financing any real estate that lenders will be able to tell you only what you MIGHT be able to afford based on your salary and level of debt including your credit card debt. And what seems like real estate financing mumbo-jumbo when you first start out will gradually make sense to you. Besides being the average person's biggest lifetime financial transaction, buying or selling a home is one of those areas where mistrust and misconceptions can easily be present.

An adjustable rate mortgage only sometimes may be a good choice because on the average, most people move or refinance within seven years. Now if you have a less-than-perfect or a 'bad credit' credit report, don't worry too much about it because with some lenders it isn't going to influence them. Finding the best loan program for you depends on a few things including: how long you think you'll stay in the home, how much money you plan to put down and how you plan to finance the closing costs.

Your income and your debts will typically play the biggest roles in determining the price range of the house you can get approved for. Now some of the advantages of adjustable rate mortgages include: lower costs - because they're usually priced lower than fixed-rate mortgages so you can increase your buying power and lower your initial monthly payments. If the interest rates go down, you'll have lower payments, but if the interest rates go up you could be headed for a problem if you're just getting by. You don't want to get in a foreclosure situation.

You might want to consider buying a house in a lower price range where you don't have to struggle whether or not you have an adjustable rate mortgage or a fixed rate mortgage. You may not want to take a step down to do this but you will be less stressed about making monthly payments and you'll be accruing appreciation on your property. Then after a couple of years or so you can re-evaluate and then step up to a higher priced property if you can do it. It also may give you some time to time to pay off some debts that have accumulated.

Now if you get turned down for any reason you can submit a mortgage application several times; it's not uncommon for this to happen either. There are many competing lenders now for your business and they will look for ways to get you the real estate financing you need many times.

If you're having a problem getting a home mortgage and the seller still owes money on the home you can check with your lender and see if you can get a wraparound mortgage; although it isn't legal in all states, it will allow you to pay the monthly payment on the existing mortgage and an additional payment to pay the difference; make sure that a wraparound mortgage will not trigger a due-on-sale clause and make sure you can afford to do it.

A FICO credit score, good or bad, is not a requirement for most conventional or government loans such as FHA loans or VA loans. And if you do borrow money for a down payment it must be disclosed to the lender or if any of your money for your down payment was a gift, you have to provide proof for it. Know that any money you receive from any lending institutions will show up on your credit report and your monthly payments will factor into your debt-to-income ratio

Most adjustable rate mortgage programs offer what is called "rate cap" protection, which limits the amount the rate can be increased, both each year and over the life of the loan, double check with your lender on this. All adjustable rate mortgages are amortized over a 30-year period.

Check with your CPA before you buy to make sure your property taxes are deductible. Also find out from your CPA or other financial advisor what other real estate financing expenses can be deducted when you file your income tax return in a few months. Knowing what deductions you can take may free up more for your income tax refund which you can apply to future loan payments or pay off debts.

Now if you get a 20-year fixed rate mortgage term it will mean higher payments, when compared to the more common 30-year fixed rate mortgage and you may not be able to swing it if this is your first home or job security isn't there. So don't get in over your head on this. Going the safer route is always the better way to go.

20-year fixed-rate mortgages allow you to make consistent higher monthly payments throughout all of the 20 years you have the mortgage; the shorter term means you pay the loan off quicker and therefore pay less interest and build equity faster than with a 30-year loan, BUT you need to know you have complete job security or a sure way to make the payments. It's better to be careful and opt for the 30-year loan even though you can save a lot of money with a 20-year loan.

A fixed-rate mortgage means the interest rate and principal payments remain the same for the life of the loan but the taxes will probably change. Your taxes may be written into the monthly payment or paid separately and sometimes you have no choice over this. The lending institution may be the final word on how the taxes are going to be paid. Home loan borrowers can submit information about income, assets and equity to determine how much a down payment should be, which is usually processed through an automated underwriting system.

One good way to save money on points, that is not commonly known, is that if you check around you can find real estate companies that have their own mortgage companies, sometimes in the same building. They often will shave off a point or more on your home loan if you buy from their real estate company and save you some money there.

Make sure you call around to several lenders or mortgage brokers before you apply for a home loan to get an idea what points and other fees they would be charging you. This can vary quite a bit. Some charge more points than others. Make sure you go with a quality lender however.

Work with your mortgage broker or lender to develop an individual loan or mortgage program based on your credit worthiness. And whatever you do don't get yourself into a situation where you can't make the mortgage payments; think far ahead. Thinking positive about your future and how it relates to your real estate financing is important but you must be realistic. Also don't be afraid to ask a few real estate agents if they know of any tips to save you money when you go for a home mortgage and what to avoid. Ask homeowners how they're doing, how they've saved money on their loans and what real estate and mortgage pitfalls to avoid too.

Property Investment Seminars

2008-10-20T20:24:00.002-07:00

Property investment seminars are property developers and realestate agent’s brochures which is produced to discuss on property development or property market in order to get the investor to part on the property investment seminars which gives own housing projects. Property investment seminars provide property investment information on a wide variety of topics. UK property experts in the property marketplace, stands at the top to represent the best investment properties in UK.

In property investment seminars you can get valuable property investment information. To check about property Investment Seminars search online. You will get more details on how to attend, schedule or learn more about such property investment seminars and opportunities.

Property investment seminars are of one and a half hour presentation which aims to wealth building through real estate. Property investment seminars are usually conducted free of cost. Property investment seminar will provide an insight overview to investing in commercial and industrial properties. Property investment seminars will mainly focus on the valuation and pricing methods related to the field of investment Properties, with specific reference to UK. Property investment seminars features a number of renowned speakers, who will tackle major practical issues related to the realestate, industrial and commercial properties which are important area of capital growth. Additionally, property investment seminars will address the issue of how to evaluate Intellectual Property Rights by adopting international best practices. The property investment seminars many make discussions at length a range of topics relevant to properties in the UK and the importance of Intellectual Property Valuation in Intellectual Asset Management.

England is the home of large number of companies with intangible assets such as trademarks. 'Moreover, several indigenous companies in the UK are expanding their presence beyond their homeland and are going global, which accentuates the need to adopt international best practices in evaluating the companies' worth'. So, London is the best place to conduct such great property investment seminars in a big level.

From property investment seminars, property builders find a good way to get suitable investment properties. Property investment seminars are generally a great opportunity to purchase a investment property at below market prices. You just need to attend the property investment seminars to understand the property marketplace.

Property investment seminars gather both the newer property investor and the investor that feels like they require some help in these areas, and much more! Property investment seminars will act as a workshop to allow property builders time to get their questions answered in a group setting and also expand their connections in this field.

Property Management

2008-10-20T20:24:00.001-07:00

The idea of property management (sometimes referred to as 3rd party management) has been around since the dawn of time. But, before property management was a job or career, a title or a company, property management has been an action that many people attended to around the land or buildings that they owned themselves or leased from someone else. Property management can mean different things to different people. For some, property management might mean keeping their own property safe, secure and pleasant to the eye. For others, property management could mean paying someone else to make sure your property is in tip top shape. Some types of properties that may need property management are; houses, condos, duplexes, town homes, apartments, shopping centers, malls, offices buildings, airports and public transportation buildings, hospitals and many more. Property management is very similar to the role of management in any business.

One important role that property management has is to act as the middle person between the tenant and the property management landlord. Property management should provide the property management landlord with a sense of security, knowing that everyday needs from the renter can be resolved without involving said property management landlord unnecessarily. Hand and hand with that security, the tenant can be assured that the property will be maintained to some set of standards which can be reviewed with the property management team before an agreement is reached. Property management is a delicate balance between pleasing the property management landlord and keeping the renter happy as well. The task of property management can prove to be harder than it sounds. Maintaining an open line of communication in property management and being able to address the needs of both property management parties will make a successful property management business. Other duties for property management but are not limited to; collecting rent, posting and showing vacancies, maintenance issues, evictions, failure to pay rent issues, harassment, and background checks on the application forms. It is very important that a profitable property management staff or team be knowledgeable in the current laws of the city, state and county concerning tenant rights vs. landlord rights. Be sure your property management team is up to date on current property management codes, and other items that will benefit your property management business. Getting caught up in property management legal matters is no way to run a property management business.

The following is the definition of property managers/property management as posted by Wikipedia on their website. Property management is a person or firm responsible for the operation of a real estate property for a fee, when the owner of the property cannot or is not interested in managing the property themselves. The property manager or the property management company has a primary responsibility to the landlord and a secondary responsibility to the tenant. Relationships the property manager or property management team have with the landlord and with the tenant are crucial in forming the expectations of both parties to the lease since both parties will seek and expect certain rights and benefits out of it. Owner's expectations from the property manager/ property management team are to carry out the owner's instructions, control costs and maximize revenue to maintain a stabilized cash flow as a return on capital invested, exercise control over the building to safeguard the capital invested, provide a duty of care through proper maintenance of the building, to be professional and well informed, enhance the value of the property by making improvements that will increase its market value, retain and enhance pride of ownership. The tenant's expectations from the property manager/ property management team are the "quiet enjoyment" 'assurance of the use and enjoyment of the premises for the intended purposes without interference from the landlord, comforta living environment properly heated, cooled and ventilated with as many amenities as possible compatible with the rental level, security and safetyto live or work in a building in which there are no inherent defects or conditions that might be hazardous to health or to property, statusaccommodation and facilities that meet social-economic and cultural standards for the tenant's and their guest.

Property management can be a very lucrative business when handled correctly. Property management takes an organized, well communicated, and dedicated individual or staff to be able to pull off a successful property management company. Typically property management companies will charge their landlords a percentage of the gross rent collected each month. This percentage for property management fees can range from 3 to 10% depending on the property management market. Sometimes a flat fee is more appropriate when the property is a condominium or a type of cooperative complex for property management. Some states might require that property managers have a property management license or a real estate license to be able to claim the title of property manager or property management business.

A cousin to property management is facility management. Facility management is like property management but the focus is the management of buildings and services. One definition from a large facility/property management association says, "A profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology." Australians prefer the term: Commercial Services to property management, this term replaces facilities management in some organizations. Besides keeping the property up to date, commercial services can also include duties such as waste disposal, parking, security, landscaping and more.

A homeowner may provide his or her own property management, but property management is not limited to the duties of house cleaning, lawn care and landscaping, building maintenance, trash and waste disposal and interior upkeep. Property management can be all of these, and can be hired out to a professional that can provide better property management services than the homeowner can or would provide themselves. These property management services come with a price and if the homeowner is willing to pay for outside property management, the sky is the limit on what they can have managed. Some property management companies even manage home owners associations (HOAs). In this instance the property management company is the middle person between the homeowners and the land developer. Once the developer has completed his contracted tasks, the neighborhood is then turned over to the HOA. The property management company may stay on board for a fee to help the HOA. A landlord may also provide property management services himself or have it hired out to a property management company. A large company or corporation might have internal structures in place to provide property management on site or they may choose to hire an outside property management company to provide the property management services that they would need on a day to day basis. Both of these operations are a reasonable and effective way to tackle the issue of property management on a large scale.

With the world of technology growing everyday, it makes perfect sense to have applicable property management software and property management computer systems that deal with property management in place to help with property management or facility management. You can have your home wired and programmed to turn the lights on and off when entering a room. Constant temperature and humidity levels can be monitored along with major appliance functions. Watering of lawns and security systems has become high tech and available to the everyday homeowner who wants property management. Some passenger vehicles now include a "remote" that when programmed can turn the lights on, turn the TV on your favorite station and more, all from the comforts of your car. Heaven forbid you will have to walk into your dark and quite home. Home builders, architects and engineers saw the potential for using large scale property management ideas in the home. Beyond the home, large commercial properties, computer aided facility management (CAFM) has been a natural progression of the marriage between technology and facility/ property management. In the late 1980's CAFM evolved to allow larger properties to manage their property management sites more efficiently. Most often, CAFM systems track and maintain; floor plans, LAN and telecom information, business continuity and safety information, workplace assets, employee and occupancy data, building and property information and space characteristics and usage. Being able to supervise the goings on of your with a property management company in an efficient and well structured way will help your property management bottom line.

If you need information about property management, the internet is a great place to start.

The Global Property Guide

2008-10-20T20:22:00.000-07:00

The Global Property Guide today re-launched its web site to make its data more accessible. The home page has been simplified. Major categories have been spelled out. The new Home Page has been organized around an expanded menu, to help the reader navigate the site. Key data items are easier to find, more obvious.

The Global Property Guide
The Global Property Guide is the authoritative source of information on buying residential property. It covers every investible country in the world, from the perspective of income, tax, and capital gains. We provide research and information on 131 countries to residential property investors, with brief information on 85 countries.

Property, as an asset class, is highly susceptible to booms and busts. Across the Western world major countries have experienced a prolonged residential property boom.

Like stock prices (but with markedly different dynamics) residential property prices are now coming back down to earth. We help investors make sense of these swings by providing tools of analysis, and displaying data in a clear, comprehensive and accurate format.

Our fundamental residential property market data includes

• Price change 1 year
• Price change 5 year
• Price change 10 year
• Square metre price city centre
• Total round-trip transaction cost
• Gross yield
• Price to rent (P/R) ratio
• Price to Gross Domestic Product
• Change in interest rates
• Taxes on income (effective rates)
• Capital gains tax (effective)
• Inheritance taxes (effective)
• Buying process (graded by quality)
• Tenant legislation (graded as landlord-friendly)
• Residence (high tax / low tax)
• Economic growth
• Competitiveness
• GDP per capita
• Competitiveness rank, improvement over 5 years
• Stage of economic cycle

“Our aim is to be the Bloomberg of international residential property,” says publisher Matthew Montagu-Pollock, referring to the financial site on trading desks around the world (http://www.bloomberg.com/). “Bloomberg provides data - but also makes it easy to use.”

“It’s important for a residential investor be able to see what his likely return on investment will be. What his taxes will be. To be able quickly to check whether the laws are landlord-friendly. To survey the inheritance laws. All this is now available, for almost every country in the world, on our site, without any marketing material or any attempt to sell you anything – just the facts.”

Top 20 Real Estate Foreclosure Markets

2008-10-17T12:19:00.001-07:00

Stockton, California reported the highest foreclosure rate among the nation's 100 largest metro areas from Jan to Jun 2007, according to RealtyTrac, an online marketplace for foreclosure sales. Detroit and Las Vegas documented the next highest foreclosure rates. RealtyTrac's 2007 Midyear Metropolitan Foreclosure Market Report showed the foreclosure activity in the top 100 metro areas for the first half of 2007. As foreclosure rates continue to rise, 82 out of 100 metro areas recorded year-over-year increases in foreclosures.

Stockton reported one foreclosure filing for every 27 households with a total of 8,169 foreclosure fillings on 4,239 properties. The rate of foreclosure has increased exponentially to three times more than the number reported last year, for the same period.

Detroit, with one in 29 households going for foreclosure, recorded the second highest foreclosure rate. A total of 28,705 foreclosure filings were made on 20,231 properties, which is almost double the number reported from Jan-June 2006.

Las Vegas documented one foreclosure filing for every 31 households, making it the third highest in foreclosure activity among the 100 metro areas. It reported 22,928 foreclosure filings on 13,028 properties, double the number reported during the first half of 2006.

Six of the top 20 metro areas with the highest foreclosure rates were in California and four in Ohio.

The following are the top 20 U.S. housing foreclosure markets from Jan to Jun 2007, the total number of foreclosure filings and households per foreclosure filing.

1. Stockton, California: 8,169 foreclosure filings; one foreclosure filing for every 27 households.
2. Detroit/Livonia/Dearborn, Michigan: 28,705 foreclosure filings; one filing per 29 households.
3. Las Vegas/Paradise, Nevada: 22,928 foreclosure filings; one filing per 31 households.
4. Riverside/San Bernardino, California: 41,351 foreclosure filings; one filing per 33 households.
5. Sacramento, California: 20,516 foreclosure filings; one filing per 36 households.
6. Denver/Aurora, Colorado: 23,842 foreclosure filings; one filing per 42 households.
7. Miami, Florida: 20,275 foreclosure filings; one filing per 46 households.
8. Bakersfield, California: 5,365 foreclosure filings; one filing per 47 households.
9. Memphis, Tennessee: 10,800 foreclosure filings; one filing per 49 households.
10. Cleveland/Lorain/Elyria/Mentor, Ohio: 8,844 foreclosure filings; one filing per 50 households.
11. Fort Lauderdale, Florida: 15,720 foreclosure filings; one filing per 50 households.
12. Atlanta/Sandy Springs/Marietta, Georgia: 36,502 foreclosure filings; one filing per 54 households.
13. Fort Worth/Arlington, Texas: 13,221 foreclosure filings; one filing per 57 households.
14. Fresno, California: 4,867 foreclosure filings; one filing per 60 households.
15. Indianapolis, Indiana: 11,677 foreclosure filings; one filing per 62 households.
16. Dayton, Ohio: 5,966 foreclosure filings; one filing per 63 households.
17. Dallas, Texas: 23,284 foreclosure filings; one filing per 65 households.
18. Akron, Ohio: 4,378 foreclosure filings; one filing per 70 households.
19. Oakland, California: 13,482 foreclosure filings; one filing per 70 households.
20. Columbus, Ohio: 10,706 foreclosure filings; one filing per 70 households.

Real Estate In A Slow Market

2008-10-17T12:18:00.001-07:00

The real estate market tends to be cyclical with some periods favoring buyers and other periods favoring sellers. As with other free markets, the pricing and availability of real estate is directly related to the forces of supply and demand. While many real estate markets in the United States are experiencing a substantial slowdown, other markets remain robust, and some even continue to grow. What makes the situation even more complicated is that even within a particular city or county, there may be some areas that are hot and others that are cold.

In regions of the country in which the real estate market is slowing, there are some things homebuyers can do to increase their chance of getting the property that they want on terms that are favorable. Below are some strategies to consider:

1. Clarify What You Want. Be sure to understand what kind of property you want (e.g. bedrooms, bathrooms, size, yard, location, etc.). Identify items that you "must have" and items that you would be willing to forego if your other priorities were met.

2. Consult Experts. You've no doubt heard the saying that "all real estate is local," so arm yourself with the best information available. Consult a local real estate expert who can guide you about what communities are hot and which ones are not. Obviously, you are more likely to find deals in communities that have excess supply and limited demand than vice versa.

3. Understand Market Data. Obtaining and evaluating data can be one of the most powerful tools in your arsenal. Identify communities that you find desirable and ask your real estate agent to provide you relevant sales statistics. For example, your agent can provide you:

a. A summary of how many properties are available in communities that you deem desirable.

b. How long properties are taking to sell this month, last month, last quarter, last year, etc.

c. How many properties have sold this month, last month, last quarter, last year, etc.

d. Changes in the median and average price of properties for a community this month, last month, last quarter, last year, etc.

e. Data on the sales price to list price ratio (SP: LP). This ratio provides information about how much, on average, sellers are reducing their price.

f. Detailed data on properties that are similar to the type of property you desire (often known as "comparables" or "comps").

4. High Inventory Communities. Identify, or ask your agent to identify, communities that appear to be particularly slow, and that have an unusually large inventory of homes. You will have a broader variety of options in these communities, and you may increase the likelihood of finding a better deal.

5. Loan Pre-Approval. Be sure to consult with your bank or mortgage broker and obtain a loan pre-approval document. This not only let's you know how much you can afford, but it also demonstrates to sellers that you are a serious buyer and that your offer is worthy of serious consideration.

6. Seller's Motivation. While information about why a seller is selling is usually confidential, there are situations in which the seller will allow their agent to disclose important factors regarding their personal situation. Be sure to ask your agent to inquire about any information that the seller has disclosed to his/her agent that can be conveyed to your agent. This information may help you decide on making an offer on a property and the price you wish to offer.

7. Home Inspection. A home inspection conducted by a qualified inspector can provide you valuable information about the condition of a property. Moreover, if there are items that need repair or replacement, you can use this information to modify your offer price or terms.

8. Expand Search Scope. As mentioned above, even within a particular city or county, there may be some areas that are hot and others that are not. Be sure to provided detailed information about what you want to your agent, so that he/she can provide you a variety of community options.

9. Be Patient. Time is on your side when there is excess supply and insufficient demand. Try not to "fall in love" with a house so much that you cannot be objective. It may be that multiple offers and counter-offers occur before you either get the property you want or decide to walk way from a deal. You may also want to look at more properties than you normally would, so that you are exposed to a variety of options.

While the above is not an exhaustive list of strategies, it is a good starting point of issues to consider when buying real estate, particularly in a market that favors buyers. Obtain the services of a knowledgeable Real Estate agent who can provide you with additional strategies to help you reach your real estate objectives.

U.S. Real Estate Forecast

2008-10-17T12:15:00.000-07:00

On any given day, people can easily find articles and news stories describing an impending bust of the so-called real estate bubble. Despite this gloomy prediction, many experts believe that the recent slowdown in housing will be a gradual and modest readjustment rather than sharp bust or decline. These experts believe that factors that lead to a sharp decline in the real estate market are just not present in the current economic outlook. In fact, a recent study by the Joint Center for Housing Studies at Harvard University noted that "despite the current cool-down, the long-term outlook for housing is bright."

The rise and fall of the real estate market is subject to the forces of supply and demand, and these factors point to stable and positive growth in the real estate segment.

SUPPLY FACTORS

Limited supply of real estate makes it scarce and usually pushes home prices up. In contrast, an oversupply of real estate tends to put downward pressure on home prices. Despite the current slow down in the real estate market, factors that impact limited supply favor continued growth in the real estate market. Some of these factors include:

1. Builders have readjusted growth plans in regions that have an oversupply of new housing. Over time, any excess inventory is likely to be depleted and equilibrium achieved between supply and demand.

2. The availability of land in certain regions, as well land use regulations and associated compliance costs will continue to restrict the supply of new homes.

DEMAND FACTORS:

Housing located in regions with high demand tend to be more expensive than homes in regions with low demand. Factors that impact the demand for housing suggests a favorable long-term housing outlook. Some of these factors include:

1. No current evidence of significant and across-the-board job losses; forecasts of relatively low unemployment rates.

2. Long-term increased demand for second homes, vacation homes and senior housing by baby boomers.

3. Long-term increased demand for entry-level homes by the children of baby boomers.

4. Long-term increased demand for entry-level homes by immigrants.

5. Long-term increased demand for entry-level homes by second-generation Americans.

6. Forecasts that the outflows and inflows of the U.S. population in and out different regions will not significantly impact the overall U.S. real estate housing market.

7. Relative stability in interest rates.

8. Continued stability in long-term home appreciation rates.

9. Overall, rising rate of wealth across all age groups.

SUMMARY

In summary, strong household growth, overall rising incomes and wealth, and a stable economy all bode well for continued long-term growth in the real estate market. While the overall housing outlook is favorable, affordability will continue to be a challenge, as wages, especially in the lower income levels, have not kept up with housing costs.

Real Estate Investing

2008-10-13T19:17:00.000-07:00

“How to get rich”: there are few more written upon topics in the history of history than how to get rich. Is Real Estate Investing the Number One Way to leverage yourself and build wealth easily? If you’re an entrepreneur who is constantly striving to get to that next level in your life, your business, and your finances, you’ll likely agree with me when I say that we entrepreneurial personality types have an insatiable appetite for consuming material on how to get rich, and how to leverage yourself to build wealth easily. As a real estate entrepreneur who writes often on investing, I’m not going to focus on how to get rich in real estate investing with this article. In fact, I’m exploring if there could be something even better for building wealth easily. An even more powerful way to leverage yourself!? Let’s see!

Build Wealth Easily?

But despite our best efforts and intentions and goals, that doesn’t mean each of us is able to figure out the why, where, who, when, and most frequently the what of how to get rich. Not all of us can drive every vehicle capable of shuttling them to success equally or as quickly as they might another vehicle. That’s why I wrote this article. Real estate investing is my passion. Real estate investing can build and keep wealth like nothing else. But I won’t claim it’s the best vehicle to build wealth easily. In fact, I’m not sure it is!

This article will help some of you see the types of actions and scenarios likely to take someone reading about how to get rich and propel them into a future full of success and sharing with others how to get rich— just by taking each of these vehicles for a mental test drive.

I believe one of the fundamentals of how to get rich is becoming a master of leverage, learning to leverage yourself by learning and applying systems of duplication and delegation and automation. By using creativity and the creation of value to multiply your results with the systems, efforts and resources of other people and organizations, you can be sure that every minute and every dollar you spend in pursuit of your goals learning how to get rich will come back at you in droves.

In real estate investing, I’m familiar with a lot of these methods to leverage yourself, as you can see from visiting the website -- but what about these other plans for how to get rich?

That brings me to the top 13 ways in my opinion to get rich in today’s world— without having to be someone special, have special knowledge or look like a million bucks— as I see them, with an emphasis on how much LEVERAGE you have.

How to Get Rich Top 13 Answers

13. Steal the money

Whatever your religious beliefs, or whether you are consciously aware that there is a God or not, stealing money from others is not a great strategy on how to get rich. Humans are hard-wired with a conscience that in most cases knows right from wrong. Few people can live a full and happy life knowing that their fortune was built on robbery, theft, deception, trickery, or lying. It may appear the “easy route” but in the end karma always wins.

12. Winning the lottery

We do not value that which we did not work to earn. Sure it’s nice to fantasize about what we would do with a hundred million dollars, or fifty, or twenty, or ten. Some people say they play the lottery as an “investment vehicle”. The only more ridiculous statistics than the odds stacked against you winning are the statistics of what happens in the financial futures of the average lottery winner: 4 in 5 are BROKE or in debt within 10 years. How? When you have a paycheck to paycheck mentality (as much of the world does) lottery winnings are just a much bigger paycheck. For most people, as one’s income increases so too do the expenses—but faster. Lottery winners who did not have some financial success already are doomed to lose it all.

11. Being born rich

Napoleon Hill once said, in paraphrase, “there is nothing more dangerous than unearned riches”. What did he mean by that? It’s a simple factor of human nature that the more we are given the less we appreciate. Or know the value of. Or how to get it on our own. There’s a reason predators bring meat to their young early on but later set them loose to learn how to feed themselves. The worst possible position to be in, should you lose all your wealth, is that of never having had to learn how to get rich in the first place. The only reason this is better than winning the lottery is because if you are determined to make it happen, you’ve already been exposed to wealth— so you’re not mentally limited as to how much you think you can earn. That’s a huge limitation for many people looking to build wealth easily, not having “seen” wealth.

10. The professional/corporate grind

Being a regular 9 to 5 employee with a guaranteed salary, benefits, 401k and stock options, and job security is not a negative— unless you want more than trading your time for dollars, that is! Admittedly, for some people, there’s something to be said for the safety of a secure, well-paying job that makes us feel normal. You can get rich just by living below your means and investing the difference— even teachers who made no more than $30,000 a year have died leaving multi-million dollar estates. This is great if you are patient, disciplined and can wait 30 years— but it’s not MY idea of how to get rich. Nor is ANY job or career exactly so “safe” anymore in today’s world of downsizing, layoffs, outsourcing, off-shoring, corporate mismanagement, and eroding benefits. Worse, you’re not using leverage here— no matter how hard you work, you can leverage yourself to a great degree as an employee! You’re a cog in someone else’s machine as an employee.

9. Unlimited income direct sales

Sales is one of the highest-paying professions in the world. It can also be the lowest-paying profession in the world. Being a commissioned salesperson with no earnings cap on commissions can bring in a lot of money if you’re good. IF you’re good and you bust your hump. And if your product is solid. And if the economy is strong. And if your company stays in business. And on and on. Too much is not in your hands! The main issue though is that the skills that will avail you of a successful career in professional sales can be used much more efficiently when you leverage yourself by using other vehicles to channel your talents.

8. Franchise Owner

2 + 2 = 4 no matter whether you can do math or not. Franchises are set up to be businesses run based on a system already proven profitable. Whether they are as “turnkey” as their promoters claim is debatable, but there is certainly money in the franchise game to be made. It’s no wonder economists have labeled the franchise boom of the 20th century as the McDonaldization of business when the average McDonald’s restaurant franchise grosses $1.9 Million per year for its franchisee owner. Still, the financial barrier to entry can be as high as a normal business and in many cases even higher.

Leverage Yourself

7. Network Marketing

This one could closer to the top of the list if the opportunities available were worthy to be at the top—most aren’t. If you find the right opportunity, however, and work it with a vengeance on a consistent basis you can gain leverage yourself substantially by using other people’s time. Unfortunately, most people never find the right company at the right time and make the right choice to take action. Then, when they fail, as 9 in 10 do within a year, they give up never having gotten past the dream of buying into someone’s plan to teach them how to get rich—and into the reality. However, for the person in sales who can sell and recruit, network marketing is a better answer in many cases than just conventional selling— for the simple fact that you’re building your own business and residual income streams that will continue whether you continue to work or not.

6. Information Product Sales

Internet marketers of today are capitalizing in ever-increasing numbers on human nature tendencies direct marketers have known for many, many long years. There are some “problems” we have as people that there is NO LIMIT to the amount of money we will throw at the problem trying to find the perfect “solution”. The best markets to sell information products to are: (1) Business Owners Seeking Solutions (2) Better Appearance Seekers (3) Business Opportunity Seekers (3) Diet & Fitness Seekers (4) Dating Advice Seekers and 5) Avid Leisure Hobbyists. The best part about information product sales is the low overhead cost to produce the products you deliver, and the high profit margins you can earn.

5. Business Owner

Business ownership has many more benefits than can be touched on in a short paragraph but suffice it to say that if you’re not in business for yourself you should be. There is little more fulfilling than being your own boss, and working to build something that might outlast you. The cash flow, the tax benefits, the respect in the community, the outlet for creativity— all of these things make owning a small business (or growing a large one) a large part of the average human dream. As a business owner, you can incorporate many of these other vehicles in your plan for building wealth easily.

4. Celebrity

Clearly, celebrity sells. There are many mega-millionaires on this planet with no other talent than somehow managing to capture the interest of an audience worldwide (or even regionally) longer than their allotted “15 minutes of fame”. Publicity equals better than advertising and advertising done skillfully equals revenue. Celebrities are money machines who can make money in most of the rest of these categories but there are three reasons this is not nearer the top of the list. Despite the number of “what did they do’s?” out there , there are many more celebrities who are famous for a reason— they worked very hard to become the best (or best promoted) at what they do— be it sports, entertainment, speaking, etc. Secondly, there is a very high barrier to entry to this kind of life, one most people just do not have the look, skills, contacts, nerve, or charisma to break into. Lastly, there’s a huge cost to celebrity that would take it out of the top choices of a “best ways on how to get rich” list: your privacy is nonexistent in today’s world of celebrity.

3. Intellectual Property

With income streams from licensing to franchising to royalties to patents, copyrights, and trademarks— creating intellectual property is a serious method of building wealth easily. Musicians, authors, inventors, creative artists, franchisors, entrepreneurs, and high-level marketers are all making tons of money, residually, for many years from work they completed just once. This is a very high leverage activity! Books, music, ebooks, graphic and multimedia designs, software, copywriting, inventions, franchisable sales systems, the list goes on and on. Is this a vehicle you can put into action tomorrow? Not usually! But as you make your way in the world of wealth do not forget to use intellectual property to leverage yourself!

How to Get Rich: Real Estate Investing the Best?

2. The Real Estate Business

It’s widely accepted that 90% of all the world’s millionaires either made or keep their wealth in real estate. Water is wet. The sky is blue. Over time, real estate goes up. These are simple facts. Contrary to the “get rich quick” infomercials you’ve seen, though, figuring out how to get rich in real estate investing isn’t easy. But it is simple, once you understand the processes involved and actively and consistently pursue the business. Real estate investing is one of the highest forms of leverage we have as entrepreneurs, with savvy investors utilizing not only other people’s money, but also other people’s time and even other people’s credit. The real estate business is full of wealth-building opportunities: foreclosures, rentals, lease options, commercial properties, short sales, tax liens, being an agent or loan officer, investing in notes and mortgages…the list goes on and on! Of these, investing in notes and mortgages is pretty high on the easy scale, getting the benefits of real estate without some of the management headaches.

I obviously believe in real estate investing, but I’m not so sure there isn’t an even better, easier, higher leverage vehicle out there for creative entrepreneurs like you and me!

1. Joint Ventures (A.K.A. Strategic Alliances)

Joint Ventures is the best way to build wealth easily. Scratching your head? Well, soon you’ll see that doing successful joint ventures to make massive cash with minimum efforts and minimum risk is just common sense. Too bad common sense ain’t common! If you can master putting together joint ventures, you can be assured that if you build wealth and lose it all— you can quickly earn it back. When you master joint ventures, everything you need to get started again building wealth easily is now in your thought processes. It’s become as simple as common sense. This is because with successful joint ventures you don’t need products or services or invesntory. You don’t need an office, factory, employees, customers, or anything else traditional businesses need. You just need ideas. Of course, if you have any of these things, it only makes it easier because you bring something even more to the table than your brilliant ideas. The basic formula of how to get rich with joint ventures is answering these questions: “Who do I know?”, “What do they have?”, and “What do they need?” Then you play deal maker. That’s it! Zero risk, high profit potential. The ultimate in way to leverage yourself to build wealth easily.

Team Players for Your Next Real Estate Purchase

2008-10-13T19:15:00.000-07:00

Buying a house is a major financial and legal process that typically encompasses a wide range of smaller transactions along the way. A single real estate sale – no matter how simple – will usually involve a smorgasbord of different specialties, professions, and areas of expertise, not to mention the potential for myriad emotional and psychological demands and reactions. For most consumers a real estate purchase does, in fact, represent the most comprehensive and complex deal of an entire lifetime.

Those who venture into such undertakings can help ensure their success by enlisting the support of a talented and educated team of pros, and here is a recommended list to use as a starting point when recruiting help for your big home purchase project:

• Real Estate Brokers and Mortgage Lenders

Ask friends for recommendations, and when you interview potential brokers and lenders ask them about their experience and track record. Also find out what particular area of real estate and neighborhoods they specialize in, because this can be incredibly important. If you’re buying a downtown condo, for instance, you want someone who knows that market, not somebody whose experience is primarily in listing and selling suburban houses or mountain lodges. Communication is essential, so only choose those with whom you have a comfortable rapport. If the interpersonal chemistry doesn’t feel right, keep looking.

• Building Inspectors

Just as when you have a question about your car you go to a trusted mechanic, when buying a house or condo you should have a reliable building inspector on your team. But keep in mind that there are different kinds of inspectors. You’ll want one to check for termites and other pests, and another to check for environmental hazards such as radon gas and asbestos. For a general inspection, you’ll hire a licensed general building inspector to study the mechanical and structural components of the house, such as the electrical system, appliances, foundation, roof, and plumbing.

Building inspectors are also the best source of information about how to properly maintain your home. Follow them around as they check your home, and ask them to teach you how to do your own routine inspections after you move in, to look for potential problems before they happen.

• A Real Estate Attorney

Real estate is a specialized legal field, and when buying a house you should enlist the services of someone who only practices real estate law.

• Contractors

Contractors are the ones you’ll call to actually get repair cost estimates and do the work. Folks such as house painters, carpenters, landscapers, and plumbers can help you estimate how much to negotiate with the seller for repairs, and they can also provide insight into how to approach any improvements, updates, or remodeling projects that you might envision.

Get competing bids, but remember that the cheapest bid doesn’t always guarantee the best work. The main thing to look for is a stellar reputation for exceptional quality and attention to detail, and your contractors should all carry appropriate insurance to cover themselves in case they are injured while working on your premises.

• Chimney Sweeps

If you have a chimney, you’ll also need a certified chimney sweep to check it for cracks, leaks, or potentially dangerous build-up of flammable residue. Thanks to modern tools, those in this old-school trade can now snake a tiny video camera into your chimney and make a thorough visual examination of every nook and cranny, no matter how ancient or narrow the air passageway may be. The best chimney sweeps also have powerful vacuum cleaners – often mounted on trucks – that are especially designed to let them capture dust, ashes, and soot without letting any of it escape and settle on your fine white rugs and draperies.

This list is by no means complete, and you may or may not need all of these experts for your particular purchase. On the other hand, you may need to add to the list to bring others on board. For instance, if you are buying property in an historical neighborhood, you might need to hire someone who knows old-fashioned plastering techniques. If you’re looking at farmland, you could need a well digger or an agricultural consultant. Buying a cool urban warehouse loft? You may very well need to call that guy in town who knows how to fix antique elevators or the woman in the neighborhood who sells steam radiators that come in different Crayola crayon colors.

Buying a home can – and typically does – have significant repercussions that last far into the future. A house purchase influences the personal and financial lives of both you and your partner, so it is always wise and prudent to approach the event with as much information, guidance, insight, and reliable professional support as possible.

Real Estate Investing Or Landlording?

2008-10-09T09:02:00.000-07:00

Real estate investing is the classic wealth vehicle that has taken people from living hand to mouth to the pinnacle of wealth.

It's the vehicle of choice because it's accessible to all of us. Everone has a least rented a house or apartment, and most of us have bought a house. So knowing what it's like to be renter or homeowner we have first hand knowledge of our customers when we set out to be real estate investors.

The classic real estate investing model is buy a bunch of houses, rent them out and in 30 years the mortgages will be paid off, the properties will have at least doubled in value, the rents will be twice what they were when you started ... with no loan payment.

The goal sounds inspiring. Imagine having 10 properties you bought 30 years ago, each for $80,000, now be worth $350,000 apiece as a result of a average annual appreciation rate of 5%. You would have a portfolio worth about $3,500,000. Monthly rents, on the low side, of $1,200 per house would give you gross monthly rents of $12,000. After T&I you probably put $9,000 in your pocket.

I think you would agree this is an extremely modest goal, but what a payoff!!

What a payoff indeed ... for those who actually stick with it. You see there's a problem with the above scenario, and that is the early years are really tough.

Cashflow is slim, expenses are high, and most investors who take this on don't make it through.

They run out of cash.

The short-term solution is to change your focus from buying and holding to quick-turning houses for cash. Quick-turning houses, getting them under contract super cheap and flipping them to another investor for $5-20,000 or more will take care of your cashflow needs today while you hold your rental properties for long term growth. This is great ... money, cash!

But you are not out of the woods yet.

Your new short-term problem is management. If you are buying houses to hold for the long term you must be prepared for the fact that you will be managing them yourself, whether you take on that job as an individual or create a management company to do it. The fact remains that at some point your occupation will change from real estate investor to landlord.

And I'm afraid gentle reader, landlording is dirty, smelly business. One you do not want to be in.

There are worse things in life than being a landlord, most definitely, but that's not why you got into real estate. You got into real estate because you want the big dollars. The really big ones. The 'buy your own island' big dollars, the 'house on each continent' kind of dollars. The nine figure net worth.

Didn't you?

That net worth is available, in fact it's waiting for you to claim it, but you won't achieve the growth necessary to get there buying single family homes. As a growth vehicle they are very inefficient.

>From a real estate investing standpoint the purpose of a single family home is to give you experience doing deals, and to take care of your immediate cash needs.

After you've paid off all your debts, have 12 months living expenses in the bank, and have a kitty of say, $100,000 to $200,000 there isn't much further use for single family homes.

Unless, of course, you want to be a landlord.

As soon as you are debt free and have some starting capital you should move straight into buying apartments.

There is all kinds of leverage to be achieved by changing your wealth vehicle from single family houses to apartment buildings.

- from a value standpoint when buying apartments you are dealing with much bigger dollars, so as the years go by, you make more through appreciation.

- apartments have a much higher rent per square foot compared to houses, so property management can be brought in take management out of your hands in a cost effective manner.

- apartment buildings make sense from a business standpoint so it is no difficult to attract partner capital. - there is an abundance of apartment financing available from lenders up to 80% loan to value.

- there are many profit centers, like repairing units and increasing rents, filling vancancies, that can be capitalized on to capture upside value.

Also, because apartments are not reliant on your personal attention and can be effectively managed by property management companies you are not restricted to buying in your own local market.

By becoming aware of market cycles and tracking them closely, you can buy quality properties in any market in the US at the bottom of a cycle, and ride the appreciation to the top of the market, where you sell (or exchange out) and take huge profits.

Of course, providing you live in a market (like CA) that appreciates rapidly in an up cycle, you can achieve this with single familiy houses too. But which property would you rather have appreciating at 15% a year, a $300,000 house, or a $10,000,000 apartment building.

After 10 years a $300,000 house will turn into $1.33M. Nothing to sneeze at. But during the same 10 years in the same market a $10M apartment building will turn into $44.4M.

Which would you rather have?

It's an easy choice, and one you simply need to make.

Goals in Real Estate

2008-10-09T09:00:00.001-07:00

I want to ask you two questions. One, do you have a Will? And two, do you have written goals for the next one, three, five and ten years? If you answered yes to the first question but no to the second, you are planning more for your death than you are while you are here. Think about it. I want to challenge you to start setting some goals, but remember if a goal is not in writing, it is simply a conversation. It must be in writing and it must have a deadline. Here are a few guidelines for setting goals. Oh, by the way... you need a will also.

Goals Must be Specific

I want you to be specific and include details but start rough. When you start rough for example, you want a Mercedes. You do not have to get into the details about what color, what options, that sort of thing, just write it down. Make your list huge, what kind of home do you want, what you want for your family, college education, spend more time, travel, anything you can think of. You can come back later and prioritize them and set them up as to what you want in one month, three months, six months, twelve months, then three, five, ten, twenty, thirty year goals. The more goals you have, the happier you will be, the longer you will live, and the more prosperous you will be.

Goals Must be Believable

Remember this, your goals must be believable, by you, or you will not pay the price. They must be believable, they must be just out of your reach, but you must know you can reach them, if you really strive to do it.

Goals Must be Measurable

You cannot set a goal to be financially independent. There is no way you can measure that. You need to set a goal for the amount of income you want per month, per year, the amount of equity that you want in properties – one, three, five, ten and twenty years. It must be measurable. That way you can break it down to what I call “reduce it to the ridiculous”. If you know you want to earn $100,000 a year, you know that is $8,333 per month. That’s just one deal a month where I live. One of the things I have learned is, successful people set their goals quickly and they make adjustments as they go along. Just like successful people make decisions quickly, they do not vacillate in indecision or what I call sometimes; get mixed up in a funk of negativity.

Goals Must be Congruent

Your goals must also be congruent with your actions. You cannot set a goal to work harder, longer hours AND a goal to spend more time with your family. Those are not congruent. They must be congruent with your actions.

Visualize What You Want

Another good thing that will help you with your goals is to visualize what you want. If you see yourself as already having achieved the goal, you will fake out your mind and your mind sees the goal as already having been achieved. It’s called “fake it till you make it”. I used to do this all of the time. Just take a minute or two each day and think about life as it is with your goals already accomplished. It’s really easy when you get used to it.

Work Your Goals

The next thing you want to do is work your goals, work on the priority that moves you closer to your goals every day.

Number Your Goals

Number your goals in the order of importance. Not only is the goal important but so is the reason. Sure your want a car, but why do you want the car? Sure your want more money, but why do you want money? You want to be able to spend more time with your family, you want to be able to travel, you want to buy a Hummer, and you want to have an ocean front condo or send your children to the best college. Whatever it is, the reason must be there. The reason is more important than the goal itself.

Review, Monitor and Make Adjustments

Another thing you need to do is review, monitor and make adjustments on your goals. You have to be flexible. Some things are not going to happen, you have to face that; but you need to continuously strive to get better every day. If you will work harder on yourself than you do on your job then you will always be growing. Remember that last sentence and write it down as it is worth repeating.

The Goals Must Have a Deadline

As I mentioned first, your goals must have a deadline. A goal without a deadline is just a conversation. When beginning to set your goals, I want you to set your goals in four basic areas:

Financial

You will set goals based on income, equity or net worth and cash flow. All of these are financial goals.

Fitness

This is your health. If you don’t feel good, chances are that you are not working at your maximum capacity. So, I want you to set some fitness goals to stay healthy. Remember “an apple a day”? What if this is right and you are not doing it? Start small though, you don’t try to tackle all of these at once; but you need to be healthy not only for you but for your family as well.

Family

Set family goals. What is an example of a family goal? Maybe you want to take four vacations a year. Maybe you want to visit a new state, three times a year or five times a year. Maybe you want to go see the Grandparents two or three times a year; but maybe not. Anyway, you get the point.

Faith

You need to set some spiritual goals, some faith goals. I am not going to get into a lot of detail about that but that will help you along your way. Remember, if you slip in one area of your goals, you are probably slipping in some other areas. Another thing I want you to think about is the people you associate with. Take a minute and think about this. If you think about your ten closes friends annual salary and divide it by ten, then that is pretty close to what you make. I’m not telling you to get rid of your friends, all I’m saying is whom you associate with, is who you are like, so please keep that in mind. Don’t get rid of your friends, just get some more that are where YOU want to be financially. Most of the people I hang out with now, we all make over $500,000.00 a year. That just blows me away. I never imagined I could make that kind of money…. Well I guess I could, as we are talking about goal setting and visualization aren’t we?

Invest in a Hot Real Estate Market

2008-10-09T08:58:00.000-07:00

A frequent question I am asked is:

"How do I find deals in a hot real estate market?"

Actually, there are several ways to find real estate deals in a hot market. The answer depends on your investment goals and the level of risk you are willing to take. Personally, I'm conservative in a hot market. I may make less money than others who speculate and buy just because the market is hot. But your goals and risk-tolerance may be different.

Here are some different temperaments of real estate investments and how they approach finding properties:

The Speculator: In a HOT market the speculator is a genius. A speculator can do no wrong, because whatever he pays today there will be somebody willing to pay more tomorrow. And, just like the stock market, when you're hot, you're hot and everybody's a winner.

The downside for the speculator happens when all good things must come to an end. And sometimes when it does, the speculator might be stuck holding the bag. I have no personal objection to people speculating, but I have zero patience or tolerance for whining when the ride is over! It's like Russian Roulette; your odds of winning are 5 in 6 and that's pretty good, isn't it?

On the upside, a lot of money can be made speculating. If you are in and out quickly, your risk is limited to your holdings at any given time. The flip side of this is that markets often give back some of the artificial profits. There is a risk you could find yourself having paid more than a property is worth, and if the markets turn around quickly it is an ugly position to be in.

In a hot market, many investors are willing to pay retail price and then turn around and sell at higher new market values that result from the rush of buyers. Hopefully you can see the danger in the game. If you choose to play, make sure you understand the risks. I used to trade commodities, and that's a game all about managing risks. With the risk comes the reward, and my hat is off to those that win. :)

The Investor: A market that is on fire is a speculator's dream and an investor's nightmare because methods that used to work no longer get the same results. Your marketing efforts will see decreased efficiency and you'll have fewer opportunities to purchase properties at the discounts you are accustomed to. It's frustrating because even though your marketing results are plummeting, the answer is to market more and become better at marketing!

A hot market can deliver a real blow to an investor's self confidence. It makes the investor stop and ask if they are doing something wrong. They're not, but changes need to be made. Since marketing is less effective in a hot market, more time must be spent on marketing to generate sufficient leads. A possibility is to specialize in a field and dominate a niche.

A few possibilities:

• Pre-foreclosures (and yes, it is a dog-eat-dog world)
• Bankruptcies
• Divorce Filings
• Eviction Notices (disgruntled landlords)
• Quit Claim Properties
• Death Notices
• Tax Liens Filed

And, when the market is hot, look for opportunities to buy "subject to" properties that create cash flow. Anytime property cash flows it's hard to go wrong long term!

What do I do in a HOT real estate market? Personally, I've sold many of my properties to realize cash profits. I am now anxiously waiting for the markets to turn. I know when it does, most investors will be running for cover while I'll be one of the few to pick up deals. The entire investing game changes at this point and I'll explain what to do in this type of a market later.

However, don't think I've stopped buying houses. No way! We're still wholesaling houses and most of the time the profits are a little smaller, but we're in and out the same day and making cash money without risk. Nothing wrong with that and there's still plenty of deals out there.

When will the markets turn? The answer is, "Who knows?" and, "Maybe they won't." And, it doesn't really matter if you know how to invest in your current market. But, let me tell you why I believe the markets will change:

1. Markets Cycle - Nothing is immune to the ups and downs of a market and cycling is a natural part of the process. When there is not enough housing, there is a rush to build houses. Then too many houses are built and everyone stops. Then there are not enough and on and on the cycle continues.

2. Interest Rates - As interest rates rise, consumers will be able to afford less and less of a house. This will affect the market demand, prices, and construction of new homes. When the market turns, some smart investors will be looking to buy entire subdivision projects from bankrupt developers. In a hot market many houses are pre-sold, but when this dries up, many developers are in BIG trouble because they were dependant on deposits and profits from pre-solds when construction is completed.

3. The U.S. Economy - I didn't plan on covering this topic, but it is important to at least note. For the last 100 years, the U.S. has been the financial powerhouse of the world and has been able to push its weight around (and during this time the U.S. markets went through many natural cycles). But, this is changing quickly and the new currency of the world is the Euro. This is demonstrated by the Euro's strength and the number of countries scaling back U.S. dollar investments (T-bonds, etc.) and moving into Euros. In short, the U.S. dollar has taken a beating.

Combine this data with a $50 billion per month deficit, and you should see that something is wrong. Put those two together and you might see a bigger picture beyond just a hot market.

In addition to the US Economy a lot of work is finding its way overseas through services such as www.elance.com. It's an entrepreneur's dream come true, because it is a free market economy, but to the American employee it is a brutal wake-up call.

Will the markets turn? Always, and when they do we'll adjust our investing strategies to the market and make great profits.

Real Estate Listings

2008-10-06T00:06:00.000-07:00

Expired Real Estate Listings have been the near exclusive domain of real estate agents for as long as I can remember. Top producing agents know that expireds don't require a lot of effort to get, yet yield a high return on their time and money invested in marketing them. And all you have to do to find them is log into your MLS system, enter the dates that you're interested in and presto - there they are.

But the days of exclusivity may be drawing to a close, as buyers and investors are competing for those same expireds. They too are starting to realize that expireds offer special opportunities for them as well, but instead of listings they get to bid on properties that are all of a sudden off the market and may be reduced by at least the cost of the real estate listing fee, which is no longer in effect because it expired, too.

But buyers and sellers are at a distinct disadvantage when it comes to expired listings- they don't have easy access to the MLS system. They can't just log into the MLS system - they don't have access to it.

Instead, they have to be a little more innovative. Some sign Buyer Broker Agreements, whereby they hire and pay agents to help them buy real estate. And since the agents will get paid by the buyer they can then expand the properties shown to their prospective buyers to include expired real estate listings, fsbos and even properties that are actively listed in MLS systems.

Suddenly, buying options for buyers and investors expand threefold. Agents are now free to show them almost any property on the market and the Buyer Broker contract ensures that they'll get paid.

The concept is a little unorthodox, and is not utilized by many, but those that do know about it are finding that there are more buying options than they would otherwise have.

My first Buyer Broker experience was as an agent and it was a wonderful experience. At the time I was struggling to pay gas to usher clients around town to look at houses, only to have them walk away without buying anything, or go on to another agent and buy something.

And what was so good about it is that I got a pretty sizeable non-refundable retainer fee, so if they had walked away I would have felt adequately compensated for the time spent with them. But I didn't have to worry about that because they ended up buying a home and I got a full fee for my services.

So, listen up buyers and investors. If you're looking for a great deal you might want to seriously retaining an agent to search expired real estate listings for you, which can in some instances be as good as buying foreclosures. Sellers are pretty motivated to get their properties sold and are likely to be very happy to work with your agent to negotiate a sale.

And for you agents out there, a Buyer Broker contract to find expireds can open up a new channel of possibilities. So, what are you waiting on?

Real Estate Brokers and Real Estate Agents

2008-10-06T00:05:00.000-07:00

Real estate brokers and real estate agents are two different things. An agent provides their services, independently, to a broker for a fee. A real estate broker sells property owned by others, and may offer management services. Most real estate brokers deal in residential property, but some deal with industrial, commercial and agricultural. The real estate brokers who deal in the latter are often times employed by specialized firms or larger corporations. A real estate broker encompasses many area of property purchasing and has to be extremely knowledgeable. It is the responsibility of a real estate broker to be proficient in the laws governing real estate purchasing in the market they are working in, as well as, financing options. Additionally, a real estate broker handles title searches for properties, and general marketing.

Both real restate brokers and agents have similar job duties. They both obtain listings of properties and do research about the current market to determine the market price for a property and decide what the property needs to be listed at, if they are working for a seller, or if a property has a favorable listing price, if they are working for a buyer. In the case of rental property, both real estate brokers and agents have to be familiar with the region's functionality. A property's accessibility to transportation, they utilities available, and the job market all tie into whether a rental property will be more favorable to a buyer, or seller. The major differences between a real estate broker and an agent is license requirements and client interaction.

In the way of licensing, a real estate broker is required to have obtained a high school diploma, be at least 18 years of age, and pass a written examination. The thoroughly comprehensive test covers basic real estate laws and transactions. Additionally, a real estate broker is required to have 60-90 hours of in-field training as well as a length of time actually selling real estate. This time varies between 1 and 3 years. However, sometimes states will waive the experience length needed if an applicant has obtained a Bachelor's degree in real estate, as well as completed the other licensing requirements.

As for client interaction, it is generally an agent, not a real estate broker, which handles meetings with buyers and sellers. An agent will assess a client's needs, their budget (or desired property listing) and handle filling out contracts. It is also the job of an agent, to present potential properties (or buyers) to the client. An agent also handles negotiations between two parties. So a real estate agent is more the face of a real estate transaction, while a real estate broker is the wheels and gauges.

While the current real estate market is welcoming to real estate brokers, and agents alike, the job outlook for these positions is unstable. Since both jobs depends upon the economy of the nation, and the production of the population, it can be a risky career choice for some.

How To Avoid Probate With Estate Planning

2008-10-01T18:56:00.000-07:00

When "The King," Elvis Presley died in 1977, his estate was worth an estimated $10 million dollars. Then came probate. After all the fees: legal, appraisal, executor's fees, and estate tax, the Presley estate was reduced to a paltry $3 million dollars. What happened to approximately 73 percent of Elvis' estate? The answer is simple: probate.

So, what is probate? Probate is the process of clearing a will as either valid or invalid and making sure that no one has a challenge against it. Probate also clears the estate of all debt, by paying creditors against the estate. All of this goes through a sometimes very lengthy court process, which can take a lot of money away from the estate. Whether or not a person has a will when he dies or not, the estate must go through probate.

There are ways to avoid some of the pitfalls of the probate process. One of the best ways is to establish a trust. If assets and property are in a trust, they do not have to pass through the probate court and can go directly to the beneficiary, relatively quickly. These assets also can be protected from creditors against the estate by using a trust.

You can also protect your assets from probate costs by regularly updating the beneficiaries to your 401K, IRAs, or life insurance policies. If you will update the beneficiaries regularly, then you can avoid unwanted inheritances, because these designations are not subject to probate.

But these two aren't your only options. You can also choose own property with someone else. If you own something with someone else and anything were to happen to you, the property would automatically pass to the survivor. Some banks also allow you to set up a Transfer on Death (TOD) account, where you can name a beneficiary to your personal banking accounts. Upon death, the accounts would automatically transfer to the person you named.

Another option to avoiding probate pitfalls is to give your assets away to your relatives while you are still alive. You can gift your relatives with the maximum tax-free amount ($11,000 in 2005.) By giving away your assets, you reduce the amount of property that has to pass through probate upon your death.

If you properly plan your estate with the help of an estate planning attorney or other financial professional, you can decrease probate costs greatly. There are not many people who like to think about what will happen when they leave this earth, however the thought of family and friends not getting what you leave to them is distressing also. A little planning ahead of time could save your beneficiaries a lot of money in the end. Elvis Presley's estate was obviously neglected and his untimely death costs his daughter and other beneficiaries millions of dollars. With the help of Priscilla Presley, Elvis' daughter, Lisa Marie has managed to rebuild the Presley estate, which now has a net worth of around 250 million dollars. The estate recovered from the devastating blow that probate dealt it.

Planning for Real Estate with Estate Planning

2008-10-01T18:55:00.000-07:00

One of the most important considerations you will need to make in regards to your real estate holdings and your estate includes tax planning. If not handled properly, your estate could end up getting hit with significant losses due to taxes after your demise. To protect yourself and your estate against this possibility, it’s important to plan for your real estate with estate planning.

First, it’s important to understand exactly what estate planning is and what it is not. Estate planning goes far beyond the simple drafting of a will. In essence, an estate is the total property, both real and personal, that is owned by an individual prior to distribution through a trust or a will. The act of planning your estate involves distribution of the real and personal property to your heirs, taking into consideration all the applicable laws, regulations and possible tax considerations.

The goal of estate planning is to preserve the most amount of your wealth possible for the intended beneficiaries; prior to your death. Due consideration of this must be entered into in order to avoid penalties related to certain Federal and State tax laws. Otherwise the property and wealth that you struggled to earn and obtain during your lifetime could easily be lost to the ravages of poor estate planning after your death instead of benefiting your heirs as you intended.

Wills and trusts are two instruments which are commonly used in estate planning. They have different purposes and very different outcomes, however. Wills are subject to probate court and if they are contested; the result can be a length and costly legal battle. In some cases, the majority of an estate has been whittled away the costs associated with a contested will. It is possible in some situations to avoid probate through the use of a trust and therefore avoid the risk of a long drawn out and expensive legal battle. A trust is used when property is held by one or more persons for the benefit of one or more other persons known as beneficiaries. The holder may be a separate trustee or a beneficiary. A trust is commonly used when there are minor children as heirs; although it could be used for other purposes. Other considerations to avoid possible negative tax impacts on you real estate include lifetime gifts and gifts made while you are still alive.

In some cases you may find that charitable gift contributions are a good way to go because you can take advantage of immediate tax savings as well as future tax savings. Under some circumstances you may be able to avoid the capital gains tax you would accrue if you sold a property as well as take an income tax charitable deduction for the property’s full market value when you use it to make an outright gift. Since the property will be removed from you estate, this will also provide future tax savings. Some individuals also choose to plan for their real estate by generating income through a charitable remainder in order to receive income either for life or during a specified term of years.

If you own real estate it is critical that you take care of it with carefully crafted estate planning early on. This can help you to anticipate economic changes without being hit with severe economic impacts later on.

How to Make Money in a Bad Real Estate Market!

2008-09-27T08:15:00.002-07:00

There is no bad real estate market, only people with problems who happen to own real estate!

To build your own real estate investment company, to become a real estate entrepreneur, you need a system that combines the tools and knowledge to provide solutions to these people’s problems. These are human problems, not real estate problems. People die, they lose their jobs, they get into financial troubles, they get divorced, etc.

These “Trigger” events, combined with the lack of cash savings and little equity most homeowners have in their homes today can lead to extreme financial, emotional and even physical distress; as homeowners struggle to keep up their payments and/or are frustrated by their inability to sell their properties.

Think about it. If the payments on your house were killing you because you were stuck making two mortgage payments; the sale of your old house fell through after you closed on the new one.

Wouldn’t you be lying awake at night, worried sick about running out of money and having to face the embarrassment of foreclosure?

What if you did not have much equity and the costs of a sale, which could be 20% or more of the value of the property, would eat up a good chunk of your remaining savings? Wouldn’t you be praying for someone to come along and solve your problem?

You might even get so desperate that you would actually Give the property away to anyone who would take it, just to be rid of all the stress!

We have just taken a good look at one side of the profit equation, the seller’s side. There is also a buyer’s side.

There exists a Shadow or Phantom market of buyers for real estate. Most are self employed people or small business owners. Others have had recent bankruptcies or foreclosures.

Still others are foreign nationals. They can afford to buy real estate but for various reasons cannot or do not want to qualify for a bank mortgage.

You can solve their problem by selling them the homes you pick up from the desperate homeowners! You sell them with seller financing. The Phantoms will reward your “kindness” by paying you premium prices for your properties!

You can get started as a part time investor with a basic real estate investing system:

· “I Buy Houses” flyers, business cards and ads

· A voicemail system to take calls

· Knowledge to buy properties from distressed sellers “subject to” the mortgages

· A marketing program to develop a pre-qualified list of Phantom buyers

· Knowledge to sell properties to these buyers on Lease Options

If you wanted to build yourself a full time real estate investment business that can generate huge profits, you need a more comprehensive system, which today can be automated and Internet based, but the point is, you can get started today with the basic system!

Luxury Real Estate Marketing Essentials - Specialized Knowledge is Power

2008-09-27T08:15:00.001-07:00

How many times have you heard the phrase "knowledge is power"? In the field of luxury real estate, we say, specialized knowledge is power--earning power!

Building a high volume luxury real estate practice begins by acquiring specialized knowledge. Mastery of the fundamentals of real estate sales, negotiation skills and personal integrity is merely the price of admission to the luxury arena. The key to becoming the standout in your market area comes down to your ability to easily and rapidly connect with wealthy individuals. You need to speak their language and comfortably converse on topics that interest them. That's where specialized knowledge converts to earning power.

People like doing business with people like themselves. The more common ground you establish with wealthy individuals the quicker they will be impressed with you and trust you. People also like to talk about what interests them. If you are interested in their interests you can rapidly develop a rapport and create a strong bond.

Many wealthy people have embarked upon "the quest for the best". That is, the best of everything that money can buy. For example, do you know what is considered the best Champagne in the world? If you came up with Dom Perignon or Crystal, which can be purchased for about $120-$200 per bottle you are close. [As an aside, you might impress Dom Perignon lovers with the fact that Costco sells more of that Champagne than any other retail outlet].

The answer is Salon. It distinguishes itself as the only champagne in the world that is bottled to order.

The House of Salon Champagne makes only one wine, the vintage tete-de-cuvee Blanc de Blancs. And, it is only produced in the years when the grapes are at their peak. Since its existence in 1921, it has only made 30 vintages. Salon uses the first pressing from hand selected grapes to assure the highest acidity, aroma, finesse, ripeness and quality. The grapes come from the original 12 acre estate, as well as selected vineyards in three distinct microclimates in Le Mesnil-sur Oger. The distinct difference between Salon and other Champagnes is that Salon does not put its wine through the process of malolactic fermentation. That process involves introducing desirable bacteria that prevents undesirable bacterial strains from producing off-flavors. Instead, eight to ten years of cellaring are required to achieve the perfect balance between fruit and acid.

Salon is kept on its yeasts in deep limestone cellars until a specific order is received. Only then is the yeast removed by hand for each order, with the cellar master inspecting the bouquet of each bottle. The latest 1996 vintage retails for $304. Salon can continue to age for an additional 15-20 years or longer and will develop increased complexity.

Specialized knowledge about subjects such as the making of champagne empowers you to stand out from the crowd. It differentiates you from your competitors. It shows that you have depth. It allows you to confidently engage in conversation on topics other than real estate.

When potential clients discover that you are interested in what interests them (Champagne in this case) they will often invite you to special events such as wine tastings or dinner parties where Champagne is served. Here you will meet others with similar interests.

Be sure to get the contact information from everyone one you meet. In your contact management program (Outlook, Act, Top Producer, etc) make a note about who has what special interest. Build rapport by sending them new discoveries that you make on your personal quest for the best, on this subject. For example, if a certain local restaurant has a particularly good wine list that includes a new Champagne, jot your new contacts a note about it and let them know how well the wine paired with the meal you ordered.

A good place to start learning about Champagne is on www.Wikipedia.org. This is an excellent resource for the luxury realm. Or, go out and buy a bottle. Put it on ice, Invite some friends over. And, celebrate your personal quest for the best, as you embark on your career as a luxury real estate expert.

How do you start building a luxury real estate practice?

Make a commitment to become a perpetual student, someone who continuously acquires specialized knowledge such as the process of making Champagne;

Become passionate about the "quest for the best", yourself.

Become more interested than interesting.

The luxury arena is the realm of relationships. It is just as easy to acquire specialized knowledge about the finer things in life as any other subjects. Your personal quest for the best is the route to building a high volume luxury real estate practice. It can be enlightening, enriching and very much fun!

Sell Your Real Estate Knowledge

2008-09-27T08:14:00.000-07:00

Writing a simple e-book on a real estate related topic require no large investment, but has large profit potential. However, this isn't just about passing on your knowledge. You also need to learn marketing skills - perhaps even more than writing skills.

Know something about real estate? You can sell your knowledge. Perhaps the easiest way to do this is with simple e-books. They are cheap to make and unlike with paper books, you can keep most of the money from every sale.

It cost $50 to set up an account with an order processor like ClickBank, and probably less than that to set up a simple web site to sell your e-book on, if you do it yourself. A domain name costs less than $10 per year to register, or about 75 cents per month. Hosting for web sites is as cheap as $6 per month now. If you don't already have internet access, you can get it starting at $10 per month (although I recommend paying $40 for cable internet access).

What other business can you start for a couple hundred dollars or less, and have overhead costs of less than $50 per month? If you use simple articles to promote your web site (as I do), you don't even need to spend a penny on advertising. At 999articles.com, you can even get a free e-book showing you how it is done.

The most common standard now is Adobe PDF. Many will tell you that you have to pay $300 or more for the PDF creation software, but hat isn't true any longer. You can use Adobe PDF online to make your e-books without having to learn nearly so much technical stuff. Get the book right the first time, and you can even do it for free (they usually give free trials). Otherwise, you can pay just $11 per month to use the service as long as you need it.

Selling Real Estate Knowledge - An Example

What can you sell? Try to find a new angle. Books that simply have 70 ways to invest in real estate, or another rehashing of zero-down techniques are tough sells. If you can sell them at all, you probably won't be able to price them very high. People want something new.

Certainly, you can just report on what others have done, and give examples and easy to understand explanations. But is better if you have some personal experience in a specific area of real estate, so you can speak with authority. It is best if you not only have experience making money in some specific way, but it is also a way that can be done in most parts of the country. Leasing cheap land in Northern Michigan to Christmas Tree farmers may have been very profitable for you, but it won't get people in other parts very excited.

Suppose you have learned how to buy houses with basements and convert the basements into legally conforming bedrooms. Basement space adds little to the price of a home until it is carpeted and has proper windows to make it legally habitable space. By doing so you have made a large profit buying and selling several homes. Put your system on paper!

Many areas of the country have homes with basement that are unfinished. There are a lot of investors who can't seem to make any money with their over-priced rental homes - and they would love a new way to make some money. This is a book you could sell.

In the above example, the goal would be to make the e-book as useful as possible. Make it a step-by-step guide and you don't even have to make it very long. Many e-books that sell for as much as $60 or more are less than 100 pages, and why not? One good idea can make or save the reader hundreds of dollars after all. As long as the most crucial information is there, and it is an easy-to-read and easy-to-apply format, you have done your job.

At least you have done your job as a writer. The next important job is as a marketer. This is the job that really makes you the money. In fact, this is so important that you may want to pay for someone to write your sale's page. This can cost as much as $2,000, but you may sell three or ten times as many books as if you did it yourself. Ask for examples of previous successful work.

If you are short on cash, you could try to arrange to pay a nominal fee up front and then a percentage of each sale. This could mean much more in the long run, but keep your initial costs down. It also means that the ad copy writer has a keen interest in making a page that sells.
It is always a good idea to have a bonus or two that go with the book. This can be another short book on a related topic. It can also be something as simple - but useful - as a checklist for inspecting houses or searching for them.

How much can you make? That depends a lot on your marketing efforts. Let's suppose you create a $27 e-book or "e-course". Using ClickBank as an example, you will get to keep about $24 of each sale. You can also offer a commission of say, 50% to other ClickBank affiliates who refer customers to you. These are sales you otherwise almost certainly wouldn't have, so $12 is more than fair.

If, by distributing articles you can generate traffic of 200 visitors daily to your web site, and 1% of them buy the book, you'll sell about 60 books per month, for an income of $1440. If affiliates refer another 20 sales or so your way, for another $240 in revenue, the total would be $1680.Want more income? Promote the book more, or leave the site to do it's thing and write another book.

Real Estate Finance Problems - Go BK or Foreclosure Route?

2008-09-23T21:42:00.001-07:00

America is the land of second chances. If you have financial problems, you might be wondering which the better option for you - bankruptcy or foreclosure?

Bankruptcy has been around for a long time. It was the answer to the question of what happens to someone with immense debts. Whereas people were previously imprisoned in debtors' prisons, bankruptcy was based on the idea of modifying or eliminating debts to give people a new start.

Foreclosures, in contrast, have long been viewed as a remedy for a lender, not homeowner. A foreclosure is not about giving a person a second chance. It is about a lender taking back a home that a person has failed to make loan payments on. There is no redeeming element to the foreclosure for the person in question. It is just a disaster.

So, which is route should you go with real estate problems? Well, both are damaging to you. That being said, bankruptcy is probably going to be viewed in a worse light. Why? Bankruptcies typically are filed where you've made a complete habberdash of your finances, not just run into problems with paying a mortgage. Thus, it is seen as a more comprehensive failure on your part and lenders are going to be very hesitant to loan money to you.

There is a second reason foreclosure is more favorable than bankruptcy. It is no secret great swaths of homeowners are in dire financial situations. Millions will end up in foreclosure. These millions, however, are also future homeowners. Once the current mortgage mess and credit crunch cleans up, it is believed that a solution will be created for these foreclosed individuals to borrow again in the future.

If you are facing foreclosure, you have a better option than bankruptcy. Contact your lender and see if they will allow you to do a short sale. Lenders really do not want to own homes, so they will give out forbearance and short sale options like candy. A short sale can hurt your credit, but nothing like a bankruptcy or foreclosure.

How to Finance Investment Property - 4 Key Questions You Need to Ask Yourself!

2008-09-23T21:41:00.000-07:00

How to finance investment property is a question that anyone involved with making money from property has to ask themselves at some point. This article will help you to understand some things that you need to understand, and questions you need to keep in mind in order to finance investment property effectively and profitably.

What is the long term goal for the property?

This question is key because if you plan to renovate the property and sell it straight on then you will want to make sure that you have your finance set up in such a way so as not to incur large fees to pay off any loan you have taken out to buy the property. If you plan to rent it out and you are UK based then you will need a buy to let mortgage and you might want to have a fixed rate for a least a couple of years on the mortgage, especially if the interest rates are fluctuating at the time of purchase.

Do you have back up funding in place?

Ideally you want to have more than one lender as an option to fund your purchase; therefore, if the lender you are using gets cold feet or wants to back out for some reason, you have other options already prepared. This is particularly important in the current market place since we are in the midst of a global financial crisis and many lenders are either tightening their purse strings or filing for bankruptcy.

Are you credit worthy?

Even if you have bought investment property before, don't take it for granted that you are credit worthy enough to buy it again. As a professional property investor or developer one of your main priorities should be to make sure that you have an impeccable credit history.

The strange thing is that this actually means having some debt. You could have 10 properties that you pay the mortgage for on time every month without fail, yet when you try to buy another one, they refuse you. There are many potential reasons for this, one of them being that sometimes lenders like to see you with some unsecured debt that you are paying off. If in any doubt as to your credit worthiness check with one of the top credit reference agencies to see what they have on file about you and to get some advice.

What are the tax implications of the purchase?

When thinking about how to finance investment property, you need to have a grasp on what the tax implications are for you personally to invest in the property you are considering buying. Sometimes it is better to buy property as an individual; sometimes it is better to buy as a company.

There is no hard and fast rule. A major consideration, is what are your plans for the future, if you plan to move abroad in five years for good, you might invest with a different strategy than someone who plans to live in their particular country for the rest of their life.

It is advisable to speak to a tax specialist about your plans for buying property and your long-term goals in life in general, so that you buy the right type of property in the right way. By doing this one thing you could be saving yourself hundreds of thousands of pounds in a relatively short period of time.

Thinking Forward Regarding Your Commercial Real Estate Loan

2008-09-20T23:00:00.000-07:00

Regardless of what we often have in our business it is always wise to search for what you think will be a big help in your investment. So with that being said let us try to focus on real estate investing. Well there are many types of real estate investing and one of them is Commercial real estate. Well, from that alone we can figure out what types of investment we vaguely want to happen. First there are these known things to consider in its market alone, it is not just a simple thing to know but rather a different one. Securing Miami commercial real estate loan at favorable terms requires some careful work on your part. If you've consulted a good mortgage loan calculator, and figured out what you can swing, there's still the whole application process to take on, first. Applying for small business loans should be done with a careful and well-researched approach. Miami commercial real estate demands high numbers at times and is often noted as another type of situation in the market.

Applying for Miami commercial real estate loans, well it is always figured out that its own market can be treated as a good investment prime at times, so there are several factors in which we should be able to know when we try to apply for a Miami commercial real estate loan. When you want to apply for a Miami real estate loan, you have two choices. You can go to the office of a lender and fill out a questionnaire about your finances. Or, you can visit an Internet-based broker and fill out an online form, which will gain you results far more quickly. The more things you try to embark the market with some strategies that you think would help you a lot, the more times, you’ll have a chance on having a good market value. Be aware that in Miami commercial real estate the value of it can also be measured with the knowledge of the term.

Sometimes there are these pointers that we should consider especially in the market which shows nice potential in Miami real estate. You should always know how to cooperate when asking a loan and one of its terms is filling out these application forms doesn't have to be a trial. You should, of course, strive to convey your financial information as accurately as possible. However, an online form is relatively simple to complete. You have to b honest and accurate on the things that you will pit in these forms because often times than nothing you’ll be able to at least be updated on those kinds of things. Let us be sure that thinking forward the things that you will put in the forms will reflect to you as well.

You should know that when you apply for Miami commercial real estate loans, expect to be asked the following questions. They will want to know all of the details regarding your business finances. You will be asked about your current mortgage payments, including your balance, terms, and so on. You should also be prepared to answer questions about the purpose of your new loan, the amount, etc. The given value for the market can be either good or bad, so you have to at least know the newest update to it. Because if you are aiming to get value on you Miami commercial real estate loan you should always know better.

Net Operating Income And Real Estate Analysis

2008-09-20T22:59:00.000-07:00

Net operating income (NOI) represents a rental property's potential income after all vacancy and operating expenses have been subtracted. As a result, because net operating income represents the investment property's productivity, or measure of cash flow, it's one of the most important calculations made in real estate investing.

To help plant the idea, consider net operating income in one of the following two ways, depending on whether or not a mortgage exists.

The investor pays all cash for the property. In this case, since the investment property has no debt, NOI virtually becomes the rate of return expected from a property for any given annual period before taxes and depreciation are considered. In other words, given no deduction for debt service (loan payment), you can regard net operating income as the annual cash flow (cash flow before taxes, or CFBT).

The investor finances the property. Here, since the property has a mortgage, NOI should be regarded as the anticipated amount of cash flow available to pay the mortgage. In this case, subsequently only the remainder of NOI (after subtracting for annual loan payment) becomes the annual cash flow before taxes.

How to Calculate Gross Scheduled Income Less Vacancy and Credit Loss = Gross Operating Income Less Operating Expenses* = Net Operating Income

Example: Assume that you want to do an analysis on an income property that generates a GOI of $100,000 with Operating Expenses of $42,000. What is the NOI?

$100,000 Less $42,000 = $58,000

*Mortgage payments, depreciation, and capital expenditures are not considered operating expenses and therefore have no impact on net operating income.

It's Role in Real Estate Investing

Net operating income plays a large role in a variety of real estate investment and holding period decisions. For instance, capitalization rate (cap rate) is calculated by dividing NOI by sale price. Likewise, property value (or the property's sale price) is calculated by dividing NOI by the cap rate.

Example: Let's continue to assume a net operating income of $58,000 (as in our example above) and a sale price of $580,000. What is the property's capitalization rate?

Net Operating Income Divided by Sale Price = Cap Rate

$58,000 Divided by $580,000 = 10.0%

Okay, now let's assume an NOI of $58,000 of and a cap rate of 8.0%. What is the property value?

Net Operating Income Divided by Cap Rate = Property Value

$58,000 Divided by 10.0% = $580,000

Net operating income also plays a large role with lenders. For example, Debt Coverage Ratio (DCR) is calculated by dividing the net operating income by loan payment.

Net Operating Income Divided by Annual Loan Payment = Debt Coverage Ratio

$58,000 Divided by $46,000 = 1.26

How Credible Is It?

Conceptually, NOI is important because of its use in numerous calculations surrounding property performance. Because it's used to estimate property value and cap rate, as well as useful to lenders, NOI has become an essential component of real estate investment analysis. As a real estate investor, therefore, you should understand net operating income, and recognize what it means to your potential investment valuation.

But be careful.

Remember, NOI is not unlike other calculations typically used for real estate investing purposes. The result is only as good as the numbers are credible, and numbers can be manipulated. Sellers have sometimes been known to become very creative in order to make the relationship between the price and NOI to come out right.

So here's a tip. When a property appears to have a favorable NOI and in turn positive rates of return, don't simply accept the numbers. Spend the time to validate the numbers. Reconstruct the owner's representations for income and operating expenses if necessary, and compute your own NOI. Whatever you do, rely on nothing less then the most credible net operating income possible. You can't afford not to.

What Happens to the Mortgage Debt During the Foreclosure Process

2008-09-18T22:55:00.001-07:00

Does foreclosure create a debt when the bank files the lawsuit? What happens if there is a judgment -- do the homeowners owe both the mortgage and the judgment now? These are some of the questions that homeowners have when facing the loss of their homes. Due to the complex nature of credit and finance, it is quite easy to get confused about how mortgages work and what happens during foreclosure.

However, foreclosure is not a debt; it is a legal process taken by a mortgage lender when a debt secured by a property goes into default. The foreclosure itself is the method by which a mortgage company will attempt to use the local court system to take a house back from homeowners who have failed to pay their mortgage as determined by the terms of the original contract. It is not a debt in itself, but it is the legal mechanism by which a bank can collect a debt secured by real estate.

The debt the property owners owe to the bank is the mortgage balance that is currently due on the property. Homeowners take out a loan for a certain principal amount and agree to pay a set interest rate on the money borrowed, plus any other fees or charges that are listed in the loan documents. These extra charges typically have trigger effects, such as paying after the due date will trigger a late payment, or defaulting on the loan will trigger legal fees and court costs that will be added to the balance of the loan.

Taken together, the principal, unpaid interest, and other charges constitute the debt owed to the mortgage company to pay off the loan in full. The bank, when they sue for the foreclosure, are stating that the homeowners need to pay this amount in order to keep the house, or else the house will be auctioned by the government to satisfy this debt. Of course, the court has to agree to this amount -- banks can not just add fees arbitrarily or unreasonably -- but few homeowners defend against the foreclosure lawsuit, which allows banks to get away with adding any fees they wish without justification.

Thus, when a bank pursues a foreclosure on a house, the legal process does not create a debt owed by the homeowners to the lender; this debt already exists as the mortgage on the property. Suing for foreclosure only indicates that the bank is attempting to prove in court that they are unable to collect their payments which the borrowers agreed to make when they took out the loan. Because of this default and the fact that the property was pledged as collateral for the loan, the bank is requesting that the court order the property to be sold to satisfy the debt that already exists as the mortgage.

The judgment that the bank is typically granted against the homeowners is simply the judge's decision that recognizes that the lender is owed a certain amount of money and that the owners have not paid it. Even this does not create a second debt that must be paid back; it is simply a local judge agreeing with the bank and ordering that the house will be auctioned at a sheriff sale to pay off the defaulted loan. The judgment amount is always based on the total payoff amount that the homeowners would need to come up with in order to own their home free and clear.

Homeowners in foreclosure always owe only one debt per mortgage that they have on the house. The foreclosure process can not even begin without a lender or creditor showing that they are owed a specific amount of money on a debt they own, that the owners have not paid this nor made arrangements to pay, and that the property is fair game to auction to satisfy the debt. If a creditor can not prove these facts, as well as the other elements of a foreclosure case, then the homeowners can only lose by not showing up at the court date or by having corrupt government officials overseeing it.

Good Debt, Bad Debt For Real Estate Investors

2008-09-18T22:55:00.000-07:00

The most successful real estate investors understand the difference between good debt and bad debt.

From a consumer perspective, no debt is good debt. The basic consumer goal is to be debt free.

This is not the way that the most creative real estate investors think about debt. They regard debt as an investor's best friend.

The reason for this is OPM. OPM is a short-hand way to refer to "Other People's Money." OPM is just another term for good debt.

In addition to OPM, another way that investors talk about using borrowed money is the word, "leverage." Consider using a crowbar to move a heavy object. The crowbar allows you to move the heavy object. Good debt is an example of leverage.

With a lever, you can move something you could not move without it. The lever means that you don't need as much strength to move the object as you would need without the lever.

This concept from physics is relevant to borrowed money. You can use someone else's money as a lever to accomplish a bigger task than you could accomplish with your own money.

Consider a situation when you don't have enough of your own money to buy an investment property. When you treat borrowed money as a lever, you can use the borrowed money to buy the property you could not afford with your own money. This is the power of leverage.

This is an example of good debt. You use borrowed money to create wealth. Debt is a tool you can use to buy what you could not buy with your own money. If the investment creates profit, you create profit from the leverage of good debt.

This is not what happens when you take on consumer debt. If you buy an item, such as a plasma TV for $3000, you have taken on bad debt. The TV costs you money. It does not become a means to create profit. This is the difference between good debt and bad debt.

Consumer debt does not give you leverage. It is not a tool you can use to create wealth. This is why consumer debt is bad debt.

The critical distinction between good debt and bad debt is whether or not the debt is a tool to create more money. If you borrow the $3000 and use it as a tool to create profit, this is the definition of good debt.

If you want an example of using debt to create wealth, consider Donald Trump. He carries tremendous debt, which he leverages to build properties that in turn create even more wealth. Some of the richest people on the planet have the greatest amount of debt.

This means that good debt is one of the fastest routes to creating wealth. You can call it leverage or OPM if you want, but these terms mean the same thing. You are using borrowed money to make money.

Thinking Forward Regarding Your Commercial Real Estate Loan

2008-09-16T07:42:00.001-07:00

Applying for Miami commercial real estate loans, well it is always figured out that its own market can be treated as a good investment prime at times, so there are several factors in which we should be able to know when we try to apply for a Miami commercial real estate loan. When you want to apply for a Miami real estate loan, you have two choices. You can go to the office of a lender and fill out a questionnaire about your finances. Or, you can visit an Internet-based broker and fill out an online form, which will gain you results far more quickly. The more things you try to embark the market with some strategies that you think would help you a lot, the more times, you'll have a chance on having a good market value. Be aware that in Miami commercial real estate the value of it can also be measured with the knowledge of the term.

Sometimes there are these pointers that we should consider especially in the market which shows nice potential in Miami real estate. You should always know how to cooperate when asking a loan and one of its terms is filling out these application forms doesn't have to be a trial. You should, of course, strive to convey your financial information as accurately as possible. However, an online form is relatively simple to complete. You have to b honest and accurate on the things that you will pit in these forms because often times than nothing you'll be able to at least be updated on those kinds of things. Let us be sure that thinking forward the things that you will put in the forms will reflect to you as well.

You should know that when you apply for Miami commercial real estate loans, expect to be asked the following questions. They will want to know all of the details regarding your business finances. You will be asked about your current mortgage payments, including your balance, terms, and so on. You should also be prepared to answer questions about the purpose of your new loan, the amount, etc. The given value for the market can be either good or bad, so you have to at least know the newest update to it. Because if you are aiming to get value on you Miami commercial real estate loan you should always know better.

Real Estate Loans - Even With Bad Credit

2008-09-16T07:41:00.001-07:00

If you are looking to get started in real estate or business, it's quite possible that you will need a loan to get started. If you have bad credit, you might consider giving up before you've even gotten started. Well, I have good news for you. There are some things you can do to get that first loan while you work on improving your own credit rating for future projects.

One of the things you can do is to get a partner with good credit to join you in your real estate or business venture. This is called an "equity kicker" and is very popular in business. By doing this you use your partner's credit as your own for the project you're involved in. What does your partner get in return? In return for supplying the needed credit, you will give your partner a portion of ownership of the business. Depending on the size of your project and how strongly you need your partner's credit rating to get the needed loan, a reasonable percentage to offer will be in the range of 3% to 5%.

Understand that in most deals, you will be the working partner and your "good credit" partner will be the silent partner. He or she will supply the needed credit and nothing more to the deal. As an added incentive you can also offer your partner a small portion of the profit from the real estate or business project. Again, the amount should be in the range of 3% or 5%, depending on the profitability of your project.

While this is a great way to get started, it's important that you work on improving your own credit rating for future projects. Your goal should be to eventually be able to acquire real estate or business loans on your own without having to use a partner's credit.

The way you build your own credit rating is by paying your bills on time, getting a "secured" credit card and using it actively while paying it off fully each month of the year. By owning an asset such as a building or business, you immediately improve your FICO credit score. By paying off your credit cards each month, your score rises. All of these things will work together to get you a higher future credit rating.

For your real estate or business venture, form a company that will put you on the payroll. This will give you a source of income, a W-2 and an employment history. These things will raise your credit rating because you will have a traceable history. This is something that lenders love to cite when approving the loan that you've applied for at their company.

What other things can you do to improve your credit rating? Try joining respected real estate or business organizations. Not only will being a member contribute to your credibility, making you more credit worthy, but it will provide you with more knowledge about your business and help you to make important contacts within the industry. Remember, any dues you pay are provable and tax deductible.

So, don't give up your dreams of getting started in real estate or business just because you currently don't have the best credit. Try using a partner's credit to get started and then follow the steps above to improve your credit rating. Eventually you will be able to get business or real estate loans using your own good credit.

7 Steps To Choosing The Best Real Estate Loan For You

2008-09-12T22:49:00.001-07:00

A home loan will be your financial responsibility for years to come, so it can be one of the most important decisions you make. Even tiny changes in an interest rate – changes as small as half a percent – can cost or save you thousands of dollars over the term of your loan. To enjoy an affordable home, follow these seven simple steps:

1) You’d Better Shop Around!
Any market has thousands of mortgage brokers, and each broker has access to hundreds of home loan programs. Whatever your circumstances, there is a home loan out there to suit you. The more mortgage brokers and financing professionals you speak to, the more likely it is that you will encounter someone who really knows the home loan program right for you.

2) Pick out the TERMS of your loan -- BEFORE comparing rates.
Home loan terms range from 30, 40 to 50 years and some are interest only, meaning that you will only make interest payments each month and will never pay off your mortgage. Another factor to consider when debating terms is rate. Some loans have guaranteed fixed rates for the entire term of your mortgage. Other loans are Adjustable Rate Mortgages (ARMs), meaning that your interest rate will adjust after a guaranteed rate period is over. When considering terms, also think about what pre-payment penalty you are willing to accept. This penalty applies if you decide to refinance your home loan or sell the house within a certain period of time -- usually one to two years or longer.

3) Shop the rate and closing costs -- carefully
Have a mortgage broker pull a tri-merge credit report and then get a copy of the report. Take the report and a copy of your tax returns with you when visiting financing professionals. Be prepared to answer all questions honestly and be prepared to tell the mortgage broker the price range and the home loan terms you will need. Ask for two Good Faith Estimates (GFE) – one with minimal closing costs and one with standard closing costs.

4) Compare Total Monthly Payments.
Your GFEs will estimate TOTAL monthly payments on a home loan. These estimates only guess what your taxes, hazard insurance, homeowner’s association dues and other costs will be. Since mortgage brokers have no control over these costs, some will underestimate them to make their GFEs attractive. For this reason, always compare only the line item costs associated with each loan. Line items costs include principal, interest, and mortgage insurance.

5) Compare Closing Costs.
Closing costs can contribute significantly to the cost of buying a home. Some mortgage brokers will underestimate these costs to make an estimate seem competitive. Worse, closing costs and associated fees have confusing labels, making them harder to compare. In general, compare the “Items Payable in Connection With Loan” or the “Items Payable in Connection With Loan” on your GFE – these are the costs that your broker may have control over.

6) Compare Closing Costs AND Rate.
Does it make sense to choose the home loan with lower interest but higher closing fees? Or would a home loan with much smaller closing costs but higher rates cost you less? To decide, tally up how long it would take to “make up” the difference. For example, if one home loan saves you $100 a month through lower payments but costs $1000 more in closing costs, it would take 10 months to “make up” for the closing costs.

7) Lock Your Rate!
Just because you are quoted a great rate, that does not mean that interest will stay in place until you are ready to buy, so lock in your rate 30-45 days before closing.

Deciding to buy a home is exciting, but choosing a mortgage can be nerve-wracking. To make a smart choice that really will support you financially, be sure to compare smart by following these tips. Then, you can enjoy your new home – with the right financing.

Wealthy Real Estate Investors Use A Process Known As “flipping Properties” To Quickly Make A Real Killing In The Real Estate Market.

2008-09-12T22:48:00.001-07:00

Wealthy real estate investors use a process known as “flipping properties” to quickly make a real killing in the real estate market. The process is simple. Flipping properties simply means buying a piece of real estate under contract and then reselling it at a markup within days or months of the initial purchase. In most cases, investors resell these properties to investors rather than homebuyers.

This type of investing offers many benefits for the smart investor:

* It allows for big savings. Since the property passes through hands quickly, the savvy investor will spend less money on managing the property.

* It allows for big profits. Flipping properties is very lucrative because it allows the investor to instantly mark up a property price and enjoy thousands or even tens of thousands of dollars in profits on a single deal. Investors in the know even maximize their profits by purchasing homes that are priced below market value and then reselling for full market value. As you can imagine, the profit potential here is virtually unlimited, since you can buy cut-price properties at tax sales and directly from cash-strapped homeowners and resell at a huge profit.

* It leads to fast cash. Many would-be investors are wary of the real estate market, because they assume that selling, buying, and managing properties takes months and years. Flipping properties allows you to see cash up front – in just a few days on desirable real estate.

* It helps others. Most investors are interested in the bottom line, but flipping properties is actually a very good way to help out others. Investors who are successful at this help other investors by uncovering the valuable properties that can make others money. That’s why the markup makes sense – by flipping properties, you are providing a great finding service for others. In some cases, investors are also able to help out homeowners in financial distress, by helping them to get cash for their homes.

Smart investors are already making incredible profits by making use of this simple investment secret. However, the uninitiated do need to be wary. Profits are not assured. To be a successful investor, you need to be able to spot deals and uncover the homes that will actually sell fast. Telling the real estate gems from the duds is not an easy process, and one that requires a good eye and some skill-building. Luckily, investors can now get expert help at www.FreeRealEstateMentoring.com, which offers free information tha investors can implement instantly for explosive profits.

Helping Your Huge Investment: Real Estate Secured Loan

2008-09-12T22:46:00.000-07:00

Buying a real estate has been a business of big investment. Resident of UK finds it to be a better investment option. But, most people do not have such a large amount available to buy a real estate. Real estate secured loans is one of the best options available in …UK to help borrowers getting loan to buy real estate.

As the name suggests, real estate secured loans are secured by nature. And that is why lender doesn’t hesitate in giving this loan to borrowers. The positive point here is that even though it is a secured loan, borrowers don’t need any additional collateral to put against their loan amount. It is because the purchased real estate itself serves as the collateral for their secured property loan.

A borrower needs to prove his credibility before taking real estate secured loan, as there is very large amount involved. Few things, such as, credit history, repayment capacity, size of property and potentiality of borrower’s income are decisive in availing real estate secured loan. If borrower fulfills such conditions positively, he gets the loan easily and at favorable rates. Unless, he might get some problems or will have to pay higher interest rates.

In real estate secured loan, repayment period is longer. Borrower is free to repay the loan in period between 30 to 40 years, which means that monthly installment would be smaller. The amount which can be borrowed through real estate secured loan is usually very large. Normally, amounts ranging from ₤500000 to multi-millions can be availed easily.

Finding a worthy real estate secured loan lender is really tough task. Borrower’s little unawareness about lenders can put him to pay higher interest rate for a very long period. Through applying online, borrower can access various information related to lenders and their interest rate. Several websites provides borrower free quotes, and even application fee to apply for this loan can be saved. Comparing several loan quotes online can help you in finding a better lender to avail real estate secured loan. It also saves borrower from various complicated paper and documentation works.

While lending real estate secured loan, lenders often require borrower to put certain percentage of borrower’s money as real estate down payment. This percentage is generally 10-20% of the total value and can vary from lender to lender. Borrowers are required to consult their loan officer before getting into any such deal. Considering few important point carefully not only saves borrower from paying higher interest rate, but also gives them a better deal to fulfill their need to buy real estate while being at ease.

Real Estate Secrets: The Inside Scoop On Homeowner's Insurance

2008-09-10T10:06:00.002-07:00

One of the most important concerns when purchasing real estate is the availability and cost of good homeowners insurance. While new homeowners don't like to think disaster could ever strike their home, there is always a chance that something bad could happen. There are many things that could go wrong with your newly acquired home, such as a malfunction due to structural defects, a fire or an accident that could wipe our everything you ever owned in a blink of the eye. The best way to protect yourself against such situations is through a homeowners insurance policy.

What Is Homeowners Insurance?
Homeowners insurance is coverage designed to protect you from mishaps that happens with your home, including the building and its content. Typically, homeowners insurance covers problems that arise from things like burglaries, fires, natural disasters, and more. Most policies also cover the homeowner for legal charges that might arise from individual injuring themselves on the property.

The Features of Good Homeowners Insurance
All homeowners policies are not created the same. Make sure that the homeowners policy that you select provides adequate coverage before you make a final decision.

Full Coverage
Ensure that you have complete coverage when you take the homeowners insurance. You should be insured for the things you own (everything that is inside your home) and outside (structural part of the real estate property). In this way, no matter what happens, you are always covered. It is in your best interest in most cases to select a policy that offers replacement value coverage, rather than depreciated value.

Additional Living Expenses
In case your real estate property is destroyed by any type of accident, you will need to pay for some kind of accommodations until you find another place to live. You would have to stay at a hotel or guest house where the living expense would double or triple. Ensure that your homeowners insurance covers such expenses as well.

Third Party Liability
There are often possibilities of someone suing you for a reason such as that they fell on your premises and injured themselves. When this happens, you might find yourself legally responsible for paying medical expenses plus compensation. A third party liability policy would have you covered for such eventuality.

Price and Benefits
When you plan to take out homeowners insurance, shop around! Get as many quotations as possible and find out what extra benefits they offer for each quote. Research extensively to get the best quotes from different leading insurance brands. Remember, knowledge is power. This information will help you bargain for the best terms when you take out the homeowners insurance.

Do not rush when you are shopping for homeowners insurance. By shopping around and doing proper diligence, you will be assured of the best coverage at the lowest possible price. Keep in mind that if you find a deal that sounds too good to be true, it probably is. Work only with reputable insurance providers that you can count on to be there for you when you need them. Take your time, gather sufficient information and only when you are fully satisfied, close the deal.

Flood Insurance For Your Home Or Real Estate Investment

2008-09-10T10:06:00.001-07:00

Given the recent hurricane and flooding disasters in the country, homeowners, real estate lenders, and insurers are giving flood insurance a lot of attention. There are some basic questions you should ask, and facts you should know about flood insurance, before making any real estate purchase. A great resource for any related questions is the government sponsored flood insurance website at http://www.floodsmart.gov .

First off- if you have a federally backed mortgage, you are required to have flood insurance in high-risk areas. Also, lenders may require flood insurance on real estate properties in high-risk areas. If it’s not required, but the responsible thing to do in your area, here are the basics.

What Do You Get From Real Estate Flood Insurance?

Basic homeowner’s insurance won’t cover flood damage for real estate structural loss, furnaces, water heaters, air conditioning units, carpeting and flooring. Flood insurance does that. You can purchase additional flood insurance for furniture and personal items. The coverage is fairly inexpensive- visit the government website for an estimate based on your real estate holdings.

Don’t think you’re at risk? The NFIP (National Flood Insurance Program) reported that a third of the payments it made last year were to real estate properties in “low-risk” communities. In the course of a 30-year mortgage, your home has a 26% chance of being damaged by a flood (according to NFIP statistics). Your fire risk is only 9%. Having NFIP approved flood insurance guarantees your claim is backed by the government. Knowing that, what questions should you ask before making a real estate purchase?

Questions to Ask Before Buying Real Estate

In addition to the government sponsored website, your real estate agent and your insurance agent should be able to answer some basic questions regarding your chosen property.

• What is the property’s flood risk?
• Does the area participate in the NFIP?
• Is flood insurance required on this property by the lender?
• Is the property near a dam, or levee?
• Does the current real estate owner have flood insurance?

You may also want to ask your insurance agent about a Community Rating System (CRS) discount on your real estate property. Find out exactly what the policy covers, and what additional coverage is available. Finally, ask about premiums for higher deductibles, and associated fees and expenses.

Congressional Issues Affecting Flood Insurance

In June the National Association of Realtors (NAR) testified before the House Subcommittee on Housing and Community Opportunity to support H.R 1682, the Flood Insurance Reform and Modernization Act of 2007. Vince Malta, vice-chair of the NAR’s Public Policy Coordinating Committee said, “To maintain the vitality of residential and commercial real estate, certain safeguards must be made available such as the federally backed flood insurance through the NFIP.”

Reforms to the NFIP are expected to be ongoing as the real estate community, insurers, and government agents come to a consensus on the best ways to protect real estate investors and homeowners.

Using Hard Money to Purchase Detroit Real Estate

2008-09-09T07:09:00.001-07:00

Although the credit marks have tightened their belts in lending, savvy investors still have options when it comes to profiting from Detroit real estate. Indeed, there are many investment opportunities of deep value, providing an investor with ample room to create rental properties, flipped homes, or long-term equity holds.

Low cost of foreclosures create ample profits

In today’s market, homeowners facing foreclosure are double in numbers in comparison to a year ago, according to industry data analyzer Realty Trac. Indeed, many economic and historical factors play into the national decline of housing pricing, conspiring against value like a perfect storm.

Consumers were buying into their piece of the American Dream in record numbers, thanks to easy mortgage money from lenders with liberal guidelines. One hundred percent financing, with seller concessions encouraged, meant that nearly anyone could get their name on a deed without any "skin in the game."

Detroit Real Estate has not been spared its share of the pain. In 2007, Michigan was ranked in third place among the states for failing mortgages and impending foreclosure. Almost two percent of Detroit Michigan properties were vulnerable to foreclosure due to mortgage default.

Taking advantage of hard money for investment properties

In Detroit Michigan real estate markets, hard money can be a useful tool in the purchase of Detroit foreclosures, intended flips or rehabs. Traditionally, this would require significant down payment from the investor because of the low loan to value given. However, for an opportunity to buy valuable properties at a distressed price, hard money may be useful.

With hard money, investors have the power of leverage, which multiplies the return on your Detroit investment properties. You only need to invest a small percentage of the house’s value, such as 10%, yet you earn your returns on the entire value of the home.

For example, you want to purchase a $100,000 Detroit investment property, and you have the option of putting 10% or 20% down on the home. If the value of the home grows to $110,000, then only placing $10,000 down on the home will give you a 100% return on equity. Had you placed 20% down on the home, your ROE would only have been 50%. As long as the profit you reap is larger than your interest costs, then in the long-term, using leverage is always more advantageous.

The supply of Detroit real estate, available at less than half of its appraised value just a few years ago, creates the ideal opportunity to accumulate Detroit investment property or flip a fast rehab.

While declining markets can be tricky, a knowledgeable contractor or handyman can renovate a Detroit rehab into a suburban residential viable rental property or flip sale. For would-be buyers of Detroit Michigan real estate, hard money loans may be the fastest kind of loan transaction to closing, since there is usually no verification of income, employment and credit.

Types of Hard Money Loans

There are several different types of hard money loans available for Detroit foreclosures and Detroit investment properties:

Acquisition Loan

This type of hard money loan is used to specifically buy Detroit real estate. It is ideal for short term holdings, such as a flip, as interest is generally in the teens, typically 11% to 18%. Ideally, the loan would be paid off within a few years from a lower cost source of funds.

Mezzanine Loan

A mezzanine loan is subordinate (in second lien position) to another bank or lender who holds first lien position. It is repaid at the same time that the primary lender is paid off. Sometimes equity is given to the lender, in addition to loan repayment. Debt and equity are blended in the terms of this type of loan.

Development Loan

This hard money loan is used for acquisition plus improvement of a property. The total loan amount is based on the fully improved value, and interest-only payments are made to the lender.

Bridge Loan

A hard money bridge loan is an immediate solution for a resolute buyer who must act quickly. For Detroit MI real estate, a plethora of buy opportunities would present the need for such a loan. These might include acquisitions of commercial buildings, including apartment houses, and commercial businesses and properties. Bridge loans are short term by nature, and are usually paid within two years.

Other forms of hard money can be used wherever equity secures the loan, including construction of new improvements on raw land.

In today’s market, it is important that savvy investors of Detroit investment properties sand Detroit real estate act decisively. To hesitate on a great acquisition opportunity is to lose the deal and likely future capital growth. Therefore, hard money can be the right leverage for Detroit Michigan real estate investors, even those who may have flawed credit.

No money down apartment buildings.

2008-09-09T07:08:00.000-07:00

A lot of new investors have tried to first invest in other types of commercial properties such as office buildings or shopping centers; only to realize that the transition is just too drastic and it ends up costing them the property, all their money leaving them deep in debt, destroying their credit and it takes years for them to recover.

Apartment buildings are tremendously easier to purchase, maintain & put on auto-pilot simply because most of us already understand how to rent an apartment and tenants are almost always readily available.

The buying process for other commercial properties (like shopping centers or office buildings) is not much different however the financing is much more difficult to obtain and leasing usually requires a team of very experienced individuals to negotiate contracts with business tenants.

If you're a new investor with little or no cash to invest, you MUST first start out with apartment buildings. Once you own at least 2 properties with at least 50 units in each property (which should be more then enough to pay you over $10,000 a month in net passive income cash flow) you can then branch out to other areas of commercial real estate.

After you own a few apartment buildings and have those properties generating you enough monthly cash flow; THEN you can absorb any vacancies that might come from not being able to rent out space in your office building, warehouse or shopping center.

Apartments are where just about all successful commercial real estate investors started out, so why try and fight the odds. Apartments are the fastest, easiest and safest way to create monthly income and massive profits.

While it is technically possible to have your first deal be a warehouse, shopping center or office building... the statistics show that it almost never happens.

Most investors who first try to jump to other commercial properties before they own a couple of apartment buildings, inevitably fail and quit this business never to return...

That's why I teach boot camps training seminars on how to buy apartment buildings with no money at all and create a steady stream of monthly Passive Income each and every month for the Rest of your Life!

The Future – or not – of the Real Estate Industry

2008-09-06T10:01:00.001-07:00

A slow housing market is not the only concern for modern Realtors; in fact, it doesn't’t hold a candle to the larger, longer term threat looming. Some call it Web 2.0, and it will surely be the downfall of Realtors who don’t learn to leverage it to their advantage.

The nature of the Real Estate industry is about to change and it’s anyone’s guess who will come out on top.

There are many examples of the effect of the Internet’s change in information distribution in other industries. A few biggies? The major newspapers thought nothing of Craig's List until it was too late; after realizing they were losing millions in advertising revenues they tried to jump on the bandwagon but were too far behind to ever have hope of catching up. The music and movie industry stood idly by while the likes of Napster devastated their profits.

Will the Real Estate industry fall prey next? Any information based industry is in jeopardy. The signs say the Real Estate industry is likely to be the next victim.

There is a general principle changing here, and grasping its meaning makes the future evident. Pre Web 2.0, the thought was that holding onto information tightly was valuable; possessing proprietary information put a business in a position of power. (In Real Estate, of course, this was the MLS.) Realtors had the information and buyers had to come to them to find the right house. Anyone in the industry knows that typical practice was to give out as little information as possible to draw in the buyer.

In today’s world that tactic spells disaster; as information becomes more and more readily available, buyers won't stand for the old tactics. They will simply go to whoever will give out the information. In light of this, all signs point to this one simple fact: whoever packages the information in the best way will be the victor.

Technologies are nearing a point where a buyer can simply shop on line for a house. A myriad of Web 2.0 websites are working hard at becoming efficient packagers of information. Zillow became one of the first to give buyers and sellers quick estimates of Real Estate value, as well as leveraging Google maps to enable potential buyers to see the lay of the land, so to speak. While the accuracy wasn't always right on, the concept most definitely was. Real Estate ABC quickly followed, taking the same concept and enhancing it; while Fisbos uses Craig’s List and it is quickly becoming a strong Real Estate listing site. Trulia is one to watch in the near future; they are attempting to scrape the internet for Real Estate listing information and put it all together in one convenient package. Their technology is growing by leaps and bounds and if it comes together as well as it might, they will become an even bigger player than they currently are. Others like Housing Maps are scraping the Craig’s List data and creating mashups to package the information into a convenient, easy to understand format for consumers.

Possibly of a bigger threat: the latest rumors that Google is working on a Real Estate related project. It’s anyone’s guess what might come from the minds of Google!

There are many possibilities for how this will turn out. Who will wind up on top? A behemoth company with the resources to gather the information through deals with information providers, possibly? That sort of play would take a great deal of negotiating to bring it all together. Maybe a smaller company with a little more people savvy will perfect a system of gathering information from participating Realtors and consumers; similar to the concept of a Craig's List. One thing is for sure: no matter how it happens, when it happens the old school Realtors will quickly become a thing of the past. Buyers are going to skip the middle man and deal with the information providers directly. What a Realtor provides in services will have to far exceed the value of the commission paid, or someone else will step in and do the job.

Amidst all of this there is a large amount of possibility. For those industry professionals who can understand the new concept in information sharing, who truly understand that information held tight is no longer valuable, success will be easy to attain. Today, information that is widespread is valuable. Real Estate professionals who become information providers, able to leverage Web 2.0 technologies to spread that information, will succeed.

The Web 2.0 world allows experts in a niche market to flaunt that expertise to their credit, building huge followings utilizing web technologies. Some of these niche marketers already have readerships which surpass that of major national periodicals. Realtors are definitely niche marketers, experts in a geographical area and a Real Estate specialty. There are as many niche Real Estate markets as there are geographical areas.

If a Realtor develops expertise using Web 2.0 technology, she will develop a loyal following. And we all know that in the Real Estate market, loyalty = money. And the best part of all is that these technologies are very simple to use: blogs are easy to set up and run; RSS feeds are one of the most powerful features of the world of Web 2.0, and they can be totally automated. Real Estate pros can form relationships with buyers and sellers in large numbers, all on their own website. Networking can be done fairly effortlessly and super efficiently from a computer if you have the right tools. A perfect example is myspace. Or facebook. Or LinkedIn. The possibilities are endless if a Realtor knows how to navigate the landscape.

It’s time for Real Estate professionals to take a deep breath and plunge into the world of Web 2.0. Brochure websites do nothing to entice a buyer or seller to use one’s services; it’s time to get involved with the Web 2.0 world or get left behind by it!

How a Proforma Evaluates Investment Real Estate Future Performance

2008-09-06T09:59:00.000-07:00

A proforma is a useful way for real estate investors to evaluate an investment property's future cash flow performance. Unlike an APOD, which merely gives a snap shot of the property's first year cash flow, proforma income statements look at revenue and expense projections typically up to ten years, enabling the investor to evaluate the investment real estate's cash flow, tax benefit (or loss), sales proceeds, and other financial projections.

Pro forma income statements are generated by looking at the financial performance of the rental property the year before and then using a variable to make projections into the future.

For example, if last year's income was $30,000, the operating expenses $12,000, and the net operating income was $18,000 ($30,000 - 12,000), and you would like to determine next year's net operating income in the event revenue increases 5% and operating expenses increases 4%, you would compute as follows:

Revenue (next year) less Expenses (next year) = Net Operating Income (next year)

Revenue (next year) = $30,000 + (30,000 x .05) = $31,500

Expense (next year) = $12,000 + (12,000 x .04) = $12,480

Net Operating Income (next year) = $31,500 - 12,480 = $19,020

In other words, now you know what net operating income (NOI) you can expect the property to generate in the event that next year, the property's rental income increases (inflates) 5% and its operating expenses increases (inflates) 4%.

This is the essentially the pattern for each year in the proforma, starting with the end of year one and extending out through the end of year ten (i.e., EOY1, EOY2, EOY3, and so on up through EOY10). This year's data is inflated by some variable to compute next year's data.

Moreover, its exactly the same way the computations are made each year for the other returns such as cash flow before tax (CFBT), cash flow after tax (CFAT), sale proceeds after tax (generally requires an inflation rate for property value), cap rate, return on equity, and other returns provided by your specific proforma. Rates of return are recalculated annually according to the changes made to the property's income, operating expenses, and resale value.

How do I create a proforma income statement?

1. Software You can invest in a real estate investment software that will automatically create a proforma income state for you. Bear in mind, however, that software solutions tend to vary and whereas one might include computations for tax shelter, another might not.

2. Manually You can use an Excel spreadsheet to create a Proforma Income Statement. In this case, it helps to have some knowledge of Excel, and you should allow yourself several hours to create a good proforma.

Whatever method you choose, though, real estate investment software or a spreadsheet, here are a few important considerations to keep in mind about your statement.

1. Understand what you want to accomplish with the proforma. You want to analyze the cash flow and other performance measures resulting from changes to such variables as income, operating expenses, and property value over future years.

2. The pro forma is just an estimate (a guess). Do not rely solely upon a proforma income statement to make your investment decision.

3. Though a proforma can be constructed to reflect any number of future years, it is speculative, therefore you might not want to project out further then ten years (I normally don't).

4. Be sure to use realistic numbers. Start with the current income and expenses and inflate them annually by a reasonable amount. Don't inflate income 10%, for instance, when 2-3% has been normal for your market over the past several years.

As stated earlier, a proforma is a good way for a real estate investor or analysts to evaluate the future financial performance of investment real estate. Whats more, because it does look into the property's future performance, a pro forma makes a good report to present lenders.

5 Tips on How to Buy Investment Property

2008-09-02T05:21:00.001-07:00

5 tips on how to buy investment property and make a profit.

Let's get stuck straight into these tips.

1. Do your research. If you are buying a property in the hope of becoming a landlord then make sure you have checked the areas rental potential and make sure the types of properties that you are planning on buying are the ones in demand by tenants. If you are planning on flipping the property, make sure you buy a property that is wanted by homebuyers.

2. Treat what people say with a healthy scepticism and don't blindly trust anyone. This includes so called experts. Talk to a few different property professionals to try and get a balanced view on things such as:

- What type of property to invest in

- What location

- What type of tenant to aim for

Sometimes it is only after canvassing lots of different opinions that you can really formulate you own strategy with confidence and with solid reasons why you plan to do what you plan to do.

3. Get for comparables for everything. Rental comparables, sales comparables - everything you can. Make sure your comparables are as much like for like as possible. For example: if you want to rent out a two bedroom flat next to a railway station, then try to get the rental comparison of other two bedroom flats next to the same railway station.

If you choose to use a flat that has two bedrooms and is located 1/2 a mile away from the station, they the you stand a chance of your comparisons being way off. ½ a mile in a town can be a long distant if it takes you from a desirable part of town to a non-desirable part that nobody wants to live in.

4. Get your finances in place. This might be a good thing to consider even before you go down the route of seriously looking for properties to buy. If your finances are sorted out before you start looking at how to buy investment property, then you will be more likely to be looking with confidence and purpose because you know if you find that bargain property you have the finances already in place to do the deal.

But if you don't have your finances in order there might be doubts in your mind about whether you can finance a deal even if you find it, this in turn may cause you to self sabotage any deal you see even before you put an offer in.

5. Employ the right professionals, whether that means builders, solicitors, contractors, or someone else, skimping on employing qualified people to do a job correctly can cost you a lot more money than you expect. Just because someone is cheap, doesn't mean they can do a good job and just because someone seems expensive doesn't mean that they can do a better job than someone who is cheaper.

The only way to find out for sure is to check references and their qualifications to do the job. Try and speak to real people that they have worked with before. This should preferably be a face face conversation.

Hopefully by reading this article you now have a clearer understanding on how to buy investment property that will make you a long-term profit, as well as perhaps making you a quick buck now.

Tips and Suggestions on How to Sell Real Estate Online

2008-09-02T05:19:00.000-07:00

Why is it important to pursue Real Estate Marketing Online efforts? One very important reason is that with the adoption of the Internet by many people for both work and leisure purposes, the online world has become a veritable gold mine of information about prospects.

Thus, Real Estate Marketing Online campaigns by real estate sales specialists have become vital to the survival of the real estate industry and its players. What makes the situation more crucial is that real estate sales specialists claim that the previous Real Estate Marketing Online efforts they undertook (such as putting up websites about their business) have failed to deliver the results they wished for. This leaves such real estate professionals desperate to find Real Estate Marketing Online techniques that will really work for them.

Real Estate Marketing Online will work properly if you know who your target market is – and this means having a niche that you can compete in and where you are at your best. For instance, if you feel you have a knack for selling homes to newly-hired employees, then that is your niche market and you have to organize your Real Estate Marketing Online campaign in that direction to get the results you want.

Real Estate Marketing Online efforts that are based on adequate to superlative knowledge of your niche market are best for getting results out of the prospects out of your niche market. Real Estate Marketing Online then becomes more effective and efficient because you know who will be reading the content on your website so you can select the right photos and text content to address the niche market’s needs.

There are various ways of categorizing Real Estate Marketing Online niche markets. You can define them based on the location of the homes to be sold; their income levels or income range; the types of homes that you can sell to them based on location, income levels, and their personal preferences; the demographics of your niche market (such as what schools they attended and what languages they speak); and other things that make that niche market distinctive.

One very important thing you have to remember when designing websites as part of your Real Estate Marketing Online campaign is that you have to be careful to identify what your target visitors would probably be seeking when they come to take a look around. And presentation counts a lot in a Real Estate Marketing Online campaign. In the same way that people tend to be attracted to beautiful people more than plain-looking or even ugly people, your website should aim to appeal to the aesthetics of your niche market. For instance, if they are Hispanics, then you may want to include aesthetic elements that will remind them of their Hispanic roots. You could also sell homes that have a Hispanic appeal to them, such as homes made of adobe or stucco. Earth tones go well with the skin tones of Hispanics so homes that have predominantly autumn-inspired color hues and tones might appeal to these people more than modernistic houses that are all glass and steel.

Another of the Real Estate Marketing Online tips you may have to take into account is that some website templates you can get from some sources may actually hamper the ability of your visitors to access your website. So for a proper Real Estate Marketing Online campaign to function, you have to make a website that is glitch-free yet still user-friendly enough not to confuse non-techies. Try not to incorporate too many bells and whistles (meaning, try not to make your website too high-tech to the point that people no longer know how to use it.

Your Real Estate Marketing Online campaign will also go much more smoothly if you use a website background that speaks of professionalism. Teddy bears and candy canes may look cute on a personal blogsite but that is not what you will want on your real estate website if you want people to take your site seriously.

To make a long story short, you want Real Estate Marketing Online techniques that tell people that you are a credible real estate professional who has what it takes to meet their needs. That is the whole point behind embarking on a Real Estate Marketing Online campaign anyway.

Profit From Commercial Real Estate Investments

2008-08-28T12:32:00.002-07:00

Property investors have now turned their attention towards the lucrative deals presented by the commercial properties. This sudden interest is the result of the option to diversify your property investment portfolio, along with a high income and tax breaks. However, it is advisable to conduct a research before taking the plunge.

Commercial properties include hotels, malls, medical centers, retail stores, business and industrial property. These are operated for a profit from rental income or capital gain. Some common commercial property types are:

- Apartments and multi family units: These are the first choice of investors. Apartment financing and management is very similar to that of residential properties.

- Mobile home parks: These can be a profitable investment option especially if you own the land and sell the mobile homes.

- Retail properties: More than one tenant occupies the premises and it is utilized for retail transactions.

- Offices: This category includes suburban garden offices, suburban high-rise offices, medical offices and central business district offices.

- Mixed use properties: These properties are a combination of all the above property types.

- Health care units: They include assisted living centers and congregate care centers and nursing homes.

- Hotels: The properties are categorized as either limited service or full service.

- Industrial premises: These properties can be used solely for industrial purposes.

- Self-storage units: The consumers use them for personal storage or for lease.

- Other specialties: These include oil change facilities and gas stations.

According to a reputed New York based real estate research firm, the price of apartment complexes rose by 26%, retail properties by 14%, industrial properties by 21% and office buildings by 6%, in 2004. Commercial property investment is very profitable but it is a complex business, as compared to investment in residential properties. There are number of factors that affect the property evaluation of commercial premises. It pays to study the market and tread cautiously.

Boom in commercial real estate property:

Commercial real estate includes, but is not limited to, properties used for educational, medical, commercial or industrial purpose. The properties are usable in business or trade and can be sold or bought in the real estate market. The improvement in the economy and growth in business ventures are responsible for the revival of commercial real estate. Another important reason has been the continuous flow of new investment capital. This capital is sourced from people who seek higher returns from large investments. The areas that come under the category of ‘commercially profitable’ carry a higher evaluation, as compared to other properties in developing areas. The rates for commercial real estate properties are calculated differently from the method adopted for residential properties.

The rental yields are better for commercial properties and the monthly cash flow is more than that of residential property investment, in the same area. The quoted expectation of returns depends on the kind of business that would be transacted on the premises. The profit from commercial real estate investments is definitely much higher than profit generated from investments in residential properties. Investment in commercial real estate is as lucrative as investments in stocks and bonds.

Real Estate - Putting Those Profits Where They Belong in Your IRA Account & Your Pocket!

2008-08-28T12:32:00.001-07:00

I'm going to talk about my favorite subject in a little more detail today...Real Estate, and how it can put more of that green stuff where it belongs...in your wallet!

A self directed Roth IRA invested in real estate allows the owner to keep more profits in the account, rather than handing them over to the government. Some of you may have little knowledge about purchasing real estate in your IRA. Many people still think that the only investment options are stocks and bonds or certificates of deposit. Well, there is a lot more that you can do!

Whether you want to buy raw land, single family homes, commercial property, an apartment building or a mobile home, you are surely hoping to make a profit. You may want to hold the property for several years and wait on the value to grow or you may be a rehabber, planning to flip the property for a quick profit. Either way, the self directed Roth IRA invested in real estate has several advantages, and here are a few.

First, there are no capital gains taxes. All returns are either tax-deferred or tax-free, depending on the type of account that you have and the withdrawals that you make. Purchasing real estate in your IRA can be easy. It just takes some time and knowledge, as well as the right custodian.

Many brokerages will not handle a self directed Roth IRA invested in real estate. It's not that the IRS doesn't allow it. The laws regarding retirement accounts allow people to invest in almost anything. It's just not a traditional investment type and most brokers are not familiar with it. And, you would be better of to choose someone who is.

So, in order to begin purchasing real estate in your IRA, you need to find a company that is familiar with the option. Otherwise, you could run into problems down the road. Let's say that you decided to let the new broker down the street manage your account.

You knew about the advantages of a self directed Roth IRA invested in real estate, so you took the plunge and bought a single family home, using funds from the account. The property is held in your custodian's name and all income and profits are returned to the account.

Your son needed a place to live, so you decided to let him rent the property, since it was vacant. Being unaware of the self-dealing rules, the custodian allowed this to go on. Once the IRS saw that rental income was going into the account from one of your relatives, the account was audited, the tax-deferred status was lost and you were forced to liquidate the account. Why?

Because one of the rules about purchasing real estate in your IRA is that family members may not live in the homes that you buy. You can't even buy a house that you plan to live in after retirement and hold it in your retirement account. It all falls under the self dealing laws and if your custodian is unfamiliar with them, then you will become the loser.

If you have knowledge and expertise about buying and selling property, then a self directed Roth IRA invested in real estate is simply another way to grow your portfolio. If you need to learn, there are people who can help. So, get some help and start investing in your future.

Flipping Real Estate for Profit

2008-08-28T12:31:00.000-07:00

There are lots of cable television shows these days that feature "flipping" houses for profit that make it seem like just about everybody's doing it. For the uninitiated, flipping a house means buying a house at one price, then improving it in a short amount of time to sell it again quickly for a substantial profit. Most people who flip there first house have dreams of making an enormous profit very easily, but it's not that simple. Complications almost always come up, and you have to be very aware of the area, what the market will bear and which improvements are worth the investment to flip a house successfully.

You need to find a house that fits several criteria in order to make a healthy profit at flipping. Some of the things you need to take into consideration include:

Is the neighborhood a growing or improving one that buyers will be interested in?

Are the improvements or repairs needed ones that you can do within a reasonable budget?

Can you pay for the needed repairs/improvements and still net a good profit?

Is the area one that will appeal to a wide range of buyers?

Are there any problems that just aren't fixable (bad location, a foundation that is sinking and can't be shored, etc.)?

How many other houses are for sale in the immediate area (too many, and the market glut will drive the price of your house down no matter how nice it is)?

Locating a home that fits your budget and criteria means research, and lots of it. Many people who have flipped successfully say the best way is to simply drive around mid-range neighborhoods and look for the slightly run-down homes with solid bones that have been on the market a bit too long. The owners are usually anxious to sell, and the most buyers avoid fixer-uppers, so you can negotiate from a firm position. Also check out Sheriff's Sales, banks that handle foreclosures and online auctions.

Of course, even after you purchase the property you have plenty of work to do. Be sure you set up a budget in advance and resolve to stick to it when doing repairs and remodeling. Remember, the goal isn't to turn this into your dream home, but a solid, saleable property that will net the highest possible profit for you. Have a complete home inspection and get bids for any repairs that you can't handle yourself, such as upgrading wiring or dealing with dry rot. Next, determine what jobs you can do yourself or with the help of friends to save money. Finally, shop around for the best price on materials and haggle whenever you order more than one thing (say, tile and cabinets) from one supplier.

One of the most common mistakes a novice at house flipping makes is choosing top of the line everything, thinking that this is what will sell the house. Quality is always a good selling point, but only within reason. There is a bell curve to this - after a certain point, you start to lose money if you've purchased luxurious upgrades that aren't necessary. For instance, if you're remodeling a house in a mid-salary neighborhood with primarily starter homes for young families, buying granite countertops and solid cherry bathroom cabinets will mean you will end up pricing the real estate too high for the market to bear in order to get your investment back. Instead, consider attractive, durable laminate countertops and oak or pine cabinets.

On the other hand, if the home you are flipping is in an exclusive neighborhood where most other homes have the best of everything, those granite countertops may be a must-have. How do you know what is best for the particular home you're flipping? Go to several open houses in the area and see what the standard is, then talk to realtors about what they feel are the most sought-after features for buyers in the price range you are anticipating selling the house for. Generally, you don't want to be the most expensive house in the neighborhood, but you should shoot for the upper end of the scale.

Being aware of what buyers want also means that you should remodel with in eye toward appealing to the greatest possible number of buyers. This means keeping things practical and neutral, not tailoring the house to your own personal tastes. You may love rich, bold colors in every room, but most home buyers prefer to see walls that are in a warm neutral shade such as eggshell or taupe. The same goes for fixtures - if you install fixtures that include color inlays or have elaborate detailing that either is extremely elegant or (at the other end of the spectrum) ultra-casual, you may put some potential buyers off. Sticking with what's simple and classic is best and will multiply your chances of a quick sale.

If you plan to continue flipping houses, but sure to establish a rapport with your contractors, suppliers and the inspectors you deal with. You'll need their help and goodwill in the future, and it's always a safe bet they'll return your calls more quickly if they like and respect you rather than if you are yelling and demanding things. In fact, if you find a good contractor or supplier, it can often pay for you to establish an informal agreement with them that you will use them for any future flips in exchange for some type of consideration on their part - after all, they want that steady work or those steady orders from you.

Finally, although some flippers will try to sell a house on their own when it is finished, a realtor can be your best friend. Realtors are professionals at getting the word out, generating interest in an open house, and talking up your property to other realtors. Again, if you decide that you want to flip other properties in the future, let the realtor know this. He or she may very well lower his or her commission in exchange for the promise of future listings from you.

Good luck and happy flipping!

Real Estate Investing - Mindset

2008-08-24T10:42:00.001-07:00

Attraction

The Law of attraction basically says you will get whatever you really want out of life. You might disagree with that - but it's true. It is this law that the huge best seller "The Secret" was based on. It was at the core of Napoleon Hill's famous "Think and Grow Rich" and is a central theme for motivational speakers. Another way to say it is "If you think you can...you can. If you think you can't...you're right."

Can it be this simple? You will attract to yourself the things you focus on internally with most intensity & consistency. Why is it true? I don't know! But it is. If you keep telling yourself that all you need is enough money to get by...that tends to be all the money you ever have...just enough to get by. However if you say I'm going to own 10 houses in 5 years if you keep focusing on that it most likely will. Its partially related to goals and also focus. If you absolutely and positively make something your focus you will get what you want.

In my experience if that little voice inside my head were a person, (and I think you know who I mean) after listening to all the negative comments it can come up with, I wouldn't speak to it again. You wouldn't let your best friends talk to you that way so why do you put up with it from your little voice.

Practice thinking about what you want most!

Mindset

Mindset is critical to real estate investing. However many people fail because their focus is more on avoiding failure than being successful. An easy way to find out where your head is at, is to write down the thoughts that pop into your head during the day. It may surprise you.

Contrary to some people's belief avoiding failure is not positive or even neutral. It may look like the flip side of success but in reality avoiding failure is absolutely negative and to focus on it will virtually guarantee failure. Let's be clear it's a good thing to avoid failure but the problem is that our brain doesn't process negative statements well. Let me show you why.

What does the term failure mean when related to real estate...losing your money, losing your home, getting sued, going bankrupt or not making any money. How do you feel when you think about that? Does it help you to move forward with a spring in your step? Does it make you want to bounce out of bed and race to your office? Do you say to yourself "Oh I can't wait until that happens?"

I doubt it....if anything these thoughts push you to do NOTHING. There is nothing attractive about the images created so it becomes a self fulfilling prophecy. You avoid failure by not even trying in the first place. As a result focusing on avoiding failure will attract the very thing you were trying to avoid.

This is why professional athletes talk about winning to themselves and others and why they look so focused before events. They are visualizing winning and rehearsing the race in their mind. It sets them up to perform at their peak. Do what athletes do...focus on winning.

So here's the opposite side of that same coin. Think about having massive success as a Real Estate Investor. What would that look like? Is it owning 15 houses and making $15000 a month in cash flow? Is it putting your kids through college? Is it not having a job any more? Is it going on 4 vacations a year with no expense spared?

I'll bet this is infinitely more positive and motivating. You want to think about it. You want to put it in place.

When you focus on success, your mind will be able to attract it. BUT a focus on avoiding failure means your definition of success is the avoidance of disaster and that is not going to make you wealthy.

To practically implement this: For 30 days every morning and night say your positive goal ALOUD three times and MEAN it.

Real Estate Mentoring, Coaching and Consulting

2008-08-24T10:40:00.000-07:00

Real Estate Coaching and Consulting. I have tried to give a complete overview in the field of creative real estate including foreclosures and more. However based on my vast experiences in most all the areas of creative real estate, I could easily write volumes of books in exact detail of what to do and not.

As in most cases, a few readers may pick it up and run right with it, but for the most part, the high percentage would prefer to ride along, watch, observe, be able to ask questions at will, to shadow and witness all dealings until a high level of comfort could be established. The memory and attention span is only so long.

When I started in this business there were very few books to read and certainly no boot camps to attend. I bought the few courses that were available, but they were at best wrong and a fictional accounting of how not to do it.

"Just add water and use, legal in all 50 states." They were someone's distorted fantasy in a dream world and would absolutely not work short of creating a serious effort in futility. There were professional marketers, writers and speakers, with very little to no actual experience.

As I have read most all of the books by "gurus and experts", I really do believe that most have never done any of the deals that they so proudly write about. More, wannabe's and I wish I had done these deals.

Please, let me be brutally honest with you, I have lived in the trenches, fought the battles, wrote the paperwork, had legal challenges of ignorance, and have cashed the BIG checks, many of them. I know what works to make money, and that which is a dead end effort to going broke. I've done them all.

Anyway...my point is, if you are serious about getting into the creative real estate business, getting your foreclosure resolved, selling your property, buying an investment property, doing a short sale, or generally gaining more valuable knowledge that may assist you in going to the next level in real estate, then we should by all means talk and see if there may be a fit for us?

If you are serious...what is it worth to be able "get it" right now, start earning profits right away, and to live your dream? To have a mentor that you can call, e-mail and fax to that can give you the correct answer right now with guaranteed results, would that work for you?

Don't have to pay crazy expenses to sit for days at time in a classroom with 100 others trying to drink out of a fire hydrant, and come back home only to remember what you forgot? Or...to fill up the shelves of the den with books and tapes that...well someday I'll get to it (a round TUIT)?

Hey, let's just start today and as Nike would say..."Just Do It". I have many programs that can work for both of us, sorry, no tapes or boot camps. Please contact me and I'm sure that I can get you "jump started right away."

Real Estate Investing in 2008 - Are You Crazy - Well Maybe Not!

2008-08-18T08:07:00.000-07:00

The latest data from the real estate industry shows a marketplace in steady decline and no bottom in sight. Residential home sales are in free fall mode with an expected 25% decline in the total number of home sales in 2007 versus 2006. Additionally, homes sales are currently off by more than 35% from the record year of 2005 when over 7.0 million homes sold.

Industry analysts estimate that we're on track to sell only 5 million houses nationwide for the entire 2007 year, which is the slowest pace since 1999. Equally sobering is the fact that at any given time there are about 4.4 million unsold homes for sale. Based on the number of available houses, it would take about 10.5 months to sell all the houses on the market right now.

It's not just the number of homes sold that is falling; it's also the sales price. The median, or average, home sales price is expected to dip below $211,000 for the year, which represents the first time since records have been kept that the year-over-year price of a home fell.

While home sales are plummeting and sales prices are falling, the only thing that seems to be rising is the number of foreclosures. During the first ten months of 2007, the foreclosure rate nationally surged by about 94%, which puts about 573,000 homeowners at risk of losing their homes.

As bad as things are right now, we might just be at the tip of the iceberg, because more than 2.2 million home loans are going to reset in the next year and a half as introductory and teaser rates end. Homeowners are faced with payments that are considerably higher than they had banked on - or budgeted for. Bush's new homeowner bailout plan will save some, but will excluded most of the homes that are close or already in the foreclosure process.

Aright enough of the doom and gloom. With all financial bubbles there are many losers but a few big winners. Despite all of the above, now is the time to consider real estate investing. With prices down and motivated sellers everywhere real bargains are popping up and the long term returns on real estate should be outstanding in the coming years. Much of the risk has been taken out of real estate investing.

The housing market has undoubtedly changed, but I still think real estate is one of the best long-term investments you can make. I also think if you know what you're doing, there's a whole lot of money to be made right now by investing in real estate.

The key to this opportunity is the ability to raise cash or credit quickly to make low all cash offers. The ability to have a combination of cash, credit lines and access to private lending will allow you to make low and compelling offers. In many cases, buyer will forced to accept any reasonable offer.

If you do this, you'll discover that this is possibly one of the best times in more than a generation in which to make tens of thousands of dollars -- or more -- by playing your cards right and timing your real estate purchases in a way guaranteed to help you build a fat real estate portfolio.

Four Ways to Get Money From Your Real Estate Without Selling

2008-08-18T08:06:00.000-07:00

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If you have an existing piece of income producing real estate that you bought within the last couple years, you most likely have a significant amount of equity in that property. Even if you put a traditional 80% mortgage on the property when you purchased you may now have anywhere from 20% to as much as 60% to 70% equity on the property. How do you get that money out and put it to use in a new investment or use it to pay bills without selling your property.

Well, here are my top 4 ways to put cash in your pocket without having to SELL your real estate...

Place a private second mortgage on your property - One of the best ways to get cash out of the property is by borrowing money from a private lender and giving them a second mortgage on the property as security. By way of an example, if you bought a property 5 years ago for $100,000 and put an $80,000 mortgage on the property at the time of purchase you had $20,000 equity. That property today may be worth $130,000 and mortgage paid down to $75,000 leaving you with $55,000 in equity. If you borrowed $30,000 from a private lender you now have $105,000 in total debt on the building. This leaves the debt-to-equity ratio at a very reasonable 81%. We do not recommend ever going above 90% debt-to-equity to allow some margin for future down turns. One of the primary ways we attract private lenders is through group luncheons and private meetings. We use the Private Lender Presentation Kit as our primary marketing tool to generate leads and convert individuals into our program.

Put a Rent-to-Own Tenant in the building - Under a rent-to-own program a renter with the desire to ultimately purchase is given 12 to 24 months to rent while fixing or improving their credit to the point where they can get a mortgage and cash you out. The great advantage of this method, and are many, is the tenant/buyer typically pays you 3% to 10% of the value of the property upfront in the form a non-refundable purchase deposit. This deposit can be anywhere from $2,000 to $20,000 cash in your pocket. If the tenant/buyer does not cash out or decides to move out you can legal keep the deposit and do the whole thing over again. Another advantage is that a tenant/buyer feels much more compelled to pay rent on time to get the purchase price credit that is only given if the rent is paid on time.

Refinance the existing mortgage with a new private lender mortgage - If you have an existing first mortgage on a property you can refinance the whole amount for new higher first mortgage using a private lender as your lender. Using the above example, if you have property worth $130,000 with a $75,000 first mortgage, you could refinance the first mortgage with a private lender for $105,000 and cash out $30,000 for yourself. The advantage of this method is that the cost of first mortgage alone will be lower than a first and second combination as describe above. You also avoid having the loan show up on your credit report and this usually improves your credit score.

Use your property to secure a line of credit - If you have one or more properties with a significant amount of equity you can use that equity to get a line of credit from a bank or local saving and loan. Again using the above example of property with $55,000 in equity you may be able to get as much as a $30,000 line of credit. We have found that banks will never go above 80% debt-to-equity with these types of lines. This type of financing has several advantages including no interest cost until you actual use the money and generally the interest rates are very competitive in the prime plus 3% to 6% range.

In Conclusion, I have outlined four ways to generate cash from your real estate with out having to sell your property. This has tremendous advantages in allowing you access to cash to do new projects or pay operating expenses.

Learn the New Investing Secrets in the Post-Bubble Real Estate Era

2008-08-18T08:04:00.000-07:00

You would have to be living in a cave or tucked away on a deserted island somewhere in the middle of the Pacific Ocean not to know that the American real estate market has effectively fallen apart. Real estate investing techniques and strategies that have worked so well and for so long are no longer effective. If you want to continue making money in real estate today, you'll have to adjust your strategies accordingly, or risk being left behind in today's post-bubble market.

One such strategy is the short sale.

A short sale is nothing more than convincing the lender to accept an amount less than the current loan payoff amount as full payment for a property. Because real estate as we know it has changed so dramatically so quickly, banks are more motivated than ever to quickly unload these properties and get them off their books as soon as possible. The reason for this is really quite simple: Most banks are required to maintain cash reserves of up to six times the retail value of each real estate owned ("REO") on hand. Because an REO is actually a liability and not an asset - and there are so many of them - you have an unprecedented opportunity to simultaneously help a friendly banker as well as yourself.

Here's how it works.

Once you've located a distressed property owner and have convinced them that letting you solve their real estate problem is in their best interest, you'll need to prepare a real estate sales contract (signed by you and the homeowner) reflecting the amount you wish to offer the bank.

In addition, you'll also need some additional documentation for the bank's Loss Mitigation Department: A cover letter that fully explains your offer and the reasons why you simply can't offer full price for the property. If you've properly done your homework, the accompanying documents will help build your case. I'm talking here about area comp sheets, photos of the property that highlight the negative aspects of the property, a hardship letter from the property owner explaining the severity of their current financial situation, as well as a HUD-1 net sheet showing the lender exactly how much money they'll be left with after all expenses - closing costs, taxes, etc. - have been paid.

One last item you'll fax to the lender is critical to your offer. You need to send them a list detailing all needed repairs - and the associated costs - to help your offer seem even more practical. You don't have to tell the lender that the property is falling down. The estimate will do that for you.

Keep in mind: the lender doesn't want property back. You're doing them a favor by taking it off their hands. Because they're in business to make money from interest and not owning real estate, they're not going to try to get as much money as they possibly can from the property. Banks are far more interested in getting REO's off their books and freeing up the cash reserves requirement.

While the bank could conceivably finance the property for you, don't count on it. So be prepared to provide your own financing source either through your own bank or an alternative lending source that you've already lined up.

The new reality in real estate is that there is plenty of money to be made by investors who are prepared to seize the opportunity. Short sales are a great way to do this. As long as the foreclosure rate is rising faster than gas prices, you stand to have an almost unlimited profit potential. You can capitalize on these opportunities when they present themselves by lining up a ready supply of private lenders that are able to provide the cash you need at a moment's notice. Then you can truly build your American Dream.

Questions to Ask Potential Real Estate Agents

2008-08-18T05:19:00.001-07:00

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If you're buying a house, chances are you'll be employing the aid of a real estate agent to guide you through the process. The important thing to remember is that you are technically their boss. They should be working for you, whether you're buying or selling a home. That's why it's so necessary to interview several real estate agents before settling on one. Here are some helpful questions to narrow down the candidate field.

1. How many years have you been working in real estate?

Although some agents may be newly licensed, they may have been working on other areas of real estate that will be helpful to you. Any previous experience working with home buying and selling will make an agent a valuable asset. Many times realty is a second or third career. If your realtor was a mortgage lender before switching to the housing world, they might be even more helpful than someone who has been in the business since the word go.

2. How many homes do you sell yearly?

Numbers count, but be aware that small numbers aren't always bad. An agent may only sell a handful of properties each year, but if they're worth millions, that's all they needed to. That's why it's important to ask not only how many they sell, but the price range that the homes fall into. If you're buying a house, this will help you gauge which houses the agent has access to and is more experienced with selling. If you want to sell your home, this will be a good indicator of whether or not the realtor is going to successfully market your property.

3. What is your area of expertise?

If you want to buy a condo, don't hire a realtor who sells mansions. If you want to buy a family home, don't hire anyone who specializes in two-person town houses. Finding niche agents will open more doors during your house hunt or sale. Buyers will be shown more properties matching their requirements, while seller's homes have a better chance of being marketed more effectively.

4. How many other clients are you currently working with?

Translation: How much time can you devote to my needs? Some realtors won't turn down a client, even if their plate is already overflowing. Ask for the numbers. If the phone is ringing off the hook during your meeting and papers are flying, you may want to look elsewhere for an agent who can devote a good chunk of time to you. Explain to them your typical schedule and what times you'd you would be available to view houses or have meetings. If they can't be flexible, move on.

5. Do you have a list or client references?

Nothing says more about the professionalism and worth work ethic of a realtor than their ability to provide you with a list of client references. Just producing a list on the spot is a good sign that the agent is prepared and wants your business. If there is none available immediately, or the agent sputters out some excuses, take it as a sign to head elsewhere.

Real Estate Trends Report 2008

2008-08-18T05:18:00.001-07:00

A cold chill has blown on the real estate market and sales are down across the country. When the market was hot, every Tom, Dick and Harry wanted to be in the kitchen and sell real estate. Why? Because it did not take any skill or premier quality customer service. Now that the housing market has been on a steady decline for just over two years we have an opportunity to separate the good from the bad and the ugly.

There are actually agents that expanded their market share, added more clients to their portfolio or received higher customer service acknowledgment during the last year. Those are the agents that understand that in a down market true real estate professionals actually can do better.

According to the Swanepoel Trends Report, published by RealSure, there are five strategies that will not only keep the real estate agents afloat until the next upswing but could actually place them in a better position for rapid growth when the market turns. In summary they are:

1. Maximizing Technology and the Internet

Google should be a part of every real estate professionals online lead strategy as placing high on organic search results has become very important to any serious agent. At the same time integrating your key activities such as marketing, MLS, customer management, etc. need to be integrated into one easily accessible web-based system. Agents should use this year to make sure that when the next boom arrives they will be able to process the entire home buying and selling transaction digitally.

The Report discusses dozens of new innovative Web 2.0 initiatives, encouraging agents to explore these services and see which may be added to strengthen their online portfolio.

2. Building Teams Correctly

The creation of smaller more effective business units or teams within larger companies has been around for awhile, but during the last decade the concept has gained momentum. RE/MAX now estimates that 27% of their affiliates are working on a team. According to the Report there are basically two different kinds of teams. The first is where two or more producing agents combine their practices under one banner to provide greater coverage for themselves and their clients and the second where a lead agent starts building a business inside the brokerage operation. The lead agent then hires administrative staff to increase his or her time in more productive and income generating sales activities.

No matter what the size or how a team is structured, the key to building a successful team requires following the correct steps, getting the right chemistry between all team members and executing on a deliberate business plan.

3. Solidifying Your Business Plan

In todays competitive and complex marketplace, an entrepreneurs success is far from guaranteed. Moving into 2008 or 2009 without a well thought out and implemented business plan is a disaster waiting to happen. Yet so many agents fly by the seat of their pants.

A good business plan should include:

An assessment of your current situation.
A definition of your business focus and strategic intent.
A clear vision of what results you want to achieve by objectives.
A list of action steps that you will utilize to achieve your goals.
An understanding of why you need regular analysis and occasional revisions of your game plan.

4. Using Virtual Assistants

The ways in which Virtual Assistants (VAs) can help real estate agents become more productive are limited only by ones imagination. And there are few, if any, support functions that cannot be handled by a VA - including functions such as:

Transaction Coordination
Listing Marketing Coordination
Staying in Touch
Online Lead Management
Operational Management
Screen Email and Phone Messages
Ad Writing
Website Maintenance

5. Diversifying Your Business

Diversification is the order of the day. For our industry there are two types of diversification - geographic and product or service. In these slow times it may be wise to view the needs of your customer base to see if there are other profitable products that may be a good fit to offer past clients. It is also a perfect time for agents to expand their skills and knowledge by getting educated on other transactional aspects such as mortgage, escrow, home owners insurance, home warranty, remodeling, repairing, painting, landscaping, etc. The advantage of bringing some of these services in-house is the ability to eliminate the expense of redundant overhead and to derive additional income from the same client.

The Real Estate Agent Income Crisis - There is a Way Out

2008-08-18T05:17:00.000-07:00

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Many real estate agents are suffering financially. Possibly this is you. It is unfortunate but houses are selling much below their value and are staying on the market for months. There are more sellers than buyers and there is no relief to be seen in the very near future.

People are struggling; struggling to pay bills to pay debts. The real estate industry is a tough market to be in right now. Possibly you have been wanting to find a way to get you through.

One of the best solutions is to start a home business. There are many tax advantages and you have the benefit of writing off many of your household expenses at tax time. It is also flexible. Something you can do while still being a real estate agent. Maybe something to tide you over until the economic situation improves or maybe something that permanently creates an income for you. The key is to find the right business. One that is recession proof.

We have chosen to build a recession proof business and are helping others to do the same. When searching for any home business there are some critical evaluating tools you need.
Want to Work from Home? Have you considered These Crucial Evaluating Tools?

So you have decided that you would like to work from home. Maybe you want to stay home with your children, maybe you want money for that extra special something or maybe you want to create financial freedom. Maybe you just need to pay your bills and pay off debt. So you know your reasons why. This is a great start but now what?

It is easy to want to jump into the first thing that comes along. Something may sound good on the surface, so you should jump right in, right? Wrong.

There are several key factors that anyone and everyone should consider when deciding on what business would be right for them. Ensuring you have thoroughly researched the opportunity can save you a lot of money, a lot of time, and more importantly, a lot of heartache. I have heard too many stories of people going broke trying to find the right one. I even know someone who has tried 23 opportunities before finding the right one. Can you imagine?

The first key in researching a business is knowing what features you should be looking for in a company. You will definitely need to know the following:

- Is there an established track record?

You want the company to be at least seven years old - successful home-based business companies experience a surge of growth in their first 3-5 years, but most cannot support the increased capital and organizational needs this growth demands to continue their success. Be wary the person who says "this is a ground floor opportunity" or you need to "catch the wave".

- Is the company financially sound?

You should be able to get access to this information. Another great way to know if a company is legit, is trustworthy and has integrity is if they will let you see their previous years' income statistics. If they're not willing to share what their business people make, do you really think they're doing that well. And I don't just mean the top earners, find out what the "little guy" is making.

- Do they have a strong management team and company credentials?

Beware! There are some companies out there who are "touting" scientists behind their products that have received their degree by mail order over the internet. Do your research! What is the history of the management? What awards have they received? What does the Better Business Bureau have to say about them?

- Does this company have unique, consumable products that are guaranteed?

There are companies that have only one product. How many of that one product do you think you have to sell to make any money? If this is a luxury item, you most likely won't get repeat sales from the same person which creates much more work for you. If it's a hobby, you are looking at the same thing. The product should be something that a person goes through and needs again fairly soon, preferably monthly. These products should also have a 100% guarantee.

- Does this company require that you keep inventory or 'front end load'?

This is a very fast way to the poor house. I know lots of folks who have garages full of products. You may think it will be easy to 'unload' it but it's not. Make sure the company does not require you to have stock or inventory.

- Is there a low personal production requirement?

Essentially, this means how much of their product do you need to order to stay in business? If they are asking you to order more than you would use, then you guessed it? Straight to the poor house for you.

- Is there a high customer re-order rate?

Some companies have a re-order rate of only 5%. Does this tell you how hard you will have to work to win customers and keep them? Again, if the company won't give you this information then they have something to hide!

- Is there low initial investment?

You should be able to get started in any business for $500 or less. In addition, any investment should be guaranteed. Any more than that and the risk sky rockets.

- Is there low attrition?

If more than 10% of the people are leaving every month, what does that tell you?

- Is there breakaways?

No breakaways!!! What that means is that you work really hard and then when you reach a desired level, they have the rest of your team "break away" from you and you start all over. Does that sound like what you are looking for? Know the compensation plan. You should be able to earn an income from each person you offer your product or service to. No breakaways, no balancing sides.

- Does the company have any risk?

Risk is a 4 letter word. It has its place but not in your business. This is your life. There should be no risk. You should only be using products you would use anyway, and there should be a full guarantee on everything. If this is the case, there is no risk!

Alright, so now that you know what is important to look for in the company, what product concept makes the most sense, you ask?

REPEAT Consumables (necessity items) and I can't stress this enough. This is a 200 billion dollar industry. People must already want or need to buy the products. It is much easier to interest people in something that is better or less expensive than their current brand than it is to get them to buy something new that they hadn't considered before. The concept of "switching stores" works best because people spend "no new money", they just switch brands. Durable goods won't generate residual income because people won't buy each month.

The products should always be competitively priced (have a low cost per use). No matter how well people like something, they won't stay customers forever if the product costs more than the store bought equivalent. Since commissions depend on customer purchases, the longer they stay, the more RELIABLE your income. The products must also be unique and exclusive to the company. It is of benefit if there are patented products that have been scientifically developed. The re-order rate should be above 90% and it has to make sense to just be a customer, continuing to buy the products without being a business builder.

Lastly there are a few more things that you may want to consider. Does the company manufacture its own products? Does the business offer a system that you can duplicate for success? Does the organization provide you with free training and support? Do you have to leave your home to build the business? Do you need experience in sales or business to be successful? Can you make enough to replace your income? What are the tax advantages to owning a home-based business?

I know this seems like a lot of work, but the end result will make for a happier, wealthier you. Good luck in your search!

Obtaining a Real Estate License

2008-08-18T05:10:00.000-07:00

Making a career change can be scary as well as exciting. When I found out I could attend real estate school online to help me go for a Kentucky real estate license I decided to go for it. The best way to make a career change is when you already have a job. Being able to work toward a real estate license from home in my spare hours meant I could keep my day job until I passed the state exam and found a job.

While doing some research about obtaining a license I found out that the state requires a background check. To be honest I never realized that before but I was glad to see it. It makes sense that anyone who has the ability to write contract should have to have a background check. I felt that getting my Kentucky real estate license meat that I was starting a very important career. Being able to take the class from home just made it all the more attractive and doable.

The Kentucky real estate commission has a website that provides all of the necessary information regarding getting a license and maintaining a real estate license. The site even gives information regarding people who have a license from another state and want to obtain a license. Usually there is a short test involved and also proof needs to be provided of the license from the other state. It is good to know that many states do offer the option of applying for a reciprocal license, especially if I move someday.

Going for a Kentucky real estate license seems to make sense for me. I am a very good people person and I have been very successful in sales. the real estate market is doing better then a lot of other areas of the country and it has huge growth potential. Getting my license will enable me to make a new career for myself in a field that is interesting and exciting. I want to be excited about going to work in the morning and I think that real estate is a very exciting career choice.

Going to school online will mean that I have to focus and pay attention. Not being in a classroom setting can be a negative if you do not have the ability to focus. I will however save gas and time by taking the class online. Before I know it I will be well on my way to obtaining a Kentucky real estate license. The online program I chose is offered by a very reputable real estate school in the state. I am ready to get started on my new career.

Real Estate Agent Salary

2008-08-05T04:32:00.001-07:00

Real estate agent is sort of broking job. A real estate agent should work out a deal for a property sale between a prospective buyer and a prospective seller. It can be a job of high earning potential. But the real estate agent should work hard to achieve that. A lot of real estate agents work as consultants. It may not be their full-time job. This can be done during the free time of another full-time job. But such juggling of jobs needs high-energy quotient and expertise in time management. Since it is not a full-time job, there is no fixed salary. The real estate agent gets a fixed percent of total amount of land sale from both the buyer and the seller.

There is absolutely no limit for the salary of a real estate agent, when working as freelance consultant. As they say in advertisements, sky is the limit for the salary of land brokers. The harder one works and more sales one engineers, the more will be the money one earns. But for earning a good monthly income, the freelance real estate agents should be highly industrious and have good inter-personal communication skills. In general, real estate agents should be well versed with the value of a property. They should be able to do a quick valuation of the property and should be able to explain the aspects that influence the price of the property and convince both parties about a reasonable price.

There are plenty of real estate firms and agencies that employ real estate agents. In such firms, the agents have a fixed monthly salary. The salary varies from agency to agency. Usually it depends on the volume of business done by the agency. There are some agencies that provide a pay based on the number of real estate sales materialized by a particular employee. In general, the annual salary of a real estate agent, who works in any of the established firms, varies from $25000 to $75000. There are a minority of real estate agents who earn a salary even less than $25000. Some agents working in start-up companies only earn an annual salary of only $10000. Such a large variation of salary can be explained by the fact that some real estate agencies have more business volume than some of smaller fish in the real estate fray.

Also the commission-wise salary and sales-wise salary affect the annual pay. There are some months, especially in the winter months of November, December and January, in which conventionally real estate business are somewhat fewer. So in the case sales-wise salary structure, the salary suffers a dip in those months. But the sales move up from March to September. So will be the salary in those months.

Understanding Fractional Real Estate

2008-08-05T04:31:00.002-07:00

Fractional Real Estate is a fairly new concept in vacation homes and resort real estate. Unlike timeshare property, fractional ownership is deeded ownership to a house or condo type of property. These properties are usually furnished beautifully and are ready to occupy immediately.

To understand how fractional real estate transactions work, lets take a house and sell it to 4 different parties. Each party will own 25% ownership of the property. This entails each party to one weeks usage a month to use for themselves or to rent their week out. Typically there is an annual calendar that rotates the weeks so each owner will get a holiday week like Christmas every four years. You also have the option of switching weeks with another owner if the parties agree.

The benefits of fractional ownership give you the opportunity to own and use a million dollar home for a $250,000 initial purchase price. You get a luxury furnished property that is ready to use for a price that was unaffordable in the past. As the property appreciates, your quarter share gains in value also. This type of arrangement works great for people that only use their vacation homes part time. In addition, if you can't use it for your designated week you can rent that week and get income from the property.

Like all real estate transactions, a quarter share agreement should be a written agreement between the co-owners to share expenses and use of the property. This agreement specifies that title is to be in the name of the individual owners. Holding title in a corporate, Limited Liability Company or joint tenancy could create tax problems and prevent an owner from obtaining financing. Resort Lenders are now doing fractional real estate loans. If the property is a condo or townhouse, it's advisable to read the existing condo documents to make sure fractional ownership is allowed. In most cases it will be allowed.

Financing is the primary pit fall of fractional ownership. Many lenders don't understand the concept and if the seller of the property has a mortgage, this mortgage must be paid off in full to transfer ownership. Many times buyers of fractional real estate must wait until at least 3 shares are under contract before closing on their transaction to facilitate a complete release of the sellers existing mortgage. This is usually done with a reservation and deposit. When a person buys a fractional with other parties and decides to sell a few years later, any fractional mortgage can be immediately released at the closing.

The final issues to be worked out are provisions for first right of refusals, holding over, default for non-payment, remedies and prohibitions on further "division" of an interest. Also, use of the property, the budget, calendar, furnishings, pets, smoking, rentals, cleaning, property management, and personal storage are items that tend to be property specific. Each group of owners must make their own arrangements and agree on these items.

AnyFractional ownership agreements should be drafted by a knowledgeable attorney since no two are exactly the same.

Make Money in a Slow Real Estate Market

2008-08-05T04:31:00.001-07:00

The world is getting more expensive to live in, isn't it? The cost of living has no where to go but up, up and up. There seems to be no end. So, what can you do about it? Ever thought of earning through property marketing or real estate? If you haven't, then try considering it. It's a great way to earn money. A lot of people have made a living out of it.

How It Works

There are a lot of ways that you can earn money through real estate. You can work as an agent and sell a house or two every now and again. Or you could buy a property, improve it and sell it for double or triple the amount you spent. It may seem like a risky business. But, as long as you have the skill and you have an in depth knowledge about the business - you have nothing to fear.

Getting Started

Keep in mind that 'Little Knowledge is Dangerous'. That is why it is highly recommended that you know as much as you can about this type of business before you plunge head first. Never assume anything. If you don't know something - do your research! Ask the experts. Study all the materials that you can get your hands on. Spend time on the web looking for sites that offer information regarding the world of real estate. You can also further your knowledge by working as a junior agent in a real estate firm. That way you can learn the ins and outs of how to sell a house or a property.

Investing Can Be Steep

The main thing that scares people away about this type of business is the fact that they have to invest a lot of money in order to get started. Some people take out loans while others use their life savings. Some start with their own house. They renovate it, sell it, move to another house and repeat the cycle. The only problem with that last strategy is that life can get nomadic. And not a lot of people want a nomadic lifestyle.

Sell, Sell, Sell

Once you know all you need to know about the world of real estate and you have the financial support to meet your drive. Then, it's time to get started. Start small, think big. Buy a property that you know will attract buyers. Improve on it, sell it and enjoy your revenue. If you get lost along the way just think what Jeff (Jeff Lewis from "Flipping Out") would do.

Real Estate Inventory

2008-08-05T04:30:00.001-07:00

Real Estate inventory is at an all time high PLUS Interest rates are low. A large number of buyers remain in the market, but their behavior is decidedly cautious. For those of you selling in this market, it's important to remain patient, to plan for a longer sales cycle, and to avoid overpricing your home. Buyers in the current market will have a variety of choices, and will have the ability to negotiate favorable contract terms. Get expert representation from an agent who will talk straight about the value of a house or the condition of the local market.

With inventory close to all time highs, anemic sales volumes, rising inflation and banks about to unleash a wave of interest rate hikes; inventory is at the highest levels ever seen. Bargain purchasing will be gone when undervalued strong markets snap back to fair value or even earlier when the knowledge becomes commonplace. The values that went up with the rising tide are now going down with the ebbing tide and there isn't much that sellers can do for the time being. When the market turns, and it will, housing will once again be increasing in value almost everywhere. Real estate has always been a good value and will regain that position again shortly. Property values are rising everyday and the pressure on real estate inventory is always there.

Buyers are anxious to buy, but they want to make intelligent purchases. Buyers are not able to qualify or are unwilling to pay for the mortgage at higher rates. Buyers control the value of the real estate marketplace, not sellers. Buyers, not sellers, determine what the value of a home will be. Buyers return when the risks are accurately priced into the market. The result is a slowdown in sales activity, as the disconnect widens between sellers holding out for high prices and buyers looking for a bargain. But ultimately, more choices for buyers leads to fewer deals being made. Because most buyers in this market are not having to compete against other buyers for the same home, buyers are not having to waive their right to inspections in order to make their offer more attractive. Today, buyers can enjoy more affordable homes, because of the fewer number of investors active in the market.

The Real Estate Market Starts Climbing Again

2008-08-05T04:29:00.002-07:00

During the past couple of years we've all seen a tremendous change in real estate in the country.
This change actually has spread all over, businesses loosing money while gas prices are extremely high.

The real estate market has become a big issue for all of us out there, we've seen many homeowners loosing their homes and struggling to find a home to rent because of their credit.

What happen to us?
Remember the bubble 4 years ago?

That's exactly the answer, from years of prosperity and times of spending, traveling and investing in stocks and real estate, we are now experiencing another bubble but this time the bubble is going in a different direction and we are wondering what to do.

So real estate was going down and it's still going down, some economists say that it will get stable in 2 years from now.

The sellers market became a buyers market, and today we all know it by now.
Investors and renters that saved their money for better days to buy to make money are in the market today, that's making the real estate market busy.

Real estate agents that learn how to change with the market also learned how to make money from the changes, these real estate professionals are making lots of money and while we are all struggling for business they're making the business.

Today you can get a home directly from the banks for almost half the price.
I've seen homeowners that are so desperate that they're willing to give their homes for free, just come and take their loan and continue their payments.

On the other hand, investors are looking to buy homes in bulk, they can get homes $.50 on the dollar.

Some banks like bank of America and countrywide are selling hundreds of homes in bulk to investors at a discount prices.

So real estate agents are busy getting hundreds of listings and reo's from banks, then they're selling these homes at a low price to future homeowners and investors.

It's definitely a buyer's market like we had in the early 90's, so if you're an investor or a homeowner.

This is your time!

The New Real Estate Demographic - Young Single Women

2008-08-05T04:29:00.001-07:00

Now more than ever single women are stepping up to the plate as some of the prime movers and shakers in the real estate market. Currently they make up for nearly 22% of all homeowners, and are beating out their single male counterparts who seems more and more content to remain nestled at home in the family nest before opting get into the real estate market.

If you're a single women heading into the purchase of your first home, here are some helpful hints to consider:

Get Clear on What You Can Afford

With this being your first time entry into the world of real estate, and possibly the largest purchase you've ever made - and by a long shot, you'll want to make the transition relatively easy. You can do this by being very clear on your budget, and setting your sights on something that won't break your monthly budget. Once you've settled in, and are more secure with making ends meet and all the trials and tribulations of homeownership, you can then consider selling and moving up. So, the suggestion here is to be somewhat slow and cautious on your way towards building equity. Start small, and dream big and you'll be well on your way.

Peek a Boo!: Research Hidden Costs

Most young women entering into the real estate market are looking at the purchase of a townhouse or condo. It's very important to educate yourself on how the association you're looking to buy into deals with monthly fees, potential raises in monthly fees (community association dues) and utility costs. You'll also want to know all that your condo fees won't cover, so you can estimate what other monthly/yearly hosts may be lurking about.

Other costs that you must factor into the purchase of any home include homeowner's insurance, property taxes, and home maintenance.

A Mortgage Broker Can Help

A good mortgage broker can demystify the mortgage process and ideally help you leverage and make the most out of your one-person income. Wrapping your head around the myriad numbers you'll be confronted with can be daunting, but a good broker will make all the difference in the world.

Can't Quite Make An Adequate Down Payment : Consider a Loan from Family or Friends

One win-win situation to consider is having a friend loan you the money with an interest rate that's lower than what you'd pay at a regular bank, but higher than what they might receive from similar investments. Another option is to make them a sort of investor, such that in return for the loan you offer them a percentage of the appreciation when you decide to sell.

Don't Skimp On Safety

For most women one paramount parameter in their home search is that the neighborhood or building they invest in is secure and safe. This is a smart way to go and shouldn't be overlooked as you continue the house hunt. In this regard make sure you investigate neighborhoods during all hours of the day and night to see what sort of activity goes on there. Talk to neighbors and find out how safe they feel living there.

Go to the local police station and get solid stats on crime in the area.

Find out if there's and active Neighborhood Watch in the neighborhood.

If you're looking at a condo or town home, thoroughly investigate the safety features included. Many women opt for a unit on the second floor or higher, primarily for a better sense of security and privacy.

Lifestyle, lifestyle, lifestyle

The fact that you don't have a significant other or dependents means you can truly focus on "lifestyle" as your primary search parameter. If you love all the amenities of downtown and have a close group friends there, then by all means look for a suitably urban choice in housing. If entertaining is big on your list of activities then you might want to hunt down a home where the kitchen is the centerpiece.

Buy With Resale in Mind

As much as you need to love the home you buy, you'll want to ensure that you have a good exit strategy. After all, you never know what'll happen in the coming years. A home with easy resale is generally one that is well constructed and maintained, is aesthetically appealing and located in a good, safe neighborhood. Before purchasing find out more about where the neighborhood you're looking in may head in the next five years in terms of development. This will give you a good idea of what your investing in.

Property Management - The Key to Increasing Your Real Estate Brokerage's Income

2008-08-05T04:28:00.001-07:00

With the demand of prime properties worldwide, real estate communities are boasting of profits and capital gains when it comes to their acquired real estate. But despite the knowledge of these investors in the business, there is a way to consolidate as many properties as they can to maximize their profits.

Tenancy in Common or TIC allows the real estate community to share an ownership of a certain property with two or more people. The individual's share may depend on how much they invested on the property upon its acquisition, as stipulated in the deed, will or title for the joint venture.

Advantages of TIC for the Real Estate Community

Real estate community can highly profit from tenancy in common. By partly investing on one property with another investor, the person may allocate their money to other investments which allows them to double their total earnings, rather than sticking with one real estate alone.

Also, the law states that those who are into TIC should equally contribute to payments of expenses depending on the percentage of their shares - this includes expenses such as rent, services (lights, water and communication), and so on. Though repair and construction responsibilities are not shared, but depend on the co-owners who wish to have them done. This allows each individual in the real estate community to lessen their cost of expense which gives them more flexibility in managing their finances.

Real Estate Community Concerns

Though most big-time real estate community investors deal with property acquisition on their own, the main concern however is still on the profit to be had on the venture. Commercial investors on real estate will not dish out any money for the property if there is no profit or capital gains to be had - the risk is just too much for one person to handle on their own.

Right of survivorship doesn't exist in a TIC agreement. In other words, the share of the property or estate will be passed on as inheritance to the heir as stated on the will or any legal documents pertaining to the joint venture. In this case, the risk of losing the share of the real estate acquired will be lessened, or face legal sanctions as dictated by the Court.

But with TIC, the risks are divided according to the number of individuals in the joint venture. If one of the party wishes to "destroy" the tenancy in common, they can do so in two ways: 1) the party can obtain a "partition of the property" which will divide the land into distinctively owned lots, if permitted by the State; and 2) the Court may decide to force a sale of the property and divide the proceeds according to the percentage of each individuals' investment.

How to Interview a Real Estate Agent When You Are Buying Or Selling a Home

2008-08-05T04:25:00.002-07:00

Most home sellers and especially homebuyers have no clue as to how to interview their future real estate agent. You have the right to have someone represent you as a buyer client even though the seller pays the commission. This is called buyer agency. Most states require that you sign an agreement in writing that you want representation. This document can be terminated so you don't have to feel that you have hired someone that is not worthy of your business.
Hiring the right agent is tricky because your motive is not always their motive. Your motive is to find the best house. Their motive is to make some money from your transaction. So, follow the steps below to hire the best real estate agent for you.
Questions to Ask and Ideas to Follow to Find the Best Agent:

1. Question: How many transactions have you done in the last 6 months? Answer: If the answer is less than 6, keep looking. Less than 6 transactions mean less than 1 transaction per month. This person is rusty at best.
2. Question: How many seller clients and how many buyer clients do you have presently? Answer: Should be at least 4.
3. Question: What is your game plan for finding me the best house OR the best buyer? Answer: Should be thought out and not winging it.
4. Question: What are your business hours? Answer: It should be real times of the day and there should be a cut-off point. Agents who over-service their clients are not working with enough clients to have experience where experience counts - transactions.
5. Question: If I don't like your representation, what are my options? Answer: Should have precise step-by-step answer to exiting the written agreement.
6. Question: Do you have a partner, assistant or a team? Answer: You have to decide if this is important to you. Many buyers and sellers tell me that they were frustrated with their "one-man band" agent when they got sick, took vacation or had another client for the day when they wanted to see homes or when their offer came in.
7. Question: Do you have another job? Answer: Again, you have to decide. However, if you are needy or a typically demanding person, you will not like this person calling you after they get off work or you having to call them at "their other job".
8. For Sellers: Question: How do you feel about the St. Joseph Statute? * FYI: The St. Joseph statute, myth or not, some people firmly believe is a contributing factor or the sole reason that their house sold. Answer: The point is that you do not want an agent who is stuck in the box. The agent should have the opinion that they will do whatever it takes to get the house sold and will consider all options.

So, take your job seriously when interviewing both a buyer's agent and a listing agent. Don't just think that you have to use your good friend that just got their real estate license last month because you have gone to church with her for the last hundred years. Be serious about the professional that is going to represent you and expect professional results.

Understanding Volume Real Estate

2008-08-05T04:25:00.001-07:00

Volume real estate transactions often baffle the average agent. In fact, the average agent is lucky to close 20 transactions in a year, which equals only 1.5 transactions per month. And yet, it would be highly unlikely that there is a need to spend 160 hours on any transaction. This stems from a lack of processes, no boundaries when it comes to time with a client and a lack of common sense about what it takes to work with too many clients at one time.

It is a fact that in the traditional world of real estate, many agents believe that you should make client calls until you can not reach the person that you are calling. That could be midnight and sometimes later if you are negotiating a deal. Why?

This misunderstanding of the profession leaves the agent using their time inefficiently, with no boundaries and often you hear that the agent is burned out. They need a vacation. But oh no, the agent can not take a vacation, they have a client that needs them. And this is the agent that is lucky to do 20 transactions per year. Yes, it yielded them into the Million-Dollar Club, but it has not yielded them an income that is sustainable or a life that is balanced.

What is Volume Real Estate?

In a nutshell, volume real estate is working with so many clients that if one flakes out on you and does not sell or buy a house; it does not effect your performance or income. Simply they are not needed. Volume real estate is a conscious decision to accept as many clients as you can and that you will figure out if you need help with them later, while you are in the game, not just thinking about the game.

Volume real estate recognizes that you must be marketing all the time, not just when you decide that you need more clients because you have just closed your pipeline or it has dried up. A volume real estate person overbooks himself or herself knowing that they have team members that can help out if needed. Volume real estate is where you make money that you didn't even know was possible because you have a process that is smooth and has very little or no flaws.

Volume real estate has boundaries that say when you close for business, when you re-open for business and ultimately this will allow you to go on vacation. Volume real estate is the wave of the future if the wave is not already on us. The question is, will you go under with the wave or will you ride the wave?

How Do You Do Volume Real Estate

1. Learn from someone who has perfected volume real estate. Someone who carries hundreds of listings at a time, not tens of listings or less.
2. Stay away from naysayers and others who don't want anyone to succeed, including themselves.
3. Understand that you can never service someone in real estate, you can only support them to make a decision that is best for them. You have no power.
4. Stop feeling worried for people who have gotten themselves into financial messes.
5. Stop feeling guilty for charging people too much money and charge less - the real fee that it costs you to do business. In other words, instead of clubbing 20 people to death for your annual revenue, just pinprick 2,000. You'll make more money and your clients will save more individually, allowing them to accept more offers, quicker.
6. Make yourself referable so that your clients can actually refer you to others.
7. Build processes that keep everyone on the same page including the clients.
8. Stop over servicing people to feel good about yourself.
9. Stop underestimating that people can't do things for themselves like fill their own flyer box.
10. Stop overcharging clients because you don't have enough clients - get more.
11. Stop over-promising clients and delivering less results than promised.
12. Stop over-promising clients and resent your over-promise.
13. Set boundaries for your personal life that you are willing to enforce and let those spread into your business life.

Recognize that real estate needs for sellers and buyers have changed and get on the band wagon of people who are making millions while you are making less than you imagined or feel you deserve. Don't just make enough to pay your bills, make real money.

The Art of Negotiating a Real Estate Contract

2008-08-05T04:24:00.000-07:00

Well, this seems simple enough - don't lose your shirt. All kidding aside, most people don't know how to negotiate a contract, or at least one that they won't regret later. So, here are some guidelines to making a sound decision while making some money.

This article is for home sellers, but you homebuyers, just reverse the ideas here. These are very black and white suggestions so don't attempt to make them grey just because you want something today that you might not want next week.

Simple Steps to Winning or Let's Say Making a Win-Win

1. This is a business transaction. Keep your cool. How do you do that you might ask? Well, the first step is to remove yourself from the idea that you might be selling your home to someone that you don't like, that the neighbors don't like or someone that you said you would never sell your home to. Ignore all of those feelings and realize that you are selling your home. Period.
2. Leave all prejudices about certain people at the curb. Most buyers who are in your home CAN afford your home and with certain guidelines stipulated in the contract, you will soon find out if they will buy or not.
3. Look at all monetary concessions as just that, a concession. Figure your bottom net with the money that is offered. Don't forget that you will most likely have a negotiation period and that you might give up some more money after the inspection. Use your gut to figure out what that amount might be, or do a really smart thing and have your home inspected before you put it on the market so you know what to expect and so you can have any necessary repairs made prior to going under contract. When you make repairs prior to attracting a buyer, they can scheduled with the contractor of your choice, and not just who's available, and at a price pre-determined, not one set with you over the barrel of needing to close in 2 weeks.
4. Don't take the buyer's requests that are personal too seriously. This goes with step 3. For example, many times buyers request that the home be professionally cleaned. This does not mean that you or your wife that has stayed home and kept house weekly for the last 12 years is a bad housekeeper. Just figure the amount of money that it will take to bring in a cleaning crew and add it as a concession.
5. Really focus on your selling price and bridging the middle with the buyer instead of all the piddley stuff. So, for instance, if you are asking $250K and the buyer makes an offer at $230K and you can sell for $240K, figure the concessions and make an offer that will yield you $240K, but make sure that you list the concessions and at what price they are worth to you. An example may be if the buyer wants your refrigerator that you got last year. You paid $1800.00 for it then and figure that it is worth $1250.00 now. List that for the buyer to see so that they know where you are figuring that concession to be valued.
6. If the buyer really wants a closing date that will be inconvenient for you, consider moving that date with help, if they pay more of a sales price.
7. Home warranties help with negotiation of inspection items. Make sure that you know that this is an option and what it covers to ease the buyer's concerns. Most home warranties have a deductible of around $55.00 per occurrence. If you have a hot water heater for instance that is old, but still works, and the buyer is asking for a replacement, tell them that you will pay for the warranty and give them an additional $220.00 for 4 visits under the warranty.
8. Anything that you have to say to the buyer should be on a cover sheet with your counter offer and faxed with the offer and never left for your agent to translate. Speak to your buyer directly when you can.
9. Make the buyer feel good by offering to serve them lunch in advance during the inspection and tell them that you want to share with them all the important stuff about the neighborhood at that time and that you will also ask your neighbors on the right and left side to come over and introduce themselves at that time too.
10. Any qualification for a loan should be rushed and if the buyer is already approved, not pre-approved, you should consider taking less money for the house (just a little) and treat this buyer with kit-gloves. I know that this counteracts some of what I said in number 2, but you will understand when you are in the transaction.
11. Use very tight timeframes for both you and your buyer to respond so that your buyer does not cool off. You really have to focus during this time to push the contract through to binding. If your agent will agree, ask them to conference call you and the buyer's agent and possibly the buyer in at the same time to talk about any issues. That way there is no resentment on what might not have been said. This way your wishes are clearly conveyed to all parties. Again, nothing will get lost in the translation.

Remember that negotiating is fun and should not be stressful. If you are stressed, you are either judging the buyer, you are not looking at the transaction as a bottom line net or you are taking the special stipulations or requests too seriously.

Real Estate Agent - What is It?

2008-08-05T04:23:00.002-07:00

A real estate agent is a person that is used as an expert to facilitate the selling of real estate. In my opinion, a real estate agent should be open to new things, including innovative marketing ideas and cutting-edge changes that impact buyers and sellers. A real estate agent should be someone who listens to buyers, sellers and renters to figure out what the public hates about agents and proactively make changes in their own business plan accordingly. A real estate agent should have business hours that are applicable to other professionals that are paid thousands of dollars per transaction.

A real estate agent should practice their skills by using them everyday. A real estate agent should not be part-time in the business. This means they should not have a full-time job and sell real estate when they need some extra money. A real estate agent should be skilled at keeping their cool when something goes wrong. A real estate agent should be professional and never hang up on a client or another real estate agent, no matter what was said or done.

A real estate agent should be responsible to learn, understand and keep up with all marketing tools that could and probably should be employed in selling or buying a home. The fact that a real estate agent is "not comfortable with the Internet" when most homes are now sold via the viewing on the Internet by a buyer is no longer an excuse. A real estate agent should be diligent about understanding modes of communication and marketing via every type of media from which a buyer can search and ultimately buy a home.

A real estate agent should not have to turn on their fax machine when they return from the store. They should be in business, full-time, and be set up to do business anytime inside their business hours. A real estate agent should not leave town without backup and just leave a deal hanging as a result. No one cares that the real estate agent is on vacation other than the agent himself. A real estate agent should never tell a seller that open houses don't work, when in fact, open houses sell properties, everyday. A real estate agent should never be so in-the-box that they laugh at someone for discussing the use of a St. Joseph's statute. They shouldn't scoff at the fact that apple pie scent may or may not sell a house just because they don't want to go to the trouble to explain what may or may not work to the seller.

A real estate agent should not cry when a seller tells them that they no longer want to sell their home or that they are not going to use them to sell the home. A real estate agent should not steal yard signs from lawns or directional signs from subdivisions just because someone did not choose to list the house with them but a competitor. A real estate agent should not bash other business models. They should simply point out the things that they bring to the table and why they feel their business model works better.

A real estate agent should not open the house for a buyer and let them stay in there alone, just because the buyer looks nice. A real estate agent should always look at the identification of a buyer because they recognize that they are responsible for the seller's property. A real estate agent should always be grateful that someone is willing to pay them thousands of dollars for a job that has never been fully explained to the public as to how little knowledge an agent needs and how little you're trained when getting your license.

America is unfortunately the only place where all of these standards, or should I say the lack of standards, are applauded everyday as good and acceptable behavior. The public needs to be reminded that an overwhelming number of inexperienced, part-time real estate agents hold in their hands the fate of most people's largest asset. When will we put our foot down and say enough is enough... real estate is a real profession that requires skill, knowledge and a constant reach to perform strategies and results for clients.

The Seven Secrets to Financial Empowerment

2008-08-05T04:23:00.001-07:00

As you work to fulfill your dreams in the field of real estate investing I want you to embrace your future and do everything in your power to help ensure your success despite the challenges you'll face along the way. I've identified 7 financial keys that can unlock the door to success for you and others you may come in contact with along the way.

There are a lot of things you can do every day that can help determine whether you reach the pinnacle of success or remain in the valley of missed opportunity, but very few things will figure as prominently as your finances. Financial gurus got it right when they say that if you don't control your money it controls you! Here's how to regain control of your financial future one step at a time.

Control Your Spending - By taking control of your spending you can have a much bigger say in the types of deals you have available to you. This process starts with having - and sticking to - a realistic and attainable budget. I'm not suggesting you should sell your TV and hit your kids up for gas money in exchange for taking them to t-ball practice. What I am saying, however, is that if you're clear about exactly where your money goes you'll have more control over reducing unnecessary, frivolous expenses. Think before you say, "Charge it!" If you don't really need another John Tesh video - don't buy it! Sooner or later Blockbuster will have it for 49 cents.

Control Your Debt - In many ways this goes hand in hand with controlling your spending because for many investors (especially brand new ones with unrealistic expectations) their first inclination is to whip out a credit card for routine purchases. By keeping your balances low you free up additional funds for additional property purchases. Not only can credit cards charge hefty interest rates, they make it very easy to spend more than you otherwise might. Fast food restaurants don't take plastic because they're dedicated to superior customer service. They want to make it as easy as possible to Super Size - your waist line and their bottom line.

Control Your Saving - By getting into the habit of regularly setting money aside for a rainy day, you can systematically build a rainy day fund that you can tap into for unplanned expenses. By having 3-6 months of expenses in an interest earning money market account you have cash available in case of a short term need. If you have this cash you can take advantage of more property opportunities. Sometimes a seller will agree to your terms if you can meet their need for cash. If you have a few thousand dollars sitting in an account you can access it quickly and still get a lucrative deal while it's still available!

Control Your Habits - I don't want to offend anyone here, but it's very easy to have expensive habits that can reduce the pool of money you have when you need it. It could be $4-$5 cups of coffee, cigarettes, or other substances. Aside from the potential long term impact some habits can have on your health, they can also take money away from your investing activities. Take control of the kinds of things you spend your money on. You'll be surprised by how much extra cash you can come up with after just 30 days!

Control Your Giving - There's nothing more empowering and fulfilling than giving money away. You want to make a regular habit of giving to charities or organizations you believe in. But it is possible to go overboard by trying to help too much. There is a direct connection between giving and receiving - just make sure you really believe in the organizations you're giving your money to!

Control Your Time - This is one of the most difficult areas to control because time is a commodity that is in such short supply. It's very easy to waste countless hours in front of a television set or hunched over a computer surfing from one web site to another. By taking control of how and where you spend your time you can financially empower yourself by freeing up precious minutes - and hours - for more lucrative opportunities. A great way to save time is by outsourcing routine or mundane tasks to others. Not only will you close more deals, but you'll have more free time for your family and leisure activities you enjoy.

Control Your Thinking - You should get motivated and fired up every day! Instead of listening to negative people complain about high gas prices, inflation, or politics, tap into a good motivational book, CD, or seminar that will do something for you other than raise your blood pressure. Unless you're a member of OPEC or on the board of an oil company you can't control prices. However, by controlling your thinking and your thought processes you can build your own cartel of real estate investment properties!

These are just a few things you can do to financially empower yourself. Put these into practice today, perfect them - and make them your own! The secret to financial empowerment is really no secret at all. The secret lies in actually applying them in your life today and make tomorrow lucrative. Start now and live the life you've been dreaming about!

Everything You Want to Know About Real Estate Wholesaler Fees

2008-08-05T04:22:00.000-07:00

I've been getting quite a few questions about how wholesaler fees work, how much they are, whether I need to be licensed or not and so on. So, I figured I would take some time to address these questions formally in an article.

What is a real estate wholesaler fee?

The fee a wholesaler earns is the difference between the price you, as the wholesaler, put the house under contract for, and the price you sell it for to your end buyer (whether that is an investor or a retail buyer). So, if you put a house under contract for $100,000 and sell it to another investor for $110,000, the wholesale fee is $10,000.

Do I need a real estate license to earn these fees?

If you are putting the house under contract yourself and then selling your rights to the contract, then it is my understanding that you do not need a real estate license. I am not a lawyer though, but that is how I understand it.

Do I earn a commission on the sale?

No. Commissions are for licensed real estate agents or brokers. You earn the difference between what you put the house under contract to buy it for and what you ultimately assign the contract for.

If I am part of your wholesaler program, do you get part of the wholesale fee?

Not automatically, no. You can use the articles, tools, and courses that we have on the Wholesaler Control Panel (part of the Wholesaler Network program) to learn how to wholesale and not pay us anything. So, you can wholesale the deal completely on your own and not pay us a thing.

This is optional: If you want us to send the deal out to our list of investor buyers, you must agree to pay 3% of the total sales price (not to be confused with the wholesale fee you collect - these are very different) to an agent that brings the buyer. Whenever someone inquires about a deal submitted by a wholesaler from the website, we send that buyer with a licensed real estate agent representing them to buy the property. The 3% commission goes to that agent. In case you are wondering, we are usually, but not always, paid part of the agent's commission.

This is also optional: If you want us to participate in the deal and help you via the telephone, then we do offer that on a 50/50 split of the gross wholesale fee. This is primarily for new wholesalers that want someone to walk them through their first deal (or two or three). It is not required in any way, but if you need someone to walk you through the process, we do offer this as an option. We will NOT do it for you; this is for you to learn how to do it and we then split the fee. I can do these types of deals on my own and earn 100% of the wholesale fee so there is no incentive for me to do it all for you.

How do I collect my wholesale fee?

There are several variations, but you can collect it directly from your buyer or, more commonly, collect it from the title company at closing.

Property Sales - It's Not a Boom Anymore, But Why the Doom & Gloom?

2008-08-05T04:20:00.000-07:00

Most of the western world, if not the entire first world, seems to be reporting that property market price inflation is decreasing or stalled. In the worst-hit areas we even hear tales of a lowering of house prices and negative equity for some unfortunate new homeowners who jumped on to the property bandwagon at the peak of the recent property boom. High Street inflation never lets up, so it's natural for property investors large and small to feel that the end of the world is nigh.

This state of mind is undoubtedly an over-reaction. The human psyche drives modern man to ensure he has a place he can call home in the shortest possible time after leaving his childhood days behind in the former family house. Fair enough - but does this man of our times actually have to own his home outright, in theory at best? And more tellingly, does this man have a god-given right to expect that with home ownership comes enough lifetime's wealth to be able to retire from working for an income at his chosen time? The latter scenario is a common desire, and it is based upon the premise that property values will always rise faster than other commodities.

We are now finding that we have come to the end of a period where property value inflation was outstripping general living cost rises. But we should not be surprised because we have had these ups and downs before. The general trend though is that property prices commonly rise again fairly rapidly after periods of stagnation. It's all about supply and demand.

The demand for new homes or at least of people looking to move house will never cease. Why? Because many old homes become dilapidated for a start. Then we have the new young families who need their own space and cannot expand into the limited space of parental homes. On top of that, the modern world economy relies upon many workers who must be mobile throughout most of their working lives, thereby prompting housing development and property transactions countrywide and often internationally. And don't forget those that choose to upgrade or downsize by choice due to family or personal needs.

What about the supply side? The builders can't build fast enough in boom times because handsome returns on their property investments are almost guaranteed. If land banks are purchased just prior to a stalling of property prices, then naturally there is no rush to build and sell at reduced profit margins. So any oversupply rate reduces until it balances demand. This is the period being experienced in many parts of the US and Europe at present.

As soon as a local property market detects increased demand, sellers start hiking up prices and builders and developers start building. So the conclusion is "don't panic" and take some time to reflect on why existing homeowners feel uneasy every time this cycle reaches its low point.

Property is a reasonably sound investment, and it gives the buyer the obvious immediate attraction of having somewhere to live (or work in the case of commercial premises). However there are other ways to exist comfortably which don't involve organizing your life around the demands of meeting hefty monthly mortgage repayments and fretting about why the value of your property doesn't always rise at a consistent rate.

Many young people are opting to rent property. The so-called home-owning critics immediately shout that house rent is "dead money". To a degree, yes, but if renting frees up income to invest in markets which don't fluctuate in boom & bust cycles, then isn't the oft-struggling homeowner something of a hypocrite? And who actually owns the majority of private domestic homes anyway? If a homeowner misses a mortgage payment you soon find out that the big financial institutions cold-heartedly treat lenders as no better than tenants of real estate upon which their businesses are founded. And furthermore, as tenants with much less rights than conventional renters of property who have fair and equitable rental agreements to rely upon in times of hardship.

It's interesting to note that in previous generations the majority of house dwellers were tenants, particularly in towns and cities. Most homeowners can probably quote that their parents or grandparents lived in rented accommodation, and that is a reason why they strive to ensure that they and their dependents have the security of home ownership. What security, if you worry about why your investment and lifestyle is not always as good as you dreamed? Our ancestors survived, without the disposable income levels of today, so perhaps the property rental option should not be dismissed so readily.

Maybe the biggest lesson to be learned by property investors when global economy growth recedes is that only a few property types are guaranteed to grow in value (in the longer term) at a rate generally in excess of other inflationary factors. These are the well-maintained properties in desirable locations whether they be urban or rural. Funnily enough, my experience tells me that these properties are likely to fall into the cheaper price category or the other extreme, the high-end luxury home. The middle range property, by its very nature, forms the bulk of property sale listings, so the seller struggles to promote his property above the multitudes of similar priced homes or sites.

I suppose it can be summed up as follows:

• First-time buyers, transient workers, students and 2nd home buyers will always provide a ready market for low-end "affordable" property, particularly in urban settings.
• High earners will always want to upgrade to luxury properties in secure and private surroundings, particularly in established districts of like-minded people.
• The rest of us, by far the majority, continue to buy or rent in the mid-price range through necessity of location or finance limitations and a natural desire to match or slightly better our neighbors' lifestyles.

The exclusive luxury homes and the lower-end smaller properties are instantly brought to the fore from hundreds of listings by easy-to-use search functions which detect price range and/or location. The more attractive middle range properties also benefit in that household features and property type listings enable the website browser to easily compare the best value for money of numerous properties in a chosen location.

In Ireland, I can report that Property Agents say that Property Portals have contributed greatly to stability in the mid-price range domestic property market. Sale closures in this category, for sensibly priced houses, are regular and commonplace, thereby propping up the market in general. This contradicts the doom & gloom reported in the media, no doubt created by "worried" homeowners who aren't even active in the buying and selling of property. The lazy expectation that easy money can be made simply by buying and living in a home for life smacks of greed, not reality. These merchants of doom should be ignored. We also read in the press about the owners of expensive houses for sale having to dramatically slash prices to arouse interest. Probably, not maybe, the asking price was unrealistic and based upon outdated market value. The eventual selling price of a luxury home will still have made the purchase a sound investment if it was bought at any time except the very peak of the recent boom. Again, I can report in Ireland that Agents say that there is still a waiting list for desirable upmarket properties. The best of these homes are sold via website mailing lists or by the uploading of the property brochure to Propertysteps.ie and similar internet property portals.

For a fraction of the cost of press advertising, our best value for money website gets quick results. Often you never even see a For Sale sign being erected for property in the more exclusive address category, yet new occupiers appear and everyone involved in the transaction is delighted. You don't read about these everyday success stories in the media; it appears to me that only boom, doom or gloom stories sell newspapers when the local economy is discussed.

How to Be a Successful Real Estate Agent

2008-08-05T04:19:00.000-07:00

While it's true that the real estate market isn't in the best shape right now, a successful real estate agent can still earn a handsome income buying and selling property. True, certain real estate markets are in a slump right now, but prime land and properties are always in demand. Here are a few success secrets to maximize business in real estate.

Get to know the market. Right now it's a buyer's market, which means that sellers are having to unload their properties at prices that are under traditional market value. To be a successful real estate agent in a buyer's market you have to act quickly when an opportunity arises to grab a piece of prime real estate. The key to maximizing your profits in any business is to buy low and sell high. And with real estate prices being especially low right now, it's a perfect time to make those deals that will pay off once the market rebounds, which it always does.

Pay attention. When the real estate market is slow, as it is right now, many outstanding properties sit on the market because people are afraid to buy. Take a look around and see which properties may have been on the market for a long time. Usually, the seller is tired of waiting, and will be more open to any reasonable offer. Being a successful real estate agent means seeing opportunities where others don't. But you can't find these opportunities if you're not out looking for them.

Look for fixer-upper opportunities. Traditionally, properties that require a lot of work don't sell well simply because most buyers prefer to have a home that's ready to move right into. It's the same reason most people don't buy cars that don't run right. However, there are some amazing deals to be made for someone who can buy a property that needs work at a low price, put a few bucks into it and then turn it around for huge profits. If you've ever seen the hit show Flip This House then you know that there's money to be made doing this. Just be careful; you won't make money trying to flip a home in a run-down neighborhood - in fact, you'll probably lose your shirt. If you take a look around there are plenty of properties in well-to-do neighborhoods that need more work than most buyers are willing to put in. Target these and you'll reap the rewards.

There are many more success secrets to maximize business in real estate that can be explored. Simply put: The reason that so many people choose real estate to build wealth is because property is always in demand. It's a market that will fluctuate like any other, but will never go away.