Posts Tagged ‘investment’

How Real Estate Investment Models Have Changed to Produce Higher Returns

Author: Darin Garman
Source: ezinearticles.com

One of the things that I spent a lot of time on at my recent Investor Discovery Day Event was the change of investment models. One thing I suggest with all of my students is you need to be looking for other ways for commercial investment real estate to make you money.

If you are just looking at finding an apartment or commercial investment property, purchasing it, and holding it for cash flow and then forgetting about it you are making a huge mistake. Why? There are many other ways that you can make money with apartments and commercial investment real estate. I call them alternative ways. Or if you like-Alternative Ways To Cash Flow Apartments and Commercial Investment property.

One of the first exercises you need to go through when you are buying and even when you are selling for that matter is asking yourself the following question. “What other ways can I make more or the same amount of profit, cash flow or sales proceeds from this transaction besides the typical ways? What am I NOT thinking of?” After you ask yourself this question you then write down a minimum (yes minimum) of 10 other ways to make money from your purchase or sale. Take your time and write these down. What helps me is I think in stages of what provides the most cash flow, what provides the most cash now or what provides the most predictable rate of return, what provides the most tax savings, etc. If you think in these stages you will many times come up with at least two or three MORE ways to profit from the purchase or the sale of the commercial property or apartment building. What you will find many times is ways to make even MORE profits than your where your current path is going to take you. Of course, you will have times when you go through this process you will come up with nothing, however, if you can make as much as $50,000 profit isn’t it worth 45 minutes of your time to spend on it? I mean this is how to make $50,000 an hour isn’t it?

This is how some of the most successful entrepreneurs (many of which occupy the Forbes 400 list) have gotten really rich. Not just well off but I am talking rich.. What they did was take a look at the NORMAL way something was done and either came up with a new way to do it OR they came up with a slight variation of this. By looking at it a bit differently in many cases they became geniuses.

Now, if you want me to let you in on a secret that will earn you an additional $10,000-$100,000 in profits this year here it is. Treat your real estate investments like a business and look at these investments like these entrepreneurial geniuses did. The good news is that it really does not take a lot of effort on your part. Just thinking.

As Earl Nightingale said the biggest problem with people is that they don’t think. The biggest reason they are not as successful as they would like to be, in any venture, is that they do not think. Just spend time and think. What OTHER ways can I make money with this property??

APARTMENT & COMMERCIAL INVESTORS ONLY: FREE NO MONEY DOWN REPORT & TELESEMINAR “How to Buy Apartments and Commercial Real Estate With No Or Low Money Down.” Darin Garman Shows You How Based On $411 Million in Experience. Click Below And Get This Free, No-Obligation Report Emailed To Your Inbox Today. Investing In Commercial Real Estatehttp://www.MyPlatinumClub.com/wealthy-investors

Acquisition and Sources of Real Estate Investing

Author: Charles Pettybr
Source: articlesbase.combr
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Real estate investing is the involvement of management, purchase, rental, sale, or ownership of a real estate that can be used as profit. Real estate development is the improvement of a specific realty property as part of the strategy in the investment of real estate. This is generally considered as a real estate sub-specialty. Relative to the other investment kinds, real estate is a form of asset that has fixed liquidity. Real estate also is also regarded to be capital intensive and is highly dependent on cash flow. These factors must be well managed and understood otherwise the investor gives himself risks. One of the main causes for investment to fail in dealing with real estate is because the investor experiences a zero cash flow for quite some time wherein the amount can no longer be sustained, this will result to a forced reselling of the property gone into insolvency. Acquisition and sources Acquiring and looking for sources of real estate is not hard although the real estate market in numerous countries are not that efficient or organized compared to other having instruments of liquid investment. Individual properties are not interchangeable and are unique by themselves. This presents one big challenge to investors who want to evaluate investments and price opportunities. This is one reason why when searching for properties wherein one can invest in, it involves competition and substantial hard work among the investors to be able to purchase properties. This will be variable depending on the availability knowledge. This provides a lot of opportunities for the investors to acquire properties at cheaper prices but poses an increased risk in terms of transaction. Investors of real estate usually use a number of appraisal methods in order to figure out the value of the property before the purchase. Sources of properties for investment include:  Agents of real estateMarket listings Private sales Public auction Wholesalers  The moment a property fit for investment is located, the investor will negotiate a sale price and terms with the one selling the property, then after the business talk, the contract for sale will be executed. In order to be assisted in the process of acquisition, the investors can sometimes employ attorneys or agents having the knowledge about real estate. This is due to the deal that acquire a real estate posses a lot of complexes which may lead to a very costly deal if executed improperly. During property acquisition, the investor makes an offer to buy the reserve of the investors right to complete their transaction upon satisfactorily negotiating with the latter. This reservation money can be refunded or not and is a sign for the investors willingness and seriousness to purchase the property. The terms for the offer in real estate investing include several contingencies that allow the investor sufficient time to complete diligence and acquire financing before the final purchase. During the contingency period, the one investing usually reserve the right to abolish the offer with no attached penalties and accomplish refund on money deposits. Once the contingencies expired, rescinding usually requires the forfeit of money deposits and may sometimes leave penalties as well. That is why, to avoid such penalties, the investor must have a great deal of understanding and knowledge on the venture that he has to overcome. Legal advises from people having investing backgrounds will greatly help to lessen the risk. br
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Making Profits In Real Estate

Author: Paul R Wilson Jbr
Source: articledashboard.combr
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We have all seen people making fortunes by investing in the stock markets and at the same time millionaires turning into paupers. This rarely does happen with real estate investing. There are living examples among us that some of us may or may not be aware of. A good example is the properties we inherit. The values of these have been growing all these years with appreciation annually. The investment was made years ago. Over the years the increase in the property value is the returns that we are benefiting from these days.

Real Estate
A Real Estate is a piece of land with all its natural resources and more often than not contains a building of some sort. You can take any type of building that is either a constructed or a manufactured property, however an immovable property is always permanently affixed to the land.

Why The Rush To Invest In Real Estate?
#61623; Falling stock market has generated fear psychosis among the investment community reminding them of the Great Depression.
#61623; Failing pension system with growing inflation has added to the woes of the retirees and employees.
#61623; Lower interest rates have compelled the money to be diverted somewhere else for higher returns.
#61623; Moreover banks are willing to extend loans for the purchase of land and buildings at lower interest rates.

How Lucrative Is The Real Estate Business?
Real estate has wide options for making money; one being to buy and either hold it or rent it. Likewise other benefits are:
#61623; With the rents from the tenants continuous cash flow is guaranteed.
#61623; Mortgage loans from banks help in buying with or without personal investment.
#61623; In case of mortgage loans, the cash flow by way of rents will continually reduce the principal borrowed.
#61623; Improvement of the locality will in turn increase the value of the property overtime.

Statistics reveal that housing is a low risk investment. Gauging by the market trend the average market value of the homes has risen by 50% in the past 10 years. The wealth earned from the real estate investment has surpassed that of the stock market returns indicating the faith of the investors in real estate. This is a sign of an upward trend in the days to come.

Havent we all heard of our neighbors making big bucks in real estate very often? Every now and then we see some one selling off a home or a real estate property in a week or two of buying it for a big profit. Every one of you, like I, must have thought real estate is where quick money is. But is the market quite so? Can anyone make quick money by investing in real estate? Unfortunately, it is not quite so, although we rarely, if ever, hear people loosing money in real estate investment.

Making quick money is something that takes a lot of preparation and planning before investment, when you are invested and when selling or closing the deal. Further more, the investment amount is not small too, which no one can ignore. A slight mistake in prediction or a change in the legislation concerning real estate property or tourism or industry sector has the potential to turn over the whole real estate economy on its head resulting in wiping out of your capital too.

Any real estate broker would vouch for this fact. Take a scenario, for example. These brokers, in addition to brokering deals, also enter into contracts with sellers for selling off their property by making a down payment, which obligates them to sell at higher than the contracted price. Federal housing loan rates have revised now and there prevails a real estate slump, which is unforeseen. Wealthy brokers can wait till turn around of the market and still make a profit but they are still tied down by the blocked money. The case will be worse for smaller players with this condition.

Similarly, speculative investors are either forced to sell at loss or wait for unknown periods of times. The burden of interest you have to pay if you invested borrowed money might eat into your capital too, if the slump prolongs.

Unlike in stock and shares investment arena, you dont have enough instruments in real estate to spread your risks and investment. All is fine when market booms but tough gets the going when things go awry. Lesson: longer you are invested better will be the return; no room for quick money, in general./pbr
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Ongoing Opportunity in Canada's Real Estate Sector

Author: Rhiannon Williamson
Source: download

The Canadian real estate market is a market for all seasons because while the country’s property market is definitely cyclical, it’s always possible to profit from real estate in Canada if a property investor times and targets his investments correctly.
In Canada, depending on the position of the real estate market cycle and the area of the country a buyer is interested in, an investor can either buy into long term growth, short term gains or sustainable income.
When the property market is riding at all time highs as it is in Canada in the main cities currently, an investor is unlikely to be able to make short term profits in a market saturated with supply and struggling for demand?however, in such a market where first time buyers are unable to afford the first rung on the real estate ladder there are buy to let opportunities for the investor able to afford the outlay to purchase in demand rental accommodation.
Those who can purchase apartments and town houses in the most popular rental districts in Canada can buy into a sustainable rental income and enjoy capital appreciation on their real estate asset over the longer term. When there is a slow down in demand for property to buy there is often an increase in demand for accommodation to rent, this means that rental rates being charged rise and an investor can achieve an impressive income at such a stage in the cycle of the property market.
When the real estate market cycle in Canada begins to shift after a period of slow down, stagnation or negative correction that effectively makes property prices more affordable in real terms, the demand for real estate to buy increases and supplies diminish. It is at times like this that an investor can target the fastest moving sectors for the fastest moving gains and make impressive short term gains or substantial longer term improvements.
Another reason that makes the Canadian real estate market a market for all seasons is the fact that there is a constant supply of ‘new money’ in the property market because of the popularity of Canada with expatriates. Annually Canada welcomes thousands of new residents and these people bring fresh money and demand to the real estate market which means that there is always an inward flow of foreign sourced investment to boost the property market.
Finally, the fundamental attraction of Canada as a country for real estate investors is based on the fact that any investment made into the Canadian real estate sector is an investment made into a solid, tried and tested well established market. A market where there is and will remain constant local demand for real estate to rent or buy, and where there is a constant annual inward flow of foreign sourced income to boost the entire real estate sector.
Rhiannon Williamson writes about real estate investment. To read more about real estate investment in Canada click here.

Why is China's Real Estate Sector so Popular?

Author: Rhiannon Williamson
Source: download

The Chinese real estate sector has rapidly grown in popularity with international property investors who seek maximum diversification within their portfolios because the real estate market in China is in demand locally and internationally and demand spans both the commercial and residential real estate sectors.
This means that there is maximum room for profits, income and gains from Chinese real estate which makes it an intensely attractive commodity for investors.
The Chinese government are also keen to attract foreign investment into their country and began easing many restrictions to smooth the path for those interested in purchasing property in China back in 1998. Their efforts to boost their economy through the promotion of foreign direct investment proved almost too successful and resulted in the government fearing that speculators would strip the property market of stability. As a result the Chinese government have now made it more difficult for investors to realise short term gains from the property market. Because of this fact the market is now less popular with those real estate investors looking for short term gains and more popular with those looking for a stable market with massive potential for demand and expansion over the medium to long term.
In terms of foreigner’s rights when it comes to owning real estate in China, all overseas buyers are protected by Chinese law but actual real estate law and the property buying process in China are new concepts that are relatively immature and unsophisticated. This means that investors who wish to buy property directly in China need to secure the services of a reputable lawyer to assist with the intricacies of the real estate purchase process.
For those who wish to maximise the potential gains available in Chinese property but who wish to remain relatively hands off any investment made, there are a series of property investment funds specialising in Chinese real estate now available. Such funds issued by larger, well established financial institutions are proving increasingly popular with both local and international investors. Such real estate investment funds allow an investor to gain access to the potential of the property market in China without having to commit significant sums of money directly to the market. Furthermore, by investing in this way an investor’s underlying money is far easier to access than if it were used to directly purchase real estate in China.
Whichever way an investor decides to approach investing in the real estate sector in China one thing is for certain – never has the Chinese property market been so popular with so many international real estate investors.
Rhiannon Williamson writes about real estate investment in emerging markets worldwide. To read more about property investment in China click here.

So How Does Your Investment Strategy Line Up With Your Real Estate Knowledge?

Author: Ed Wacaster
Source: ezinearticles.com

Before you begin reading this article, please answer the question in its title. As you go on in this article you will learn some investment strategies as they relate to real estate and your mortgage. We as Americans still have some archaic mindsets on how to deal with a mortgage properly. We still believe that we need to pay off our mortgage as soon as possible so the bank can’t take it away from us, or foreclose on it. Given today’s economy, a lot of people wish they had paid off their mortgage when they had the chance. But let me show you a different way to look at the money involved in paying off the mortgage and how you might better use that large amount of cash.

Let’s take a hypothetical situation and use a $250,000 home, and put nothing down on a 30 year fixed mortgage at 5.0%. In rural California this is easy to do and quite real. It’s called a USDA loan and it’s available throughout the United States depending on the population in your town. The payment on that mortgage will be $1342.05 Principal and Interest only, not including the home owners insurance, real estate taxes and mortgage insurance. Remember this is a hypothecial situation as I’m only talking strategy here. If you were to take out a 15 year mortgage on this same home the payment would be $1976.98. A difference of $634.93 each month.

Now let’s take that $634.93 and give it to your Financial Planner each month and watch it grow over a period of years. In fact, if you have discipline to get that money to the Financial Planner each month at 7%, and it is there, you can pay that home off in 13 years and nine months. But! There’s More!

I can hear you asking now, “but how can there be more Ed?” Well let me tell you how there can be more, and here it is. If you were get sick, or lose your job, get layed off or fired, you have that hunk of money available to you to keep you going financially. You can still make your mortgage payment, car payment, credit cards payments, keep your kids in private school or college and on and on the list can go.

Conversely, if we go ahead and take that 15 year mortgage payment and pay the mortgage down as quickly as we can, we ain’t gonna have that chunk of change when life comes at us. Now we get to lose our home, our car, our credit rating and the kids will wonder what they did wrong.

Furthermore, you need six professionals in your life in order to create wealth and hang onto it forever. You need the Financial Planner of course. But add to that list an Estate Planner or Attorney, a CPA or tax professional, a Life Insurance Agent, a Real Estate Agent and a Mortgage Professional. If you have these six professionals working for you, you can get any question answered with a phone call and move your wealth in the direction that you want it to go. They will help you come up with a financial plan that makes sense and walk you through the process and chart that progress for you, keeping you on track.

Now, is that a drastic change in your way of thinking? Or is it just a slight adjustment? Either way, you can change your financial future with this stratgey and not have to come up with more money out of your pocket to do it.

Wishing you the best!

Ed Wacaster, CMPS, has been in the Mortgage Industry for 6 years, and works for Maidu Financial in Lincoln California. He enjoys helping his clients get their finances in order and on their way to creating true wealth using the Mortgage Planning Strategies he teaches them. He also instructs them on the need to have more than one source of income, which the Financial Planner and Life Insurance Agent can provide in the right setting, and given the proper circumstances.

Ed conducts public seminars to teach the public what he teaches to his clients privately. To be included in his e-mail blasts, send an e-mail to ewacaster@maidufinancial.com. Ed sends out a weekly Newsletter on Monday as he chimes in on what is happening with mortgage interest rates, the economy, how Washington affects our wallet and more. You can also send him an e-mail to ask questions about the articles submitted to this website using the same address.

Why Real Estate Is A Good Investment

Author: Vanessa Doctor
Source: articledashboard.com

Real estate is viewed by a lot of people to be a good investment. Although there are a lot of different investment strategies out there, investing on real estate is still one of the best investment strategies to make, just as long as you have very realistic expectations on the matter.

Keep in mind that not all investments on real estate have resulted to success, there are some whose real estate investment has gone down the drain due to very poor decision-making and management, and due to lack of knowledge and understanding about the current real estate market.

Before investing in any real estate property, you should first recognize that there exist potential risks in this type of investment strategy, like the change on valuations of your real estate property from time to time. However, these changes are rarely drastic enough to cause any real problems. Nonetheless, when investing in real estate properties, there are no assurances that your investment is a good one. There are still a lot of things to consider before you can ensure that you have made a sound investment on a real estate property.

Having a slow and steady profit strategy can greatly improve the value of your real estate investment. One good thing about investing in real estate is that there are a lot of ways that you can make money of it. You can purchase a low-cost foreclosure home, or a home that needs some improvement, spend a considerable amount of money on it to improve it, and then sell it for a higher price. You can even keep the home for yourself, and allow people to rent the home or the space.

One of the appeals of investing in real estate, especially nowadays, is its long term appreciation. People can always improve on a particular property in order to make it more marketable than what it previously was. People can renovate a property, and change it into a different type of property that has other uses. In this type of investment strategy, however, you will need to remember that the cost of your investment on the property can find its way into your profits, so make sure that you are prepared to shell out money in order to improve the property that you are investing in order to increase its value.

You also need to keep in mind that the valuations for your real estate property will go up and down at times, depending on the situation of the real estate market. Nonetheless, investing in real estate properties will always prove to be a good investment in the long run since real estate investments do well in this type of run.

Real estate investment also offers short-term gains for people who are not interested in investing on real estate properties in order to gain profit for short periods of time. These people just usually buy into whole properties with the hope that its value will go up.

Sometimes, they develop these real estate properties in order for them to make the best use of their purchased land. They can either keep or sell the developed property, depending on their goals. Ultimately, these investments always turn out to be substantial investments due to its long-term returns, just as long as these real estate properties are properly handled.

Vanessa Arellano Doctor
http://realestatepress.org