Real Estate Investment 101

real-estate_MyN_qOduIn the world of real-estate investments, investment trust companies are a good way for people to speculate with no huge time and cash commitment to be a landlord. These companies will also be called REIT’s. Legal allowances with this form of company were first made over half a century ago. It is a very attractive corporate structure because there is virtually no corporate income tax charged.

In recent years, average REIT profit margins are outperforming the majority of industries. Because most REIT companies are experts in a specific type of real estate, the income vary as outlined by specialization. The top three specialties in REIT income are healthcare facilities, residential, and retail, to be able from highest earning to lowest.

The value of a purchase property would increase within the time. If you do proper research in the property scenario, it is simple to find out which property would get to be the most preferred one in the subsequent years. You can buy that property and wait for the time for you to ripe. The property value would increase based on factors like economic conditions, scarcity of land etc. hence you make use of your situation then sell it then. But this trend cannot be regarded as static as it’s exposed to change depending on areas and time.

Locate a lender that are experts in non-recourse loans, any local residential lender will not likely do, it ought to be a professional. Any loan created to a professional retirement plan has to be a non-recourse loan. This loan type are only able to attach collateral for the asset and never on the borrower. In short, if your loan goes bad the lender could only go ahead and take property since the security instead of come following the retirement insurance policy for the deficiency. Expect to pay greater than market residential rates and fees for this loan.

When seeking the correct property to acquire, DO NOT look forward to finding the perfect investment property from the first couple of days. Don’t imitate those people who buy homes fast only to regret it later. Hours of sorting through properties will likely be needed to find very good property to increase returns. DO NOT expect to find the perfect property nearby you, or even in the neighbourhood nearby. You need to be flexible and search abroad, even interstate or overseas. When looking for a good investment property you should target return. In other words, how much cash for houses will you make on the investment.

To make the best make money from investment properties, look for those who are being sold to get a price which is lesser compared to present rate. There may be a little work being done on such properties like renovation, repairing and remodelling but what you may dedicate to it will likely be easily outweighed through the profit you make as a result.

Really Good Real Estate Investment Ideas And Advice

real estate investing

 

It is tough to argue with results, and that is why nobody should ignore the massive wealth building potential offered by real estate investing. The best way to maximize the opportunities this field presents is to learn everything possible about the process of buying and selling for profit. Continue reading to learn more.

Remember that there are always more fish in the sea. It is easy to get your heart set on a certain property or deal. However, if that one deal takes too much time and effort, it is not really a deal in the first place. Move on and make sure you do not miss out on the other great investments out there.

Get an understanding of tax laws and recent changes. Tax laws are updated and amended regularly which means it is up to you to keep up with them. Sometimes the tax situation on a property can really up the hassle. When it seems to be getting to thick to manage, consider a tax advisor.

When you look at investing in real estate properties, think about a couple guidelines. First, consider the value of the property. Avoid overpaying for business. Think about how much the property should currently cost and figure out how much you can get for it. You must settle on good findings for these numbers in order for you to make the decision to buy.

real estate investing

Real estate is a great investment opportunity.

Don’t let your emotions cloud your judgement. Choosing a property to invest in should be a business decision, not an emotional one. It can be easy to get attached to a house or really fall in love with a location. Try to always look at things objectively. Shop around for the best deal without getting attached to one of the first few places you look at.

Figure out your opportunity costs. Though you might enjoy fixing up a property, is it the best use of your time? Would you be better off finding a better property? If you can outsource a task, you should. You will very much appreciate the free time that you will gain so that you can focus on other important things.

When you consider buying rental properties, consider a strong property manager that can find good tenants. Since the rent money will pay the mortgage, you have to be sure that they are going to pay. Otherwise, you may end up losing money.

Once you set up an investment plan, get someone else to take a look at it. Even if the person is not an expert in the field, they may be able to point out some things that just are not going to work. An expert, though, can help you adjust your plan to make it more suitable for your needs. They may also be able to talk to you about marketing as well.

Search the market for foreclosures, as these can gross you the most income during your investing. These properties will be listed below the market value of the home, as you can get some great deals to turn a profit with. There will be a bidding war, but if you win you could be sitting on a gold mine.

Make sure you keep detailed books. You could easily overlook the financial part when you start. You’ve got a lot of stuff to think about. Keeping clean books is very important, however. You can avoid major mistakes if you build up these habits now.

Make small investments immediately. It is important to buy into the market early and learn as much as possible. You may miss out on investment opportunities if you wait too long.

As you expand your business of real estate investing, make sure to expand your network of contacts as well. People are often just as important as properties, because they can give you exclusive investment offers before they become available to the public. An expansive network can also provide opportunities in selling that you would not have otherwise known about. You will need a team of professionals that will be able to fix everything from inside to outside the house. If you are going to flip the property, one of the least expensive and most impactful things you can do it polish the landscaping with a team like the ones I use here to take out dying and unsightly trees and really open up the yards.

Even in the aftermath of the real estate boom years, people are still making good money through real estate investing. However, if deep understanding of the market is lacking, it can be difficult to make any headway. Use the tips found above and get your new career off to a successful start.

House Flip Boot Camp For Raleigh Real Estate Investors

If you are anything like millions of Americans you have probably caught countless shows on cable television that boast the serious profits that can be made by flipping houses. This is a very true statement, serious money can be made when one goes about flipping the correct way, however, serious money can be much more easily lost when a house flip goes wrong. If you are hoping to find your way to fortune through real estate investing in and Raleigh then you need to pull yourself up by the bootstraps and understand a few house flip basics.

The first thing you need to understand is that the ultimate goal in a venture such as this is to make as much money as possible in as little time as possible. This means several things to the wise investor not the least of which is that you must always have a complete inspection performed before you make any sort of financial commitment to the house. A good inspection can help you identify work that must be done, whether or not there is any structural damage, or whether there are any unexpected problems such as signs of termites or water damage behind the walls. There are lots of home inspection services available in and around Raleigh. I suggest you find one that is easy to work with, keeps to their scheduling commitments, and is fairly priced. A good inspector will be a key member of your house flipping team.

These are very important things to know and should have a significant impact on your offer on the property as they will have a direct effect on how much you will need to invest in making the property sellable and whether or not the property will even be profitable when you consider how much money will be needed to get it in minimal selling condition and how much you can reasonably expect to sell the house for after that.

Once you have the inspection done it is a good idea to take into account all the things that will need to be done to improve the property and the things that must be done in order to get the property in sellable condition along with permits that are needed, inspections that are needed, and jobs that require licensed contractors in order to meet local code requirements. Each of these will take a significant amount of investment in order to accomplish and that should also reflect in your offering price.

Far too few would be house flippers manage to take in the big picture when making plans and this is where they end up missing out on the bigger profits that can be made by successfully flipping houses for the lowest possible investment with the highest possible return on their investments. When making your plans you will want to go with changes that are cost effective. In a nutshell, go for the biggest bang for your buck. One of the cheapest, quickest, and most positively impactful things you can do to improve a property for flipping is a landscaping makeover. Not only does this add to your curb appeal and potential for selling your house, it add to the impression of a well maintained property which can boost your price and profit. Again you want to build your team and after a lot of trial and error, and I hit the jackpot will Arbor Lawns out of Knightdale who handle all my tree trimming, tree removal, stump grinding, etc. We work together so well that at this point I often have to explain very little to the team as they know pretty much what I am always looking for in sprucing up the yard for a flip.

 
Avoid making significant structural changes to the house unless you have a licensed contractor sign off on the wisdom and safety of those changes, as they can be very costly as well as dangerous to the stability of the property. At the same time you should salvage as much as possible within the existing structure. Flooring and paint are almost always required in a house flip but you do not always need new cabinets in the kitchen or bathroom fixtures. Chances are new doors and hardware in the kitchen would be a great fix for drab and tired cabinetry while greatly impacting the overall look of the kitchen without robbing you of some serious profits (doors cost significantly less than making new cabinets and can add the appearance of custom cabinetry). This is the tricky and potentially very expensive part of flipping that can devour your profits. I have to repeat it again, so be sure to take your time working with and building a team of specialized contractors to handle any issue that comes your way.

The biggest idea to walk away from house flip boot camp with is the idea that the most visual impact you can have on the Raleigh area home for the least amount of money the better. Go for the biggest bang for your buck changes. In other words you don’t want to purchase a home that needs new heating or air conditioning as they are not visual changes and are quite expensive. Find a house to flip that needs minor cosmetic repairs and a little dose of style and imagination and you will be able to maximize your profit. Probably most importantly, build a team of local Raleigh area contractors, inspectors, and other service providers that you trust to take a lot of stress off of the flipping process and potentially unexpected costs and bad work. That is what real estate investing is all about after all.

5 Things You Should Know Before You Flip A Property

1. Money is made at the buy, not the sell of your flip. When flipping a house your money is made at the purchase not at the sell of the house. So, many times people buy a house with the intensions of making a huge profit only to find out that they could not make any money after all the renovations because the purchased price of the house was to high. When you purchase your property you need to be sure that you buy the house with enough money to make renovations.

2. Get an inspection on the home – Get a complete inspection done on your property. By, spending a few hundred dollars on this expense you can save thousands in problems that you cannot see. Foundation, Pest, Wood Rot, Etc… By, getting a full inspection you can rest assured that you know every thing that is wrong with the property before its to late. In the contact for the house you need to make sure that you have 7 days to have a inspection preformed, and if the inspection finds problems that are going to cost more money that you are willing to spend you can get out of the contract with no penalties.

3. Don’t do the work yourself: – Get a contractor or several sub-contractors and have the work done quickly. You need to have you house flipped ASAP, so that you can get it on the market and get it sold. When I started flipping my brother and me did a house together, and we did all the construction. I had a construction background and figured it would save thousands, but it took us over 4 months to get the work done that a contractor could have had the work done in a month. But, we trying to save money on our flip did all the work on our time off and after work, and it just took to long. On our 2’nd flip we used contractors for almost everything and had the house completely flipped with a new roof, new air conditioning, new hardwood, and much more in only 3 weeks. We did not have to spend all our time working on the property and were able to spend that time looking for the next deal. This is how you get rich in real estate. And make smart decisions on your remodel spends by finding solutions that have the most bang for your buck. For any bathtub refinishing work I use a company out of Raleigh, NC called SpecializedRefinishing.com. Companies like Specialized Refinishing can refinish bath tubs, countertops, cabinets, showers, and tiles, saving you tons of money and delivering fantastic results. These types of companies are very inexpensive when compared to entire remodels and are very fast.

4. Place the property 1 to 2 percent below market value: If you are wanting to flip real estate and make money the object is to buy and sell the property as quickly as possible, so that you can move on to the next house. If you purchase a house and try to sell it at top dollar to make and extra couple of thousand dollars on your flip, and end up holding it for 6 months you are loosing money. Get the house on the market at a price that is going to blow the competition away, and you will sell it no matter what the market conditions. On our second house the market for selling house went down do to the housing market as a whole, and the tightening of the loans across America. We were told that you could not sell a property in this market, but we went ahead anyway and flipped our house. After 3 weeks on the market we had 3 people wanting to buy the house. Why, because we offered it at such a great deal that people wanted to jump on it. That is what you have to do especially if the market is slow.

5. Use a real estate agent – Do not try to sell you house on your own. Harness the power of a real estate agent and the power of the MLS system. When you do a FSBO you are depending on people driving by your house and seeing you sign, with a real estate agent you have some one actively marketing you house to get it sold. Once again this will free up more time for you to look for more great deals. If you want to help the process I have found that craigslist and listing you house in google adwords help to, but I use these tools with the help of a agent to make sure I have all my bases covered.

I hope this article has been helpful with the basics needs of flipping a house. If you will study and learn you will make money. But, do your homework before you purchase a house, and make sure that you can pull a profit on your deal. Then, make it happen!

Investing In Real Estate: What You Should Know

Are you attracted to real estate investments? Perhaps, you have watched your friends profit from their real estate investments. You can succeed by putting money in real estate, too. All it takes is a bit of know-how. Apply these tips to get started with your real estate investments.

One of the biggest thing to do to be successful at real estate investing is to pick a specific area to learn and invest. The internet is loaded with real estate investing advice, focus in on a specific area to avoid pitfalls and potentially heavy losses. For example, I focus my attention on Raleigh, NC as a whole and even more specifically on the smaller suburb of Clayton when looking for houses for sale to buy for my real estate investing. After dealing with many realtors, I have teamed up with group at HomesForSaleClayton.com after lots of trials and tribulations with other real estate groups. You will need to pick the team you can easily work with and reach the results you require.

Speaking of results, make sure that you create a game plan for what you desire to accomplish. Figure out how much time the process will take and if it will be worth your while. When you have developed a plan, meet with the necessary parties to discuss the deal that you want to achieve.

It is possible to get contracts set up for free. However, always be wary of doing this. Those free contracts may not hold up in court. Instead, find a good lawyer and pay a bit to have the contracts done the right way for you. You will not regret it. Again, find someone local as this specific expertise will help you out in the long run. Although I typically do not like dealing with lawyers, my real estate attorney out of Clayton is so used to working with me that our process is very streamlined.

Surround yourself with others who share your passion for real estate. This includes lawyers, realtors, bankers, and even members of the community. That guy at church may know someone looking to buy a home or sell one cheap. You have to be connected and network in the community. Lots of people want to get involved in real estate investments. There are so many people in it, which has created lots of community businesses focused on it. If you can’t find one nearby, there are several forums online that you can find helpful information. Mix and mingle, learning from similar people.

Make sure that you dedicate a good amount of time to the business and learning about the business too. You may want to spend some extra time on learning how to become a good investor, especially if this is something you plan on making money with. You might have to give up a night of bowling league to spend time improving yourself as an investor.

When deciding to buy a property or not, consider how appealing it will or will not be to prospective tenants. No property is worth your money if you won’t be able to sell or rent it, so consider the purchaser’s perspective. How soon can you sell? How high will your profits be? These are all things to consider from the buyer’s point of view before you buy.

When you invest in real estate to rent the property, make sure you’re able to get your money back within a reasonable amount of time. If it takes you years to get the money back in rental payments, then it will be hard for you to use the money on anything property related.

Don’t let your emotions cloud your judgment. I fell in love with an old farmhouse in rural Johnston County but my realtor at Homes For Sale Clayton NC talked me out of it because the property was too far gone to make any profit. Now that’s a good realtor to have on your team! Choosing a property to invest in should be a business decision, not an emotional one. It can be easy to get attached to a house or really fall in love with a location. Try to always look at things objectively. Shop around for the best deal without getting attached to one of the first few places you look at.

At this point, it is possible to see how many have realized a profit from investing in real estate. Use your newly found knowledge to join the ranks of successful investors. Invest in real estate wisely. Soon enough you’ll be much more comfortable. And then you’ll see the profits start coming in.