THE NEW REAL ESTATE INVESTOR INFO...

One of the best ways to get started with building your own personal wealth-building system is by investing in real estate. Becoming a real estate investor is a daunting task, but one that will, if operated efficiently, pay dividends forever.

How does one start with the business of real estate investing? Let’s look at plans to get started buying and selling real estate property:

First things first, where to find the information? In the last several years the amount of real estate investment groups has exploded. Find a local one and attend a meeting. And dont be afraid to ask the most basic of questions.

Most of these clubs are very open with new members or any one interested in investing. So show up and mingle. Most investors love to share war stories or exchange information on purchases they have made or services they have used.

Before you spend a dime. Make sure you map out what you want to invest in and what youre going to do with it. BE SPECIFIC. What type of property? Are you going to hold it for appreciation or are you going to turn it over?

In the beginning it is important to decide what types of properties to focus on. If you wish to buy rental properties, then focus on those. If flipping houses is in your plans, then concentrate on those types of properties. This is important because it allows the new investor to become a specialist within that area. Becoming a specialist leads to fewer costly mistakes.

Begin to get together a group of contractors and sub-contractors who you can trust to work within your new system and according to your business plans and your budget.

If you will be working with “fixer-upper” houses, line up a plumber and an electrician, as well as heating and air-conditioning experts. Better yet, find a reliable “handyman” who is capable of doing many of the jobs needed in fixing up houses.

Find a good agent. This is harder than you might think. You see most agents dont work well with investors. Why? Investors want the agent to do tons of work the normal buyer doesnt. Offers counter offers…spread sheets to show profits and losses…not to mention all the surrounding research on the sales in the area in the last 6-12 months. A good agent will do this. A good agent understands that they may sell you more than one house in a years time…and that means repeat business for the agent.

Time is always a key factor in real estate investing, so always look to ways to “turn” a property in the least amount of time. A property that remains unsold or not rented is eating up profits every day it in your possession. Learn to cut the losses on properties that fail to meet their profit potential.

Are mistakes going to happen? Yes. They happen to every real estate investor…the trick is to learn how to spot them. The longer you hold on to a property the lower your profit.

In the end, the investor who runs their business in the most efficient ways will profit, succeed, and grow in real estate investing.

Source: The Real Estate Investment Blog

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HOW TO SPOT A REAL ESTATE INVESTMENT BARGAIN

Like in value investing in stocks, money is made in the purchase of real estate investment property. Thus, you'll want to purchase property with good rental yield and that is at a discount relative to the surrounding area.

This article identifies three ways to find a below market real estate deal so that you can either resell it later at a higher price or enjoy lower mortgage instalment payments and from that a greater cash flow.

Method #1- Distress sales and foreclosure

The general rule of thumb in real estate investment is that the target property might sell for a price lower than the areas average if the owner is in distress. There are two possible situations that you might want to look out for so that you can negotiate with the owner to reduce their asking price.

Initially, look out for mortgage foreclosures on property and monitor the property auction sites. Banks may under-finance property meaning that they might not want to risk financing the property and then have to sell the property at a loss during a recession (negative equity situation).

So what happens is when the mortgagor (the owner) is in default of his mortgage, the bank would foreclose the property and auction off the property and sell it off. Note that under the common law, while the bank is supposed to get the best value for the owner, this sometimes does not happen and the best way the bank can discharge its liability is to auction off the property.

As we can tell from the above analysis, the bank usually just wants to get the selling price enough to cover the outstanding mortgage and so the reserve price for such auctions may be below valuation prices. Spend some time attending such real estate auctions and it could pay off in helping you get a property at below market value.

Method #2- Migration

When people want to migrate out of a country fast, there is a high chance that they will not be picky about what price the property can fetch. These people generally want to sell off their property fast and the first prospective buyer that appears on the horizon for their real estate would usually benefit from this.

On your part, you would want to get an independent valuation of the real estate and then make an offer. Bargains can be found if you know more about your seller’s reason for selling.

Method #3- Look for landlords with attitude problems

This strategy is rooted in human nature and you may chuckle when you hear it. In some areas, some properties are always yielding lower rentals than other places and this might be because of the landlord rather than any other fundamental reason. If the landlord has a bad temper for instance and then finds it hard to get tenants who can stay, might try to entice present tenants to stay with lower rentals.

This would therefore translate into a lower valuation for the property. At the point where you appear on the scene, some of these sellers are willing to accept a lower price to get a problem off their hands.

Things to note with this real estate investment method include spending some time with neighbours staying around the property in question to find out any hidden defects, bad tenants or crime related problems that the owner may not be telling you about the area. It may not be all the landlord’s fault.

In concluding, these are three ways that you can take into account when analyzing a real estate investment. Real estate investment can be said to be like any other form of shopping as you want the best quality for the lowest price. But do not be let paralysis by analysis stop you from taking action. Here’s wishing you all the best in your real estate investment endeavours!

Source: Jeffrey Ringold | The Real Estate Investment Site

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3 REASONS YOU SHOULD INVEST IN A COMMERCIAL PROPERTY FOR MORE EARNINGS

As a landlord or landlord wanna-be, you might be considering venturing into commercial real estate and make enormous earnings like Donald Trump and other well-known real estate moguls. This article will highlight three reasons why commercial property real estate investment is better than private real estate investment.

Reason #1: Rental Yields may be better for commercial properties

For commercial property like shop space, the rental yield that you can command depends directly on the human traffic in the area. Thus if you invested money in such a property investment, the monthly cash flow would be more than an equivalent costing residential property investment in the same area.

In addition, most business owners when they come to view your property have already identified your street as a good one for their business in terms of human traffic and usually want to start renting from you, thus you have the upper hand in negotiations. Contrast this to most residential tenants who have a huge variety of properties to choose in your vicinity and if they do not like your property or your rental they can just as easily go to another property.

Reason #2: Improvements on the property

Business tenants generally treat properties different from residential tenants. A business owner who is renting property would generally fix small defects in the property so that he can carry on business and would not bother the landlord about such small problems. But additionally, most small business owners would generally carry out small improvements in the property that could boost the property value of your commercial property.

Another example will involve office partitions. Most, law firms and accountants generally have the same set up in their offices and when law firms move, they generally would have to spend money renovating so if you have existing partitions in your commercial property, you might be able to get a whole professional firm over to rent your property.

Reason#3: Rental Collection

Typically there are some tenants that are not very prompt with their rental payments and therefore the ability to choose tenants who would pay would save you lots of money and make you even more in the longer term. Imagine having to loose a few months of rental payment and spend money on lawyers to evict the defaulting tenant from your property.

If you have a commercial property, you can choose a tenant that has lots of goodwill established in your premises. This would mean that the tenant has a lot vested in your property and would therefore pay his rent on time to stay out of rental disputes. Contrast this with a residential property where the tenant can run away without paying your monthly rental and has nothing very much to loose.

To this end, it can be seen that commercial property real estate investment could be a much better investment venture than private real estate investment. As well, making money with real estate is like value investing in stocks, the profit is made in the buying.

The time spent looking for a good property will reap its rewards later in the form of good rental yield and capital appreciation over time. Take massive action today and look for the real estate investment property that you think meets your real estate investment needs.

Source: Jeffrey Ringold | The Real Estate Investment Site

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THREE KEYS TO SUCCESSFUL REAL ESTATE INVESTMENT FINANCING

Successful investment real estate financing has been done by many real estate investors for years. Donald Trump and other real estate developers have used other people’s money for years to finance the building of real estate projects so the key here is to learn how to finance your next acquisition and how to make more money in the process.

The following are the three key areas that are important to succeed in financing your next real estate investment deal.

The Property Finance Plan

Successful real estate investment financing should also come with a property finance plan. This plan would list how much in rental you will receive, details of the property and how much you want to borrow from the bank.

The reason for this is that it will be easier to convince a bank officer about the potential of you paying his monthly instalments if you can show him how much in terms of rental that you expect from the real estate investment in the first place and how much it measures out relative to your expected monthly instalment.

You could do a financing plan and then print several copies of this and bring it along to all the bankers that you meet. The more confident you are about the deal, the more confidence the banker would have in you as well.

Your Credit History

A person’s credit in most cities is of vital importance to bankers today for the purpose of financing any real estate investment. The reason for this is that your personal credit history is used to judge your ability to pay your debts as they fall due.

In most banking circles today especially in the cities, sometimes within 30 minutes to one hour of your default in payment, all banks would know of your financial inability to pay and your credit rating will drop.

Thus when doing real estate investment financing, you might want to run a credit check on yourself so that you can figure out what the bankers would ask and you would have a ready reply for them. Thus a good credit history can help you in real estate investment financing.

Your Prior experience

A good prior job or some property management experience may help in your application for the mortgage. As strange as this may sound it makes perfect sense for the banker. If you can show that you are responsible at work and make him believe that you can manage the property and the rental, there is a high chance that you will be able to pay him.

Thus successful real estate investment financing depends partly on the ability of the individual to convince the banker that you can manage the property and pay him on time.

In conclusion, these three important keys to successful real estate investment financing are worth your consideration when next you go to your banker to ask for real estate investment financing. Spend some time planning and then take massive action to achieve your real estate investment financing goals today.

Source: Jeffrey Ringold | The Real Estate Investment Site

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Mayor Media Ventures,
Tel: +60196910134
Email: info@mayormedia.com.my
URL: www.mayormedia.com.my

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About

Wealthy Landlords, is a property and real estate investment blog, which aims to educate, enlighten and empower people with the knowledge, understanding and benefits of investing in properties and real estates.

The subjects of interests outlined here, includes the following;

i) Foreclosures

ii) Home Loans

iii) Insurance

iv) Mortgage

v) Property Tax

vi) Property Types

vii) REITs

viii) Investing TIPs

This a Mayor Media Publication. For information, please contact blogpub@mayormedia.com.my

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