Trends In Real Estate Investing

June 16th, 2011 by maureen | No Comments | Filed in Investing
home and real estate investing

Real Estate Investing In a Down Market 

Timing may be everything, but is now the right time to invest in real estate, given the steep declines seen in the housing marketing in recent months?  Some real estate investment professionals seem to think so.  In fact, the smart investors are buying, buying, buying properties right now.  Why? 

“First, let’s define what we mean by “investing,” says real estate mentor and author Minh Pham, whose popular real estate seminars pack convention rooms with novice real estate investors eager to learn how to make money with real estate.  “Are you intending to be a knowledgeable, well-educated buyer of under-priced properties and stay in the real estate market for the long term in order to see excellent returns?  Or are you looking for a ‘get-rich-quick’ scheme?  If so, my real estate seminars are not for you.” 

Pham explains that buying a cheap property in the hopes of immediately reselling for a lot more than you paid is speculating, not investing.   And speculating is as risky as buying a lottery ticket.  No credible real estate investment coach will teach you how to speculate, because there is no way to guarantee profits. 

But that doesn’t mean you can’t start seeing profits in a fairly short space of time – you just need to know what you are doing.  

Becoming a successful real estate investor involves getting educated, doing excellent research, and putting together a well-thought-out strategy.   This may seem like homework to some, but for those who have done it the financial rewards are more than making up for the time spent learning.   

“Can you make money in real estate in a down economy?  Absolutely.  Can you do it without knowing what you are doing?  Absolutely not,” says Pham. “Worst case scenario, you could lose thousands of dollars and end up being very disillusioned, as many people are right now as a result of not really understanding what they were doing.  There are rules to any game, and if you don’t take the time the learn them you could lose your money.” 

According to Pham and other real estate investing experts, in order to be successful it’s important to learn how to make money in both ‘up’ and ‘down’ markets. You need survival strategies for when the economy is bad, and know how to win in a competitive market when the economy is booming.   “Don’t fear the competition – embrace it,” advises Pham.  “If you see a lot of investors competing for deals, then know you’re not the only one that sees the potential for profit.  There are more than enough good deals to go around. At any given time there are hundreds of properties for sale in local market niches, enough for every savvy investor to make the profits they’re looking for.  

Even in today’s uncertain climate, novice real-estate investors are making money, especially in smaller properties that are easy to acquire and manage.  Owning property that pays for itself is what it’s all about.  But how do you find those kinds of properties, and how do you recognize them when you do?  “Ah, you’ll have to come to one of my seminars,” grins Pham.   

Minh Pham’s next real estate investing seminar will be held in Alexandria, VA on March 14th, 2009.  He will be giving away his real estate investing handbook, “Turnkey Profits Using Lease Purchase, Subject To’s and Other Creative Real Estate Investing Techniques” to seminar attendees.  To reserve a seat go to www.realestatementoring.eventbrite.com.

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Easy Way To Real Estate Investment

June 10th, 2011 by maureen | No Comments | Filed in Investing
home and real estate investing

To own a home is still many people’s dream in today’s world. As the times have been going, many people have tried their luck in various investments, major among them being real estate investment. In present times, real estate investment has grown into a big field and the homes being built are even more diverse as many contractors try to make more comfortable places for people to live.

A number of people are reluctant to venture into real estate investment inspite of the promising prospects on board. This is because they do not understand how the industry works. From a business perspective, real estate can be a worthwhile investment. It offers diverse benefits including generation of rental income, profits in the event that one decides to resell the house and it acts as collateral when you want to get a loan.

If you get into real estate investment, you will be sure of significances which come with fewer risks as long as you understand the various aspects of real estate. One of the best examples of a real estate investor is a person owning some real property in which he resides or he has let some of the houses and therefore receives rent payments from his tenants of a specific period of time. The other fine aspect of real estate is the fact that the value of a property appreciates especially for land and houses for living and this guarantees that you will continue receiving more returns as time goes by.

The Internet has made it easier for real estate investors to track possible ventures and explore new real estate investment offers. It is also a learning ground for anyone who wants to gain knowledge on real estate investment.

Low interest rates on mortgage have contributed to the explosion of real estate investment. More people can now afford to buy property compared to previous years. There has been an increase in the value of property found in big cities and towns, making many more want to invest. Another major contributor to this is the amount of equity, that is, the difference between real market value and the balance to be paid on the mortgage.

In some parts of the world, real estate investors take advantage of the tax breaks to invest and get huge returns eventually.

Real estate investment is better when you fully understand and cover costs incurred to ensure that the returns are visible.

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Successful Real Estate Investing

June 7th, 2011 by maureen | No Comments | Filed in Investing
home and real estate investing

There are many persons who are searching for ways to supplement their present income or to replace it altogether. Real estate investing is one of the major ways people seek to do this. It has already been documented that many of the millionaires in the United States made their first million in real estate.

There are many programs and infomercials on television and other forms of media that are promoting various real estate investing programs. They all purport that you can make millions from real estate investing and in that respect they are correct. In spite of the recent problems in the real estate market with subprime loans, the market remains a viable option for investors.

If you are considering real estate investing, then knowledge of the buying, selling, negotiation strategy, and property repairs process will be very important to you. Having an understanding of these processes will save you from losing your money should something not go as planned. You will also have to be aware of the changes in the marketplace. If you know what is required by the make at any given point in time you can surely make some money and prevent major losses.

Possibly the most common kind of real estate investing is flipping. With flipping you buy a home at a very low cost, spend a little money to do some cosmetic repairs and then sell it at a good profit. For flipping to be effective and profitable, you must invest in homes that are located in areas that have high resale value and a buoyant home market. You could find yourself in a financial bind if the home you invested in cannot be sold for over a year.

There is also prime commercial real estate investing. That is investing in things like factories, apartment buildings, commercial space, and hotels. It is possible to make a lot of money on these types of real estate investments. The trick is to locate properties that are going cheap. It is usually easier to find low cost properties in areas that are underdeveloped and are set for an economic boom.

Real estate investing has its own risks and there is no way of being absolutely sure that your investments will even make you a little profit. With this in mind it is important that you do your research on the direction the market is heading in any particular area you are considering investing in. By doing the research you will be able to make far better decisions about investing.

The real estate investing risks also makes it more difficult, especially at this time in the marketplace, to receive any kind of financing. There are many lenders available for real estate investors but the present climate makes the loan process more challenging. Many real estate investors tend to use their own money to pay for the investment and its repairs if needed. If there is a shortfall in funds some will go to friends and family to borrow the money needed.

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Abcs of Real Estate Investing

June 7th, 2011 by maureen | No Comments | Filed in Investing
home and real estate investing

It seems like almost everyone is learning how to cash in and make a buck from the current real estate craze. Home buying and selling is hot right now, and many are learning how to turn real estate investing into a gold mine. But unless you know the ABCs of real estate investing, you can’t even get started.

Many people share the dream of wanting to work for themselves alone, being their own boss, making money their own way. Real estate investing is a great way to make this dream a reality, but you have to know what you’re doing. You have to know the ABCs, and learn to play the game. Only then can you learn to enjoy the payoff. The more you learn about real estate investing, the bigger and better your payoffs should be. That’s what makes this type of investing so lucrative and exciting.

When you learn to read, you start with your ABCs. And when you want to start in real estate, you have to learn the ABCs of real estate investing. For starters, you want to learn about “the market.” This refers to the real estate market, and it only means knowing the condition of properties in any particular area. For instance, in a single city or area inside a city, you’ll want to know how much properties are selling for, how many properties are available, which neighborhoods are popular. You should know as much about the area you’re working in as possible. Know where homes are selling and where they’re not selling, and know what sort of price those homes are getting. This is a great way to get a feel for “the market” and learn what kind of money you can hope to bring in. Knowing your area is a very basic rule of real estate investing.

Once you know how the market looks in your area, you can get down to the nitty-gritty of real estate investing. The basic things you’ll need to know, the ABCs, are fairly simple. The trick to success at real estate is in learning what people want. What are home buyers looking for? What do you look for, when you buy a home? The kitchen and bathroom areas are very important, and many real estate professionals say that these areas are what sell homes. Keep costs down as much as possible, but if you’re going to splurge then put the money into these areas of the home. You’re likely to get the most money back from this investment. Learn more about more inexpensive materials, such as poured concrete instead of granite, and laminate flooring instead of hardwood, to learn how to make a home beautiful for less. This is one of the ABCs of real estate investing – knowing how to walk the fine line between spending too much and too little.

It’s important to work out a budget, plan for disaster, and keep on track as much as possible. Have an idea of what you want to get out of each property before you sell, and don’t put more into any one property than you think you should. If you won’t get that investment back, don’t put it in. This is one of the ABCs of real estate investing – staying on track with the budget. Remember, the less you make from the sale of the property, the less you make from your investment.

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The Pros and Cons of a Real Estate Investment Business: Home Buying

June 6th, 2011 by maureen | No Comments | Filed in Investing
home and real estate investing

Many people are looking for ways to earn an income either as a part-time gig or to replace their jobs and work full-time as an entrepreneur. One of the hottest and most popular ways of doing this is getting into real estate purchase and resell.


Overview of a Real Estate Investment Business


A very basic type of real estate investment is buying a home and then renting it out in hopes of keeping up with mortgage payments and coming out with a nice profit at the end of each month. This often entails making some repairs to the home you want to rent, as well as giving the home some perks that will raise its value from its original cost.


This is a lucrative business, and people make a nice living from their real estate investments. It takes work, a good understanding of the real estate business and determination. Now take a look at the pros and cons here.


Pros of Real Estate Investments


One way people obtain real estate is through foreclosures. Often these homes are auctioned off for less than they are worth, which is the prime scenario. In this case you may have to fix up the home a bit, and then have the option of renting or selling it. This is an easy way to get started in the real estate investment business.


Another way to obtain real estate is through buying a fixer-upper and making needed repairs. This type of investment makes sense, as you get to see the house before you make a bid to buy it, so you know what types of repairs it needs ahead of time. The key here is to make a bid early and try to get the lowest price for the home. This works especially well with sellers who want to make a quick deal.


Cons of Real Estate Investments


A foreclosure sale is almost always a “buy as is” type of sale, and you have no recourse, if you want to back out of the sale. In the case of a foreclosure, you could find yourself having just purchased a home that has way more damage than you expected, leaving you to have to make major repairs before the house can be put on the market. These repairs can add up quickly and soon you find that you have put out more money than you can recover.


The same goes for buying a fixer-upper home on the market. If you do not pay close attention to the condition of the house you are interested in purchasing, you might be paying for costly repairs that you did not count on. The ideal situation is to buy a home that is in need of little or no repairs, so you can concentrate on additions and other cosmetic changes that will raise its value. You don’t want to sink your money in major repairs caused by a careless previous owner.


It all boils down to the fact that a careful buyer must take the time to research homes, including their locations, up for sale before making any purchases. Real estate investment should be profitable to you. You should learn the ins and outs of buying homes that will make you money rather than cause you headaches. Be informed, and you should do well.

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Real Estate Investing Dangers ? Warning!

June 3rd, 2011 by maureen | No Comments | Filed in Investing
home and real estate investing

Unfortunately, many investors get very excited about the notion of becoming extremely wealthy through real estate investing in a specific market. They assume because they live in the city, they know the market well, where they assume that real estate investing – like using techniques known as “house flipping – is a simple procedure that anyone can do and get incredible amounts of money for. Unfortunately, some real estate investors move from another successful job or business into real estate investing and make a number of mistakes that can cost them dearly. This leads investors into multiple foreclosures, and even bankruptcy.

A recent article in the San Francisco Chronicle points out that speculators who enter the market hoping for real estate investing miracles with no real plan for profitability have contributed to the Bay Area’s subprime loan woes. In many cases, these investors bought properties casually and without careful forethought, buying frequently and often with no money down. They were speculating that the prices would continue to rise, giving them an instant classic. However, when the markets began to drag and the prices went downward, keeping up with mortgages on multiple properties and dealing with properties that have no buyers resulted in foreclosures.

As the San Francisco Chronicle article points out, a key problem for real estate investors is lack of solid real estate investing knowledge. Many investors assumed that they knew what they were doing or assumed that multiple properties without the capital to back them was acceptable. When the market was good, even investors with less investment savvy made money. When the market started to struggle, however, these investors did not have the real know-how to make their real estate investing business work.

According to the San Francisco Chronicle, the other problem that many of these investors encountered occurred because they tried to succeed on their own. Many of these investors simply snapped up properties on their own when the market was good, without developing a good business team or network. Successful investors – those who are still house flipping for good profits in a difficult economy – have teams and networks that help them. You should, too.

Others can help you find the best real estate investing bargains, financing, renovation materials, and more – everything you need to make your real estate business a success story.

One place where teams are important is at the buying stage, for example.

Every property you buy must be carefully looked over by a professional you trust. Just because the property is at a bargain price, that does not make it a bargain. That’s why you should have an assessor look over the property to tell you the true market value of the home, and you should have an inspector look the property over for hidden problems such as buried oil tanks, asbestos, lead paint, and other common problems that are not apparent even to the experienced real estate professional.

Although the San Francisco Chronicle article does not mention it, some savvy investors do question the role television plays in misinforming new investors. Current reality shows sometimes make flipping seem very easy. Smart investors know that real estate investment is simply not what you see in television. Like any business, real estate investing takes know-how, research, and work.

If you’re determined to make a fortune investing in real estate by flipping or buying distressed properties and reselling them a profit, the first step often begins with choosing the right type of property. While television shows may suggest that the real work and the real profitability comes after the initial purchase, when bathrooms can be cleaned out, yards can be redone, and living rooms can be redecorated, the reality is that successful real estate buys begin with a bargain. You simply will not make as much money on a real estate deal if you pay too much for the house up front.

House flipping begins not with selling for a profit, but with buying for a profit. This is called “value investing”, and anyone looking to begin investing in real estate to make lots of money and create monstrous wealth should keep this in mind.

After all, the more money you can save on a quality home in a good neighborhood, the more profit you stand to make eventually. In fact, if you buy the right property you may not need to put up with the hassle of renovating, upgrading, and otherwise making over a home. An investor or even homebuyer may be willing to buy a property from you as is after you’ve found a great deal. You can literally make tens of thousands of dollars on the deal without putting a sent into the property itself.

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