January 20, 2012
Buying fixer-uppers has been a common investment technique for many years. These days, with millions of foreclosed homes available at bargain basement prices, fixer-uppers can be an excellent choice for buyers who are shopping for a home to live in, as well as for real estate investors.
Fixer-uppers are properties in need of repairs. They may be liveable in their present condition, or they may need quite a bit of work before they can be occupied, but in either case, there are some very important considerations when choosing the right property to help insure that you can achieve your personal objectives.
1. The Location
It used to be pretty rare to find a fixer-upper in a nice neighborhood, but the housing crisis has changed that. Today, fixer-upper properties are readily available in many of the nicer neighborhoods, especially in those states that have been hit hardest by high rates of foreclosure.
Don’t be impatient. Look around your chosen area carefully before making a final choice. It’s very important to be familiar with the local market. Choosing the right location will result in better property appreciation, and more demand when you are ready to sell, or better tenants and higher rental rates.
Avoid locations that have too many vacant properties, locations that have too many other investors in the area, or are places that you would not want to live yourself. Investor over-crowding tends to increase your competition and will therefore reduce your profits.
2. Know The True Market Value.
A property is not always a good deal just because it is a fixer-upper. Don’t let anyone sway your judgement about a property simply because it’s a fixer-upper. Just because a home has been foreclosed on does not automatically mean it is a good deal. Good deals are made through knowing what the true market value is, then negotiating a price that is as far below the true market value as possible.
3. Find A Fixer-Upper Project That You Can Handle.
Whether you are planning to live in the property, fix it up to sell or fix it up to use as a rental property, the most common mistake is that of taking on a project that is beyond your ability to handle.
I’ve done dozens of fixer-upper projects, including managing them for other investors. The biggest problem I’ve seen consistently is investors who take on projects that are bigger than they can handle. This leads to cost over-runs, projects that take too much time, and even running out of money and another foreclosure. I’ve seen numerous projects that were never finished after the buyer got over budget and ran out of money.
It’s easy to rationalize a project before you start, and inexperienced investors often believe that they can renovate an entire house in 4 weeks, working only on weekends in their spare time. That is a common mistake.
One biggie I suggest is to avoid any fixer-upper that needs walls moved in order to be functional. Moving walls and things like staircases can create unexpected problems unless you are planning to use a contractor who has adequate experience and a crew that can get the work done correctly. I’ve seen projects that began well and got totally out of hand and over budget after the investor decided to make extensive changes to the original floor plan.
If you choose a fixer-upper property in a desirable location, keep your rehab budget and necessary work within your ability to control, and you have a good renovation plan that you can stick with, you should find yourself owning a great property at a below market price. That means you’ll have some positive equity or a positive cash flow right from the start. And after all, that’s the main reason why you should consider buying a fixer-upper.
Donna Robinson is a 16 year veteran of the real estate industry. Her experience spans all phases of residential real estate, including licensed agent and rehabbing fixer-uppers. She is an active real estate investor who also provides coaching and consulting services to other investors. To discover how you may benefit from her expertise, contact her at coaching@reihelp.com and request a free PDF copy of her latest book on residential real estate.
Article Source: http://EzineArticles.com/?expert=Donna_Robinson
Technorati Tags: fixer upper, fixer-upper projects, fixer-upper property, market value, true market value
December 7, 2011
Your house is definitely the biggest financial asset in your life. Building your dream home should not be compromised or taken for granted. Find the best new homebuilder to make your place of living more secure and comfortable.
The most important thing in searching for a new home is choosing where to live. Your first move is to search for the best places. Avoid building your new home in a place where there are too many liabilities such as water and sewage disposal or other environmental concerns.
Finding the perfect location
To get the perfect place where you can build your new home, follow these steps.
What type of home do you want to build?
The first step is choosing your home style. Choose whether you want a bungalow, single-family house, or cabin type. If you want a big house, you need to plan all the details.
What is your budget?
Everything starts with the right budget. How much are you willing to pay for your house? By now, you should know how much you could afford. Remember to always stick to the budget. Never buy anything you cannot afford to avoid future problems.
What are the things you need to consider?
Find a good location where you can build your new home. Make sure you have all the things you need, such as accessibility to schools, hospitals, pharmacies, and shopping malls.
What kind of community do you want to live in?
This is one of the most important things you need to consider when looking for a new home. Go around the neighborhood and talk to the local residents. Observe carefully.
What kind of environment do you want for your family?
You’re buying a new home to ensure comfort of your family. Make sure the new environment is safe and favorable for your loved ones. Apart from that, you should also examine the civic facilities such as road, garbage, sewage, drainage, and the means of transportation. Living in a new place should be hassle free.
Negotiating for the best deal
Real estate transactions are sometimes complicated. It could be more difficult when negotiating with new homebuilders because usually home prices are based on fixed construction rates. Still, you can get the ideal deal if you know how to negotiate.
You may also hire a real estate agent to negotiate with the new homebuilders. An experienced real estate agent could work for you to get the best deal. This could be a better alternative if you think you do not have any negotiation skill.
Adelie Bailey is a parent of three children looking for the best new home builder to build their new home.
Article Source: http://EzineArticles.com/?expert=Adelie_Bailey
Technorati Tags: new home, new home builder, real estate
November 24, 2011
There are seven basic fundamentals that takes the guesswork out of investing:
1. Know the Market
Whatever you do, don’t guess the market!! Ignore those hot tips from family and friends and avoid predictions from people who are purchasing real estate purely on speculation. Investing without knowing what economically is supporting the value of real estate is speculation – not investing. Your job is to understand the local economy inside out. Any investment decision should be based on two factors – the economic fundamentals and the property’s ability to cash flow (that is the amount of income less expenses). Investigate and research your target region to
understand the demographics in detail.
2. Is The Average Income Increasing?
In order to further understand the economics of an area, look at the wealth of its residents. Identify the average income for the city or town you are looking to invest in and compare this to the provincial average. All of this information can usually be obtained from Stats Canada or local government sites. If your target areas income is increasing faster than the rest of the province, this is generally a good indication that real estate values will move upward. Without an increase in incomes, any increase in real estate values will not be sustainable.
3. Population Growth
The next factor to look at is population growth. Identify your target region population growth and again, compare the figure to the provincial average. If there is in-migration of people to an area, you can almost predict the real estate market over the next few years. Statistics show that once people move into a region for the first time, they will rent for the first 2 to 3 years, after that, 50% will buy while 40% will continue to rent and 10% will leave. Learn everything you can about the businesses and industry for your target area and familiarize yourself with the local government’s plans for attracting jobs into the area.
4. Is the Growth Sustainable?
So you’ve identified that the average income of your target region is increasing and there are people moving into the area, now you need to look at the industry and education of the area to find out if it is sustainable. If you are investing in an area with one major industry, you could experience falling real estate values if layoffs are made. Look at areas that are supported by more than one industry and enough businesses and post secondary institutions.
5. Infrastructure Improvements:
Look at areas where local government is making investments into improving transportation links, such as highway improvements, new roads, light rail transit. These improvements have a direct effect on the real estate market, because people in general want to live closer to transit, making it easier to attract renters.
6. Political culture of the area:
Ideally the best areas to invest in are those with a forward thinking- dynamic leadership -the kind of government that is focused on bringing jobs to the area which in turn bring in people, leading to an increase in average income and a growth and developed infrastructure. For example, Hamilton Economic Department have been instrumental in transforming the city from a sleepy steel town into the number 1 city to invest in within Ontario. And of course, securing the Ships contract for NS has lead to pro-active leadership improvements too.
7. Transitional areas:
It will take a bit of digging but it is possible to uncover undervalued gems. Certain neighbourhoods are labelled no go zones but with a little digging they could prove profitable up and coming areas. Check with the local government to see whether there are any redevelopment plans in place for the neighbourhood you’re looking to buy. You should visit the area many times, both day and night to see for yourself what it happening. Investments in these areas typically take a little longer to appreciate but they are certainly worth checking out. Be cautious however – and don’t buy on speculation. Research the area and see for yourself.
Success in real estate investing is not a guessing game and there are no secrets. Follow this step by step process and you will buy confidently and intelligently.
Contact us for more information, we love hearing from you.
Jane Killeen-Payne is co-owner of Invicta Property Investments, a Canadian Real Estate Investing Company. Jane works with everyday people to purchase positive cash flow real estate in areas of tremendous growth and opportunity. For more information, please contact her at http://www.invictaproperties.ca
Article Source: http://EzineArticles.com/?expert=Jane_Killeen-Payne
Technorati Tags: economics, fundamentals, real estate, real estate investing, real estate market, real estate values
November 14, 2011
For several years the housing market has seen ups and downs, but there are signs of recovery, albeit slow. Many people held fast to the idea that the strong economy would last forever; the lenders and underwriters also used less than scrupulous practices in lending. All of this made the housing bubble inevitable.
The bubble occurred first in 2001 when prices began increasing and continued on an upward increase up until the beginning of 2006. It was in 2006 that sales of homes began to decline and hit a low of 10.5 percent. As the sales declined, so did the overall home prices, but by this time the subprime loans were no longer lending to people they knew could not afford the mortgage.
In 2003, the market was booming and peaked in September of that same year. As the economy began to soften, which eventually would take a turn for the worse with many people losing their jobs, foreclosures were soon to follow. This chain reaction caused things to only get worse before they got better.
The economy was negatively affected by the rise in foreclosures and the lack of home sales. Many construction companies were no longer building new homes, which causes many to find themselves unemployed. The entire real estate market in the United States makes up 10 percent of the economy, which meant the country was in trouble at this point.
Because of no new homes being built and declining home sales, the economy walked into its first recession in many years, which would then be a long road to recovery. Unemployment rates were high at this time, but some parts of the country felt it more such as Detroit, Michigan, which had a very high unemployment rate due to lack of automobile sales. Moreover, it took those searching for jobs up to a year to secure new employment.
August of 2011 saw a spike in home sales, which was welcomed news for everyone. There was an 7.7 percent increase overall in August, but it seems that some states and areas of the country saw more of an increase while others saw less. The West saw a big spike of home sales with a 18.3 percent increase, but the Northwest saw an increase of only 2.7 percent.
While it is true that the recovery of the economy has been slower than most would like, and there are still many people who are jobless, signs of improvement have been felt because of the increases in the sales of homes. Moreover, since the subprime lending is no longer available, it has made qualifying for a new home more difficult. Many people had a hard time believing there was a real upward turn in the economy since the grim news played repeatedly on the news and in newspapers.
The future predictions for the housing market are promising. All indications insist that housing sales will increase even more in 2012. One key reason economists foresee a better sales outcome in 2012 is due to the fact that home values are rising, which is always a good sign that improvement is the market is imminent.
You can find details about important factors to consider before buying Idaho homes and information about a respected real estate broker who specializes in Boise homes, now.
Article Source: http://EzineArticles.com/?expert=Todd_M_McCauley
Technorati Tags: home sales, housing market, housing sales, market trends, real estate market
October 6, 2011
We all are well aware of the fact that the price rates of real estate properties keep on fluctuating all the time and this is the reason why this market is considered to be the most unstable market. Searching out for a suitable real estate property can be a challenging task for you. You need to be completely aware of the market conditions if you want to acquire some best possible deals in this regard. There are certain tips and tricks that can actually help you in locating a suitable and prospective real estate property. You need to keep some of the necessary factors on your priority list while searching out for your dream home.
There are certain elements that you must consider before investing money in the real estate property. It can actually make your new home research, easy as well as manageable. Some of these major considerations are listed below.
Living Space
Different types of real estate properties are comprised with different kinds of living space. The overall home layouts as well as the home size are the two essential factors that you need to keep on the top of your priority list. Before finalizing any kind of deal, you need to consider the type of rooms as well as the floor type. You must always look out for such properties that are comprised with open spaces. If you love to enjoy the whole city view from your living room, then you can buy home on a third or fourth story. Make sure that you always consider the number of family members and choose your home accordingly.
Location
Many individuals do not pay proper attention on the location of their property and this leads to a lot of problems in future. However most of the home owners look out for nearby areas and neighborhood region. It is really one of the most important elements that you need to look out for while purchasing house. The location of a real estate property is the most necessary element that is actually responsible for deciding the selling capability as well as the price of the property. You must always buy a home which is located very near to the school, market, hospital, shopping mall, airport, railway station, bus stand or other basic areas.
Basic Home Amenities
The basic amenities can actually help you in finding a suitable home. They are actually an integral part of every real estate property. You must always search out for right amenities as per your needs and requirements. Your prior amenities may include kitchen, balcony, pool, drainage system, garbage system, water and electricity supply, parking and security. Some luxurious amenities may include indoor spa, living room bar and pool table. Make sure that you pay attention towards these amenities.
So, these are some of the major real estate considerations that you need to keep in your mind while looking for your dream home. I am sure that you will get a lot of help in this regard.
Article Source: http://EzineArticles.com/?expert=Freida_Dejesus
Technorati Tags: Brooksville Real Estate Market, guide to real estate, real estate investment, real estate tips
July 23, 2011
Building your own home the way you like is the new trend that everyone seems to be following. Many cities have old homes that were constructed over thirty years ago. A new home would be more stable and it would have a better market value when the time comes to sell it. Investors choose to build homes and sell them mainly because there is a large profit margin in the business. When building a home, you will need to have some capital. Without capital it is extremely hard to get a builder to work on your project. There are several builders in most markets, so you should look at some of their recently built homes to get an idea of how their craftsmanship is.
First, draw up a list of potential builders you will be using for your home. These builders should be both established and knowledgeable about the industry. The internet is a great place to start your search for a builder, as they list reviews and information on expertise. If a particular builder specializes in commercial buildings, you should leave them to it. Focus on home builders that have experience in building the type of home you want to purchase. Once you have found your builder, run a check on the company and the people that you are dealing with. You can use online resources to get information on the builder.
The builder would have a collection of modern home floor plans and designs. You will be the one making the decision to purchase, so everything is in your hands. You could give the builder instructions on what you want and they will draw up a plan for you. Most people tend to choose a plan that the builder has experience in building. The home itself would be built with no extra furnishings. The floors, tiles and carpet would be part of the last step. Once a plan is derived, you will need to negotiate a building contract. Builders typically take a portion of the money up front for materials and labor, and they will expect frequent payments in the middle. The final payment is made through a lender that you have fixed your mortgage with.
A good builder has better access to roofers, electricians, plumbers and painters. You simply watch them get the job done. Once the foundation for your home is built, all the walls will go up. The electrical and plumbing work would be completed next, and drywall would go up. You will then be given a number of different styles in terms of flooring, tiles and carpet. The builder would need to know what type of flooring you want and the type of tiles you like. Some are more expensive than others, so people tend to choose the low cost ones. The final product should be exactly like how you imagined it would be, and if you have a good builder, it will be.
To find out more about building and real estate, you should visit Real Estate Webinars. They have some good articles and videos: http://real-estate-webinars.com
Article Source: http://EzineArticles.com/?expert=GL_Hollaway
Technorati Tags: brooksville homes for sale, Brooksville real estate, building your own home
June 22, 2011
Today’s real estate market is quite different than those that came before. In the past, you were pretty much guaranteed that you would buy a home, live in it for a couple of years and be able to sell it at a profit. In fact, in the early 2000’s, people were making tons of money in a very short amount of time because the real estate market was skyrocketing. But then, it burst wide open. Home prices began to plummet. Here we are, a few months afterwards and people who bought when the prices were high are finding that their homes just aren’t worth nearly what they paid for them.
For first-time home sellers, the sales process can be especially daunting. You want to sell your home but don’t know what to expect. Here are a few tips that should help ease the stress and worry of selling your first home.
Hire an Expert – Selling your home by yourself can be extremely difficult. You should really consider hiring an experienced real estate professional. Their knowledge and resources can help make navigating the real estate waters much easier. Interview several until you find someone that fits. Research their background and credentials. Ask neighbors, friends, family members and co-workers who they have worked with in the past. It may take a little while to find the perfect “fit” for you, but it will be well worth it.
Price it Right to Start With – Use comps in the area to help determine what a realistic sales price is. If you set your price too high, your home could sit on the market for too long. A home will have its best response within the first 2 to 3 weeks. That’s why you want to be competitive to start with. If a REALTOR® won’t pull comps, you don’t want to work with them. While they’re not everything, comps are a good point of reference to know where your local market is at.
Don’t Worry About Profit Margins – Unfortunately, the reality is that you may not be able to sell your home for what you want. If you want to sell your home now, you can’t put your asking price at what you owe, what you’ve put into the home or even what the tax assessor says it’s worth. Your home is only worth what someone else is willing to pay for it. That means that you may take a slight loss. Not all homes are that way. But, it’s important to keep that in mind so you’re not surprised if it happens. Your real estate agent can explain this to you as well.
Set Your Sights on the Prize – Know your target demographic. Most first time sellers have bought a starter home. This is perfect for another couple or family just starting out. But, it may also be great for an older couple looking to downsize after their family has grown up and moved out. Once you have determined who your target audience is, you can shape your marketing campaign accordingly. Your real estate professional should be able to help you with that as well.
The Internet is Your Friend – More and more home buyers are turning to the internet to begin their home searches. That’s why you need a REALTOR® who will market your home on the internet as well. Make sure to take plenty of high quality, well lit photos of your home, since this will be how people first see your property. Keep it clean, clear and clutter-free.
Today’s real estate market is much different than the markets of the past. It takes knowledge and experience to sell a home nowadays. With the right help, your home sale can happen quickly and smoothly. You just need to get the right people on your side.
Stephanie Hansson, ABR, CRS
Bryan-College Station Real Estate
(979) 574-6281 * http://livinginbryancollegestation.com
Article Source: http://EzineArticles.com/?expert=Stephanie_Hansson
Technorati Tags: Brooksville Real Estate Agents, Brooksville Real Estate Market, finding real estate buyers, real estate market, US real estate market
May 31, 2011
Up until this year, the Lee County existing home prices rose as foreclosures continued to fall, even as the country’s national marked continued its long decline. Local experts say that we should not expect any significant changes in the near futures as things keep bumping along the bottom. As far as the median price for a single-family home that was sold with the help of a real estate agent, it increased by 4% this February – from $87,900 to $91,500, in comparison to 2010, according to the statistics published by the Florida Realtors. In comparison to January’s $88,500, the price rose by 3%.
In addition, the total number of the single-family properties that were sold dropped by 12% this year, from 1,259 to 1,106. However, February’s sales were almost 1% up from January’s 1,072. Across the entire United States, fewer Americans purchased previously occupied properties in February and those that bought them, did it at steep discounts. According to a National Realtors Association report, the weak sales and rise in foreclosures forced home prices down to a minimum in almost nine years.
Regarding the sales of previously occupied properties fell in February to a seasonally adjusted annual rate of 4.88 million, which is 9.6% less from January’s 5.4 million. This pace is well below the 6 million properties per year that economists say that represents a healthy market. As far as Lee County is concerned, which is one of the markets hardest hit by the housing collapse, the prices reached their maximum in December 2005 – $322,300, before a very long decline that flattened out in 2009.
Real estate broker Denny Grimes, who is the current president of Denny Grimes & Co. at Royal Shell in Fort Myers, said that although the local numbers are not very good, they are better than the alternative. He added that the market is basically stable. However, he didn’t say that further drops are out of the equation. On the contrary, a second downfall might occur if the homes yet to be foreclosed on by the investors who will eventually sell and bank-owned inventory are released.
However, until then, the demand and supply are strong and the prices and sales are not going to modify very much in the months to come. Another real estate broker, Steve Koffman, who works for Century 21 Sunbelt in Cape Coral, says that he has his doubts regarding a spike in foreclosures that will change the balance. He added that banks are not hoarding a generous inventory to be released later, saying that “when they have them, they get rid of them.”
Across the entire United States, almost 40% of all February’s sales were short sales or foreclosures, when the lender accepts less than the seller owes on the mortgage. As far as Lee County, it is about 60%. In February, the median sales price nationally dropped by 5.2% to $156,000, which is the lowest level since April, 2002.
As a conclusion, if you are in the market for a house in Cape Coral for example, or any other city within Florida, you need to be prepared more than before, but if you are lucky enough and you have the help of a good estate agent, you might find a bargain.
Technorati Tags: Brooksville real estate, Florida real estate market, housing crisis, housing in Florida
February 10, 2011
Making money in Real Estate is the most popular strategy to build wealth. If you’re not currently making money and building wealth in real estate you need to start. I have been making money using four very simple strategies that are very simple to duplicate.
All of the millionaires I have learned from make money and build wealth in real estate. That’s right, all of them! These real estate strategies can set you free for life!
If you learn and implement them you can build a massive amount of wealth in a very short period of time. I use a system for all four of the strategies that all go hand in hand.
These strategies can easily make you rich in a very short period of time. I use the first strategy to make money fast, the second strategy for making money in chunks and the third strategy is for building wealth and creating income for the rest of my life. The last strategy I use to buy real estate extremely cheap.
I use a step by step system for all of these money making systems. The first strategy requires in many cases no money and no credit. It’s the strategy I use to create anywhere from three to fifteen thousand dollars in profits per deal in a short period of time without ever even buying real estate. This strategy is known as wholesaling.
It’s easy to begin making quick money. You don’t need money to make money with this strategy! If you have bad credit don’t worry, you don’t need good credit to make money with this strategy. My goal is for you to have a check in your hands of $5,000 or more in 30 days or less!
I can show you my exact system on how to do it. Wholesale is nothing more than making an offer on a piece of real estate, getting that offer accepted, then simply assigning to contract to someone else. Don’t worry, making an offer on something doesn’t mean you’ll be forced to buy it”.
Making offers on Real Estate is easy! You can do it two ways. Through a realtor or directly to sellers who don’t have their homes listed with a realtor.
I developed a specific step by step system to find listed and unlisted properties to make offers on. Most of my deals are through listed properties. I use a realtor to make offers for me on properties that are listed.
There are a lot of realtors who won’t understand what you’re trying to accomplish. I’ll teach you exactly the process I use to find my realtors as well as how to get them on the same page as you with what you want to accomplish.
There are so many properties for sale. You need to learn how to find the best one’s to make offers on. Learning how to wholesale is the first step in becoming a real estate investor and getting out of the rat race! In all of my money making strategies I believe it is the easiest one for both beginners and advanced investors.
I use the second strategy to create larger chunks of cash anywhere from twenty to sixty thousand dollars in profits per deal. It takes a little longer to generate those profits than the first strategy but one deal generates much more money. This strategy is called retailing.
This strategy has some great advantages. It’s easy to make consistent $20,000+ on every deal, it can be done part time, and it can and should be done with someone else’s money!
Flipping real estate is nothing more than buying a house; fixing it up if it needs repairs, and then selling it for a profit. Most Real estate flippers that fail don’t understand the number 1 rule, Buy Cheap! When they buy a house most of them think they’re buying it cheap but chances are they’re not.
The biggest mistake investors make is they don’t calculate all of their costs before they do the deal. There is a specific formula that’s easy to follow that will make sure you follow this very important rule. The way you buy your real estate is the difference between winning and losing.
If you are new to real estate investing the first strategy you should implement is wholesaling. The reason is with wholesaling you learn how to make extra money without risking your own money. When you accomplish that then move to retailing.
After you learn how to earn extra money wholesaling, you will have accomplished your first step in becoming a successful flipper. That first step is learning how to buy cheap!
The third strategy I use to build wealth and get paid forever. By doing this I create a monthly income that will last forever. Making money in Real Estate is not just creating quick cash; it’s also about creating enough wealth where you can literally never have to work again! This strategy is known as buying and holding.
There are many ways to build a Money Making Machine. The best way is through real estate investing focused on building wealth. Making money now is important but creating wealth for the rest of your life is what will set you free!
Buying real estate isn’t hard, but, buying real estate correctly is where most people go wrong. Understanding what makes up a good deal is your greatest asset with this strategy.
You make money when you buy; you get paid when you sell. If you’re a beginner this will be the most important thing that must be understood. If you buy right you will have a lot of equity and great cash flow for the entire time you own a particular investment. This is what I refer to as building a money making machine.
In real estate there are many strategies to make money quick. Those are the strategies you should begin with because you have to learn how to buy cheap enough to make money.
After those strategies are executed that is the time to worry about building for the rest of your life. There are multiple ways to buy cheap it’s all about learning the ones that will work for you.
Now, once you know how to buy cheap creating wealth is easy! Simply make sure you have great cash flow with each deal you intend on doing and before you know it after multiple deals you will start building monthly cash flow.
Continue this simple recipe over and over and in a very short period of time you could be generating enough cash flow to live on then you can focus on getting rich and wealthy! Best of all you can focus on whatever you want because you don’t have to work if you don’t want to.
The reason this is my favorite real estate strategy is because I love residual income. Creating something once that pays you for the rest of your life is the smartest thing you can do financially. All my rich mentors made this lesson very clear to me.
Building a money making machine first starts with making quick money in real estate. Once you learn that you will know how to buy real estate the right way. From there all you have to do is hold it for cash flow for the rest of your life!
The final strategy I use to buy real estate extremely cheap from distressed sellers. Buying cheap through properties in pre-foreclosure is a tremendous opportunity.
There are so many ways to make money in real estate. Many people have a hard time finding which way fit’s them the best. Some people like to stick to one strategy, others like a lot of different strategies.
I recommend doing some research and reading some books to learn about all the different ways there are to make money before you choose one. I recommend the following products because they should help you decide what kind of real estate strategy you want to pursue.
Making money in real estate goes hand and hand with all of the other best money making strategies. The reason is the tax advantages you get blend very well together with all of the other money making strategies. Real estate investing is also one of my favorites because it is the best way to build ultimate wealth that will last forever!
Learning a simple money making strategy is easy. The hard part is where and who do you ask to teach you? This used to be my problem until I met some very successful mentors.
I learned for them many strategies to get rich, this one is one of the best. Making money in real estate is all about buying cheap! By finding and buying distressed real estate you will be able to buy extremely cheap.
Those who have a way to buy real estate extremely cheap will succeed. Pre-foreclosure investing is a great way to buy cheap from distressed sellers. It’s a win-win situation for you and the seller.
There are a few ways to buy real estate in distressed situations. If a seller is in pre-foreclose which means they are behind on payments but their home hasn’t been foreclosed on yet they would probably be very interested in selling.
Most of the time people end up losing their homes and would have been much better off if someone was there to help them out of that situation. Like I said, Win-Win situation.
There are two scenarios for the buyer. There is either already sufficient equity in the property for them to purchase it or there isn’t enough equity. Most of the time there won’t be enough.
There is a simple money making strategy know as short sales for properties that don’t have enough equity. In this case the bank or mortgage company that has a lien on the property will most likely accept a huge discount on what they are owed in exchange for a payoff of some amount for what they are owed.
For example, if a property is worth $200,000 and the bank has a lien of $180,000 for a property in not great shape they will probably accept a huge discount. The reason is the cost they have to incur to foreclose, list, and resell is huge.
You make them and offer at $100,000 as a payoff. After negotiations they accept $120,000. You’re now able to buy a $200,000 home for $120,000 through your knowledge.
All in all, these four Real Estate Investing Strategies all have their advantages and disadvantages. There is a sequential order they should be implemented in. Take this information and use it to the best of your ability and be smart and savvy out there.
My Name is Michael T. Keenan. I have been studying all aspect of finance for many years. I specialize in learning how to duplicate money making strategies that already exist which has allowed me to make a lot of money much quicker than normal. I have met hundreds of various millionaires and studied thousands. I used their strategies and techniques to get rich. I narrowed down all of the strategies used these millionaires to ten main strategies that I believed would be the easiest for me to duplicate and teach once I executed them. My studies have come a long way and it has allowed me to pursue two of my passions. I’m passionate about being wealthy and I’m even more passionate about teaching others how to get wealthy. After executing several of the ten strategies I began to write a website which allowed me to share my resources and knowledge with others. This was my first step in following my second passion which is educating others. I love adding new knowledge that I’ve required along the way to my website so everyone reading my site can benefit from that knowledge. I hope everyone interested in creating wealth and ultimately a better life for themselves and their families enjoys my articles and website. Visit my site below to learn more about the ten strategies I believe are the easiest money making strategies to duplicate in order to obtain massive wealth.
[http://www.bestmoneymakingstrategies.com/Making-Money-In-Real-Estate.html]
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February 3, 2011
Spring has sprung. That time for romance, gardening, cleaning, fishing, dreaming and, oh yeah, house hunting.
Spring is typically when dissatisfaction over one’s living situation has reached it zenith and it seems right, after a long winter indoors, to cast one’s eyes elsewhere.
That being the pattern, there doesn’t appear to be the usual flurry of house hunting so far this 2010 spring.
Maybe most Americans haven’t quite rolled out of hibernation just yet. Or maybe it has something to do with the lingering winter weather still out there.
Or maybe people are just waiting for real estate prices to drop as far as they’re going to drop first. That’s called…
REAL ESTATE DEFLATION
If you know that the price is falling on something you want to buy, why buy it now? Why not just wait until you’re convinced that the price has more or less stopped falling? That’s only deflation common sense, and maybe what’s holding up real estate today.
We should also be on the lookout for…
ANOTHER ROUND OF RESETS, MODIFICATIONS AND FORECLOSURES
The average U.S. home price will fall by about 6% by September 2011, according to a joint report pulled together by Fiserv and Moody’s Economy.com.
What’s behind these falling prices?
Most Americans believe that the “resetting” of adjustable rate mortgages (ARMs) is behind us. Not so. In fact, sadly enough, we probably still have quite a way to go. Resets will likely peak somewhere around September of 2011.
That’s when, chances are, another round of foreclosures will also take place.
Then there’s commercial real estate. About $1.4 trillion in commercial real estate loans are due for refinancing between now and 2014. That’s scary.
So more dark clouds are on the real estate horizon. Does that mean real estate, of any kind, isn’t where you should be putting your money right now?
Not necessarily. Real estate investments will always be local. In some areas, homes have dropped enough in value (parts of California, Arizona and Florida, for example) that they may represent a genuine bargain.
TODAY’S APPROPRIATE ALTERNATIVE
TO REAL ESTATE
But for those unwilling to brave today’s housing risks, gold and silver coins remain tremendous investment first aid. Since 2000, for example, gold has been up 301%-that’s been a nice piece of appreciation even as real estate has broken so many hearts…and banks.
But here’s the thing: Those same fundamentals that drove gold beyond $1,000/oz are, if anything, stronger today. Inflation, recession, unemployment, trouble in Europe-all signs that a precious metal diversification is still a very wise choice today.
The best investors are those flexible few folks who aren’t as much in love with any one investment as they are capable of adjusting their positions when it’s entirely appropriate and even obvious to do so.
Kevin DeMeritt, President of Lear Capital, is a published author, analyst and expert guest on more than 1000 radio programs, including Rush Limbaugh and Coast to Coast with George Noory, discussing today’s economy, gold and the geopolitical picture. Now more than ever, his insights are welcome by nervous investors. Visit http://www.LearCapital.com for all the investing help you need.
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