From banks.com comes a great post on Top 10 Real Estate Investing Mistakes. The drumroll please (click through for complete explanations of each)….
10) Fall in love with the property
9) Fail to plan
Overpaying
7) Go It Alone
6) Get Greedy
5) Invest in ‘Egypt’
4) Miscalculate (that’s why you need Real Estate Genius!)
3) Ignoring competition
2) Underinsure
1) Moving too quick
How To Create Massive Passive Income With Out Hassling With A Single Tenant
By Dave Lindahl
The true goal of every investor should be to create as much massive passive income as soon as possible.
Passive income means just that, money that comes into your house month in/ month out without you having to do a thing to get it. How can you accumulate massive passive income quickly?
Well, if you went out and bought a couple dozen single family houses and kept them, you would create a decent income. Good but not great.
Its’ going to take you a little time to find all of these deals and then you would have to manage all of those tenants.
What if you put a couple dozen units in the same property? Then you would only have to find one deal and then a few more to create a great passive income.
I know what you’re thinking. Oh no, not apartments! I don’t want to deal with the tenant hassles! And I agree with you, you shouldn’t be dealing with any tenants, wouldn’t it be better if you could just sit back and collect checks while someone else deals with all of the management headaches?
Those people are called management companies and they make a living shielding investors from the day to day management of their properties so you can go out and continue to do what you do best, find more property and create more cash flow!
But aren’t they expensive? It’s true that management companies are paid a percentage of the gross collected rents, somewhere between 6% and 10%, though if you factor this cost into the deal, as long as the property cash flows with these fees, you’ve got yourself a winner!
Not only have you found a property that will get you one step closer to true freedom, you don’t have to hassle with a single tenant.
But don’t the management companies nickel and dime all of your profits away? While it’s true that there are some bad management companies out there, you can be assured to find a good one if you follow these simple steps.
Go to www.irem.org. That’s the Institute For Real Estate Management, a great resource. When there, go into the search box and search for a Certified Property Manager (CPM).
These are owners and managers who have taken time out of their busy schedule and taken a series of required courses to improve their management knowledge and skills. Upon the completion of these courses, they take a big test and then they are awarded the CPM designation.
These managers are the cream of the crop and these are the ones that you want to have managing your properties. They will send you a summary report each month, telling you how the property is performing and the only thing you have left to do is to go cash you’re checks while you’re out finding more properties for your portfolio!
David Lindahl, also known as the “Apartment King” has been successfully investing in single family homes and apartments for the last eight years. He is the author of many popular, money making home study courses. He can be reached at dave@real-estate-fortune.com and http://www.rementor.com or 781-878-7114
Article Source: http://EzineArticles.com/?expert=Dave_Lindahl
http://EzineArticles.com/?How-To-Create-Massive-Passive-Income-With-Out-Hassling-With-A-Single-Tenant&id=728225
The financial terms to buy to let mortgages are specifically designed for the people who want to invest their asset properly. The business loans and car insurance is provided by different loan companies for the small as well as the large investors and enterprises. The personal loan is specified for the person who may have authority to customize its dealings according to his own choices. The unsecured loan is provided for the individuals who want to take loan with out providing any kind of security of the properties. The personal finance is the investment of the individuals who want to invest his money for the growth of business deals. The student loan is provided by the loan companies, based on the different rules and regulations.
Real Estate Investing Mistakes To Avoid
By Jeffrey W Anderson
You’ve no doubt seen them or read them. Glossy ads or four-color spreads in magazines and newspapers promising to teach you all the juicy details about successful real estate investing. And all you have to do to learn all these real estate investing secrets is to pay a rather high sum for a one-or two-day seminar.
Often these slick real estate investing seminars claim that you can make smart, profitable real estate investments with absolutely no money down (except, of course, the hefty fee you pay for the seminar). Now, how appealing is that? Make a profit from real estate investments you made with no money. Possible? Not likely.
Successful real estate investment requires cash flow. That’s the nature of any type of business or investment, especially real estate investing. You put your money into something that you hope and plan will make you more money.
Unfortunately too few newbies to the world of real estate investing think that it’s a magical type of business where standard business rules don’t apply. Simply put, if you want to stay in real estate investing for more than, say, a day or two, then you’re going to have to come up with money to use and invest.
While it may be true that buying real estate with no money down is easy, anyone who’s even made a basic real estate investment (like buying their own home) knows there’s much more involved in real estate investing that can cost you money. For example, what about any necessary repairs?
So, the number one rule people new to real estate investing should remember is to have available cash reserves. Before you decide to actually do any real estate investing, save some money. Having a little money in the bank when you start real estate investing can help you make more profitable real estate investments in rental properties, for example.
When real estate investing in rental properties, you’ll want to be able to select only qualified tenants. If you have no cash flow when real estate investing in rental properties, you might be pressured to take in a less qualified tenant because you need somebody to pay you money so that you can take care of repairs or lawyer fees.
For any type of real estate investing, meaning rental properties or properties you buy to resell, having cash reserved can allow you to ask for a higher price. You can ask for a higher price from your real estate investment because you won’t feel financially strapped as you wait for an offer. You won’t be backed into a corner and forced to accept just any offer because you desperately need the money.
Another downfall of many new to real estate investing is, well, greed. Make a profit, yes, but don’t become so greedy that you ask for ridiculous rental or resale rates on any of your real estate investments.
Those new to real estate investing need to see real estate investing as a business, NOT a hobby. Don’t think that real estate investing is going to make you rich overnight. What business does?
It takes about six months to determine if real estate investing in for you. If you’ve decided that, hey I love this, then give yourself a few years to really start making money. It usually takes at least five years to become truly successful in real estate investing.
Persistence is the key to success in real estate investing. If you’ve decided that real estate investing is for you, keep plugging away at it and the rewards will be greater than you imagined.
Looking for more info on Real Estate Investing?
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Article Source: http://EzineArticles.com/?expert=Jeffrey_W_Anderson
http://EzineArticles.com/?Real-Estate-Investing-Mistakes-To-Avoid&id=726101
Here’s a detailed explanation of How to analyze a real estate investment. Nice basic explanation of the process used by the Real Estate Genius real estate calculator.
Your hard work and expense may lower the market value of a property you wish to sell. Surprised? Don’t be. Generally people believe that by really dolling up a property they will maximize their sales price. That is frequently untrue and problematic at best.
The majority of real estate owners improve a property being prepared for sale. The problem is that many of them make decisions regarding the improvements they choose based on their personal tastes, preferences and the things that would be important to them if they were buying. Unfortunately those things may be more of a stumbling block than a stepping stone to the sale.
First; opinions on what is important and appropriate differ from person to person. The colors you pick to repaint may clash with a buyer’s vision for the property. The new basic tile you install may be a negative for buyers who want to do something unique after their purchase. The new appliances you buy may hinder a sale because a buyer may have contacts where they can buy appliances at a deep discount thereby reducing their overall costs. The new roof you put on may be a conflict with the color of stucco that buyers may want to do. The new carpet you put in the hallways may conflict with a buyer’s design elements. In all these cases, your work and expense will hinder the sale, not help it.
Second; this does not mean that you should not prep a property for sale. I’m just suggesting that you do it right. Here are three simple rules that you can follow to make your investment in time and money are penny wise and not pound foolish.
So, in closing, when it comes to improvements, do only what needs to be done and do it wisely. It will save you time, effort and money. In most cases, you’ll walk away from the closing table with what you would have if you had done the improvements yourself.
Good Luck in your career.
Roger Beattie is a real estate broker, investor, owner and operator. He is also the founder of Middle Class Millionaires, an association of investors helping each other succeed in real estate investment. Middle Class Millionaires has an excellent blog with investing articles and industry news.
www.MiddleClassMillionaires.com/blog
He also recently co-authored a report instructing how to lower the risk in many real estate investments.
Real Estate Risk Reduction Techniques
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http://EzineArticles.com/?Thinking-of-Selling?-Be-Careful-What-You-Improve&id=629690
By Joe Ponce
Of course, none of us can be everywhere at the same time (at least no one I have ever met). So many people see Real Estate through their own single portal and only those deals that they see come by can they act on. This is very limiting and restricts many investors. The message in this article is a bit mixed. You have to see enough promise or profits to choose the path you like and therefore are more likely to learn and stick with.
I once heard someone speak of stepping over thousand dollar bills as an analogy to people who could not see a deal staring them in the face. At least that is what I thought he meant. At the time, I didn’t think too much of it other than it was a cute way to look at the inexperience of many investors. As my investing career grew, I realized just how right this was. The ground, so to speak, is littered with thousand dollar bills and the dilemma becomes just which bills to pick up.
If you are new to the business, you probably cannot wait to see more thousand dollar bills than you can pick up, but they are out there. Ask anyone who is really looking.
Early in my investing career I tried just about every type of real estate investment you could buy a book or a course on. I tried each one once or twice and tried to make as few mistakes as possible. I did a few foreclosures, short sales, rehabs, flips, rentals, waterfront condos, mobile homes, commercial and residential land, and an RV Park. I even tried to buy a golf course one time but couldn’t raise the capital in time. There was a lot of frustration as I worked through many of the unique issues to each strategy.
Man, I figured there had to be one of these strategies that appealed to me. The thing was, I liked them all a little bit, but not one a lot. So what to do? Keep trying other deals until you figure something out right? Well, let me just say that I spent a whole lot of time stepping over thousand dollar bills.
If I had actually sat down and listed some of the skills I had and matched them up to some of the things I liked doing, I probably could have had a 5 year head start on myself. I am cursed with being as curious as a cat and interested in nearly everything. My wife of 15 years has long since given up on some of the conversations in which I try to engage her. I can’t really blame her. If our roles were reversed, she would constantly be telling me how a new type of thread was made especially for wedding dresses in the color of purple. She would go on and on about the number of twists in the thread per inch and how that affected the strength when a particularly stressful moment for the dress occurred such as laughing or pumping iron. I probably sound that crazy to her.
Today I work toward another model entirely. I am a visual person and realize that it is impossible to be good at everything and you will usually end up being just plain dangerous if you try.
So I pick a few lanes that interest me and try not to leave them. Here is what happens visually. The field is littered with thousand dollar bills. One row seems to have a few more on it and you head down that row. You find that the farther you go, the more bills you see in the distance until you focus completely on vacuuming up everyone in sight. As your skills in this lane or row expand, so does your ability to “see” these bills that are there for the taking. In short, you are no longer stepping over what you cannot see.
I suppose I could have abandoned all the chit chat in this article and stated “don’t get too spread out, stay focused on what you like and are good at.”
That is a bit cliché though. I prefer my visual model. I remember the days when every course or book I read was the next great path to financial freedom. People will attempt to lure you down these paths with promises and do you know what? Most of them are true! If you really became engrossed and took action in the niche you were studying, you would very likely be very successful.
So what is my favorite type of investment? Well let’s see what I like and don’t like.
I like the technical, mechanical, and creative side to investing.
I dislike the repetition, doing the books, filling out forms, and the tedious stuff.
Others folks are just the exact opposite.
Well, I threw all my efforts at mobile homes…surprised? I used my technical skills to develop a database that made investing very simple. It is very rare that a contractor pulls the wool over my eyes especially with air conditioning or electricity. I was able to structure deals creatively using only 20% and usually less of my own money.
Like any business it has its ups and downs but I am in my comfort zone and can do many more deals in a shorter period of time. I collect most of my leads over the Internet, there is little competition, and I can spend time outdoors.
I “see” the thousand dollar bills in my niche because I am good at it. I don’t see the thousand dollar bills in tax lien certificates for example although I am sure they are there.
This business has hundreds of niches and sub-niches that are growing all the time with some of the great creative minds out there. Do yourself a favor and learn a little about yourself while you are attacking that latest course. It will pay huge dividends down the road and put you on the right track. Don’t forget to come back from time to time and re-examine some of the niches that you thought you would not like. Above all do not be intimidated by people who are really cranking it up in their own niches. It does not mean it is a right fit for you as well.
Only you can choose the path that fits with your personality and style. Once you find it, watch those bills start to appear right before your eyes!
Joe Ponce is a master real estate investor and full-time Chief Information Officer in the U.S. Army. He has purchased or controlled over 500 properties and is largely considered to be one of the area’s foremost experts on manufactured home investing and internet marketing. His latest ventures, http://www.WealthAddress.com and http://www.Homes2Go.Com educate new investors about the power of successful internet marketing.
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http://EzineArticles.com/?Stepping-Over-Thousand-Dollar-Bills&id=612996
The debt solution is offered by the financial consultants for debtors who want to get rid of heavy charges of debt. You may get start work at home if you have direct accessibility to internet. The trend of doing work from home has been increasing with the advent of internet era. The debt relief program involves the process of reducing the debt charges of debtors. If you want to buy to let mortgages, you have to contact the concerning mortgage broker. The life insurance provides the financial security in any accidental situation.
The world of investing in real estate is simply a highly lucrative one. With more people making more money on real estate than ever before, everyone wants to try their hand at making the big bucks. However, so many people jump into this world without proper preparation and find themselves floundering and not being able to afford the upkeep of their properties. As with any form of investment the first thing you need before making a run at it is a good, solid foundation and the knowledge of what is going to work and what isn’t. It’s kind of like buying stocks blindly. you would not dream of buying stocks without first researching them and the companies. find out what they stand for and how they have performed over time. The same holds true with real estate.
There is really no point in investing in something if you don’t know what you want from it and what hurdles you have to jump along the way. Investing in real estate is a bit more difficult than simply mortgaging or purchasing a property and renting it out or flipping it. Television is a main culprit in the mindset that investing is just that simple. What you don’t see on those investing shows is all the legwork and planning that go into a typical purchase. Trust me, there is a lot more that goes into an investment than can be covered in 1 hour minus commercials.
Investing is all about having a game plan with failsafe’s built right in. Let’s look at a couple of things that you may want to consider in making a real estate investment.
Location - This is incredibly important. If you are planning on making a long-term investment then you will be looking for an area that offers a lot to residents. Areas with schools, shopping centers, recreation facilities etc. It is more difficult to rent a home in the boonies than it is to rent a home in an urban area. If flipping a home is your plan then look for areas that are hot. New developments, condos and town homes are great places to look for this kind of thing. Talk to your realtor and find out which area of the city is selling fast, that is the kind of area you want for a flip.
Cleanliness- The key factor of almost any real estate transaction. Nobody wants to rent or buy a dirty home. renting will be dependant on keeping the property in good condition for some time so as to be appealing to renters. Also being attentive to the needs of said renters is important. An ignorant or careless landlord attracts tenants of the same caliber. Bad tenants can be a nightmare that no landlord wants to deal with so be sure to get to know people before they rent your property.
Finances - An investment should never have the ability to break you financially. This is where the failsafe’s come in. Make sure you have the funds to look after the property if you cannot immediately find renters or if the home take longer than anticipated to sell. If you build yourself a financial buffer then you can be properly insulated from taking a loss if things do not go according to plan.
Invest smart and don’t rush into things. You are making a big play for your financial future so it is not something to be taken lightly. Make sure you make the right decisions and always be prepared in case you make a mistake.
Preston Guyton is a professional Realtor® serving the Myrtle Beach real estate market. For more information on Myrtle Beach homes & properties, contact Preston today or visit http://www.prestonguyton.com.
Article Source: http://EzineArticles.com/?expert=Preston_Guyton
http://EzineArticles.com/?Investing—Starting-With-A-Good-Foundation&id=620741
By Tom Dunn
If you’re an aspiring real estate investor, or even an experienced one, and you would like to learn to market for motivated sellers and get them calling you, read on!
There are lots of ways to market for motivated sellers, and get them calling you on the telephone. Some cost lots of money, like classified ads. Others are virtually free. Your budget will determine which marketing methods you start out with, but the important thing to remember is, if you’re not doing some form of marketing, your business is dead in the water.
If you have little or no budget, one of the first things you SHOULD spend a little money on is business cards. You can get a box of a thousand simple cards with your contact information and “I Buy Houses” emblazoned on them for under thirty dollars. If you pass them out, they’ll bring you contacts and business.
The sad thing about business cards is, many people never take them out of the box, or they hand them only to people they already know. What good does that do? Each card is like a little salesperson, waiting to introduce you to the world. Leaving them in the box is like telling your salesman he can stay home in bed.
Pass your cards out everywhere, and leave them places where people will see them. Leave them with tips at restaurants, on the gas pump after you’re finished, hang them on community bulletin boards and in local businesses. In short, get them out there doing there job. Slowly but surely, people will find out about you, and they will call you when the need to sell a house.
Real estate investors also use things like hats, key rings, mugs, pens, and even t-shirts with their “I Buy Houses” message printed on them. These are great, but can get pretty expensive. Use them after you have a couple of deals under your belt, so they won’t break your budget.
Classified ads are probably the most often used method for attracting business. Unfortunately, in my market at least, they are overused and therefore it’s hard to stand out. Try ad copy that’s a little different. My ad reads, “I Buy Houses – Sell Your House Today, Move On With Your Life Tomorrow.” It stands out a little from the rest, and it’s been effective for me.
Where you put your ad can make a big difference, too. In my area, we have one major daily newspaper, which is widely read, but very expensive. I have had good success with a couple of the small, weekly “Pennysaver” type classified ad papers. My suggestion is to test your results and keep careful track of where your calls are coming from. You’ll soon find out what works and what doesn’t.
I’ve got more on how real estate investors can find motivated sellers, including two kick-butt methods that few investors have ever thought about. You’ll find it at Marketing For Real Estate Investors.
Crush The Biggest Obstacle to Your Success in Real Estate… or Anything Else! Download my FREE report and Start Investing In Real Estate! Tom Dunn is a successful real estate investor and author of the popular DealFiles Real Estate Investor Stories free newsletter. You are welcome to share this report, unedited and in it’s entirety, with anyone you like. This text, and all live text links, must remain intact. © 2007 by Tom Dunn.
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By Robert Gavin
It’s true, 90% of the world’s richest people became rich through property. But did you also know that it doesn’t take an advanced degree, millions in the bank or a super high IQ.
NO, what separates the rich form the poor, is understanding how to set and achieve your financial goals.
ANYONE who can understand money and how to make it work for them, rather than them working for it, can become financially independent within 5 years.
Finding the time It is often said that we live in a world where “the richer keep getting richer and the poorer keep getting poorer”. To some extent this is true, but there is no time like now where people with the right information and skill can change their predicament
Here is a question for you? Have you ever wondered why you are always working and never seem to have enough money?
So how do you find the time?
Let’s have a look at some of the things that really takes up a lot of our time:
1- Watching TV.
2- Do less work and overtime
3- Plan your time more carefully.
Surveys show that after work and sleep, watching TV is the third main use of people’s time.
What with the age of retirement continuing to rise and then pensions not being large enough for out retirements, people are increasingly thinking more and more about securing their financial future.
You owe it to yourself and your family.
Setting goals
Lets imagine that two people are driving somewhere they have never been before.
The first driver sets off straight away as fast as he can.
The second driver first spends some time looking at a map and deciding on the best route to go.
Which driver do you think will get there quicker and easier?
This is exactly the same way with property investment. In order for be successful you have to declare where you are heading and set your targets.
Goals are important for many reasons:
1.They call you to action. 2.They help you make choices. Go for some things and reject others. 3.They introduce accountability. 4.They motivate you. 5.They increase your confidence to get you where you want to be.
When setting your own goals be honest with yourself. A great tip is to write them down on paper and refer to them. It’s a proven fact that those with written goals perform better than those without.
A goal is a tangible result that is unambiguous and measurable. Let’s use the example of Thomas Edison
2- Thomas Edison was one of the most brilliant inventors and scientists that ever lived. He did not get up every morning thinking “I will invest something”. No. Instead he woke up every morning with the goal of “making the world a better place for all”. Each day he did this and during his life he created hundreds of invention, including the electric light bulb.
Let have a look at some goals that some people might use: “I want to own 50 properties as soon as possible” -that’s not a goal.
“I want 3,000,000 in my hank account by December 31, 2007″ — now, that’s a goal!
Set yourself a clear, measurable goal now.
Then break it up into smaller, more manageable tasks so you know exactly what you need to do in order to achieve it.
Deciding on your strategy
Goals are WHAT you want. Strategy is HOW to get them
Here are some of the questions you need to be asking yourself when setting your strategy.
Once you have set your goals, review them every 2 weeks or so to see if you are going. To achieve them or not.
Good financial ground work
If you are managing your personal finances badly to start with, getting involved with property will not help.
Manage your property accounts and personal accounts separately. Use separate bank accounts.
If your personal income is subsidising your property income or vice versa, be clear about how much and in which direction the money is flowing. You need to have a firm grasp on your finances to prevent problems
The simple answer that will solve all your money problems is to spend less than you earn and invest the difference!
Summary
Make time for your financial freedom. It’s well worth it. You will be surprised to find that securing your financial future can be done in less than 10 hours a week. Consider that this is less than a third of the time that the average adult watches TV each week.
Make goals that you are happy with and create a strategy to show how you are going to achieve it.
As a famous philosopher once said “procrastination of the thief of time”. Start now, save more and plan each step carefully and check.
And in a few years time, your financial future will be secured.
Robert Gavin is a self made professional property investor who in 8 years has gone from renting a studio apartment to owning and managing a highly successful property portfolio, all by the age of 26. He now spends his time helping other like minded investors. If you want to find out why prpoerty is THE greatest investment you can ever make, go to::http://www.invest-in-sofia.com/property.html
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http://EzineArticles.com/?Can-You-Earn-Millions-Through-Property-Investment?-Yes,-But-Only-With-The-Right-Planning&id=419880
Real estate investing has become almost a national pastime. Millions are made every year on the buying and selling of homes. Many of the smartest investors know the secret to realizing a great profit in real estate lies in what is known as “The Fixer Upper.” Have you ever noticed that one home on your street that could be so much more than it is with only a little work? Chances are that home is an undiscovered gold mine.
It is truly amazing what a run-down home can become with a little time, a little money and some TLC. Here are a few great ideas to think about when purchasing a fixer upper.
1. Paint. It is no real secret that a new coat of paint can bring new life to a home both inside and out. A different color scheme can also dramatically change the atmosphere and feeling of an older home.
2. Fixtures. Are the fixtures in the home old and outdated? This can be a large drawback when selling a home. Old out of style fixtures show disinterest in the upkeep of a home. This applies to all fixtures, lights, faucets, toilets and sinks. Take some time and find elegant new fixtures that fit the new identity of the home.
3. Floors. Are the home’s floor tragically out of date or in poor shape? Stained linoleum and chipped tiles are never a attractive feature. A quality laminate can do wonders for a home’s appearance. New tiles in high-traffic areas like the kitchen or bathroom are also a good idea.
4. Appliances. Nothing attracts the interest of buyers like brand new appliances. This can also serve as a safety upgrade if the old appliances have fallen into disrepair. New appliance can also drastically increase your asking price.
5. Landscaping. This is one of the most important aspects of improving the fixer upper. Curb appeal is critical when buyers come to view a home. If the curb appeal is neglected and the property is not attended to, many prospective buyers can be lost before they even step into the home. Tidy up the yard and plant some flowers. Ensure that hedges and bushes are neatly trimmed and that all walkways and access points are clear and uncluttered. Another good idea is to resurface the driveway if it is showing cracks and wear. A simple asphalt is easy to apply and adds a neat and tidy air to the entrance.
Don’t forget that many homes sales are decided within the first few minutes of seeing a home. The cosmetic presentation of a home is the single most important factor in attracting prospective buyers. Most of the above mentioned fixes can be done quite easily and without hiring a contractor or professional. Although it is never a good idea to do electrical work yourself unless it is your profession. The same caution definitely applies to working with and around natural gas. So be careful, and give your fixer upper the attention that it needs to bring you the profit that you desire.
REW Writers is a collective publication network facilitated by Real Estate Webmasters each article is contributed by a member of our real estate community. This particular article was submitted on behalf of Calum & Kathleen MacKenzie, your elite Tampa Realtors.
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http://EzineArticles.com/?The-Fixer-Upper&id=422806
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