Posts Tagged ‘investment properties’

It’s off to the market you go. The real estate market that is, in all its glorious competitiveness.
You want to sell your home or investment property. Are you ready to sell it?

Are you ready for the finagling, offers and counter-offers? Can you handle the drama, the lights, cameras and all the action?

You can if you research before hand what today’s real estate market is like for buying and selling homes.

Today, buyers do their homework. Therefore, you must do yours. When potential buyers walk through your doors, they have the knowledge, acquired from doing their homework. They will know exactly what they want. They will look for specific upgrades and features. They will know the market for comparable properties in your area.

You will have to give them a reason to choose yours. This is where the little things are important when it comes to selling homes and investment properties.

Right off the bat you have to make sure your product displays in the best possible light: clean, clean, clean. Then clean some more. This means top to bottom. Outside is where it all starts. Your home has to sparkle like a diamond. The ‘wow’ factor has to slap the potential buyer in the face as soon as they step foot in your driveway.

Make sure the driveway’s swept and washed; make sure any potholes and cracks are fixed. Wash the windows from the outside, and the garage door, and anything else outside that needs cleaning. Wash the dog if he’s going to be standing around out there.

Mow the lawn…unless you want to hide the dog.

Your garage: unless it’s designated a production location for a remake of Sanford and Son, de-clutter it. Organize it. Sweep and wash down the floor, if you can find it! Neatness counts when it comes to selling a house.

Once inside give every room the critical eye. Of course, make sure any minor repairs get attention before a showing or open house. The major repairs should not be an issue; all accomplished well in advance. That dangling ceiling fan…has it been reattached properly or is ready to propel itself out the window? Those ceramic tiles in the bathroom; are they secured back in place? Does their continued falling play like a scene from the movie Earthquake? You won’t be selling your home if people walk through it wide-eyed from fear.

Create an easy, unobstructed flow from room to room. Evoke a sense of freedom and spaciousness. Along with that, allow as much natural light into the home as is possible. When selling a house you want to create a positive atmosphere. You don’t want potential buyers to feel they’ve entered a Dungeons and Dragons theme park.

Tone down your family’s personality in the house. Give it the ‘model home’ aura to appeal to a wide range of personalities who will explore its features.

Consider this too, when selling your house: buyers want the best price in the best area. If the area you live in is a high-demand area, are you competitive in your price? Have you over priced because you feel buyers will pay it because of the attractiveness of the area? Homes similar to yours in size, style, upgrades and features may be lower-priced. They may sell fast, while yours lingers on the market. Of course, if you feel it deserves a higher price and are willing to wait it out, see where it takes you.

Selling your home, or any investment property, involves a commitment from yourself. You want the greatest return. You have to be willing to devote the time and energy in return, to ensure a successful sale. Buyers want the best price in the best location. You want the best price so you can move out of the location. It’s up to you to do the things necessary to bring both sides together so it can happen.

Jason Loucks is the Nation’s Leading Expert at Selling Houses and Investment Properties Fast and For Top Dollar. To Discover more about his “7 Day Sale” Method for selling properties at retail price in 7 Days, visit http://www.7DaySaleGuy.Com

Author: Jason Loucks
Article Source: EzineArticles.com
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I invite you to take the next few minutes to learn the truth about the real estate market, how it compares to other methods of building assets and why it is such a lucrative form of investing. Many potential investors will say, ‘I need to get into the Florida Investment Property market’, especially taking into account current stock market fluctuations and the HOT market for investment properties, but simply don’t know the facts about Orlando property investing and how to use sale and leaseback method of property management.

When is the last time your financial advisor or stockbroker tried to convince you that moving a portion of your assets into the Florida Investment Property market might be a good idea? Never Right? The ‘why’ is simple. They don’t earn commissions when you buy Florida Investment Property. It is also likely that you have probably never had an ‘apples to apples’ comparison of stocks versus Florida Investment Property quite like the one you will see here.

Reason 1:

Leverage: Banks will not typically loan money to buy stocks. Banks will however, compete fiercely to loan money to buy Florida Investment Property. Your first question should be, ‘why is that’? It has to do with risk management, which we will discuss later. The fact that banks want to loan you money to buy Florida Investment Property creates a situation which we will call LEVERAGE.

Let’s assume that you have $10,000 to put into some type of investment. If you choose to buy $10,000 worth of stocks, you will own exactly $10,000 worth of stocks. Pretty straight-forward. However, suppose you choose to invest that $10,000 into Florida Investment Property using a 90% mortgage (which in many cases can go up to 95-100% mortgages in today’s market), you will own $100,000 worth of Florida Investment Property. If both of your investments were to appreciate by 10%, your actual gain with your stocks would be $1000 where your actual gain with Florida Investment Property would be $10,000. That equates to an actual 10% return on investment vs. a 100% return on investment. That’s what we call leverage.

Leverage: Florida Real Estate vs. Stocks

The traditional argument against Florida Investment Property Investing (mainly from Stock Brokers) has always been ‘I can get an average of 10% from stocks with little effort so why would I invest in Orlando Investment Property that only appreciates 6-7% per year’? This point-of-view is not taking leverage into account.

If you take the above statement to be true and compare the REAL numbers, the stock investment gained 10% of the initial $10,000 value (or $1000) and the Orlando Investment Property investment gained 6% of the initial $100,000 value (or $6000). That is still an actual return of 10% versus 60%. It is not hard to see which investment provides a greater immediate return on investment. Additionally. these numbers do not take into account any income from your property during the course of the year, or the substantial tax advantages to owning property, which we will discuss later.

Reason 2:

Value: As we mentioned previously, if you invest $10,000 into purchasing stocks, you own $10,000 worth of stocks (a fairly obvious point). If you invest $10,000 into purchasing Orlando Investment Property using the leverage of a 90% mortgage, you own $100,000 worth of Orlando Investment Property right? Well, only if you paid retail for your property. Any savvy investor will tell you that there are excellent deals to be had in Orlando Investment Property, you just have to find them.

What if you purchased a $100,000 property that happened to be worth $110,000 the day you bought it? Does it happen? The answer is yes, all the time. If you have your eyes open and are willing to ‘go through the numbers’ to find good deals, they are all around you. You may be asking yourself, why would anybody sell a $110,000 property for $100,000?

Value: Making money when you buy.

The reasons are endless as to why a quick sale is desired, but just to name a few: job relocation, divorce, an estate is being settled or maybe a current appraisal on the property simply wasn’t done prior to selling. By ‘finding this deal’ you have accomplished two things.

You have added $10,000 to your asset column in the form of equity.

You have created additional LEVERAGE for yourself as the value of your property increases (a 6-10% gain on $110,000 is better than a 6-10% gain on $100,000!) Remember, you make money in Orlando Investment Property when you buy, not when you sell.

Reason 3:

Control: Let’s take our assumption one step further. When you buy your $10,000 worth of stocks, what can you do to increase its value? If we follow the previous assumption, you have invested $10,000 using a 90% mortgage to purchase a $100,000 property that has an actual value of $110,000 because you ‘found a good deal’. So what can you do to further increase the value of your new $110,000 property?

It is amazing what a cleanup, a little landscaping and a paint job can do to increase the value of a property. Only a few hundred dollars well spent can result in huge value gains in Orlando Investment Property. Your $110,000 property with a little effort could easily be worth $115,000, $120,000 or more virtually overnight! Do you have to do any of this work yourself? Absolutely not! If you like to do that sort of thing then have at it, but if not, simply hire it done and accept a little lower net gain.

Reason 4:

Superior Tax Position: The tax code in the United States is geared to reward Investors who make housing and other property available to the population. When you invest in stocks, you are taxed at some of the highest rates in the tax code. When you invest in Orlando Investment Property, you put yourself in one of the best tax positions in the business world. Remember the wealthy that hold substantial portions of their assets in Orlando Investment Property? Tax advantages are one of the main reasons this is true.

Continuing with the above example, let’s say that you have completed your ‘deal’ with the $10,000 invested with a 90% mortgage to purchase the $100,000 property that appraised for $110,000 (because you ‘found a good deal’), which you improved to say, $115,000 by spending another $1000 on cleanup etc. Assume that one year passes and the Orlando Investment Property market grew by 6%, your property would now be worth $122,000. So far, so good right? If you are like most people, you may want to spend some of your hard earned money.

Let’s do the numbers. You have a mortgage at current rates that started at $90,000 and after a year worth of payments (the majority of which are tax deductible) you still owe approximately $89,000. However, your property is now worth approximately $122,000. If you were to refinance at 90% once again, you would take out a new mortgage of approximately $110,000. This will leave you with approximately $21,000 in cash in your pocket. Now, the BIG question; do you have to pay tax on that money? Absolutely Not! You have not sold the property or realized a ‘capital gain’. You have simply borrowed money from yourself. You are able to do what you wish with that money, free from any tax whatsoever. Obviously, a good strategy might be to purchase two more properties just like your first deal!

Also, we have not taken into account the fact that ALL of your interest payments on this property are tax deductible. In addition, you are also able to depreciate the property itself and all of its contents for additional tax advantages if you choose to do so.

Let’s be fair and compare the Orlando Investment Property tax position with the stock scenario. Assume that the $10,000 initial stock investment grew by 10% in the first year, creating a gain of $1000 and you wish to access it. If you draw it out, you will pay from 20-28% (or higher) in capital gains tax in order to have access to this money. This reduces your net gain to $800 (actual 8%) or less, depending on your tax situation. Compare that to Orlando Investment Property and you are beginning to get the picture.

Reason 5:

Limit Your Exposure To Risk

Risk Management: Do you remember at the top when we said that banks would compete fiercely to loan you money on Orlando Investment Property? The answer to the ‘why’ is very simple. Low Risk. Banks incur little if any risk when loaning money on Orlando Investment Property due to the steady, solid growth rate of the property market, as well as the fact that if you default on your payments they will simply sell the property to somebody else. This is in direct contrast to the volatile stock market, which can vary daily with sharp increases and decreases in value. Furthermore, banks realize that a property isn’t going anywhere, whereas many investors know all too well about .com and other types of companies that were there yesterday and gone today.

This is all not to say that Orlando Investment Property markets don’t go down from time to time, however the dips are much less dramatic than that which can take place in the stock market, proven out by the banks’ willingness to loan money on property.

Reason 6:

Protecting your peace of mind.

Finally, Now that we understand the value of leverage and risk management we realize that a 6% Orlando Investment Property gain ‘beats the pants off’ a 10% stock gain in actual return on investment by a wide margin (approximately 50%, not taking into account several factors that can increase this number such as tax advantages, income on property etc.) Owning good, solid Orlando Investment Property allows you to sleep at night, or go on an extended vacation without worrying about your asset column. This is directly opposed to holding a substantial percentage of your assets in stocks.

Lisa Carson
http://www.biminibayresortinvestment.com
lcarson@biminibayresortinvestment.com

Author: Lisa Carson
Article Source: EzineArticles.com
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If you’re in the market to purchase a real estate investment property it’s only natural that you’ll want to look at it before you make a decision about whether or not you want it. However, there is an art to doing this because if you miss something important, it can prove disastrous for you. Not only will your property not make you any money, but you may actually lose money. The advice that follows applies to all common real estate investments that you could purchase.

Look at the Neighbourhood

The neighbourhood is just as important as the property itself. If the potential residential real estate investment is nice but the area around it is not, this is a red flag that you may having trouble renting, reselling, or flipping properties you buy there.

There is another benefit to scoping out a neighbourhood. You may find out some information that may result in you buying an investment property for a better price by finding out about auctions or striking a deal with the owner. Also, you may find some investment properties for sale that you may not have heard about through your agent or the listings.

Beware of Inexpensive Properties

Property investing depends on whether or not you find a high quality property that will make you money. Every now and then you may find an investment property that is so inexpensive, it seems too good to be true. Still, you feel that purchasing something inexpensively is a good thing, especially if you’re in the business of flipping properties.

However, not every cheap property will make a good investment, especially if there is a lot wrong with it. That is why when considering investment properties for sale that it is important to view the property with more than one person so you can determine if it will be worth the investment.

Finding a Good Neighbourhood

Yes, it is one thing to tell people to avoid buying investment property in bad neighbourhoods. However, this is not something that can be considered from a “black and white” perspective. There is a middle ground. Some neighbourhoods may not look bad on the surface, but they could have problems.

So, how do you go about buying investment property by finding a decent neighbourhood and a solid property to invest in? There are some clues to consider and you can start by watching the people in the vicinity of the property. In general, you just want to look for signs that the area is in good shape – no broken windows, people are well groomed, etc. You can also check with law enforcement to see what the crime rate in the area is. These are all factors to consider.

Buying a UK real estate investment property can be a big decision. It is important to assess the property and the neighbourhood to help ensure your investment will be a good one.

Ian Clark is a real estate consultant and advisor in UK. He has extensive experience in all aspects of Real Estate Investment built over 20 years . He is also the Director of Midas Estates, an online real estate website offering property investment opportunities in UK and overseas. Midas Estates is a property investment company who deals with Real Estate Investment Property with an aim to provide maximum capital growth for the clients as the majority of the clients are looking to secure financial security in the shortest time possible. Ian’s honest presentation of the real estate investing business, including both profit and risks is respected for his sincere, candid approach. He is highly regarded as one of the most sound, dependable source for the specifics behind the sometimes tricky and exigent facets of real estate investing.

To get more information and for a 30 minute no obligation absolutely free consult in how to make your property investment strategies work log on to http://www.midasestates.com/investment-property

Author: I Clark
Article Source: EzineArticles.com
Beading Necklace

You may have heard that owning an investment property in the UK can be lucrative. Well, you heard correctly. Real estate investing, such as flipping real estate and rental real estate investing is amongst the most profitable investments around. The basic premise is that you make a purchase on something like a vacation property. You then turn around and figure out a way for it to make money so that you can increase your earnings.

Types of Investment Properties

There are two basic types of properties: residential and commercial. The broad definition is any property that people live in. This includes homes, apartments, mobile homes, etc. Commercial properties are anything that is used for businesses of any kind such as office buildings and shopping centres. Some places, such as apartment buildings with a store on the bottom level are considered commercial

Purchasing a Vacation Property

Vacation properties are a great option when it comes to buying an investment property especially if you purchase it in a coveted vacation market. Vacation properties come in different types. You can purchase a hotel or bed or breakfast. Or, you can buy a home or cottage property or a beach investment property which you can then rent primarily to vacationers. The drawback is that some places may have a peak rental season. However, with proper planning the off-peak time of the year will not hurt you financially.

Proper Planning is Key

To invest in real estate successfully, proper planning is a must. Each property needs to be well researched and considered before purchased. There are several people who can help you plan, such as a listing agent, financial advisor, or even a lawyer. All it takes is to make that first property successful, and then you can build on that success and build up your portfolio.

Build Up Your Portfolio

The most successful real estate investors out there have a diversified portfolio. This means that they have a combination of different properties which are all making them a profit or have the potential to do so. The ultimate real estate portfolio will include a combination of residential and commercial properties as well as land. They also will not invest in just one market. They may have income properties all over the globe. However, it all starts with that first property.

Keep in mind that there is nothing wrong with specialising in commercial or residential properties. You can easily diversify within the two. For example, if you want to focus on making money with a commercial investment property, consider making your next investment property in the UK to be a commercial one as well, just of a different type. It is much better financially to spread your money out instead of investing all in one thing.

Ian Clark is a real estate consultant and advisor in UK. He has extensive experience in all aspects of Real Estate Investment built over 20 years . He is also the Director of Midas Estates, an online real estate website offering property investment opportunities in UK and overseas. Midas Estates is a property investment company who also deals with Investment Property with an aim to provide maximum capital growth for the clients as the majority of the clients are looking to secure financial security in the shortest time possible. Ian’s honest presentation of the real estate investing business, including both profit and risks is respected for his sincere, candid approach. He is highly regarded as one of the most sound, dependable source for the specifics behind the sometimes tricky and exigent facets of real estate investing.

To get more information and for a 30 minute no obligation absolutely free consult in how to make your property investment strategies work log on to http://www.midasestates.com

Author: I Clark
Article Source: EzineArticles.com
Provided by: Guest blogger

Real estate investment is basically investing in immovable properties especially buildings. Real estate investment is an amazing and earning business opportunity, if you know exactly what to do. One of the major problems that are encountered in investment is seeking finance for the property you are investing in. If you are able to do that successfully there are more chances for you to thrive in market.

Securing finance for your real estate investment can be tough due to several reasons which are:

• Economic Recession
• Bad credit worth
• Risk factors of the property you are investing in
• Property location in a place that has no market value

There are also some other factors to these. We will look into the factors that will help you to secure finances for real estate investment with relative ease, considering the above four points.

Any lender you approach is sure to ask your credit worthiness. He can even ask for documents to prove your financial stability. The lender will check your income and especially the debts. The greater unpaid debts you have, you will have trouble getting the loan. The fundamental principle of credit worth is that you must assure the lender that you are capable of repaying the loan.

Another factor to ascertain is that you must be very careful about the location you are investing into. Always prefer to invest in properties with greater market value. This will not only ensure greater future benefits for you but also for the lender. This will definitely entitle you to receive the loan easily. The lender will also take into consideration the property size and the amount of investment you are making.

Less the risk factor of your property more likely you are to receive the loan. The risk factors basically include the chances of your property getting default. There can be many reasons associated as to why a property can get default. The most usual ones are not paying the tax liens or mortgages for many months on stretch. Assurance to the lender that no such thing will happen with your property will certainly help you in securing the finances. This assurance can easily be given by your previous property records. Make sure that there are no potential risks attached to the property you are investing into.

An important thing is that if you are deciding to invest in a commercial property then it is important that the business you are investing will bring large amount of profits as it will increase your capability of repaying the loan and hence the trust of the lender.

Whenever you are looking for the right financier for your investment make sure that you select the right one, someone with whom you can be at ease as the financier will be the most important person in your real estate investment business. Also assure that you know what the lender is looking for and check whether you fulfill all the requirements that will entitle you to receive the loan.

In the end, no matter there is economic recession, you will still manage to secure finance for your real estate investment with just the right tactics. So ascertain that you have all the necessary proofs and documents to gain the confidence of the financier.

I invite you to learn more about Real Estate Investing and become a member of our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html.

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to Real Estate Investing Blog.

Author: Mike Lautensack
Article Source: EzineArticles.com
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Miami real estate investing is not very hard to learn, even though that there are many facets that are essential to understand before attempting to start investing. While many books and seminars are offered on investing only a few deliver the desired results. Investing is not taught in any university and it is more of an art than an exact science. It requires a lot of perseverance and determination. Many investors learn by trial and error although a mistake could be very expensive and usually devastating. Numerous millionaires made their money through real estate investments. Information, education and research are major considerations for an investor to be successful.

Real estate investing in Miami, Florida is a full time business where investors are constantly trying to maximize their profits and minimize their risks in other to generate wealth over time. Investing is a verified long term wealth creator. It is a numbers game and many of the transactions will not work but it is all worth it when one deal goes through and all your hard work is rewarded. It takes a lot of time and effort to effectively dominate the art of real estate investing. It is a risky business but it is the best way to create lasting financial security. Investing in Miami real estate is an excellent way to make a positive monthly income and built long term wealth and obtain financial independence.

Investors in Miami real estate have recently taken a beating and many have seen their investment properties lose value. An investor should not panic and sell in this market to avoid huge loses. Since it is a long term business an investor should realize that the time is now to rent the property and hold until the market turns around. If an investor requires a predictable and safe return on investment then investing in Miami real estate is not the answer. The business of real estate investing is very risky, and unpredictable but well worth the effort. An investor should consider buying foreclosures and bank owned properties. The Miami real estate market has hit bottom and it should be bouncing back very soon.

Miami real estate investing is different than various types of investing. An investor must overcome many roadblocks and obstacles. Usually finding financing is the single most overwhelming challenge an investor will face when trying to purchase Miami real estate. Using leverage in the business is common so arranging financing is very important. Do not purchase investment property with no money down. Little or no money down has caused many properties to go into foreclosure recently. Investing is not as perplexing, time consuming and financially draining as one might imagine.

Bank owned properties or Reo’s and Short Sales are a good way to start to look for a good deal in Miami real estate to purchase. The list of bank real estate owned (Reo) properties is huge. Not all banks want to discount properties so finding a good property to buy takes a lot of work and patience. Short Sales are the new trend in speculating in Miami real estate. Banks are not very eager to short sale their inventory and it takes usually about two months for the bank to accept or reject the offer. Government foreclosures are another to avenue to search. These properties include HUD, Housing and Urban Development, VA, Veteran Administration, FNMA and Freddie Mac. HUD homes are very popular and usually they will sell to the higher bidder in a weekly online auction. Investors are allowed to bid when the property does not sell to owner occupants. These HUD-FHA foreclosures properties are offer an excellent value. Foreclosures remain the best way for investors to start in the Miami real estate investing business since most of them have instant equity.

The best way to start investing in Miami real estate is buying foreclosures. The tremendous amount of foreclosures now in the Miami real estate market overwhelmingly gives the investor a lot of inventory to choose from in order to purchase the right property at a discounted price. This opportunity will more than likely never be available again and investors should take full advantage. An experienced Miami real estate agent who specializes in foreclosures is essential in order to guide the investor. The agent must have access to current bank owned REOs, foreclosures, short sale properties, pre-foreclosures government foreclosures and other distress listings. Investing in Miami real estate is a very exciting and rewarding business.

Hector Lesende is Owner/Licensed Real Estate Broker in Miami South Florida. Search Miami Real Estate We will sell your home from only 1% commission. We provide a free Miami Foreclosure and MLS list

Author: Hector Lesende
Article Source: EzineArticles.com
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