Posts Tagged ‘real estate investment property’

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
Creditcard Currency Conversion Fee

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

There are many ways to build your fortune in the world today. One of the most common, and often the easiest to begin, even for the common entrepreneur, is purchasing investment property . In fact, you will often hear many rags to riches stories about the unemployed worker down on his luck that became a millionaire by investing in the realty market in one form or another.

There are many different types of methods for investing in this risky yet profitable venue. Realty is a great line of attack for anyone who is willing to take the time to learn the risks, options, and possible rewards for this type of investment process. Some of the more common ways of obtaining investment property are following.

The first way is called the Pre-construction investment. This is a highly speculative and very risky sort of investment that booms or busts with the times. The risks involved in this type of investment should not cover up the fact that many millionaires have been fashioned through this type of investing. And many more will be created in the future. Pre-construction investing is a type of investment where the investor purchases options on the property before any ground is broken for building. This type is more popular in high demand areas that experience housing shortages. These shortages often cause prices to rise quickly and the units are quickly sold before they are completed or any actual money changes hands.

The second type of purchasing investment property is through rental property. Property normally gains value over time. One problem investors have is the ability to hold onto and afford to maintain multiple properties over an indefinite period of time while waiting for house values to rise. One way to overcome this is by renting the properties to tenants while the property values are increasing. The tenant covers the cost of the note on the property making the venture less risky. There will still be the risks of dealing with tenants, such as property damage, failure to pay the rent, and possible legal problems of poor tenants.

Another option is the lease options. There are few people who never experience financial rough spots. Often these people are denied traditional home loans because of their poor management of debts in the past. For this reason they may be willing to pay for the opportunity of rebuilding their credit while working towards home ownership. For these people, a lease option presents a workable and often valued solution. Those investors who are willing to take the risks often find the rewards are well worth those risks.

We have all heard the stories of the investors who make millions by flipping houses. This type of purchasing of investment property has grown tremendously in the last few years due to the popularity of home improvement and house flipping shows on television in the last several years. More and more people have decided to pursue this sort of investment hoping to create big profits in a short period of time and with a small investment. The problem, of course, is that it looks much easier on television than actually doing it. Add to that the fact many people have unrealistic expectations when it comes to costs and their abilities. There are plenty of risks involved with this type of investment too. Successful flippers however see potential for great profit in a relatively short amount of time.

The final type of investment property is the buy and hold. As mentioned above, realty normally gains value over time. Even buildings in total disrepair are worth something just for the land they sit on. Purchasing several houses or large lots of land and holding on to them for as long as necessary before selling can often lead to financial gains. The longer these properties are held the better, providing a greater opportunity for the value property to increase.

These are only some of the investment property opportunities that exist for those who are interested in investing in realty. Other options include commercial and development properties. Needless to say realty investing offers many opportunities to the confident investor.

Source : Property Management

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Author: Kamyar Shah
Article Source: EzineArticles.com
Canada duty

The real estate market of India is becoming a hot selling property and is attracting the attention of investors as they are getting huge profits and high returns on their investments. The real estate in India may still be a fragmented industry with high transaction costs and an absence of complete transparency, but it is whetting the appetites of domestic and overseas investors.

Seeing this current trend one can say that India is going in a right direction and soon more and more people will be coming forward to go for investment property in India. India is a country that offers a suitable environment providing maximum benefits to the investors. People are more attracted towards India for the real estate investment due to the fact that India is one of the largest democratic countries in the world with good governing system equally supported by strong and transparent legal system. It also provides legal protection for intellectual property rights.

Nowadays, apart from real estate investment property in India no other business is lucrative and revenue generating. Investment in properties includes hotels, resorts, hospitals, educational institutions and housing and commercial premises. The government has reduced the minimum mandatory area to allow FDI in real estate sector from 100 acres to 25 acres. Nowadays more numbers of investment property are available in the real estate market with investment securities. Real estate investment comprises more return on investment and that is the reason why most of the people negotiate the real estate investing contract very quickly. The real estate sector in India is attracting huge investments. Private equity players are considering big investments, banks are giving loans to builders, and financial institutions are floating real estate funds.

The real estate sector in India is attracting huge investments. Private equity players are considering big investments, banks are giving loans to builders, and financial institutions are floating real estate funds. With 100 per cent FDI in real estate now being allowed, overseas developers are also closely looking at the market. International investors like the US-based Warburg Pincus, Blackstone Group, Broadstreet, Morgan Stanley Real Estate Fund (MSREF), Columbia Endowment Fund, JP Morgan Partners and Amaranth Advisors have been found to show interest.

Indian institutions, such as HDFC, ICICI Venture and Kotak Mahindra are launching funds to invest in real estate. Most of these funds have been meeting investment bankers, banks and housing finance companies in India to get a feel of the market. The developers are looking to tie up with Indian companies, while the private equity funds seek to test the market with small investments in big projects.

The Author of this article having good experience in FDI in Indian real estate market, her advice is very helpful for investment in real estate India and basically her in depth knowledge about real estate development in Gurgaon.

Author: Martinez Collins
Article Source: EzineArticles.com
Lowest price PCB Prototype

The first decision you must make before looking for your real estate investment property is on the type of property you want. There are a number of factors to consider before you make your decision because each differs from the other.

In this article, we’ll examine in general terms what to look for regardless what type you decide on and then consider five common types of real estate investment property.

What to Look For

1) General location – Location, location, location is the mantra in real estate. Unless the property is located in an area that will sustain or boast rents, and in turn be able to be sold for a profit, forget it.

2) Site improvements – Does the property require repairs that might eat away at your cash flow, or are there repairs that can be made that would substantially increase your cash flow and return?

3) The lease form used – In the case of a commercial building are you locked in to a favorable or very unfavorable lease? In other words, are you buying a favorable or unfavorable income, and for how long?

4) The income produced – How much income does the income property generate and is it realistic, and can it be sustained? Is there room to increase the income?

5)  Type of expenses – What does it take to keep the property operational? Is there anything out of the ordinary, and is there a chance that some expenses can be reduced or eliminated?

7) Management requirements – Will the property require a professional management company, perhaps a resident manager, or is it something you can handle.

Financing – Can you leverage the property? What about the rates and terms will you and/or the investment property qualify for the best loan possible? What are the loan payments?

9) Depreciation benefits available – How much of your income can you defer by depreciating the property?

10) Unique features – Is there anything about this particular investment that sets it apart from other real estate investment opportunities? Perhaps its location, construction, or maybe it offers great upside potential. 

Types of Investment Real Estate

1) Apartment Complex - This is the most popular form of real estate investing and can include anything from a duplex to a high-rise building. The size and mix of the individual apartments are usually keyed to local market demands and typically include studio apartments and larger. Apartments can be rented on an annual lease basis or month-to-month. When present, coin-operated laundries and storage facilities or garages can produce a small addition income fro the owner. A well-managed apartment complex can be a highly profitable investment and a great way for new investors to get started.

2) Office Buildings – This type of investment property requires more savvy then multifamily property, so first time investors should be cautious. Office buildings are generally leased on a square footage basis rather than a flat price per unit; typically including a cost for a proportionate share of common areas like entrances and hallways. Depending on the lease, tenants might also be required to pay a proportionate share for parking lot and roof maintenance, and as a rule, tenants will pay all or part of the cost of finishing the interior of his suite. Office buildings generally make for a sound and relatively easy-to-manage investment.

3)  Shopping Centers – In many parts of the country this type of real estate investment is very popular, but as with office buildings, contain some unique features of which an individual investor should be cognizant. A shopping center can mean anything from a couple of stores (known as a strip center) to large regional malls. Tenants generally sign a lease and are expected to share in the cost of maintaining the common parking lots, landscaping, daily cleaning of the grounds, etc. in what is known as common area maintenance (CAM) charges. Small neighborhood centers with a moderate cash requirement can be a great way for a beginner to start in this type of investment.

4) Warehouses and Industrial Buildings – Rental warehouses provide small-to-large bays or rooms used for storage and small workshops. These typically rent on a month-to-month basis and thus (because tenants can move out at anytime) make it one of the least stable of all real estate investments. Industrial buildings are usually characterized as larger space and generally leased on longer terms to more stable tenants such as manufacturing plants. The ultimate investment here is a “sale/leaseback” situation wherein a major company sells you their building and then leases it back from you on a net basis but are difficult to find because they are excellent investments.

5) Mobile Home Parks – This type of real estate investment has become one of the most sought after in recent years because it provides retirement-age people and young couples a reasonably priced home. In this case, a pad with water, sewer and electricity hookups, plus a concrete patio area and tie down rings is rented to someone who wants to place a mobile home there. Other improvements include the streets (which may be deeded to the local municipality, thereby relieving the owner of street maintenance), recreation facilities (perhaps with a building), and laundry facilities. Because mobile home parks are profitable and easy to manage, they can make for a very good investment.  

Entire books have been written on the five forms of real estate investments and we obviously kept it very brief just to give you an idea. Hopefully it helps your real estate investing strategy, though.

We should also mention that you should never purchase investment property without doing a thorough real estate analysis. Quality real estate investment software makes it very easy. So be sure to check it out. Here’s to your success.

About the Author

James Kobzeff is the developer of ProAPOD – superior real estate investment software since 2000. About to buy investment real estate? Discover how to create rental property cash flow, rates of return, and profitability analysis presentations in minutes! Learn more at => http://www.proapod.com

Author: James Kobzeff
Article Source: EzineArticles.com
Excise Tax

Perhaps you are contemplating procuring a real estate investment property. It is only human to want to look around it preceding any decision making on whether or not you should have it Still, there is a specific way to execute this because in the event that you fail to see something important, it can cause trouble. Not only will your property not make you any money, but you may actually lose money. The suggestions coming up pertain to all common real estate investments which you could acquire.

Real Estate Investment Property – Look at the Neighbourhood

The community and the property itself are equally as fundamental.There may be trouble renting out, flipping properties, or reselling properties which you might have bought in an area where the residential real estate investment is good but the surrounding area is not.

There is something else to be gained from checking out the area. It is possible to find out about info which could assist you in buying an investment property at a lower price through knowing of auctions and trading 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.

UK Real Estate Investment Property – Don’t Trust Cheap Real Estate

Obtaining good quality property investing deals which can yield you a profit determines whether you or not should invest in the property. Every now and then you may find an investment property that is so inexpensive, it seems too good to be true. Yet, your assessment is that being frugal I your purchasing is great, specifically when you are 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.

Investment Property UK – Searching For a Nice Location

Of course it’s easy to suggest that someone not purchase property in an undesirable community. Still, you can’t always figure out the situation by surface appearances. Start From Somewhere In the Middle With some locations what you see isn’t always what you get.

subsequently, which way do you go? How can someone start buying investment property through choosing a good location and a reliable property to finance? A number of ideas come to mind and a good one would be to pay attention to those in close proximity to the property.Generally speaking, search for clues which indicate that the area is in good condition (no shattered window glasses, tidy looking residents, and so on You can also check with law enforcement to see what the crime rate in the area is. Mull over all of these issues.

Buying a UK real estate investment property can be a big decision An essential factor is to judge the property along with the area to make sure that your investment is solid.