Posts Tagged ‘real estate investors’

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
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Trying to sell your house in today’s slow market can certainly be a frustrating exercise, with real potential to push you into desperation. The situation can be much worse when you are looking to sell the house to meet an urgent need – say like where you are looking to sell your house to pay a pressing creditor (who is threatening to take possession of the house and sell it for a song to get back their money) or looking to pay for a medical procedure, aware that any delays in getting such a procedure performed could lead to a situation where it is too late to have it performed anyway.

In all these situations where you are getting desperate to sell your house, one of the best options available to you is selling to or through a private real estate investor. Private real estate investors – and there tends to be plenty to choose from in any city – can be identified by those ‘looking to buy houses’ signs they normally put up in the press or at strategic places on streets.

Granted, the private real estate investor may not offer you the exact price you would have wanted (as many tend to be quite tough brokers given to pushing really tough bargains), but they do – in most cases – tend to offer a better alternative to having an auctioneer sell the house to recover the debt (where it is likely to be sold for a song anyway, just to cover the debt), or having whatever the urgent and pressing need go unattended to.

But as you consider seeking out a private real estate investor to help when desperate to sell your house, you need to keep it in mind that not all of these real estate investors are legitimate – and even among those that are legitimate, not all are competent or fair in their dealings. And naturally, going with a private real estate investor who is either incompetent or unfair could see your sense of frustration and desperation at selling your house deepen even further.

Meanwhile, even as you engage with private real estate investors to help you in selling the house, there are some steps you can take towards making your house more ‘saleable.’ Trying to sell a house that is in a state of complete disrepair could, for instance, be off-putting even to the private real estate investors who are typically more inclined to look beyond the exteriors than the other categories of home buyers. Yet there are simple repairs you can make at minimal cost – and thereby increase the appeal of the house to potential buyers significantly.

Thinking in terms of making your house more ‘saleable’ another step you can take is to reassess your requirements in terms of a purchase price, and see whether they are realistic (given the state of the real estate market you find yourself in – and forgetting, for a while, what you paid for the house). This is because trying to sell a house for a price that buyers feel is too high can only push you deeper into frustration and onto depression, especially in a ‘low’ market.

If you are really desperate to sell your house, get in touch with agents at http://www.repaymortgage.co.uk/. They will help you to sell your house quickly.

Author: Jamie Gram
Article Source: EzineArticles.com
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Real estate investing is about more than picking up a property cheaply and reselling it at a profit. While how-to books and real estate guru seminars may make it seem easy and risk-free, there is a reality to real estate investment. To learn more about the potential downsides of real estate investing, keep reading.

It Takes Capital

Typically, real estate isn’t considered a quickie investment, and your capital can be tied up for a long time. A down payment on a home can’t always be taken out and withdrawn in the case of a financial emergency or the need for quick cash.

That capital could also be used for other investments. For example, let’s say you invest $20,000 into a home that winds up not appreciating at the 8 percent annual rate you hoped it would. Instead, it depreciates and then eventually appreciates at a low 4 percent rate. That $20,000 could have made more by investing it wisely in a diversified investment portfolio.

Returns Will Vary

Like any investment, other than GICs (Guaranteed Investment Certificate) or guaranteed savings programs, your returns are going to vary. While real estate is more stable than, say, the stock market, that doesn’t mean you can bank on a 10 percent annual return.

You Will Pay Capital Gains Taxes

Taxes can slash your profits on your real estate investments if you’re unprepared. While there are deductions and capital deferral programs available to real estate investors, you need to understand the law and be prepared to apply it to your own circumstances.

Closing Fees and Transaction Costs can Reduce Profits

Unless you’re savvy enough to handle your own sales, you’ll have to hire a real estate agent, meaning you’ll have to pay commission. In addition, most investors will need to pay closing costs, title insurance, inspection rates, legal fees and more.

Typically, the costs associated with any real estate transaction usually hover around 15 percent of the transaction, whether you’re buying or selling.

There is Work Involved

While a real estate investment normally does reward sweat equity, that also means you have to put it in. Unlike stock market investments where it takes little more than cash and a telephone or a computer to make an investment and see a possible return, real estate investment involves getting out of your chair and a lot of leg work.

Whether it’s driving out to sale sites, attending home viewings, cleaning properties, maintaining rental units, upgrading or renovating houses or preparing a house for sale, it’s all hard work that you’ll have to put in. So, before you jump into real estate investing, make sure you have the time and energy to invest alongside your money.

For information on exciting real estate locations, visit http://www.realestatelocale.com, a popular site providing great insights concerning home purchase ideas, such as Manchester New Hampshire real estate, Senoia real estate, and many more!

Author: Hunter Craig
Article Source: EzineArticles.com
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Everyone dreams of building a fortune. And real estate investing is one such lucrative opportunity where you can earn high returns on your investment in a very short period compared with other jobs.

Real estate investing or “make money” investing is a sure-shot method of building great wealth. It is a known fact that real estate investing has produced more millionaires than any other job. There are a lot of people who wants to get into real estate investing but don’t know how to do it. On the contrary, there are those people who have already taken the plunge but still don’t know how to ensure maximum return on their investment. This is where the “make money investing courses” come into handy.

There are several ways of learning about real estate investment. Numerous books and CDs are available in the market. There are classroom programs in all the states where make money investing course is provided. Also, there are several clubs (e.g., The Colorado Association of Real Estate Investors) for educating the budding and experienced real estate investors. In such clubs, regulars meetings are organized where real estate investors get the opportunity to network with other real estate investors. Seminars and conferences are also held from time to time. Besides, they also have training programs to learn real estate investing, be it commercial or residential. All these provide a great learning experience.

Today, plenty of make money investing online courses are available and provided. Online courses are best suited for professionals who don’t have time for classroom programs. Such make money investing courses are very popular because of their flexibility, accessibility, and low cost. In fact, a lot of online courses don’t charge any fee. These courses are open for everyone. Apart from guiding, the course will equip you with all the little knowledge about real estate investing. In addition, you will get to learn about other essential matters like tax savings schemes for real estate investment.

Make money investing courses provide knowledge on various aspects of real estate investment. This greatly helps in your decision making. The field of real estate investment provides ample opportunities. All you need to do is just make the right decisions. The make money investing courses are actually guiding light. They will direct you to make the right choices for your real estate success.

Terry Bryan has been called the “Warriorwiz” and the “Black Belt Investor Millionaire Maker” because of his un-canny ability to use traditional military and martial arts principles in conjunction with business systems and creative real estate investing to help his students get the life they deserve.

For more Information and Secrets on Creative Real Estate Investing, please visit Terry’s websites:

Colorado Real Estate Secrets – Free CD
http://www.coloradorealestatesecrets.com/

CSREC – Home Real Estate Investing Club in Colorado Springs
http://www.csrec.com/default.html

Terry Bryan – The WarriorWiz
http://www.warriorwiz.com/

Author: Hanshi Terry Bryan
Article Source: EzineArticles.com
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In real life, there is no secret way to attain real estate investing success. I wish it were not so, but successful real estate investing requires hard work, good research, and a systematic analysis of each and every investment property opportunity.

A proficient real estate professional can help you find, research, and even analyze the profitability of specific rental properties. This can be helpful (even needful), but you want to be prepared. It is good for you to have some knowledge of the rates of return real estate investors generally use during the analysis process before making that all-important decision to purchase a property, regardless.

Since you are new to real estate investing, it seems like a good idea to discuss three of the most commonly used measures and returns.

By themselves, none of these is a deal maker or breaker. You would not make an investment decision based solely on the results of any of these numbers. But they are popular, you will hear them referred to, and it certainly will better prepare you to achieve your investment goal by becoming familiar with them.

Cash on Cash Return

Cash on cash return (C-o-C) measures the initial profitability of a rental property. That is, it indicates the return you can expect to receive in the first year on the money you invest to purchase the property (i.e., the initial cash required to cover your down payment and closing costs).

There are no hard fast rules regarding what return makes a good investment, but it should be obvious that the higher the cash on cash return is the better.

Formula: Cash on Cash = Before Tax Cash Flow / Cash Equity (Initial Investment)

Test your understanding. Given the opportunity to invest $50,000 for a cash-on-cash return of 6.5% or an investment of $75,000 for a 10.2% return, which appears to be the better investment? Though it would require more cash outlay, the higher return, at least on the surface, seems to be the better investment. Why, because a first-year yield of 10.2% on your cash investment is better than a first-year yield of 6.5%.

Gross Rent Multiplier

Gross rent multiplier (GRM) measures the ratio between annual gross rental income and sale price. It is the least informative measure of an income-property primarily because it does not consider a property’s operating expenses, debt service or cash flow, and by itself is insufficient as a stand-alone number because it says nothing about a property’s profitability.

Nonetheless, gross rent multiplier can be helpful for simple comparisons between rental properties. It is an easy calculation you can make in your head, and can be used when you simply want to get some idea how the price for one rental property compares to similar properties recently sold or currently for sale in the market.

Formula: Gross Rent Multiplier = Purchase Price / Gross Rent

Test your understanding. If you are considering a duplex with a gross rent multiplier of 7.2 and know that two similar duplexes down the street sold recently at gross rent multipliers of 8.5 and 9.0, what does that suggest? That you could be getting a good deal, and might want to take a serious look at the property. Why, because the gross rent multiplier on the duplex you are considering indicates a higher ratio of gross rent to purchase price then the market seems to suggest.

Capitalization Rate

Capitalization rate (or Cap Rate) is essentially an indicator of how much debt an income property can carry; the higher the cap rate, the more debt a property can support, and vice versa.

The idea is straightforward. A property’s cap rate indicates the percentage rate of sale price attributable to net operating income (income less operating expenses). That is, it shows how much cash flow is generated to make the mortgage payment as a percent of sale price.

Real estate investors, of course, want to purchase at the highest rate possible (they desire net operating income to be a larger percentage of sale price), while sellers seek to sell at lower cap rates (meaning they can obtain a sale price that is higher compared to the property’s net operating income).

Formula: Capitalization Rate = Net Operating Income / Purchase Price or Value

Test your understanding. You know from your research that small office buildings in your area have typically been selling for a cap rate around 8.3%. The building you are looking at results in a cap rate of 6.8%, what does that say about the price? That unless there are some benefits to prove otherwise, the property might be over priced. Why, because the building in question indicates less net operating income as a percent of sale price compared to what the market suggests.

Conclusion

There is no magic bullet for real estate investing; pure luck is improbable. To succeed, you will have to work hard, research, and above all, do the math. Investment property is all about the numbers, and the more you prepare yourself to run those numbers, the better your chances (as one new to real estate investing) to make money at it.

About the Author

James R Kobzeff is a real estate broker and developer of ProAPOD Real Estate Investment Software – Rental property cash flow, rate of return, and profitability analysis.

Real Estate Investor Software – So those just starting to invest in real estate can determine whether the property makes money before invest.

Mortgage and Financial Calculator – Compute hundreds of mortgage, time value, and cash flow computations in seconds!

Preview an APOD, proforma income statement, and our other cash flow analysis reports at www.proapod.com/ReportsPage.htm

Author: James Kobzeff
Article Source: EzineArticles.com
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This year, investment in the stock market is making many downright jittery. Though overall the stock market does seem to be hovering around the 10,000 mark, many investors are plagued with uncertainty about short and long term investments in the stock market. Will stocks go up or down this week? Is now to time to keep money in the market? Or take money out of the stock market?

As a real estate professional, I always advise people to continue to invest in property. With so many bank owned properties flooding many different markets, real estate investors are actively purchasing homes and investment properties and obtaining some great deals right now.

John Starke, an Investment Advisor and Financial Principle with American Beacon Partners, says that many investors have grown tired of the risk involved in purchasing equities, mutual funds, and other types of investments. Prior to the sharp downturn in the market in 2008, investors’ goals were to accrue money through appreciation. “Rather than nervously watch their portfolios go up and down, investors want a more stable income,” noted Starke. He sees a rise in interest in Real Estate Investment Trusts (REITs), Tax Free and Corporate Bonds, and even some Corporate CDs. “Many investors are pulling their money from equities and mutual funds and opting for investments that pay a decent, regular return on their money,” said Starke.

In my everyday real estate transactions, I see investors pulling large sums of money from the stock market and putting it into the purchase of homes and properties in Virginia. I have taken the time to ask real estate investors their opinion about stock market investments. Many have decided that the stock market is not for them right now. One investor, J. D., purchased a property in King William County, Virginia that was in foreclosure for $90,000. She will spend approximately $4,000 to prepare the property for the rental market and be able to collect a monthly income of $1,000 from her investment. J.D. told me “I feel the time is right to start investing in real estate again. I stopped four years ago when property prices got out of hand. I intend to do even more real estate investment now.”

Another client, who plans to retire in a few years, is selling one commercial property investment in order to purchase a strip mall in the Western Virginia town where he plans to retire. He will pay the purchase price and invest approximately $40,000 into the strip mall to prepare it for the commercial rental market. He told me, “I am tired of having a business that I have to work at everyday. I want to have an investment that will work for me as I am planning to retire in about two years.” His upcoming shift in lifestyle is motivation for his new commercial property investment. Note that he’s not selling one business and putting the money into the market. This may have been the trend for a retiree five years ago – but not in the new economy.

Finally, H.G. in Hampton, Virginia made a wise move with money he once had in the stock market. He purchased a condominium for $50,000, invested $2,500 in the property renovations, and is now receiving $850 per month in rental income for the unit. HG said, “I am making more of a return from my property investment than I would in the stock market, and I also receive a tax deduction to boot.”

There are of course risks in real estate investments. A tenant could default on the rental agreement, or a property could remain vacant for months on end. That is why it is imperative that real estate investors hire experienced and knowledgeable property managers to maximize their investment. Other risks include unforeseen maintenance and repair issues. This is why it is important for property investors to put a portion of their profits aside to reinvest in the home, condominium or townhouse they purchase.

Where property investment is concerned, even these risks, when anticipated and well-planned for, are small compared to the uncertainty of stock investments.

Shawn Tully, Senior Editor at Large for Fortune magazine, published “2010′s Coming Stock Market Crash: 1987 all Over Again” in May 2010. He states that stocks are still overpriced. He predicts a low return on investment (or a loss) as an inevitable outcome of this scenario. Tully bolsters his opinion with these astute observations: “Here’s how I see the odds. The chances are about one in three that we suffer a huge, wrenching correction in the next year or two similar to the one in 1987. That possibility is so high because stocks are so startlingly expensive. Another high probability event is that markets go on a long sideways grind, with smaller drops along the way. What’s extremely unlikely is that the market rises substantially from current levels and stays there for any extended period.”

Experts within the financial industry may be reluctant to put forth the strong opinion that Tully articulates. Still, there is no denying that investors have undergone a major shift in perspective since the financial crisis of late 2008 culminated in a recession, took hold of the United States and spread to other countries.

People will always need a place to live. With more and more families sadly experiencing foreclosure and dislocation, renting will be their most likely option. More rental properties will be necessary to fulfill housing demands. Investors need to take a serious look at property investment in their areas, and take steps to purchase viable homes even if they are in need of some repair or upgrades.

Elaine VonCannon is an award winning REALTOR with RE/Max Capital in Williamsburg, Virginia. She specializes in retirement and relocation in the Williamsburg, South Eastern Virginia area and in Virginia Estate properties. To learn more visit http://www.voncannonrealestate.com or http://www.estatesinvirginia.com.

Author: Elaine VonCannon
Article Source: EzineArticles.com
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