The second that I found out that I could finally buy my dream home, it was time to exult. After what seemed like decades of hard work and saving up, it was finally time to go house shopping. I know of people who look in every nook and cranny till they finalize the house that they are going to buy. I did not find it all that difficult. We looked at a total of three houses prior to choosing the one that I liked best.
Of course, moving in immediately was not a likely possibility. No matter how much I had saved up, I would still have to look to a bank to give me the money to make that purchase. With the skyrocketing prices of real estate these days, everyone needs a little support when it comes to finally making that investment.
However, getting a loan in in this day and age is not really an uphill task. Everywhere you look, there is a loan offer waiting to bump into you. They make home purchase seem as easy as ABC. My parents had always been insistent that I eventually buy a house for me. However, when they saw the speed at which I proceeded with finding the place, arranging for finance, and signing on the dotted line, I think they gawked a little. When my parents were younger. Loan getting was never this easy.
I suppose, we should show a good deal of gratitude towards the World Wide Web. Who would have thought that technology could bring banks right to our doorsteps? But it did, and we are all greatly benefiting from it.
My parents warned me about the confusion that studying about loans could cause. They told me that most loan providers try to rip you off. But that certainly was not the case with me. I found it very easy to find the best deals on home loans. And while I was at it, I even read up about mortgage and home refinance. Moreover, the loan providers were very clear-cut with their fantastic offers. Every bonus will be checked by a glitch, but that is to be expected.
The only problem lay in looking through the scores of offers, in trying to finalize the best one. Once I had finalized the loan I would take, all I had to do was contact the broker, meet the owners, and pay for the house. Not quite as easy as pie, but not all that difficult either. I got first hand experience of how simple it could be to purchase a home.
About the Author
Ajeet Khurana, recommends that you read about LoanSpec especially for Home Purchase and Home Refinance.
Po shfaqen postimet me emërtimin real estate investment. Shfaq të gjitha postimet
Po shfaqen postimet me emërtimin real estate investment. Shfaq të gjitha postimet
e enjte, 14 qershor 2007
Real Estate Investing
If you're just getting into real estate investing, chances are you are looking at two basic options for mid-range residential property. You can either own the property indefinitely and rent it out at a profit or you can own the property for a short period of time, fix it up, and sell it for a profit. While both can be great approaches to real estate, some properties are not equally suitable for both.
Renting It Out: Renting out your property can be a huge moneymaker, but not for every property. For instance, if you have just bought a property that is in serious disrepair, you may not want to rent it out. It might be better to fix it up and sell it, because nobody wants to rent a property that is in serious disrepair. Furthermore, if you fix it up and then try to rent it, you now have to recover the initial payment on the property as well as the cost of renovation. That can take awhile, and can be recovered faster by selling the property.
Likewise, if you have just bought an expensive property which is in great shape, you may be better served to make some market-specific improvements and sell the property. People who can afford to rent expensive residential property are probably not looking to rent; they're looking to buy.
Finally, consider the area the property is in. Is it in a transitional area, where people tend to stay for five years or less and move on? If so, renting it out can be extremely profitable. Do something with the property to set it apart from the average property in the market and then list it at 120% of the market value, trumpeting the aspect of the property that sets it apart. In a market where everyone is stuck renting basically the same property, a little bit of color or flair can add a lot of value to a property.
Fixing and Flipping: The key to the fix it and flip it philosophy is to renovate the property to the extent that it is now marketable to a wealthier buyer without spending so much in the renovation process that the increase in value is negligible. This can be more difficult than it seems. First, major renovations can sometimes snowball out of control. What started as a $30,000 project can turn into a $60,000 project before you even know what hit you. Second, you need to know your market very well. You need to know that by investing $30,000 in the renovation of a property you can turn around and sell that property for (significantly) more than $30,000 more than you paid for it. This can be risky.
However, if you are confident that you know your market and can keep the renovation project under control, fixing and flipping a property can involve much less risk. Because you can make your money back in a shorter period of time than renting the property, unforeseen changes in the market are less likely to cause you problems. A faster turnaround should make for higher profits in the long run.
About the Author
Visit Automated Homefinder for all of your Boulder real estate needs.
Renting It Out: Renting out your property can be a huge moneymaker, but not for every property. For instance, if you have just bought a property that is in serious disrepair, you may not want to rent it out. It might be better to fix it up and sell it, because nobody wants to rent a property that is in serious disrepair. Furthermore, if you fix it up and then try to rent it, you now have to recover the initial payment on the property as well as the cost of renovation. That can take awhile, and can be recovered faster by selling the property.
Likewise, if you have just bought an expensive property which is in great shape, you may be better served to make some market-specific improvements and sell the property. People who can afford to rent expensive residential property are probably not looking to rent; they're looking to buy.
Finally, consider the area the property is in. Is it in a transitional area, where people tend to stay for five years or less and move on? If so, renting it out can be extremely profitable. Do something with the property to set it apart from the average property in the market and then list it at 120% of the market value, trumpeting the aspect of the property that sets it apart. In a market where everyone is stuck renting basically the same property, a little bit of color or flair can add a lot of value to a property.
Fixing and Flipping: The key to the fix it and flip it philosophy is to renovate the property to the extent that it is now marketable to a wealthier buyer without spending so much in the renovation process that the increase in value is negligible. This can be more difficult than it seems. First, major renovations can sometimes snowball out of control. What started as a $30,000 project can turn into a $60,000 project before you even know what hit you. Second, you need to know your market very well. You need to know that by investing $30,000 in the renovation of a property you can turn around and sell that property for (significantly) more than $30,000 more than you paid for it. This can be risky.
However, if you are confident that you know your market and can keep the renovation project under control, fixing and flipping a property can involve much less risk. Because you can make your money back in a shorter period of time than renting the property, unforeseen changes in the market are less likely to cause you problems. A faster turnaround should make for higher profits in the long run.
About the Author
Visit Automated Homefinder for all of your Boulder real estate needs.
How to earn from real estate
First I'd like to preface that I am not a Guru! I am not selling a seminar, workshop, boot camp or mentoring program. I created this site to answer the question I am so often asked, "How did you get started and make money in real estate?"
If my comments seem boastful, recognize that there are many others who have done far greater than me. My hope is that this article will serve as an encouragement to "Newbies", those who are just starting out in real estate. You can make money in real estate with no money, no credit, no prior experience and in your spare time!
I can hear you saying, What spare time? Real estate is a time-money business. You've got to have one or the other and preferably both. I didn't have either, so I decided I would make the time to make the money. Once I made time to make money, the question was how do I make money in real estate with no money, no credit and no experience? I had never bought a property, didn't even like the thought of real estate. Tenants, fixing toilets and dealing with evictions was not for me, but I had heard of others making loads of money in real estate. The question was how?
Since I love to read and love good coffee, naturally a trip to the bookstore was the first step in my quest to find out how to make money in real estate with no money, no credit and no experience. Browsing through the books I came across a couple that were particularly interesting to me. What the heck, I'll spend $15.00.
A WEEK LATER I MADE $6500.00!!! THE WEEK AFTER THAT I MADE $8000.00!!! NO MONEY, NO CREDIT, NO EXPERIENCE, NO SEMINAR, NO BOOT CAMP, AND NO GURU.
As a beginner, flipping properties is the technique you need to generate fast cash. You don't have buy a house, just put it under contract and flip it. All I did was made some cheap letter sized flyers, passed them out, found a motivated seller, put it under contract and flipped the property to the end Buyer and cashed the check! I was so thrilled to say the least. I did it again and again.
Again, you don't have buy a house, just put it under contract for one price and flip it for a higher price. Buy and hold, lease options and all other methods should be used after you've built a solid cash foundation. There are lots of investors out there in serious financial trouble using rehabs and multiple rental income strategies. Also you don't need expensive seminars and boot camps. If you can afford them go, but I didn't. After I made my first flips, I bought some courses.
I've found that chat sites can quickly overwhelm a Newbie with such diverse opinions, and can cause confusion. Don't get lost on information overload. I was determined to go out and make money. Don't listen to those telling you it can't be done! It can!
If you'd like to read more or see the list of books I read go to http://www.howimademoneyinrealestate.com I hope this article was an encouragement to you to get out there and make money!
Copyright 2007 http://www.howimademoneyinrealestate.com All rights reserved.
About the Author
I am not a Guru! I am not selling a seminar, workshop, boot camp or mentoring program. I created this site to answer the question I am so often asked, "How did you get started and make money in real estate?"
If my comments seem boastful, recognize that there are many others who have done far greater than me. My hope is that this article will serve as an encouragement to "Newbies", those who are just starting out in real estate. You can make money in real estate with no money, no credit, no prior experience and in your spare time!
I can hear you saying, What spare time? Real estate is a time-money business. You've got to have one or the other and preferably both. I didn't have either, so I decided I would make the time to make the money. Once I made time to make money, the question was how do I make money in real estate with no money, no credit and no experience? I had never bought a property, didn't even like the thought of real estate. Tenants, fixing toilets and dealing with evictions was not for me, but I had heard of others making loads of money in real estate. The question was how?
Since I love to read and love good coffee, naturally a trip to the bookstore was the first step in my quest to find out how to make money in real estate with no money, no credit and no experience. Browsing through the books I came across a couple that were particularly interesting to me. What the heck, I'll spend $15.00.
A WEEK LATER I MADE $6500.00!!! THE WEEK AFTER THAT I MADE $8000.00!!! NO MONEY, NO CREDIT, NO EXPERIENCE, NO SEMINAR, NO BOOT CAMP, AND NO GURU.
As a beginner, flipping properties is the technique you need to generate fast cash. You don't have buy a house, just put it under contract and flip it. All I did was made some cheap letter sized flyers, passed them out, found a motivated seller, put it under contract and flipped the property to the end Buyer and cashed the check! I was so thrilled to say the least. I did it again and again.
Again, you don't have buy a house, just put it under contract for one price and flip it for a higher price. Buy and hold, lease options and all other methods should be used after you've built a solid cash foundation. There are lots of investors out there in serious financial trouble using rehabs and multiple rental income strategies. Also you don't need expensive seminars and boot camps. If you can afford them go, but I didn't. After I made my first flips, I bought some courses.
I've found that chat sites can quickly overwhelm a Newbie with such diverse opinions, and can cause confusion. Don't get lost on information overload. I was determined to go out and make money. Don't listen to those telling you it can't be done! It can!
If you'd like to read more or see the list of books I read go to http://www.howimademoneyinrealestate.com I hope this article was an encouragement to you to get out there and make money!
Copyright 2007 http://www.howimademoneyinrealestate.com All rights reserved.
About the Author
I am not a Guru! I am not selling a seminar, workshop, boot camp or mentoring program. I created this site to answer the question I am so often asked, "How did you get started and make money in real estate?"
e mërkurë, 13 qershor 2007
Seven Ways to Real Estate Investors
I have been asked a number of times about the common traits of successful real estate investment , owners and operators. So I've given it a little thought and stolen a catch phrase from Stephen Covey and originated the following Seven Habits of Highly Successful Real Estate Investors. Whether you're investing for wealth development, income, tax shelter or asset growth, these habits will hold true for you. At least give them a read and a thought or two. They can help and I hope they'll help you.
From my experience I believe that the following seven principles are consistently understood and implemented by successful investors. Let's review what they are and why they're important.
1. Reduce the risk of negative cash flow by not overleveraging. When you over borrow for a piece of real estate the property must earn enough money to pay its traditional operating expenses and debt service. Unless you are able to buy the property at significantly below its value, when you over-leverage you will put the property at a huge disadvantage that will typically result in significant negative cash flow. I can't speak for all investors, but I don't like negative cash flow!
2. Reduce the risk of property/ casualty losses or related law suits by purchasing adequate coverage from a reputable insurance firm. Sometimes an owner may think that insurance is an unnecessary expense, after all, they never plan to use it. So they get the cheapest coverage they can find. The biggest reason some policies are cheap is because they don't cover much. This looks good until the disaster occurs and then you are financially crippled. Better to get adequate coverage and not worry about it. It says in the Good Book that if you are prepared you shall not fear. Proper insurance makes for proper preparation.
3. Reduce the risk of financial devastation caused by major repairs or upgrades by initiating an inexpensive preventative maintenance program. By keeping a property in decent operating condition, all components will last longer, upkeep will be minimal and revenue sustained. If you let a property deteriorate, you will have major capital expenses, loss of revenue from down rooms, apartments or units and a drop in value. Better to spend a little now than lose a boat-load tomorrow.
4. Reduce the risk of tenant problems by actually doing a credit and rental history check on applicants. Just because somebody is vertical and ventilating does not mean you should rent to them. There are lots of firms that will do the research for you (for a small fee) to tell you whether an applicant has a history of suing landlords, running on leases or not making payments. You cannot make good decisions without accurate information. Credit and rental checks give you the data you need.
5. Reduce the risk of personal financial ruin by using a properly formed and maintained legal entity to own the real estate. The business value of using an LLC, Corporation or Partnership to own real estate is well documented. While it may be easier to just "do it in your name", that would will allow any financial or legal problems to follow you home from work and invade your personal assets, bank accounts and investments. Chances are that you will sleep better being a stockholder or interest holder than you would as a sole owner.
6. Reduce the risk of business failure by implementing an effective property management system. With a few simple protocols and practices you can take the headache out of property management. Simple timed activities will remarkably reduce the time, effort and frustration of being a property manager. Take the time to establish your program early on or you'll be investing tons more time than you need to in the future.
7. Reduce the risk of tax problems by keeping accurate books and records and using a CPA at tax time. You cannot manage what you cannot measure. You cannot measure what you cannot monitor. You need accurate books and records if you expect to be successful long term. Without good financial records you will never be able to maximize your yield. Get them started and keep them up to date.
There they are, seven habits that are simple, sweet, straight to the point and sure to work. While virtually every property owner you will ever meet will agree with these principles, yet only a few will actually live by them. It will be easy to recognize the difference. Those that put these principles into play will smile a lot and visit the bank to make deposits. Those that don't will frown more and need to visit the bank to get extensions or new loans. I know which one I'd rather be. Keep smiling. If we can help we'd be glad to.
About the Author
Roger Beattie is a real estate broker, investor, owner and operator. He 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
Roger Beattie is a real estate broker, investor, owner and operator. He 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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