Wednesday, July 31, 2013

Real Estate Rental Properties

Purchasing real estate can be a worthwhile investment. It can give a nice boost to your income. While it may seem like a good way to make the extra money that you need there are a few things you must know before purchasing real estate rental property. First, you must decide what you are looking for in a rental property. You will have a lot of various options to choose from. It may depend on your money situation and how much you can afford to invest. When looking for a rental property you may decide on an apartment, single family home, duplex or even a building. It is a good idea before buying any real estate to make sure that your finances are in order and that you credit is good before going through with the loan process. This will make it easier for you to get the loan that you need to purchase the property.

If you would like some help with purchasing a real estate rental property contact a real estate agent. They will help you choose a property that is in a good location and one that would be easy to rent. They will help you to determine that the price is fair and that you will be able to make a good profit renting the property. You should try to get the property lower then the price it is listed for if possible so that you can make a nice profit each month. Try to stay away from properties that need a lot of work because it will come out of your pocket fixing them up. Although if the property is low enough it may still be worthwhile because you may have extra funds available to update it and do any repairs. What ever you decide to do make sure that you can afford what you are buying and that your chances of renting it out are very good in the area. Be prepared because in some cases if your property does not rent out as quickly as you would hope for you will have to pick up the monthly cost of it until it is rented.

If you buy a rental property away from where you live and cannot look after it like you should hire someone dependable that can do this for you until it is rented. Have someone care for and keep up with the maintenance of the property so that it stays in good condition. Remember when you buy rental property you are going to be a landlord and have the responsibility of keeping up with the property so make sure that this is right for you and that you are a good landlord. This can be a profitable investment and after awhile you may decide to purchase other rental properties.

Sunday, July 28, 2013

Purchasing International Real Estate - Worldwide Property Investment

Interested in investing somewhere other than your back yard?

Management companies have made it as easy to have a revenue property across the world as it is to have it across the street. You don't want to be collecting rents and plunging the toilets no matter WHERE it is!

Different laws in different countries means some research is definitely in order. Some countries don't allow you to own the land, you have to lease it. Check on title insurance to make SURE you really own it.

And just as people have bought swamp land in the United States, you need to actually VISIT your property - look at it, make sure that it is in a good area, and looks to be a good investment.

Pictures can be VERY deceiving, and if your lot is next to the city dump, for example - it'll be hard to make a profit on it! Put at least as much effort into buying a $200,000 piece of real estate as you would into buying a $10,000 used car. You'd definitely want to see it, inspect it closely, go for a spin around the block and see how it performs on the highway. Okay, that's tough to do with a piece of land, but take a walk around, get in an inspector, ask the neighbours what they think.

Probably the most important aspect of buying a property in another country is the management company. If it is rented out, and rents rise, over time, the property will pay for itself, and pay off the mortage. In other words, with rising rents, you basically get revenue properties for free, over time. The renters pay your mortgage.


If you have tenant troubles, people moving in and out and big costs for re-renting, repair and renovation on an ongoing basis, let alone outright destruction - you may never see that happy day when the mortgage is paid off and some appreciation has occurred. The management company is either really good, concerned about your investment, or it is careless. Over time, THIS is the most crucial part of your investment, and should be VERY closely looked at. Talking to other clients is a quick way to get a read on their performance, and you should ask for these types of references.

Any real estate investment needs to be held on a long term basis to allow rising rents and rising property values to almost automatically make you money. A short term hold goes against these trends, especially when you factor in realtor fees, and development company profits if it is new construction. Make sure that it will truly be a "hands off" investment, and hopefully it will yield some headache free profits!

Friday, July 26, 2013

Real Estate and the Internet

As it has with almost every business, the growth of the Internet has significantly changed the landscape of property investment.

Many of the traditional requirements still apply, but buying and selling property has been made vastly easier and less costly with the emergence of thousands of sites devoted to Real Estate.

Finding properties is easier than ever, as is finding out more information about them. Not too many years ago finding properties outside a local area required poring over out-of-town newspapers or specialized publications that were expensive and hard to find. Finding information on them often meant relying on local agents' ability to describe them or taking a lengthy, expensive trip.

Now, with a brief search and a few mouse clicks, you can find more properties than you could ever turn over and more information about them than most of the previous owners know. With the arrival of high-bandwidth connections you can quickly access and view photos, 360-degree views of the interior and exterior, as well as the surrounding area and streaming video in close-up and overview.

Title searches, back taxes owed, legal encumbrances, previous ownership history and other pieces of valuable data are easy to obtain along with the current and past selling price. In some cases, you can get past inspection reports and records of repairs made.

And most of that information is available for nothing more than the cost of your time to find and review it.

Of course, mortgage financing has taken on entire new possibilities with the growth of the sites devoted to that subject. Traditional lenders have taken advantage of the technology, but there are also dozens of mortgage lending sites that have no brick and morter presence at all.

Even out-of-state and foreign markets have been opened up across the globe by the growth of the world wide web of property information. A Spanish investor can find a villa in Italy or France, while an American can easily locate wineries for sale in France or a Bed and Breakfast in England. Properties are available for purchase as a pure investment, a second home - which can be rented for part of the year using Internet sites, or even full-time rental.

Selling, too, has been made easier by utilizing any of the hundreds of sites devoted to the subject. For Sale By Owner is now much more feasible and quicker thanks to sites that advertise property - many of which provide low-cost additional services for helping you make that sale. That's an average 6% increase - the average cost of an agent's fee - in profit all by itself. Six percent of $200,000, for example, is $12,000. Subtracting off $100 for a three month listing still leaves a very healthy reduction in cost.

Though it's always a good idea to see any prospective property first hand, much time can be saved by gathering useful information before a site visit. And with the ease with which appraisers, contractors, title companies and realtors can be found - and more so with the growth of Local Search by the major search engine vendors - buying and selling has gotten even easier.

It won't be long before transactions can be carried out entirely electronically without leaving your home office. Many states and countries already allow electronic signatures on documents, eliminating the need for mail or faxing of paperwork.

Now if they could just invent something to legally produce the investment capital.

Thursday, July 25, 2013

Things to Invest In - Hedge Funds, Real Estate, and the Stock Market

The very best personal investment may be different for you than it is for someone else, but that does not mean that there are not better places in general to put your money. Still, depending on your financial goals, the amount of risk you are willing to take, and the number of dollars you are willing to invest, you will find different kinds of investments to be more profitable to you. Choose your investments wisely and you will obtain greater wealth to enjoy in the future, despite market ups and downs. You may be interested in investing in hedge funds, investing in stocks, or real estate investing. All of these options will be explored here.

If you think that investing in hedge funds may be for you, you should understand more about them first. Hedge funds are most commonly established as private investment partnerships that are only available to a small number of investors. There is usually a large initial minimum investment required of investors. This money is not liquid as investors are often required to keep their investments in the fund for 12 months or more. Investing in hedge funds may be for you if you have a large amount of money you want to transform into even more money while attempts to reduce risk are highly implemented.

Real estate investing could be for you if you want to make money on the real estate market by purchasing homes with the intent to sell rather than occupy them as your new dwelling. Those within this field of investing often own multiple properties. These may be sold for a quick return or rented out for a long-term investment. There are many different kinds of real estate investing that may interest you, whether you want to be a landlord or get the property off your hands as soon as possible.

Investing in stocks is perhaps the most classic form of investing that exists today. It is known for being quite a risky venture, especially in an unpredictable market. However, if you know how to read historical statistics, you can stay ahead of inflation and increase your finances in time. Even though you must pay taxes when investing in stocks, as well as when investing in these other kinds of investments, you should not let this fact deter you from making more money. Most forms of income are taxed anyway and you have the potential to make a great killing on the stock market, in real estate, or with hedge funds.

Wednesday, July 24, 2013

Real Estate Investment Properties

There are a number of ways to invest your heard-earned money for the future. In fact, it is wise to investigate a number of investment avenues, since this will help secure your financial future. One of the many ways to invest is through real estate investment properties. Many people make the effort to invest their extra money in beach condos, residential homes, and apartments that are for sale in major cities. This way you can earn on these real estate investment properties for as long as you own them, which is basically endlessly. As long as you have the title to the property, it is a wonderful way to earn additional income.

Many people are getting in on real estate investment properties these days. There is one major reason for this. Real estate has hit an all time low. Basically the market has not been this bad since the 1970s, which was when there was a major crash in housing value. However, this is even more prevalent now, and it can be seen all over the world. So it does not matter where you reside, you can likely earn some major money from real estate investment properties. You just have to know where and what to buy. As you have likely heard, when it comes to property, everything is about location, location, location.

If you have a little extra money to invest, real estate investment properties is the way to go. Imagine a world where homes that once sold for $700 thousand are now selling for $325 thousand. This is unbelievable, right? Not any more! We are currently living in a world where residential housing and condos are selling for less than half of what their worth. While property in your area may have once been around $200 per square foot, it may now be less than $100 per square foot. This is plain and simply amazing, and it is why so many people who have never dabbled in the housing market for investment purposes before are now considering real estate investment properties.

The key is to set a budget. Maybe you have $90,000 in a savings account that you have been itching to invest. There are a number of properties such as small residential homes and condos out there these days that cost this much. Some of them are even located in prime areas. So what are you wasting time for? There is no time like the present when it comes to real estate investing. This is without a doubt one of the wisest ways to invest you additional income. This is because the market will turn around, and real estate investment properties will increase in value. It is better to buy them when they are dirt cheap than to wait until later on.

Tuesday, July 23, 2013

Beginners Tips and Tricks in Regards to Real Estate and Investing

If you are one of the many people who are interested in real estate, investing, or both, then you should know that there are several factors and issues that you are going to want to take quite seriously into consideration. As well, there is truly a multitude of tips and tricks in regards to real estate and investing, and so you are certainly going to want to learn about these as well.

Tips and Tricks for Real Estate and Investing

There are many tips and tricks that are included here, and one of the best is in regards to how you should always make sure that you are in good communication with a professional - someone who knows exactly what they are talking and who can thus help you out through every step of these processes.

In regards to real estate, the best idea is to speak to a familiar real estate agent that you know, so that you can get at least some basic information in regards to what you should know before you end up purchasing a home. Buying a home is going to be one of the most major things that you do in your entire life, and thus you certainly want to be as knowledgeable and as informed as you possibly can be.

In regards to investments and issues of the like, you also want to make sure that you are aware of everything as possible, so that you can invest your money wisely and properly and so that thus you will not be working and slaving away for nothing, but rather you will have money saved up for when you need it and for instance, you could use this money to buy your home.

Not only before you buy your home, but also after - in fact, especially after - you are going to have to know and understand about how you can invest properly, and so speaking to someone in your bank is an excellent idea, as they are the best professional that you can go to who will be able to discuss all the details with you and let you in on the best secrets in regards to how you can save your money and how you can get the best interest rates, and so on; remember that the more time and effort you put in now, the more it will pay off in the end.

Monday, July 22, 2013

5 Things to Consider With Real Estate Investment Properties

There is more to buying real estate property than living in it. Many people buying it as a long-term investment may find that now is a good time to make a purchase. There are many things to consider when buying real estate for sale, but one factor that greatly impacts the selection is how it will be used. If the new property owner plans to spend any time in it or use it as a rental property, this could be a determining factor as to what type of property to buy. When it is to be used as a rental property, these are some deciding factors that may affect the choice of real estate.


Location is perhaps the most important factor to consider. An attractive area with low crime and many conveniences is prime real estate. Property with a view of the ocean, mountains, a lake or any other notable feature is always more desirable than one without. If the area is far away from where the investor lives, consideration should be given to how often they will need to go there and oversee any issues or problems.


A larger property typically brings in a higher rent payment. The more people the place can accommodate, the more it is likely worth as a rental. The number of bedrooms and bathrooms is critical to how high a rent can be charged. Whether the property has a yard is another issue.


Determine whether the property is meant to be used as residential, vacation or commercial real estate. If the zoning needs do not fit the intended purpose, find out what it will take to change that. This is very easy to change in some locales, and quite impossible in others.


The existing condition of the property may impact how quickly it can be used as a rental. If the buildings are in good condition with modern electricity and utilities, the property is probably closer to move-in ready condition than something that requires work. Although the price may be lower for a fixer-upper, it will take longer to begin earning income from it.


One way to make sure that the property will be a sound investment is to do a thorough inspection of the property before deciding to move forward with it. Contact a professional real estate agent to assist in searching for appropriate property. Be sure that the agent is familiar with the area. This person should be able to give the potential investor some good tips on what is available and how feasible it is to turn the property into a rental.

Sunday, July 21, 2013

Real Estate - Private Property Rights

A call to action... Now is the time to act and for you to join the fight to protect and to keep private property rights that you use and enjoy. Well meaning individuals are campaigning to remove many of these fundamental rights that most Americans take for granted.

Every property enjoys a "bundle of rights". Real estate agents and brokers work to market and transfer both the property and the property's "bundle of rights". These are the rights people have in real estate they own - also called "private property rights".

There are two primary philosophies in America today regarding land ownership and real estate ownership. The first philosophy calls for and advocates the government owning the maximum amount of real estate, including land. People in this camp do not trust home owner's and private property owners to manage their real estate responsibly. The opposing group, those who support people owning their own home or own land, see the rights people hold in private property as the core to living in a free society.

Well meaning socialists have advocated the public's ownership of everything from your home, to land, means of production, capital, credit, to health care. This has been true since the start of recorded history. Socialism attempts throughout the history of the World, including those happening today, have all had the same result; failure. Evidence of this is seen in history books and in places like Cuba.

The United States was founded on the principal of every American having the opportunity and benefit of owning real estate and private property rights. "It's all on your shoulders to push yourself as hard as you can. And that dictates how successful you will be," according to The Code of the West; Alive and Well on Wyoming Trailer. It is essential for capitalism to flourish that you have the right to manage, control, and own your own home, farm, ranch, land, and your own business. The quality and standard of living we enjoy today, we owe mostly to our ability to own our own homes, our own real estate and our own land.

If you no longer had the right to own your own home, to own your own lot or your own land, what would America look like?

Private property rights are being attacked now more than ever by agencies of the federal government and by laws with deceptive labels. The Conservation and Reinvestment Act, for example, if passed allows the removal of private property rights; placing these instead with federal bureaucrats. The Grizzly Bear Overlay (GBO), if approved, may affect large amounts of land. Swaths of real estate in Idaho and elsewhere if approved, could suddenly become subject to the strict rules of the GBO. The GBO would restrict what people can do with real estate. If your rights in your real estate were lost as a result of an overlay - but not lost to property across the street from you, how would that effect demand and the value of your property? The Environmental Protection Act has a pretty name but in reality, the act transfers the management decisions you have in your home or property over to the the federal government. There are many laws and acts that have the same effect, such as, wet lands laws, endangered species acts, national monuments being proclaimed, and others that have consequences and limit the the rights an owner or renter has in their home and land.

This is not a simple disagreement between the two philosophies to arrive at an agreed upon objective. Freedom of choice, freedoms and rights guaranteed by the US Constitution, and quality of life are at stake. Real estate owners and renters are being burdened with higher taxes and increases in takings and loss of private property rights. However, many agents and brokers are learning the issues. They are getting involved. The are fighting to defend the personal and private rights people enjoy in properties they own or rent - to help protect owners and future owners. Reasonable people know that the government cannot spend its way out of debt. It cannot keep taking water from the well without eventually running the well dry.

Now is the time to act and for you to join the fight to protect and to keep private property rights you use and enjoy, either as an owner or as a renter. And now is the time to help your neighbor protect his or her rights. Get involved. Talk to your real estate agent or your broker about the issues as the affect private property ownership. If you are an agent or a broker, join the Realtors Land Institute and other groups associated with private property and rights in property.

There are many groups you can contact or join and get involved. Contact the author for more information about groups and ways to get involved.

Friday, July 19, 2013

Intergenerational Real Estate and Dynasty Trusts

With the current gift tax exemptions ($5.0 million for individuals and $10.0 for couples) set to expire at the end of 2012, it is imperative to find ways to grant cash and other assets to dynasty trusts now. Income producing real estate is an excellent way to do this and to get, in some instances, a multiplier effect with forethought and planning. Residences can also be used, but the process is a bit more difficult.

The value of real estate, simply put, is its appraised value minus any debt secured by it. That is, the value equals the equity. What even some sophistical people forget is that new debt does not detract from net worth because the debt creates an asset equal to the liability. So the value of the property without debt is equal to the value of the property minus the debt, plus the cash received for the mortgage. If the building is worth $10 million free and clear, it is a $10 million segment of one's net worth. Now, if a $4,500,000 mortgage is placed on the property, one's net worth is unchanged. The property now has an equity value of $5,500,000, but there is an additional cash equivalency of $5,500,000, the mortgage proceeds. Together they still equal $10,000,000, which was the value of the property without the mortgage.

Now, appraised value and net value (appraised value less mortgage) are not the same things as the valuation, which is the current worth of an asset. True, if one owns a controlling interest in an asset, that interest is worth the pro-rata share of the overall value. But what if one owns less than a controlling interest? The value is significantly reduced because of that lack of control. In the instance where the asset is an apartment building, the minority interest might be valued at 60% of what you would think if you did the simple math of percent interest times net equity. And that legal distinction makes all the difference in the (gift tax exemption) world.

Let's put those two concepts to work preserving wealth:

The income producing property has an appraised value, without debt of, say $10,000,000. It is either currently owned by an LLC or will be transferred to one. The LLC is owned by two individuals, each with a 45% interest and an entity owned by them, which has the other 10%, acts as manager. Neither then has controlling interest. Each 40% interest would seem to be worth $4,500,000 ($10,000,000 X.45), but for valuation purposes, it is discounted, say, 40% because of the difficulty in selling the interest and the lack of control. Instead of counting $4,500,000 toward the gift tax limit when that interest is granted to a dynasty trust, it is only counted as $2,700,000. Under current limits, that leaves $1,800,000 more available under the individual cap. By doing this before the end of 2012, hundreds of thousands of dollars in gift tax would be saved.

Now let's go back to the initial point about net worth not being affected by the amount mortgages on a property. Because most non-real estate professionals tend to be very conservative when it comes to financing their properties, there usually is plenty of room to increase borrowing and still stay within their comfort range, say 55% or less, loan-to-value. True, one could just diversify holdings and put the money in bonds or equities, but there are other effective ways to use the funds to preserve wealth, even though they require the actual spending of money, reducing net worth, initially. But over time, they preserve many times what they cost.

By placing a new, but still conservative, mortgage on the property, the seniors can so some current financial planning. Because of that increased debt, more of the real estate can be granted to the trust. And, over time, the mortgage is paid down by the positive cash flow of the property. The estate has been enhanced for this generation on those to come.

Wednesday, July 17, 2013

Slovenia Real Estate - Consider Property Investment In Slovenia For Big Capital Gains

Imagine a country of alpine peaks, rolling hills, beautiful coastline, valleys dotted with vineyards, strong flowing rivers and waterfalls - It could be California but its not - its one Europe's undiscovered investment hot spots which was recently voted one of the top 10 investment countries.

Slovenia real estate is hot and savvy investors are snapping up bargains and making big capital gains.

So where exactly is Slovenia?

Many people have not heard of Slovenia and many get it confused with Slovania!

It's just to the east of the Trieste region of Northern Italy and a day trip from Venice.

It also has borders with Hungary, Austria and Croatia.

It's a small, compact country about half the size of Switzerland and its got a booming economy and this is increasing Slovenia real estate values.

Why is Slovenia Real Estate Rising In Value?

There are two major reasons:

The first is, the economy is expanding.

Slovenia joined the European Union in 2004 and now has the highest growth rate of any of the new member states.

Slovenia recently adopted the euro as its currency and investment from other member states is rising - this combined with solid government economic policies, is seeing economic growth running at about 5% per annum.


This economic growth is seeing a rise in tourism and the government is actively promoting the country abroad and with the recent arrival of budget airlines and cheap flights, tourist numbers are on the rise and will continue to rise.

These two factors are driving Slovenia real estate prices higher, as there is a lack of affordable property in many of the urban areas such as the capital Ljubljana.

This also applies to many of the major holiday resort areas of the country, such as:

The Soca Valley Promoska, Bled, Bohinj and Kranska Gora - to name just a few.

Forecast Growth

At present in many areas real estate prices are rising at a rate of up to 30% per annum.

A recent real estate survey has estimated that prices could rise by as much 300% in the next 10 years.

Ljubljana Real Estate

The potential for real estate prices can be seen if we take a look at the capital Ljubljana.

This medieval city is beautiful and has been likened to a smaller and less crowded version of Prague.

Ljubljana real estate is cheaper but is catching up, as a lack of quality housing and strict planning regulations force prices higher.

Capital gains or Income?

Of course, there are many other destinations to look at and they cater for all tastes and all budgets.

The piece of Slovenia real estate you choose is up to you - you can go for a holiday home, capital gains, income or a mixture of all three.

You can buy Slovenia real estate on its beautiful Adriatic coast, in the lively historic towns, near alpine ski resorts in the magnificent Julian Alps, by lakes or rivers, or buy a retreat on one of the many beautiful Alpine forests that cover large swathes of this beautiful country.

Don't forget its great position!

Slovenia has a lot to offer in terms of natural beauty within its own borders, but don't forget your close to such great towns as:

Prague, Budapest and Venice and if you are a skier, you can ski in three countries on one pass Slovenia, Austria and Italy.

Buying Is Easy

Buying is easy and the process is designed to protect both the buyer and the seller.

Ownership is transparent and finance is available locally.

There are many Slovenian estate agents that cater for overseas buyers, to help them buy a property that suits their investment aims and their budget.

Risk to Reward

The risk to reward of buying Slovenian real estate is good - the property boom is in its infancy and the price outlook for the future looks solid due to - Slovenia's stability, economic performance and expanding tourist industry.

Slovenia real estate is a good long term investment, that's still affordable and if you are considering an investment in overseas property, then Slovenia real estate is well worth your consideration.

Tuesday, July 16, 2013

Real Estate and Comparison of Alternative Investments - Real EstateAnalysis

Investment in Real Estate can be very profitable, but every investor should definitely compare his investment with other investments, even of different type. This article will point out possibilities of comparing this investment with alternative investments in: stocks, commodities (gold) and savings accounts. The goal of this comparison will not be an exact and too detailed valuation of stocks or gold, but more a general comparison. Each investment has its specifics, its advantages and disadvantages, which will be discussed in each paragraph, including the advantages and disadvantages of Real Estate investment.
Investment in Real Estate
Most of the specifics of this type of investment have been described in previous article (Definition of Real Estate); however there are certain characteristics of this investment which are important for the comparison. This investment is usually financed partially with a mortgage. This use of "other people's money" can make a huge difference in investment returns and is much more difficult to achieve with other types of investments. Other advantages are low volatility and therefore slower changes in the market values of the properties; and tax implications. If an investment property is hold for certain amount of years, there is very low tax income liability, when the property is sold. Until that moment, the investor can use depreciation and expenses tax deductions to lower his income tax liability as well. This investment is usually providing the investor with monthly positive Cash Flow and also is appreciating over time. Disadvantages of the R.E. investment are definitely the minimum initial cost, which even with the help of mortgage are much higher than for other investments; very low liquidity, since it takes sometimes even months to sell a property; and the requirement of more complex management of the investment, either by investor himself or by a property management company.
Investments in stocks
The characteristic advantages of investments in stocks are the very high liquidity, when stocks are nowadays bought and sold in matter of seconds over the internet; low minimum initial investment and the right of the investor for dividends during the holding period. The volatility of stocks will not be considered as such a disadvantage in our case, because we will be comparing the investments only from a long term point of view. A disadvantage of the investment in stocks is the fact that the end companies and their profitability are influenced by the managers and not by the investor himself. The investor has low or almost no power over the situation of his stocks. Another disadvantage is the much more difficult use of leverage by using borrowed finances, compared to Real Estate.
Investment in precious metals (gold)
Precious metals and especially gold were always used as means of exchange in the past, because of its characteristic of value holding. That is the main advantage of gold and therefore it is a great hedge against inflation. In average, investments in gold do not provide such a great return yields, but especially during hard economic times, when other investments are falling, gold does opposite. When investor owns a piece of gold, for example in a form of golden coins, there is a considerable cost of security storage or insurance. In this case the liquidity is also quite low, because such an investor has to find a buyer for his coins or go to an auction to sell. Investment in gold does not provide an investor with any kind of dividends or cash flow during the holding period. Another option for investing in gold is the stocks of companies in the field of precious metals. Their stocks are influenced directly by the price of the actual commodity. This way an investor gets higher liquidity and lower minimum initial costs with the same returns. However he still will not be able to influence the development of the gold prices. Those are substantially influenced by the actions of governments.
Investment in savings accounts Savings accounts are the least risky, least volatile and most liquid type of investment. They are usually insured by the government and bring an annual interest to the investor. However the rates of interests are sometimes even lower than the rate of inflation and therefore the value of the money can actually lower over the time. Another disadvantage can be the penalties when certificates of deposit, a type of savings accounts, are cashed before their maturity date.
Good real estate investment software can help an investor with comparison of his Real Estate investment with other types of investment. Therefore I recommend to choose wisely what software an investor uses for real estate analysis. Especially I do not recommend to spend money for some software, which does not even have the desired capabilities. Check the free software I recommend.
If you are not interested in essay writers , then you have already missed a lot.

Monday, July 15, 2013

Real Estate Investment Property - Tips on How to Evaluate

You've found the ideal property you'd like to make an offer on and have to evaluate how much to offer so you get the property at your price, how do you do it?

It is said that Real Estate Investors make their money when they buy the property. For the most part, this is true. If you pay too much, you've just become a long term investor and potentially a landlord waiting for the market to catch up hoping you get positive cash flow on the property. If that was your strategy all along no harm, but if you wanted to resell the property quickly, you may not be able to. This article addresses the steps and items you should consider when evaluating investment properties.

First, you must have an exit strategy in mind and I recommend an alternate exit strategy in case your primary goal doesn't work out. Typical exit strategies are to wholesale the property immediately, rehab the property and resell it, or keep the property and rent it out for cash flow. There are other strategies that incorporate several of these like lease options but the point is to decide what you will do with the property before you own it.

This is how I evaluate deals and make offers.

First, I will only work with a motivated seller that is not currently in pre foreclosure or a bank owned property. I choose not to work the short sales as they are quite labor intensive and take way too long with an uncertain outcome. My local market which is Broward County in South Florida has many such opportunities so that is my target. You need to have a target also.

Second, I only look for properties in what I call "hot zones". I concentrate in areas that have a lot of buy and sell activity. Again, if my exit strategy is to wholesale or rehab, I want to buy in an areas where the buyers are. I also pick price points where the most activity is. Study and understand your local market and what is going on with government programs like first time homebuyer etc. Always buy with your eye on your exit strategy.

Now the research

You need access to historical and current real estate information local to your market. If you are a Realtor you have the MLS and other tools. If not, there are several good websites that you can access to get historical and current information.

You local property appraisers website will give you important information on the subject property including square footage of the living area which is very important when determining price per square foot. To get the comparables you will search for the following.

o Closed Sales preferably within 6 months of today's date


Sunday, July 14, 2013

Real Estate and First Home Ownership

The term 'home ownership' can sound scary in this day of the big 'R' word - Recession - particularly for those who are first home buyers. For many just thinking about buying real estate is as far as the dream goes.

Whenever you mention to anyone that you are looking to buy your first house, investment property or section they are bound to give you their advice and there is nothing wrong with that, however at the end of the day you need to feel as though you have made the right decision for you and not for those around you. To enable you to do so you need to know as much as you can about the real estate process in New Zealand, so that you can feel confident in your decision.

First home ownership in New Zealand has become somewhat easier with the likes of Government subsidies and programmes and it is because of this that many more younger people have been able to buy their first home without as many restrictions around lending. For anyone looking at buying real estate for the first time it's always important to make sure you know what you are getting yourself in for, otherwise you can swiftly be put off the idea.

To fully understand the real estate process you need to firstly understand the costs involved. Not only do you need to be able to afford the mortgage itself, but when you are purchasing your house you will need to employ the services of a solicitor to ensure that all of the legalities of the Sale & Purchase Agreement, Land Transfer and mortgage terms are tended to. This comes at a price, but one which is far more worth doing than not. Further to this you need to understand the ongoing costs involved in the property you are looking at; the likes of Council rates are often overlooked by first home buyers along with insurances - both house and contents. So it's fair to say that budgeting is one of the first steps you need to consider.

Secondly you need to consider what you want in your home i.e. 2 bedroom or 3 bedroom, 1 bathroom or bathroom and ensuite, single garage or double, all of these things count. When you buy a home it's usually not as easy to move as it is when you are renting, so you need to make sure that you find a real estate property in the area of New Zealand you want, that meets your needs. Make a list of the things which you need and want before you begin your search, it will make it so much easier, but bear in mind when you are searching, how much you have available to spend and stick to it.

Thirdly, get a LIM report done or at the very least get someone who you know and trust and that knows what to look for, to go over the house with a unbiased eye. You could do this yourself, but chances are if you have 'fallen in love' with the house then you will ignore or push aside those things which are 'wrong' with the property, not to mention that you probably don't know what you are looking at.

Lastly, and again something which many first home buyers overlook is home maintenance. Whilst flatting or renting it's easy to forget that houses do need work done on them from time to time. At some point things will go 'wrong' a tap might need fixing or your roof might leak for example. Along with this is maintenance such as repainting the exterior of your house (if it's painted now) and replacing things like carpets, floorboards etc etc. This is all part of owning your own home and everyone has to do these things at some point in time.

During the process of purchasing real estate in New Zealand, your key contacts will most likely be the real estate agent you are dealing through, your solicitor and your lending consultant. Further contacts will be insurance agents and council contacts. All of these people can help you with any questions you have, all you have to do is ask.

Saturday, July 13, 2013

Cancun Real Estate and the 2012 Mayan Year of Rebirth

Cancun, which lies along Mexico's only Caribbean coast, has been busy celebrating the Mayan Year of Rebirth since late in 2011, but there are still dozens of events for visitors to enjoy that will take place between now and Dec. 21, 2012. If you haven't already heard, this date marks the end of the traditional Mayan calendar and symbolically welcomes in a new era for Cancun real estate and the entire world. According to legend, 2012 was calculated by the ancient Mayan culture to signify the beginning of a new age, say modern-day scientists and archaeologists.

In celebration of this monumental historical event, Cancun's eco-archaeological park Xcaret will offer a variety of special themed events for families to enjoy over the coming months. The events will allow visitors to learn more about the ancient Mayan culture first hand, including special programming that is designed to educate travelers about holidays such as the Day of the Dead, which falls on Nov. 1 every year, and a nightly show to commemorate the ancient Mayans, which will be held in the Tiachco area of the Xcaret Park. Xcaret will also free 104 macaws on Dec. 21 and 22 in celebration of the event and will offer guided tours of jungle trails as well as a gala dinner on the night of Dec. 21 that will include a traditional Mayan mean, dancing and a special tribute.

Xel-ha, which is also an ecological park that is located in the region near Cancun real estate, is home to the largest natural aquarium in the world, which boasts an enormous lagoon that juts out into the warm waters of the Caribbean Sea. Here also, a variety of events will celebrate the renewal that is signified by the calendar's end, including monthly meditation sessions and yoga classes that are held on the beach overlooking the tranquil waters of the Caribbean Sea, to allow visitors the opportunity to enjoy a time of peace and harmony in this stunning locale.

Finally, Xel-ha will offer evening candlelight ceremonies on Dec 20 and 22 in celebration of the dawning of a new era. The ceremonies will include hundreds of floating candles to create an enchanting atmosphere. From Dec. 17 through Dec. 22 the park will also offer nightly dinner parties hosted by local astronomers who will teach visitors about the historical and astronomical significance of the ancient Mayan predictions. If you haven't made plans yet to visit Cancun while this special event is taking place, now is the time!

Thursday, July 11, 2013

Finding Real Estate Investment Property "Hidden Gems"

Investing in Real estate can be a satisfying and profitable endeavor even for those who are just starting out if they know what to look for. The key is finding property that has real potential that others have overlooked without laying out too much cash in the beginning. Although there are lots of books, websites and seminars to guide you, sticking to some basics is still essential.

Maximize your information sources by using all available options. The Internet has hundreds of sites advertising real estate for sale, many of them by-passing realtors in order to save cash for both the buyer and seller. Google Base, Ebay, CraigsList and numerous others have houses listed For Sale by Owner (FSBO, a term you'll quickly become familiar with). Don't neglect property listed with realtors, though. Get to know realtors and let them know you're seeking those hard to sell properties that need some work - they will often lower their commission to sell a house that's been hanging around for a while.

Always, always visit the property yourself to evaluate it. No amount of pictures can substitute for walking the property yourself and seeing the rooms, fixtures and neighborhood up close. If you can, visit on two days - once during bad weather so you can check the basement, eaves and roof for signs of potential problems. Introduce yourself to the neighbors and get a feel for what the area is like - is it mostly retirees, or families with young children? This information will be invaluable down the line when you begin remodeling if you decide to purchase the house.

If you find problems like older pipes and wiring while checking out the property, you've given yourself some real bargaining power when it comes time to make an offer on the real estate. These are often the properties that can turn into a great profit margin. By pointing out potential problems ("I'll need to upgrade all the wiring, and those pipes have had it."), you may get the price reduced even further, or you can negotiate to have that work done at the owner's expense before you'll close on the house.

A complete home inspection is always a must - the report the inspector provides can point out other problems you, as a lay person, may have missed. This can mean the difference between purchasing a basically solid house that you can turn into a real gem and buying a house that looks sound but will end up being a money pit of repairs and major reconstruction! The report will cover details from leaks, carpet and floor damage to problems with the foundation or heating system. Be sure to determine what things are deal-breakers - talk to an expert about whether flaws are worth repairing, or are too major to be dealt with.

Some repairs should always be done by an expert, such as heating and air conditioning problems, repairing chimneys and flues and anything to do with the foundation of the house. Others, however, you can do yourself if you are handy yourself or are willing to learn. Fixing leaky faucets, repairing minor leaks, patching drywall, even refinishing floors can be done yourself at a greatly reduced cost - and can give you real bargaining power on the price when negotiating with the seller (after all, he/she doesn't need to know you're going to do it yourself!). Keeping these tips in mind will help you keep things realistic and maintain focus as you look for that hidden gem that you can turn into a showplace.

Tuesday, July 9, 2013

Get the Best Deal on Vacation Real Estate and Get Away From it All

You know what? I'm thinking about quitting my job right this minute, heading out the door, getting on a plane and ending up in paradise... how does that sound?! (Please don't tell my boss)

No, I'm not a millionaire. These days, buying a vacation real estate property is within anybody's reach. Even with the economy in the toilet, there are still some ways in which you can find deals on vacation real estate. Then, you can fly off to paradise anytime life starts to weigh on you.

But you'd better give the boss that month's notice. Then you'll have a job to come back to.

Go There! Still, The Best Way To Find Deals On Vacation Real Estate

Does this sound like a no-brainer? Well, most vacation real estate investors don't go there themselves. They use an agent who's there, and sends them pictures, floor plans, maps, and descriptions about how beautiful and like heaven it is.

This way, you can look at tons of property right there in your air conditioned office, and you never even have to travel at all. The disadvantage is that the agent will make piles of money from your laziness; and you could be dealing directly with the sellers!

It's still a good idea to get an agent, of course, but you can save big time by visiting the location where you'd like to buy a house. This goes for both domestic and international property. Talk to locals, and they'll clue you in to the best deals.

Location Is The Key

One way to save some money is to choose your location well. If you're looking for a house in the Rocky Mountains of Colorado, on the beach in San Diego, or in Europe, you can expect to pay more. But what about Mexico, the Caribbean, Brazil, or Bali?

Another way to save a bundle is to settle for a little less. Don't buy the biggest, most luxurious property. Instead of getting the house on the beach, get the house a block away. You'll still have sea breeze blowing in through your window, the wild parrots landing on your porch, and you just have to hike 30 seconds to the ocean.

Rent It While You're Away

With vacation real estate, you can always make it pay for itself by renting it. This also gives you tax advantages. You won't have any trouble finding somebody who will be happy to stay there at a reasonable price.

Swap With Somebody

The latest trend in realty is home swapping. You trade homes with somebody who wants to move to your neck of the woods. It started in the UK, and now it's spreading all over the world. You can save big and relocate to your favorite destination.

There are deals everywhere, and even working folks like you and me can take advantage of them. You just have to be smart and motivated. Picture yourself next year heading off on a holiday, to your own home in the islands!

Sunday, July 7, 2013

Understanding Real Estate Owned Property

You have probably heard the term real estate owned, but do you know what it means? Real estate owned, also known as REO, is a type of property ownership wherein the lender repossesses a property after a failed foreclosure auction or when no short sale was made.

Why do properties fail to sell at foreclosure auction?

As you may already know, bidders are not always enthusiastic about purchasing foreclosed properties especially if the initial bid is higher than the actual value of the property. This normally happens to foreclosed homes that were upside down on their mortgage. The starting bid for the property will normally cover the balance on the property.

You need to understand that lenders would want to recover the expenses and possible they incur in foreclosing the property. This means that the minimum bid will not only include the balance of the mortgage. This will also cover the expenses incurred for foreclosing the properties like the payment for the lawyers and such.

Can you purchase an REO?

Yes. When the auction is unsuccessful, the property ownership goes to the mortgage company. They will need to sell the house because it will not serve them any good keeping it. They will eventually find a buyer for the property. To do that, they will have to make the essential repairs. They will no longer consider the losses or expenses incurred during foreclosure or the balance on the mortgage. An appraiser will determine the value of the property.

How to buy an REO?

If you want to buy an REO, then you might be in luck as there are several in the market today. This is super easy when working with an agent as he has access to various lists. As mentioned earlier, banks or mortgage companies would want to sell these properties. This means that it will be easier for them to locate the said properties. You can also inquire from the lenders such as the banks or other mortgage companies. They may provide you with the list of their inventory.

You can also start your search online. Most lenders would post their REO properties online. This is very convenient too because you do not have to leave home or wait for the realtor to come up with the list. You can do it yourself at your own time and pace.

Once you have narrowed down your search, you can call the mortgage company and ask about the property you are considering to buy. If the price is not indicated, ask the lender upfront to ensure that it is within your price range. Do not forget the location of the property and research about the area. You should also ask about the condition of the property and set an appointment for you to see it.

You can expect anything from the REOs. This is why you have to see the property first before deciding to purchase it. check the essentials as you would when purchasing a regular property. There are great REOs. However, you still have to be diligent when looking for a property to purchase. some have been neglected and you do not want to be investing in battered property.

Saturday, July 6, 2013

Retirees Are Leveraging SC Real Estate - And You Can Too!

The older generation has learned and honed the lost art of stretching the dollar. This ability has served them well throughout their lives, and it continues to aid them in today's tough economy. The collective wisdom of many senior citizens is causing them to pursue real estate investments and / or relocations to South Carolina. Why? They want to "stretch their dollar" by leveraging Upstate South Carolina's favorable real estate market.

Keep reading and you'll see how smart senior citizens are taking advantage of bargain real estate deals in SC and how you can do the same.

You don't have to be elderly to get bargain property in the Carolinas, but you do have to understand the wisdom behind the motivation.

So what do Grandma and Grandpa know about Upstate SC property that most others don't?

They know that the cost of property and the cost of living are much lower in South Carolina when compared to most of the nation. With many retirement accounts slashed by the economic downturn, older ones have found a purchase or relocation to the foothills of SC a good way to regain their financial footing.

Many retirees like the fact that they can buy a house in Easley, SC, a medium sized suburb of the Greenville area, where the median home price is $177k and property taxes a mere 1/3 of the national average! Talk about getting more for your money!

Despite the struggling economy, many elderly individuals have been able to maintain their standard of living or greatly improve it by relocating to South Carolina, from other more expensive areas of the country. The gains from such a move are quite substantial when lower property costs, taxes, and costs of living.

Can you benefit from the wisdom of your elders? Of course you can! Start by investigating Upstate SC residential properties using the resource section below. When you cash in on the South Carolina property market, people will praise you for having wisdom beyond your years!

Friday, July 5, 2013

USA Real Estate and Australia

The USA real estate market is currently going through the exact opposite of what's happening in Australia. Although both countries are experiencing tighter lending requirements for property, the USA property market continues to stare at declines in values as the financial climate of the country remains unstable.

Some say this is the adjustment that was needed to halt the US real estate market bubble that was hurtling out of control prior to the GFC. More and more Americans were being forced out of the US property market as prices escalated beyond the affordability of many. The sub-prime mortgage situation was destined for disaster as increasing numbers of home-owners were unable to meet their monthly repayments. As the supply/demand equation goes, the balance was tipped in the favour of an oversupply of US property and US real estate values rapidly began to go south.

There are many indicators coming out showing that the USA real estate market may have some way to go yet before it begins its recovery. Unemployment continues to remain at precarious levels with no real signs of recovery. If people can't get work, they aren't in a position to invest in US property. A situation is occurring where the supply of housing outweighs the number of property buyers, driving values of US real estate down. This is evident by the statistics on new house sales, which dropped in May 2010 to the lowest levels ever recorded (since tracking began in 1963). Just 300,000 new house sales were recorded for the month against the 'normal' level of about 800.000.

Despite a number of doomsayers claiming the end of the US financial system is nigh, along with the recovery of the USA real estate market, the country's population of 280 million people will continue to grow and go about its business, which includes needing a roof over its head. Now is a once in a lifetime opportunity for Australian investors to create wealth in the medium to long term. By looking at the US real estate market with a clear and cautious head, there is a huge amount of opportunity available to market ready property investors, including Australian investors. USA real estate offers something that Australians are not used to - positive cash flow and low entry prices.

Thursday, July 4, 2013

Real Estate and Investment Property Outlook For 2011

If you are interested in rental property investing, then you certainly want to be up to date on the latest trends in the industry. This will help you know whether to get in the game, or sit on the sidelines. Here is the 2011 outlook to help you determine what your course of action will be.

The trends for the start of 2011 will continue to follow what we have seen in 2010, as many have anticipated. For example, mortgage rates are still at historically low levels. This is primarily because there is still a large amount of supply in the market, which has reduced demand.

Additionally, the supply figures from the NAR and similar associations do not reflect the so-called shadow inventory, which consists of properties going through the foreclosure process that have not yet hit the market. Some of this lag may even be intentional by the banks that own these properties, as generally speaking it is better to gradually put them on the market, instead of in large batches, to avoid flooding the market. Introducing them too fast would mean the house prices would fall even more. But whether intentional or not, the bottom line is that the supply is even higher than what can be measured.

As is usually the case, real estate tends to reflect the economy as a whole. You can see the yin/yang of this when comparing the real estate market to the US economy in 2008 and 2009. High unemployment and similar economic factors created a spike in foreclosures that is now impacting the supply/demand equation of the market. The spike raised supply by putting more houses in inventory, and reduced demand because those people who saw their homes foreclosed upon are not in the position of being able to purchase anything anytime soon.

The good news is that the US economy is expected to improve in 2011, and therefore some analysts are anticipating a slight increase in housing demand and prices this year. Of course, this assumes that the real estate market has already bottomed out, which remains to be seen. Remember, some people were also expecting this to happen in the latter stages of 2010.

What this all means for the investment property seeker is simple: prices are low and bargains abound. Thus, from a pure price perspective, if you want to buy a property, now is the time. Of course this assumes that you have a sound real estate investing strategy. In other words, this is not a great time to flip houses, as you may struggle to find qualified buyers. However, if you plan to hold and rent out the property for at least several years, you should be good to go. This will bring in some short term income, while at the same time giving you property that you can turn around and sell for a big profit down the road.

Wednesday, July 3, 2013

How to Choose a Good Real Estate Investment Property With a Good Monthly Cash Flow

There are basically two ways you can make money from your real estate investment, capital appreciation and monthly rental. In this article we will assume that you are a serious real estate investor and are purchasing this property to rent out and use mortgaging to control 100% of the property with a 30% cash down payment. Note this article does not deal with the no money down methods of property investment which will be covered in a separate article. This article aims to show you how to identify a good real estate investment that can provide you with a good monthly revenue stream and cashflow.

Firstly, ascertain how much cash you have in hand initially. This amount will determine how much financing you can get and the maximum amount of real estate you can control with your initial sum. Taking our example above, if we have $30,000 in hand, we can use this to control a property worth $100,000.

Secondly, once you do a rough estimation of your initial down payment sum, spend some time going to all the mortgage brokers, finance companies and banks in your area to see if they are willing to loan you money. You would probably need some credit reports and other documentations so as to convince them of your credit worthiness. Some things you would want to learn from your financers include, the interest rate and whether its fixed or floating, the monthly instalment size, whether they have special short term mortgages in case you should identify a good property to flip and re-sell. The financing element of a real estate investment deal is very critical and spending some time shopping around for the best bang for your buck would be a prudent move.

Thirdly, now spend some time peering intently at the classified advertisements. You want to ascertain the properties with the best rental yields as if you want your real estate investment to outperform the national rental yield, you would want therefore to look at properties in areas that are high in demand and look for bargain real estate investment deals. Another good way to figure this out is to ask someone who is knowledgeable in property. Ask him for places with good locations for the purposes of rental. A quick tip to note, places near the sea and on a mountain always fetch better prices than any other properties. Thus even commercial properties with a sea view command a slight premium over properties that do not have a sea view.

Fourthly, now after identifying on paper the bargain properties within your budget, start making appointments with real estate agents to look at properties on your list. If you make it clear that you are looking into property investment and that you might be a frequent customer, then there is a chance that these real estate agents would welcome you and inform you of other real estate bargains that you might be not aware off.

Fifthly, always make it a point to be early for the appointment and spend some time observing the surroundings of the real estate in question. Things to take note off include, a bad neighbourhood, no human traffic if you are looking at a commercial property, inaccessibility, no car porch or parking facilities or something that your intuition tells you is not right with the property. This is even more so for bargain properties and auction properties as there might be something very inherently wrong with the property. Spend sometime talking to the neighbours and ask them about the neighbourhood and then ask them if they know of anything wrong with their neighbours property.

If you are purchasing a run down property, you would want to bring along a contractor and building engineer or architect to inspect the property with you so that you can estimate how much you might have to spend to spruce up the property and later rent out or sell. Once you have ascertained the real estate investment is good for your purchase, start asking about rental yields of property in the area and what price the agent will be able to rent out your property.

Finally, once you have the property price, the mortgage instalment payment, the rental yields, and operating expenses, spend some time generating a spreadsheet to estimate whether your purchase is viable from a monthly cash flow perspective. You want to find the property with the best cash flow for your real estate investment. Once you find one property like that, spend your energy finding other similar properties and you will start seeing your monthly income rise.

Note that generally you are more likely to encounter surprises as opposed to surprise income, so factor this into your calculations. Remember to keep some money in your bank account to take into account things like changing of tenants where a month may go by without any rental coming in and you must be able to pay the monthly bank instalments. Also take note of where in the rental cycle you are purchasing the property, a property that may be in positive cash flow now, may not be so in the next few years.

In conclusion, this article has highlighted ways to ensure that you have a good grasp of all the different ways to choose a real estate investment property that will yield you a positive cash flow. Note that always remember that Murphy's Law may strike at any time so keep some extra cash in your bank when preparing to purchase a real estate investment property to hedge against such uncertainties.

By Joel Teo 2006 All Rights Reserved

Tuesday, July 2, 2013

Texas Real Estate and Homes For Sale

With a population of over 23 million, Texas is the second largest state in the nation. The housing market in Texas has remained strong in most cities and counties, with Houston (population 2,144,000) being the largest and most active in the real estate and housing market, followed by San Antonio and Dallas. Texas homes for sale are remaining at their fair market value, with little or no loss in sales compared to some areas of the country. This can be attributed the diverse economic make up of the state and the lower than average unemployment rate.

Land sale in Texas are at an all time high with no significant reduction foreseen in the near future. Commercial retail property rentals have remained steady in spite of the overall national economic downturn.

Southeast Texas, (which includes Houston) having the larger portion of population density, is by far the most active in the housing market. New home sales were at an all-time high in the beginning of 2007, however it has since experienced a downturn with a high inventory of new unsold homes.

The Texas existing home market has remained strong with more of a 'buyers market' driving sales and is expected to remain steady throughout 2008 and early 2009.

For example, the Beaumont and Orange Texas area (southeast Texas) will be creating 13,000 plus new construction jobs in the oil and petro-chemical industry over the next 4 years. This will create a severe housing and apartment shortage in this area. Housing is at a premium at this writing.

In conclusion: The overall outlook for Real Estate in Texas is good compared to other areas of the nation. With the diverse make up of various petro-chemical industries, Texas can maintain its share of steady housing market sales in the foreseeable future.