Producing Cashflow With Real Estate Investment Properties

Producing cashflow is one of the primary reasons people invest in real estate. In order to maximize profits and minimize expenses, investors need to analyze all scenarios that can occur. These include property prices, rental income, or profits produced from selling the realty.

Finding real estate that produces cashflow can be challenging; especially in today's tumultuous market. Although there are plenty of discounted properties there is much more to real estate investing than buying houses below market value.

Investors often seek out short sale and bank owned houses because distressed properties are priced lower than homes listed by private sellers. Furthermore, bank owned foreclosures sometimes qualify for grants such as those offered through HUDs Neighborhood Stabilization Program.

Although investing in distressed real estate can be a profitable strategy, investors have to carefully weigh the pros and cons. First and foremost, a vast majority of bank owned homes require repairs and renovations. Investors will need to conduct due diligence and acquire estimates for repairs to determine an accurate cost of the property.

Another consideration is figuring out how long it will take to return the home to livable condition. If it takes several months to restore the property, investors will lose out on cashflow that could have been acquired from renting or selling the house.

Investors should also calculate which strategies will produce the highest amount of cashflow. Investment properties can be sold, rented, or traded using 1031 exchanges. Making use of 1031 exchanges is a preferred method for reducing capital gains tax. However, these kinds of transactions require hiring a Qualified Intermediary to oversee the transaction and handle finances associated with it.

Although selling houses isn't as easy as it used to be, there are plenty of people ready and willing to buy a house. Investors can list their properties through realtors or as for sale by owner. They can offer owner will carry financing or enter into lease purchase agreements.

Using creative financing strategies can produce greater amounts of cashflow as long as the deal is constructed properly. People that need owner financing usually have bad credit that prevents them from obtaining a bank loan. Therefore, investors need to investigate buyers and validate they can meet financial obligations.

Seller financing is in high demand due to the number of foreclosed homeowners. Once a person has the black mark of foreclosure on credit reports they won't qualify for bank financing for several years. Private financing can bridge the gap and allow them to buy a house while repairing their credit.

Investors normally don't carry the full amount of the sale price. On average, investors cover half the amount and require buyers to pay the balance with cash. When buyers obtain bank financing for the balance the bank becomes the first lien holder and investors have the second mortgage lien. This can place investors at risk if buyers default on either loan.

Lease purchase option agreements are a good choice for investors that aren't comfortable providing financing. People that enter into rent-to-own contracts tend to make excellent tenants. Not only do they pay rent on time, they also take better care of the property. There is also less chance of them skipping out without providing notification.

Both strategies provide opportunity to produce cashflow immediately because buyers provide a down payment to secure the property. Oftentimes, investors can retain down payment funds if buyers default on the agreement.

It's always best to work with a real estate attorney when entering into lease purchase or seller financing contracts. The process for these methods differs by state so it's important to have contracts reviewed by lawyers.

These are a few ways for investors to profit with real estate investments. Although the market appears bleak there are still plenty of opportunities to make money with realty. Those who take time to learn how to capitalize on market trends can build a strong portfolio that provides consistent cashflow for years to come.

Why You Should Buy Your First Real Estate Investment Property Today

When it comes to real estate, there are plenty of people out there that are unaware of the many tax advantages available for real estate investment properties. One of the most popular ones is that of the 1031-Exchange. For those of you unfamiliar with this, the 1031 Exchange is actually a section within the United States IRS Code which states that certain eligible properties may be exchanged for properties of equal or higher value without having to pay any taxes on the transaction.

This tax treatment of trading properties for larger ones is an absolute god-send for the serial real-estate investor. Imagine having the ability to regularly trade up one investment property for a larger one every time you had the resources to be able to upgrade? Well, that is very well possible thanks to this very important IRS provision! Larger properties mean generally higher rents allowing you to increase your annual cash flow, so it is definitely a good idea to trade up for bigger properties whenever you get a chance.

Other tax advantages for rental property owners include tax deductions on interest expenses, depreciation expenses, repairs, travel expenses, and insurance costs.

Interest Expense:
Any interest expense on a rental property is tax deductible. This means deductions for mortgage interest payments, and interest on credit cards for expenses that were used in a rental capacity.

Depreciation Expense:
As a real estate investor, you have the opportunity to claim depreciation on your property as a deductible expense by deducting a portion of the value of your property over the span of a couple of years. While this tax deduction provides the investor with immediate benefits, this benefit is eventually returned to Uncle Sam when the property is sold. This benefit is lost primarily because depreciation serves to reduce the total cost basis for the property, so any capital gains are taxed from the lowered cost basis. This concept is known as depreciation recapture.

Repairs:
Any repairs on your investment property are a deductible expense in the year that you pay for the repair. This means things like painting rooms, and replacing faulty lighting. Any improvements to the property, on the other hand, are not deductible.

Travel Expenses:
Real Estate owners are eligible for tax deductions every time they have to travel for their rental activity. This deduction could be broken down one of two ways: either as actual expenses (receipts may be required), or the standard mileage deduction (which is currently 56.5 cents per mile for the 2013 fiscal year).

From the above deductions, it should be clear that there are plenty of tax advantages available for real estate investors! If you haven't already, it's definitely a good idea to start claiming all the above deductions you are eligible for. They may very well make a difference between losing money on a property versus earning a profit.

By: Ketul Kothari

Cheaper Health Insurance - How to Get the Best Insurance Quotes the Easy Way

Since you do not want to take any risk with the health of your family, it is important that you look for the best insurance along with the best quote. But how can you look for affordable health care plans which can provide the coverage which you and the family truly need?

Decide the type of health insurance you need.

When you are looking for the best insurance estimate, the first step will require you to know what insurance you need. There are several available options including:

* Major medical plans- these can protect you during a serious illness or an accident but also enable you to manage the daily health care costs by your own.

* Managed care plans like a HMO or a PPO. These plans trade flexibility for lower rates.

* Medical savings plans. These insurance types will allow you to set aside your money every month in an account which is tax free so that you can pay your medical expenses later on.

* Traditional indemnity plans. This insurance type will cover most of the medical expenses you incur after you have met your deductible.

Before choosing which is best for your family as well as yourself, you need to go through each of the above mentioned types.

Look for the best insurance quote.

After determining the health plan type you want and need, your next step involves obtaining quotes from different companies which you can compare.

Since every company has a different price that can vary by hundreds of dollars, you should not just get one quote from one company. In order to guarantee that you have the best price you will need to get quotes from several companies.

Luckily, there are insurance comparison websites which offer their services for free making it easier for you to obtain quotes which you can compare.

The only thing left to do is to go to these comparison websites and accomplish a form which requires information regarding yourself and your needs for the insurance. You will then receive several quotes from a lot of rated insurance companies which you can compare.

Costa Rica Real Estate! Great Property Bargains Are Still Available

There are currently many misconceptions about Costa Rica when it comes to property prices. The news and media are currently leading many people to believe that the prices of real estate in this country are getting out of reach for most people. After living here for a few years I have found that there still is plenty of great investment opportunities available. The issue that most people were faced with is dealing with real estate agents. Many real estate companies are in the business to make money and they want you to look at the properties in which their commissions are the highest.

When purchasing property in a foreign country it can be difficult to know who you can, and who you cannot trust. This tends to lead people to rely on what they are familiar with so that they can protect their investment with the use of someone else's knowledge. It is important to understand that it is not always necessary to use a real estate agent to find a very inexpensive piece of property or home to purchase. Many people in Costa Rica are not in a hurry to sell their property and nor do they really understand the fact they have to pay a real estate agent to sell their home or business. When faced with this proposition of commission, many choose to just wait until someone comes along so that they can deal with them directly without having to pay. This is a great benefit for you the buyer to take advantage of. But, where do you start?

Self-employment is very popular in this Central American country. Many men and women do miscellaneous types of odd jobs to support their family. They are very good at this though their income is very low. By asking around you can find some of them that are trustworthy to help you in your cause. You have to be careful because they do have a tendency to try to take advantage of people from other countries just for the chance of making money. On the other hand there are a few that are very honest and will do almost anything to help you. These men and women know people throughout the country and keep close track of anything for sale. It doesn't matter to them if it's a cow, chicken, car, or a small piece of property that is located on the Pacific Coast. You can hire these people to find a home or business for sale in which you will pay pennies on the dollar in comparison to what a real estate agent will charge you.

Probably, more than 90% of real estate construction in Costa Rica is composed of cement and cement blocks. The reason for this varies from place to place, but in general this is because they believe that cement foundations and walls will handle earthquakes better than wood construction. The use of insulation is almost nonexistent and in most places unless located on the coastlines, is not needed. If you are one that likes the idea of being your own general contractor you can build a house very inexpensively here. Typical construction costs through completion for a normal three-bedroom home can be around $30-$40000. Property costs can range from $1000 per acre on up.

To wrap this up in a nutshell here's where you might begin. Plan a trip to visit Costa Rica and reserve some time for looking at real estate. Upon arrival find yourself a copy of the Tico Times newspaper if you speak English, or the country's largest Spanish newspaper named La Nacion. If your cell phone does not work here then you can find one to rent that is very affordable. Many of these phones come with unlimited minutes for around $10 per day. You can rent a car by looking in the newspaper with full coverage insurance and unlimited mileage for around $35 per day. This amount is far below the rates you will pay from most chain car rental outlets. Contact the people that have real estate in which you have an interest and find out if they speak your language. If not make a note to call them back when you have someone that can interpret for you. The newspaper will also possibly help you find someone to assist you with your Spanish if needed. Ask many of the people you run into if they know someone that can help you communicate while you are here, and that they are trustworthy. Make sure that they come with good references so that you don't have to be concerned with theft.

Some of the places you might check to find someone to help can include local large and small grocery stores, your hotel, furniture and white goods stores. Make sure to ask each and every person that you call from the classifieds if they have any ideas also.

The majority of Costa Rica's population is hard workers though the pay is usually around two dollars per hour. If you buy a home, small farm, or ranch in the country, you can hire a person or a family to take care of you and your property. For much less than you can imagine they will clean your house, cook your meals, take care of your yard, and watch your property while you are gone. Most Costa Ricans are very interested in learning English or another foreign language if it involves making an income. Basic things are usually very easy to express to them even without the use of Spanish. There's always someone nearby that does speak English, French, German, and sometimes even Russian.

By using some of the methods discussed in this article you'll be able to possibly find a piece of property, or a home, in which you can buy for the right price. This procedure will not produce results as quickly as a realtor but you won't go broke so quickly either.

Some final notes of caution! When visiting Costa Rica never allow anything you own to be out of sight. Theft rates for foreigners are exceptionally high. As long as you carry what you have with you the chances of something going wrong are very small. Do not leave things of value locked in your car or in your hotel unless you have someone watching them for you. Do not wear expensive jewelry on public streets and always keep a tight grasp on anything you wish to keep. Does this mean that you have to be concerned about your physical well-being? Typically there are only problems with theft. Rarely are people ever mugged or molested in any form. If you feel uncomfortable in an area then you should leave it.

There is real estate in Costa Rica that is still available and will be for many years into the future that could be no better described than Paradise. The weather and the clean air alone is plenty enough for most people to want to stay here forever. Make sure that you find a good attorney that comes with many references from the locals, and also from people in the area that speak your language. Use this attorney to make sure that the title of this property you have an interest in is clear and free of liens or outstanding past-due bills. The legal system in this Third World country is not the same as it is in the US and other more advanced countries.

Purchasing Real Estate Or Property in 2009?

Looking to purchase a home, condo cottage or other property. It can be said that in 2009 there are no shortage of properties and even commercial and office real estate. It is a buyers market most established Realtors will advise and even urge you. Yet the same basic rules, strategies and financial techniques that always work and worked in the past when land and dwellings were not so reasonably priced should still be followed and practiced arduously.

First things first decide and evaluate what you can afford. This determination should be in a form of a general range. What this means is the dollar or monthly mortgage payment value is not cast in stone. For good reasons and evaluation of the real estate market of your choice you may well decide to make a wise choice and either increase the limit or sometimes things are so good for buyers on the housing market and marketplace that you may well come to the decision that the house, condo or summer vacation or retirement cottage is much less costly than you thought, before starting the whole property hunting process. It is a range and within reasonable amount you can go somewhat more or somewhat less. This gives you greater flexibility on picking your real estate choice does not lock you in as much and can give you greater negotiating flexibility.

Next in line, after you have determined your general price range and cost structures is to determine what it is that you exactly wish for and need in a home. For example - how many bedrooms? How close to schools and or shopping. It is often said that location is the most important consideration for restaurants and the position, district and neighborhoods of real estate and housing. Thus questions can well involve city or suburbs? City or small town. Winnipeg based experienced real estate consultant and analyst notes that although many think by locating a large home in the suburbs , and enjoy a more isolated , scenic landing with relatively less expensive property tax ratings and charges, that what they save in real estate and property taxes is more than made up and offset by the increased cost of fuel and transportation back to the office in the city every day as well as costing them a fair amount of time as well, never to mind automotive repair and maintenance costs. On top of that you can bet that the local municipal tax board will not be far away in time from reassessing your property or realty taxes.

Once you have made these two decisions or at least have a general list and listings its time to get down to serious business. At this point in time there should be no shortage of homes and properties to look at and evaluate.

It can be said that new homes or even homes that are partially finished and that you can pay to have completed to full new home state are always a good and sure bet due to their extensive warranties and pristine condition. On the other hand you will most likely not have mature trees or landscaping, both of which require a fair amount of effort planning, hard work and will a time period of many years to grow and mature into the state which you like and prefer.

Next in line are resale homes. It can be said that overall resale homes offer a great combination of both affordability and character. In addition many resale homes will include improvements such as finished basements, rec rooms, decks or patios as well as mature landscaping. On the other hand you may well have to include calculations for repairs, maintenance and improvements that would not come as a matter of course in brand new real estate.

In summary, even though its a buyer's market in real estate , before you go out shopping for that new home - be it house, condo or lake cottage retirement cottage or home take the time to do your initial home buyer's workup. Two factors should be established and laid to rest promptly - your maximum real estate price range and location.

Real Estate And Residential Property In India

Having a proper roof over your head, while opting for the perfect family life, is not a hard thing to do anymore. Residential Property In India makes the intricate hunt for a property a lot easier as it values your useful time and strives to get the best deal about real estate properties, enlisting the best and the certified developers who are famous in this arena and enable you to own the most reasonably priced, legitimate and property ownership.

The advancement in the standard of living and the continuing expansion of the aiming Indians has provided a massive thrust to the Residential Property In India. With India imbibing globalization at a fast rate, bringing in more trade from the MNC sectors, there has been a major shift to the construction of more professional and office buildings all over India like Mumbai, Pune, Bangalore, Kolkata and Delhi. Investing in these residential properties of India is another lucrative business in the field of property market in India.

Residential Property In India provides all sorts of living accommodations from condominiums, farmhouses, vacant land, up to four bedroom apartments and bungalows. Also included are luxurious apartments, fashionable villas and mid-range residential understandings.

Residential Property In India is one of the most upcoming and remunerating market presently in India. In each passing day, the price of the real estate area is striking up. The specialty about these residential properties is its vast extent. No longer is the residential properties are limited to the metro states. It's also spreading in to the Special Economic Zones which also lets the entrepreneurs to extricate more profits and mint money.

Starting from the north, Delhi has many real estate properties you might be interested of. It has the Emaar MGF Villa Plots, Emaar MGF Palm Gardens, Vatika Urban House, Emaar Villa Plots at Emerald Hills, Tata Sector 72 Gurgaon and Raheja Vedas.

In Chandigarh you have the Eldeco Mansion, DLF Valley Panchkula, Unitech Unihomes Mohali, Collage Windsor Apartments, Parsvnath Pride Asia, Omaxe Panache Homes Ludhiana, Emaar MGF The Bungalows, and Dreamcity Amritsar.

Coming down to the City Of Joy, in Kolkata you have the Eden Court Primo, Unitech Unihomes Kolkata, Godrej Properties Prakriti, Unitech Air, Unitech Harmony UC, DLF New Town Heights, Mani Group Residency, Surekha Group and Unitech Nirvana Country.

In Mumbai, real estate properties includes Hiranandi Palace Garden, India Bulls Sky Suites, Mahindra Eminente Mumbai Ph II, New Haven Mumbai, Rustomjee Township, Kalpataru Estates- Andheri East and Mahindra Splendor Mumbai.

Real Estate Agents & Property Buyers - What's The Difference?

Estate agents & property buyers are the two most common terms which are used while dealing with any kind of property. Broadly, dealing with property refers to either buying or selling of any possession, which clearly shows that there has to be a buyer and seller to initiate the deal. And estate agents & property buyers are those professionals who open the deal so that it can be closed, this way they help both buyer and seller in some way or the other. No doubt, estate agents & property buyers both deliver highly professional assistance and services, however they are different from each other. Before you take up the services of estate agents & property buyers, learn the nature of their job and the reason stating who should be dealt with under what conditions.

How real Estate agents & property buyers are different from each other? Lets discuss one by one:

Property buyers: They are more interested in buying your property. Suppose you are planning to sell your property, say your land, here approaching property buyers is a better option as they can offer you one of the best deals. Another reason is that they do not charge any kind of commission and usually buy property quickly.

Generally, people seek property buyers' assistance when they choose to sell their property really fast. There could be numerous reasons for that such as facing a divorce, relocating due to official transfers, professional investor wanting to cash out property, selling inherited property, not able to maintain your possessions so on and so forth.

Real Estate Agents: They provide highly useful services to those who either want to buy or sell real estate property. As a return, they get some percentage on the property as commission. Estate agents put all their marketing strategy, valuable time and efforts to let you find best deals on property.

Technically speaking if you want to sell property contacting property buyers is a fastest way to do that, however if you are planning to buy property consider real estate agents a better option.