By Ted Karsch
Why Buy an Apartment Building?
Buying an apartment building for your portfolio is a great way to beat the ravaging effects of inflation. Prices of goods and services are skyrocketing around the world. Soybean prices have tripled in the past 3 years. Oil is at record highs. Gold is making a comeback. This startling escalation in core commodity prices, combined with a US Dollar in the doldrums makes a perfect storm for out of control inflation. What makes inflation hurt so much for the individual investor is the fact that prices are rising while the value of the dollar is actually dropping. In other words, people are paying more for goods and services even while the value of their assets is decreasing. The value of an apartment building, however, is determined by the Net Operating Income of the property. Therefore, as rents continue to rise along with other consumer prices, the value of a multifamily investment should continue to appreciate even during an economic downturn.
Multi-family Gaining in Value
Paper assets such as stocks and bonds are extremely vulnerable to inflation because even if an investor is fortunate enough to own stocks that are rising in price, the value of the paper asset is actually dropping because of the falling dollar and rising prices. Most stocks however are declining in price even while the value of the dollar is plunging. What this means is that your stock portfolio is like a large ship, slowly filling up with water from a small leak while the binges can't keep up with pumping out the water. Unfortunately, this financial melee is happening at the same time as the worst residential real estate crisis the US has ever seen. Apartment Buildings are poised to gain in value as rents rise.
Smart Investors Heading to Commercial Real Estate
Smart investors can protect their net worth right now by investing in hard assets like real estate. I don't recommend buying residential real estate right now because it could take years to fix the home mortgage mess created by sloppy underwriting and speculation. What investors need are hard assets that produce a steady stream of monthly income. Investors need a place to put their money that has price flexibility. This is why many intelligent individual investors and institutions are flocking to the multi-family sector of real estate. A strong stream of income and low vacancies are the keys to a successful apartment building investment.
Multi-family properties are an Investment Bulwark
Multi-family buildings are a bulwark in a recessionary economy because people will always need a place to live. Multifamily properties have a distinct economic advantage over paper assets, residential real estate and even most other commercial real estate investments. For example, a triple net lease income property may not be equally insulated against economic downturns as an apartment building because the tenant, a corporate retailer such as Tire Kingdon or a restaurant like Applebees may be forced to scale back operations in a recession. Meanwhile, the average consumer will be going out to eat a lot less and they may not buy a new set of tires for another few thousand miles but they will certainly not chose to live in the streets. The first bill people will pay at the beginning of the month is their mortgage payment or their rent check. This fact leaves the apartment building investor in a good position.
Foreclosures Drive a Drop in Apartment Building Vacancy
Foreclosures around the country are at a record level. Families are abandoning their homes. They still need a place to live and apartments offer an excellent alternative. Another bonus for the apartment building buyer in today's market is the fact that banks are not easily lending money for the construction of new multi-family properties. Banks are hurting from their bad residential loan underwriting during the past five years and they are not very willing to lend money on the speculation of a brand new apartment building. This creates a potential shortage of affordable housing in major cities and it could have an upward impact on the long term value of multifamily real estate.
If you are worried about the effects of an eroding US Dollar and climbing inflation on the returns in your portfolio, now is an excellent time to consider the many benefits of a strategic investment in the apartment building sector.
"Buy Your First Apartment Building E-Course"
Wednesday, 30 December 2009
Monday, 28 December 2009
Want to Become Rich? Start Investing in Apartment Buildings!
By Robert MacPherson
It is not easy to become rich. Investing in real estate is one of the safest ways of becoming rich. Most rich people own a lot of real estate, it is considered to be a safe investment. Commercial real estate is often dismissed as too risky and too much money is needed. But by going for commercial real estate you can quickly become financially free. And it is easier to get started than you think.
Apartment buildings are considered commercial real estate if they contain four or more units. Buildings with less than four units are residential deals. In many ways apartment buildings are the perfect gateway into the lucrative world of commercial real estate. By investing in apartment buildings you get a handsome positive cash flow. In the residential sector you need a lot of units before the cash flow starts to become significant. And you may have to wait for years before you have a good positive cash flow. Commercial deals on the other hand, generally give you a very good cash flow from the beginning. One single deal often gives you a positive cash flow of a couple of thousands dollars per month. And these are small to medium deals, bigger deals generally mean much larger income.
In order to get your first apartment building you need to find a motivated seller. Since you can only borrow 70-75% of the value of the building you want the seller to provide you with a second mortgage. Alternatively, you could go for a lease option. In this case you lease the building from the owner for a couple of years and you have the right but not the obligation to buy the building before the option expires.
It is not easy to get the first apartment building but once you get the first one, the next ones will be much easier to get. Given the big money in commercial real estate, it is well worth trying to get started. The biggest problem is to muster up enough courage, the numbers are big. But that means that your profits will be big as well and you will be on your way of becoming rich.
"Buy Your First Apartment Building E-Course"
It is not easy to become rich. Investing in real estate is one of the safest ways of becoming rich. Most rich people own a lot of real estate, it is considered to be a safe investment. Commercial real estate is often dismissed as too risky and too much money is needed. But by going for commercial real estate you can quickly become financially free. And it is easier to get started than you think.
Apartment buildings are considered commercial real estate if they contain four or more units. Buildings with less than four units are residential deals. In many ways apartment buildings are the perfect gateway into the lucrative world of commercial real estate. By investing in apartment buildings you get a handsome positive cash flow. In the residential sector you need a lot of units before the cash flow starts to become significant. And you may have to wait for years before you have a good positive cash flow. Commercial deals on the other hand, generally give you a very good cash flow from the beginning. One single deal often gives you a positive cash flow of a couple of thousands dollars per month. And these are small to medium deals, bigger deals generally mean much larger income.
In order to get your first apartment building you need to find a motivated seller. Since you can only borrow 70-75% of the value of the building you want the seller to provide you with a second mortgage. Alternatively, you could go for a lease option. In this case you lease the building from the owner for a couple of years and you have the right but not the obligation to buy the building before the option expires.
It is not easy to get the first apartment building but once you get the first one, the next ones will be much easier to get. Given the big money in commercial real estate, it is well worth trying to get started. The biggest problem is to muster up enough courage, the numbers are big. But that means that your profits will be big as well and you will be on your way of becoming rich.
"Buy Your First Apartment Building E-Course"
Wednesday, 23 December 2009
Apartment Building Investing - Find Motivated Sellers
By Ted Karsch
As the creator of the "Buy Your First Apartment Building E-Course" I have many potential students and beginning investors ask me, "How do I find motivated apartment building sellers?"
There are many ways that investors use to find motivated sellers, however, what I see happening many times with beginners is that they start looking for properties to purchase before they thoroughly understand how to identify a truly profitable opportunity. Here are my recommendations for how to begin learning about multifamily investing and then how to find motivated sellers.
Begin by learning what makes mult-family property profitable by taking these steps:
1. Study and learn about what makes an apartment building profitable.
2. Read as many books about real estate investment and apartment building investment as possible. It is a lot easier to learn from other people's mistakes. There is no need to reinvent to the wheel.
3. Find a reputable real estate investment club in your geographic area and meet with the commercial investor members. These "old hands" are a valuable source of market information.
After the aspiring multi-family property buyer has received a thorough education by reading books, industry magazines and networking with other commercial real estate investors then he or she is ready to begin the process of searching for an actual property to purchase.
Contacting Commercial Realtors
A great reference source for finding well educated commercial real estate agents is the CCIM website. The CCIM is a professional designation that qualifies a commercial real estate professional as capable and knowledgeable in the field. You can also find commercial real estate agents using a simple search on the web.
When searching for a commercial real estate agent take these steps:
1. Speak to a number of commercial realtors in the area and ask about "pocket listings". Pockets listings are apartment building owners that the experienced realtor might know who are serious about selling their building but they have not listed the property yet.
2. Find a commercial realtor who specializes in multi-family investments. A good commercial realtor who specializes in multifamily properties should have a great knowledge of what apartment buildings have sold for recently.
Alternative Strategies for Finding Apartment Building Deals:
1. Place an ad on Craigslist stating what you are looking for:
"Looking To Sell Your Apartment Building? I am a commercial real estate investor interested in buying multi-family property in Philadelphia between 5 and 100 units. I am looking for owner financing over five years with 5% down or will buy with a 20% down payment and a bank loan." Or, here is an ad that I copied directly from Craigslist this morning:
I BUY MULTI-FAMILY PROPERTIES W/SELLER FINANCING OR QUICK CASH. Need to sell? Moving? tax benefits run out? call me for a offer.
2. You can also place the same ad in the commercial real estate section of your local newspaper but be prepared to pay a handsome sum for the ad and also be ready for unsolicited calls for real estate agents. Newspaper ads do work but you are better off using free or more direct methods like direct mail.
3. Another strategy is to contact the owners of commercial real estate directly. This can be done in a number of ways. Multi-family owners can be located by researching the tax records of a metropolitan area. Usually, the owner of record will be listed along with his or her or contact information. The next step is to write a letter that explains who you are and what you are trying to accomplish. The purpose of letter to have many interested apartment building owners contact you. You should leave your phone number, mailing address and email address for sellers to contact you. You should make it very easy for the sellers to get a hold of you. Remember, you will need to look at dozens of deals and sellers before you find the one that fits your investment criteria. You can also contact owners directly by telephone. Keep in mind that multifamily property owners are usually very busy so you might want to write a script or have talking points written down so you are able to get right to the point and get your message across accurately.
Ted Karsch is a nationally recognized financial adviser who specializes in the financing of commercial real estate. His best selling E-course "Buy Your First Apartment Building E-Course" on apartment building investments can be found at:
"Buy Your First Apartment Building E-Course"
As the creator of the "Buy Your First Apartment Building E-Course" I have many potential students and beginning investors ask me, "How do I find motivated apartment building sellers?"
There are many ways that investors use to find motivated sellers, however, what I see happening many times with beginners is that they start looking for properties to purchase before they thoroughly understand how to identify a truly profitable opportunity. Here are my recommendations for how to begin learning about multifamily investing and then how to find motivated sellers.
Begin by learning what makes mult-family property profitable by taking these steps:
1. Study and learn about what makes an apartment building profitable.
2. Read as many books about real estate investment and apartment building investment as possible. It is a lot easier to learn from other people's mistakes. There is no need to reinvent to the wheel.
3. Find a reputable real estate investment club in your geographic area and meet with the commercial investor members. These "old hands" are a valuable source of market information.
After the aspiring multi-family property buyer has received a thorough education by reading books, industry magazines and networking with other commercial real estate investors then he or she is ready to begin the process of searching for an actual property to purchase.
Contacting Commercial Realtors
A great reference source for finding well educated commercial real estate agents is the CCIM website. The CCIM is a professional designation that qualifies a commercial real estate professional as capable and knowledgeable in the field. You can also find commercial real estate agents using a simple search on the web.
When searching for a commercial real estate agent take these steps:
1. Speak to a number of commercial realtors in the area and ask about "pocket listings". Pockets listings are apartment building owners that the experienced realtor might know who are serious about selling their building but they have not listed the property yet.
2. Find a commercial realtor who specializes in multi-family investments. A good commercial realtor who specializes in multifamily properties should have a great knowledge of what apartment buildings have sold for recently.
Alternative Strategies for Finding Apartment Building Deals:
1. Place an ad on Craigslist stating what you are looking for:
"Looking To Sell Your Apartment Building? I am a commercial real estate investor interested in buying multi-family property in Philadelphia between 5 and 100 units. I am looking for owner financing over five years with 5% down or will buy with a 20% down payment and a bank loan." Or, here is an ad that I copied directly from Craigslist this morning:
I BUY MULTI-FAMILY PROPERTIES W/SELLER FINANCING OR QUICK CASH. Need to sell? Moving? tax benefits run out? call me for a offer.
2. You can also place the same ad in the commercial real estate section of your local newspaper but be prepared to pay a handsome sum for the ad and also be ready for unsolicited calls for real estate agents. Newspaper ads do work but you are better off using free or more direct methods like direct mail.
3. Another strategy is to contact the owners of commercial real estate directly. This can be done in a number of ways. Multi-family owners can be located by researching the tax records of a metropolitan area. Usually, the owner of record will be listed along with his or her or contact information. The next step is to write a letter that explains who you are and what you are trying to accomplish. The purpose of letter to have many interested apartment building owners contact you. You should leave your phone number, mailing address and email address for sellers to contact you. You should make it very easy for the sellers to get a hold of you. Remember, you will need to look at dozens of deals and sellers before you find the one that fits your investment criteria. You can also contact owners directly by telephone. Keep in mind that multifamily property owners are usually very busy so you might want to write a script or have talking points written down so you are able to get right to the point and get your message across accurately.
Ted Karsch is a nationally recognized financial adviser who specializes in the financing of commercial real estate. His best selling E-course "Buy Your First Apartment Building E-Course" on apartment building investments can be found at:
"Buy Your First Apartment Building E-Course"
Tuesday, 22 December 2009
The Best Way to Invest in and Own Apartments and Commercial Investment Real Estate
By Darin Garman
I like experts. A friend of mine told me that the definition of an expert consultant is that they know the 344 different ways to have sex but cannot for the life of them find a date.
Unfortunately, this is the way most experts are in the world of investment real estate.
For example, talk to a banker about investment real estate. Most bankers like to tell you about what you should or should not do with investment real estate but do they actually own any themselves? Just ask them.
Or how about accountants and attorneys? Once again, most like to tell you about what you should or should not do with investment real estate but do they actually own any themselves? Just ask them.
Or how about investment advisors or financial planners? You know, just ask them.
For the record I am not picking on these folks. The facts speak for themselves and there are others I could add to the list. My quote from one of my clients above says it best.
My point here is make sure any advice you choose to listen to is coming from someone that really knows what is going on. The advice needs to be from someone with real world practical experience as an owner of an apartment or commercial investment property - period!
Because what will happen is that you will more than likely want to put at least some monies into apartments or commercial investment real estate. And, since this is not the "mainstream" kind of investment you will get all sorts of advice on it. What you should do and not do. Just be prepared to know that most advice you get will come from people that should not be dispensing it at all and as long as you realize this point you will be just fine.
One of the things to keep in mind about the real successful apartment and commercial property investors is that they are not active owners.
I hope you follow me on this because this is very important.
Give some thought to some of the most successful real estate investors you know. Lets take a look at a couple that come to my mind - Sam Zell and Donald Trump.
Trump owns multiple properties and developments including high rise towers and even golf courses. Mr. Zell is one of America's largest office building owners.
Now when I think of these two guys and then even my own private client groups there are a few things in common.
1. They own and or control large amounts of real estate.
2. They do not manage their own properties. Sure, they manage them from a portfolio standpoint and performance standpoint but they are not out showing units or showing vacant space themselves. I don't think Trump does the bookkeeping.
3. They focus their time on non management things such as buying and selling strategies, income stream strategies, etc.
4. They are in a way passive owners while not dealing with day to day activities, but they are receiving all of the benefits of being a full time property owner and manager.
Did you get what I just said here? My most successful clients are not active owners but they receives all of the benefits of an active owner!!
Think about it. You and I own two separate apartment properties, lets say that they are across the street from each other. I have a private investment fund, which I am a member of, running my property. You run your property yourself. I am at the property maybe once per year just to make sure all is well. You have to be at your property an average of once every other day.
Now get this. Even though I spent close to zero time at the property I get all of the same ownership benefits that you do and you are spending hours and hours week in and week out at the property.
And that is the strategy. Do whatever you can to get all of the same benefits in cash flow and return of large apartments and or commercial properties BUT do not spend any time doing any management activities whatsoever.
You see this gives you all of the great benefits of the big guys, the pros, without having to spend any time on it. No special education required or the time to get this education. No management. No commercial code or housing code knowledge needed. You can treat this much like any other typical investment BUT get all of the benefits of the guy managing the property day in and day out.
Is this great or what?
Just the desire to earn a great return, get great cash flow and tax savings AND have a property that will give you pride of ownership as well is the only real prerequisite.
Active Owner of Great Apartments And Commercial Property Without Ever Having To Do ANY Management.
Active Owner of Great Apartments And Commercial Property That Give You Cash Flow Every Month, Tax Savings, Appreciation, Equity, Etc.
Active Owner of A Great Apartment And Commercial Property Without Spending The Time To Educate Yourself.
Active Owner of Great Apartments And Commercial Property Without Ever Having To Pay Capital Gains Taxes. This Is An Option For You.
So think of it. Getting say a 12% cash flow annual return with checks being sent to you for this every month. On top of this and at the same time you are getting all of the benefits of the active owner and you are at your kids ball game, Grandmas birthday party or on a family outing.
What else could be better?
OK, I hope that I have your attention now. Does this shatter most of the investment real estate myths that are out there? It sure does. Does it make you think that you should be considering this kind of investment? I hope so.
"Buy Your First Apartment Building E-Course"
I like experts. A friend of mine told me that the definition of an expert consultant is that they know the 344 different ways to have sex but cannot for the life of them find a date.
Unfortunately, this is the way most experts are in the world of investment real estate.
For example, talk to a banker about investment real estate. Most bankers like to tell you about what you should or should not do with investment real estate but do they actually own any themselves? Just ask them.
Or how about accountants and attorneys? Once again, most like to tell you about what you should or should not do with investment real estate but do they actually own any themselves? Just ask them.
Or how about investment advisors or financial planners? You know, just ask them.
For the record I am not picking on these folks. The facts speak for themselves and there are others I could add to the list. My quote from one of my clients above says it best.
My point here is make sure any advice you choose to listen to is coming from someone that really knows what is going on. The advice needs to be from someone with real world practical experience as an owner of an apartment or commercial investment property - period!
Because what will happen is that you will more than likely want to put at least some monies into apartments or commercial investment real estate. And, since this is not the "mainstream" kind of investment you will get all sorts of advice on it. What you should do and not do. Just be prepared to know that most advice you get will come from people that should not be dispensing it at all and as long as you realize this point you will be just fine.
One of the things to keep in mind about the real successful apartment and commercial property investors is that they are not active owners.
I hope you follow me on this because this is very important.
Give some thought to some of the most successful real estate investors you know. Lets take a look at a couple that come to my mind - Sam Zell and Donald Trump.
Trump owns multiple properties and developments including high rise towers and even golf courses. Mr. Zell is one of America's largest office building owners.
Now when I think of these two guys and then even my own private client groups there are a few things in common.
1. They own and or control large amounts of real estate.
2. They do not manage their own properties. Sure, they manage them from a portfolio standpoint and performance standpoint but they are not out showing units or showing vacant space themselves. I don't think Trump does the bookkeeping.
3. They focus their time on non management things such as buying and selling strategies, income stream strategies, etc.
4. They are in a way passive owners while not dealing with day to day activities, but they are receiving all of the benefits of being a full time property owner and manager.
Did you get what I just said here? My most successful clients are not active owners but they receives all of the benefits of an active owner!!
Think about it. You and I own two separate apartment properties, lets say that they are across the street from each other. I have a private investment fund, which I am a member of, running my property. You run your property yourself. I am at the property maybe once per year just to make sure all is well. You have to be at your property an average of once every other day.
Now get this. Even though I spent close to zero time at the property I get all of the same ownership benefits that you do and you are spending hours and hours week in and week out at the property.
And that is the strategy. Do whatever you can to get all of the same benefits in cash flow and return of large apartments and or commercial properties BUT do not spend any time doing any management activities whatsoever.
You see this gives you all of the great benefits of the big guys, the pros, without having to spend any time on it. No special education required or the time to get this education. No management. No commercial code or housing code knowledge needed. You can treat this much like any other typical investment BUT get all of the benefits of the guy managing the property day in and day out.
Is this great or what?
Just the desire to earn a great return, get great cash flow and tax savings AND have a property that will give you pride of ownership as well is the only real prerequisite.
Active Owner of Great Apartments And Commercial Property Without Ever Having To Do ANY Management.
Active Owner of Great Apartments And Commercial Property That Give You Cash Flow Every Month, Tax Savings, Appreciation, Equity, Etc.
Active Owner of A Great Apartment And Commercial Property Without Spending The Time To Educate Yourself.
Active Owner of Great Apartments And Commercial Property Without Ever Having To Pay Capital Gains Taxes. This Is An Option For You.
So think of it. Getting say a 12% cash flow annual return with checks being sent to you for this every month. On top of this and at the same time you are getting all of the benefits of the active owner and you are at your kids ball game, Grandmas birthday party or on a family outing.
What else could be better?
OK, I hope that I have your attention now. Does this shatter most of the investment real estate myths that are out there? It sure does. Does it make you think that you should be considering this kind of investment? I hope so.
"Buy Your First Apartment Building E-Course"
Monday, 21 December 2009
Apartment Building Investing - Find Motivated Sellers
As the creator of the "Buy Your First Apartment Building E-Course" I have many potential students and beginning investors ask me, "How do I find motivated apartment building sellers?"
There are many ways that investors use to find motivated sellers, however, what I see happening many times with beginners is that they start looking for properties to purchase before they thoroughly understand how to identify a truly profitable opportunity. Here are my recommendations for how to begin learning about multifamily investing and then how to find motivated sellers.
Begin by learning what makes mult-family property profitable by taking these steps:
1. Study and learn about what makes an apartment building profitable.
2. Read as many books about real estate investment and apartment building investment as possible. It is a lot easier to learn from other people's mistakes. There is no need to reinvent to the wheel.
3. Find a reputable real estate investment club in your geographic area and meet with the commercial investor members. These "old hands" are a valuable source of market information.
After the aspiring multi-family property buyer has received a thorough education by reading books, industry magazines and networking with other commercial real estate investors then he or she is ready to begin the process of searching for an actual property to purchase.
Contacting Commercial Realtors
A great reference source for finding well educated commercial real estate agents is the CCIM website. The CCIM is a professional designation that qualifies a commercial real estate professional as capable and knowledgeable in the field. You can also find commercial real estate agents using a simple search on the web.
When searching for a commercial real estate agent take these steps:
1. Speak to a number of commercial realtors in the area and ask about "pocket listings". Pockets listings are apartment building owners that the experienced realtor might know who are serious about selling their building but they have not listed the property yet.
2. Find a commercial realtor who specializes in multi-family investments. A good commercial realtor who specializes in multifamily properties should have a great knowledge of what apartment buildings have sold for recently.
Alternative Strategies for Finding Apartment Building Deals:
1. Place an ad on Craigslist stating what you are looking for:
"Looking To Sell Your Apartment Building? I am a commercial real estate investor interested in buying multi-family property in Philadelphia between 5 and 100 units. I am looking for owner financing over five years with 5% down or will buy with a 20% down payment and a bank loan." Or, here is an ad that I copied directly from Craigslist this morning:
I BUY MULTI-FAMILY PROPERTIES W/SELLER FINANCING OR QUICK CASH. Need to sell? Moving? tax benefits run out? call me for a offer.
2. You can also place the same ad in the commercial real estate section of your local newspaper but be prepared to pay a handsome sum for the ad and also be ready for unsolicited calls for real estate agents. Newspaper ads do work but you are better off using free or more direct methods like direct mail.
3. Another strategy is to contact the owners of commercial real estate directly. This can be done in a number of ways. Multi-family owners can be located by researching the tax records of a metropolitan area. Usually, the owner of record will be listed along with his or her or contact information. The next step is to write a letter that explains who you are and what you are trying to accomplish. The purpose of letter to have many interested apartment building owners contact you. You should leave your phone number, mailing address and email address for sellers to contact you. You should make it very easy for the sellers to get a hold of you. Remember, you will need to look at dozens of deals and sellers before you find the one that fits your investment criteria. You can also contact owners directly by telephone. Keep in mind that multifamily property owners are usually very busy so you might want to write a script or have talking points written down so you are able to get right to the point and get your message across accurately.
Ted Karsch is a nationally recognized financial adviser who specializes in the financing of commercial real estate. His best selling E-course "Buy Your First Apartment Building E-Course" on apartment building investments can be found at:
"Buy Your First Apartment Building E-Course"
There are many ways that investors use to find motivated sellers, however, what I see happening many times with beginners is that they start looking for properties to purchase before they thoroughly understand how to identify a truly profitable opportunity. Here are my recommendations for how to begin learning about multifamily investing and then how to find motivated sellers.
Begin by learning what makes mult-family property profitable by taking these steps:
1. Study and learn about what makes an apartment building profitable.
2. Read as many books about real estate investment and apartment building investment as possible. It is a lot easier to learn from other people's mistakes. There is no need to reinvent to the wheel.
3. Find a reputable real estate investment club in your geographic area and meet with the commercial investor members. These "old hands" are a valuable source of market information.
After the aspiring multi-family property buyer has received a thorough education by reading books, industry magazines and networking with other commercial real estate investors then he or she is ready to begin the process of searching for an actual property to purchase.
Contacting Commercial Realtors
A great reference source for finding well educated commercial real estate agents is the CCIM website. The CCIM is a professional designation that qualifies a commercial real estate professional as capable and knowledgeable in the field. You can also find commercial real estate agents using a simple search on the web.
When searching for a commercial real estate agent take these steps:
1. Speak to a number of commercial realtors in the area and ask about "pocket listings". Pockets listings are apartment building owners that the experienced realtor might know who are serious about selling their building but they have not listed the property yet.
2. Find a commercial realtor who specializes in multi-family investments. A good commercial realtor who specializes in multifamily properties should have a great knowledge of what apartment buildings have sold for recently.
Alternative Strategies for Finding Apartment Building Deals:
1. Place an ad on Craigslist stating what you are looking for:
"Looking To Sell Your Apartment Building? I am a commercial real estate investor interested in buying multi-family property in Philadelphia between 5 and 100 units. I am looking for owner financing over five years with 5% down or will buy with a 20% down payment and a bank loan." Or, here is an ad that I copied directly from Craigslist this morning:
I BUY MULTI-FAMILY PROPERTIES W/SELLER FINANCING OR QUICK CASH. Need to sell? Moving? tax benefits run out? call me for a offer.
2. You can also place the same ad in the commercial real estate section of your local newspaper but be prepared to pay a handsome sum for the ad and also be ready for unsolicited calls for real estate agents. Newspaper ads do work but you are better off using free or more direct methods like direct mail.
3. Another strategy is to contact the owners of commercial real estate directly. This can be done in a number of ways. Multi-family owners can be located by researching the tax records of a metropolitan area. Usually, the owner of record will be listed along with his or her or contact information. The next step is to write a letter that explains who you are and what you are trying to accomplish. The purpose of letter to have many interested apartment building owners contact you. You should leave your phone number, mailing address and email address for sellers to contact you. You should make it very easy for the sellers to get a hold of you. Remember, you will need to look at dozens of deals and sellers before you find the one that fits your investment criteria. You can also contact owners directly by telephone. Keep in mind that multifamily property owners are usually very busy so you might want to write a script or have talking points written down so you are able to get right to the point and get your message across accurately.
Ted Karsch is a nationally recognized financial adviser who specializes in the financing of commercial real estate. His best selling E-course "Buy Your First Apartment Building E-Course" on apartment building investments can be found at:
"Buy Your First Apartment Building E-Course"
Friday, 18 December 2009
5 Important Real Estate Investment Tips
By Jeffery Gomes
Real estate investing means purchase, ownership, management or rental/sale of real estate for profit. Many people find it difficult to invest. It requires a lot of cash. Are you interested in becoming a real estate investor? To become a successful investor you should be determined and flexible. There are a few tips that will help the prospective buyer to become a successful investor.
A investor should decide whether his investment goals are long term or short term. As the investor keeps paying the mortgage amount, his dues becomes less and his equity in the property increases which adds to the overall net worth. If an investor does a real estate investment for short term he can earn a decent profit. For example: If you have purchased a property for nearly $50,000 which needs some repair work to be done which costs nearly $10,000 and the selling costs total $5,000. Then the total cost would be $65,000. You sell the property for $85,000 after 6 months of purchase. You may have gained a net profit of nearly $20,000.
Good location also plays an important part while investing in a property. When you plan to buy or rent a property, the first thing that comes to mind is this is a place where someone is going to live. You can improve the property but can't move the location. Try to choose a property in busy towns or cities rather than choosing in a country. There are more people in towns so there will be more demand for your property.
If you find foreclosure property or HUD repossessions then you get a good amount of profit from the property. If you want to find good places for bargains, take a look at local newspapers, courthouses and real estate investor websites that will enlist all types of properties. Before selecting a property, check whether the surrounding areas are well maintained. If the neighborhood is run down or there are many boarded up houses, it may not be a good bargain after all.
Take time to study the property. Take your time to become familiar with the property. Do a thorough analysis of the real estate before telling "yes". If you find certain complications in the property then it would be better to say "no".
Sharpen your negotiation skills. Find out terms that are used by agents and sellers. This will help you in knowing what the other person is telling and not get confused. An investor should have negotiation skills.
If you follow this real estate investment tips while looking for a property you will be able to achieve your goal of increase in net worth and generate a positive cash flow.
Get Started In Commercial Real Estate and Apartment Building Investments CLICK HERE!!!.
Real estate investing means purchase, ownership, management or rental/sale of real estate for profit. Many people find it difficult to invest. It requires a lot of cash. Are you interested in becoming a real estate investor? To become a successful investor you should be determined and flexible. There are a few tips that will help the prospective buyer to become a successful investor.
A investor should decide whether his investment goals are long term or short term. As the investor keeps paying the mortgage amount, his dues becomes less and his equity in the property increases which adds to the overall net worth. If an investor does a real estate investment for short term he can earn a decent profit. For example: If you have purchased a property for nearly $50,000 which needs some repair work to be done which costs nearly $10,000 and the selling costs total $5,000. Then the total cost would be $65,000. You sell the property for $85,000 after 6 months of purchase. You may have gained a net profit of nearly $20,000.
Good location also plays an important part while investing in a property. When you plan to buy or rent a property, the first thing that comes to mind is this is a place where someone is going to live. You can improve the property but can't move the location. Try to choose a property in busy towns or cities rather than choosing in a country. There are more people in towns so there will be more demand for your property.
If you find foreclosure property or HUD repossessions then you get a good amount of profit from the property. If you want to find good places for bargains, take a look at local newspapers, courthouses and real estate investor websites that will enlist all types of properties. Before selecting a property, check whether the surrounding areas are well maintained. If the neighborhood is run down or there are many boarded up houses, it may not be a good bargain after all.
Take time to study the property. Take your time to become familiar with the property. Do a thorough analysis of the real estate before telling "yes". If you find certain complications in the property then it would be better to say "no".
Sharpen your negotiation skills. Find out terms that are used by agents and sellers. This will help you in knowing what the other person is telling and not get confused. An investor should have negotiation skills.
If you follow this real estate investment tips while looking for a property you will be able to achieve your goal of increase in net worth and generate a positive cash flow.
Get Started In Commercial Real Estate and Apartment Building Investments CLICK HERE!!!.
Thursday, 17 December 2009
How-Does-Real-Estate-Investment-Work?
by Mike Lautensack
Any individual that has owned a home or property at some point in time has done some property investment. This however is usually for their own residence and is by way of building up equity in their home. Once they have some money to invest they will ask how does real estate investment work?
There are many ways though that one can start investing and use it as a means of making extra income. It can be done either as a short-term venue or a long-term investment. For most individuals that want to do short-term investing this means purchasing some form of property and doing what is known as flipping. This means buying and selling it very quickly and putting it right back onto the market.
Basically if your investment is done right it can be very lucrative and it is a matter of just learning some basics on how to do this.
Setting up strategies
There are certain strategies that you will want to set up for doing your investments whether it is for long-term or short-term. The other thing to keep in mind is there are many different investment opportunities as well as the different types of investments for real estate that you can make.
Investment opportunities
· If you want to go long-term you could do this by buying property that you are going to hold on to for several years that is going to increase in its equity.
· Then there is always property that you can invest in such as commercial property where you can glean a rent off of that particular property and at the same time it will grow in its equity.
· There are always the apartment rentals, home rentals and leasing options to consider as well. One of the easiest investments that newcomers usually like to venture into it is buying a second residence and renting it out.
· Then there is always the option of buying a residence which is big enough that you could put in a basement apartment for extra rental income as well.
These are all starting grounds to get you going into real estate investment.
Chances are when you are starting out into real estate investment naturally your primary question is how does real estate investment work? but what you want to remember to do is something that is very basic for your first investment.
You are going to need a good understanding of what you are doing so that you are not investing in the wrong venues. So to begin with what you want to do is educate yourself on real estate investment and then take a look at just what you are prepared to do as far as the money you want to invest and the time as well.
Get Started In Commercial Real Estate and Apartment Building Investments CLICK HERE!!!.
Any individual that has owned a home or property at some point in time has done some property investment. This however is usually for their own residence and is by way of building up equity in their home. Once they have some money to invest they will ask how does real estate investment work?
There are many ways though that one can start investing and use it as a means of making extra income. It can be done either as a short-term venue or a long-term investment. For most individuals that want to do short-term investing this means purchasing some form of property and doing what is known as flipping. This means buying and selling it very quickly and putting it right back onto the market.
Basically if your investment is done right it can be very lucrative and it is a matter of just learning some basics on how to do this.
Setting up strategies
There are certain strategies that you will want to set up for doing your investments whether it is for long-term or short-term. The other thing to keep in mind is there are many different investment opportunities as well as the different types of investments for real estate that you can make.
Investment opportunities
· If you want to go long-term you could do this by buying property that you are going to hold on to for several years that is going to increase in its equity.
· Then there is always property that you can invest in such as commercial property where you can glean a rent off of that particular property and at the same time it will grow in its equity.
· There are always the apartment rentals, home rentals and leasing options to consider as well. One of the easiest investments that newcomers usually like to venture into it is buying a second residence and renting it out.
· Then there is always the option of buying a residence which is big enough that you could put in a basement apartment for extra rental income as well.
These are all starting grounds to get you going into real estate investment.
Chances are when you are starting out into real estate investment naturally your primary question is how does real estate investment work? but what you want to remember to do is something that is very basic for your first investment.
You are going to need a good understanding of what you are doing so that you are not investing in the wrong venues. So to begin with what you want to do is educate yourself on real estate investment and then take a look at just what you are prepared to do as far as the money you want to invest and the time as well.
Get Started In Commercial Real Estate and Apartment Building Investments CLICK HERE!!!.
Wednesday, 16 December 2009
Apartment Rental Income Through Real Estate Investing
by Mike Lautensack
One of the easier types of real estate investment for the most part when first starting out is perhaps apartment real estate investing. There are a couple of reasons for this. First off though it also has to be realized that there are far more responsibilities with this type of investment and potentially more risk.
Benefit #1
You will not only have your initial investment, which should build equity over the long term, but you will have the steady income from the rental units themselves.
Benefit #2
Predictability is an important issue with this type of investment. With rental apartments there are usually leases involved. Most often for twelve months and at the least six months. This allows you to have some security with the kind of cash flow the apartments will generate provided they are rented to full capacity.
Benefit #3
Shelter is always something that is required. Its not something that comes and go. Naturally it fluctuates with the economy. Normally when the economy is good people tend to buy homes more so than rent, but there is never a shortage of residents if the location and circumstances are right.
Greater Responsibilities
With this type of investment you need to be involved in constant maintenance and up keep. As tenants move in and out there is the need for renovation. Then in some cases there can be extensive damage that requires repair. You also have to be reachable. Tenants must have a way of getting in touch with you if there is a problem, or you will need to hire a superintendent to oversee the tenants' needs.
Risk Factors of apartment real estate investing
Although there are risk factors in any investment there are some additional ones when it comes to apartment real estate investing. Most of this is in relation to the expenses that are ongoing. Even though you have a cash flow you are also going to have expenses. We already mentioned the repairs and upkeep. Then there is insurance, maintenance costs and utilities.
Perhaps you have included the cost of the utilities in the rent amount. This is fine as long as there is not a significant increase in these amounts.
Overall when you weigh out the benefits of apartment real estate investing against the risk factors the benefits really do outweigh the risks. The biggest concern here is the demand on your time. If you are not prepared to oversee the operation of the building then you have to be prepared to incur the cost of staff to do it for you.
CLICK HERE!!! for more details.
One of the easier types of real estate investment for the most part when first starting out is perhaps apartment real estate investing. There are a couple of reasons for this. First off though it also has to be realized that there are far more responsibilities with this type of investment and potentially more risk.
Benefit #1
You will not only have your initial investment, which should build equity over the long term, but you will have the steady income from the rental units themselves.
Benefit #2
Predictability is an important issue with this type of investment. With rental apartments there are usually leases involved. Most often for twelve months and at the least six months. This allows you to have some security with the kind of cash flow the apartments will generate provided they are rented to full capacity.
Benefit #3
Shelter is always something that is required. Its not something that comes and go. Naturally it fluctuates with the economy. Normally when the economy is good people tend to buy homes more so than rent, but there is never a shortage of residents if the location and circumstances are right.
Greater Responsibilities
With this type of investment you need to be involved in constant maintenance and up keep. As tenants move in and out there is the need for renovation. Then in some cases there can be extensive damage that requires repair. You also have to be reachable. Tenants must have a way of getting in touch with you if there is a problem, or you will need to hire a superintendent to oversee the tenants' needs.
Risk Factors of apartment real estate investing
Although there are risk factors in any investment there are some additional ones when it comes to apartment real estate investing. Most of this is in relation to the expenses that are ongoing. Even though you have a cash flow you are also going to have expenses. We already mentioned the repairs and upkeep. Then there is insurance, maintenance costs and utilities.
Perhaps you have included the cost of the utilities in the rent amount. This is fine as long as there is not a significant increase in these amounts.
Overall when you weigh out the benefits of apartment real estate investing against the risk factors the benefits really do outweigh the risks. The biggest concern here is the demand on your time. If you are not prepared to oversee the operation of the building then you have to be prepared to incur the cost of staff to do it for you.
CLICK HERE!!! for more details.
Tuesday, 15 December 2009
Apartment Real Estate Investing
By Troy Pryczek
Real estate investing has many opportunities, even in a depressed economy. Many new investors automatically look into the prospects of buying single family homes or land and completely miss the very lucrative apartment building market. Most find themselves intimidated by the prospects though as the details of buying and apartment building are very different than they are with a home or piece of land. Single family homes, comparatively low cost, and apartment buildings are a much heavier investment. Selecting the right apartment building can also be a daunting prospect and the thought of maybe becoming a landlord can be distressing.
There is a fundamental difference however between the two. When you buy and sell a house or piece of land, your profit on that deal is a one time thing and you will have to go look for more deals to continue to make money. With an apartment building, once the deal is closed and your building is occupied, the money comes in on a regular basis for as long as you own the property. If you have no interest in the day to day operation of your property it is simple to turn it over to a management company and let them do the work will you reap the profits.
Here are a few hints and tips that will help you get one step ahead if you do decide to invest in an apartment building.
• First, determine the value of the building by either subtracting the yearly maintenance/upkeep/taxes, and other fees from the yearly rents. This will give you a good estimated value of the property.
• Unless you have a pile to invest you are probably going to need some form of financing. A good credit score will help you get a bank or finance company loan. If you are seeing more than 75% of net operating income per month in rents, you shouldn't have any problem. Private money is also an option and is usually a much easier process than traditional sources.
• Never close any deal unless you have all the numbers. Having good information on the costs of running the building as contrasted against potential profits will allow you to make sound decisions.
• Any property that you are considering should be assessed by a professional building or general contractor. You will have to clean up the building and get it ready for leasing and you will need to know the cost of the repairs and remodeling to factor it into your profit analysis.
Investing in an apartment building can be much more complex than investing in single family homes but the risk is not proportionally larger and the money will continue to come in long after you have spent the money you would have made with a single family home sale.
CLICK HERE!!! for more details.
Real estate investing has many opportunities, even in a depressed economy. Many new investors automatically look into the prospects of buying single family homes or land and completely miss the very lucrative apartment building market. Most find themselves intimidated by the prospects though as the details of buying and apartment building are very different than they are with a home or piece of land. Single family homes, comparatively low cost, and apartment buildings are a much heavier investment. Selecting the right apartment building can also be a daunting prospect and the thought of maybe becoming a landlord can be distressing.
There is a fundamental difference however between the two. When you buy and sell a house or piece of land, your profit on that deal is a one time thing and you will have to go look for more deals to continue to make money. With an apartment building, once the deal is closed and your building is occupied, the money comes in on a regular basis for as long as you own the property. If you have no interest in the day to day operation of your property it is simple to turn it over to a management company and let them do the work will you reap the profits.
Here are a few hints and tips that will help you get one step ahead if you do decide to invest in an apartment building.
• First, determine the value of the building by either subtracting the yearly maintenance/upkeep/taxes, and other fees from the yearly rents. This will give you a good estimated value of the property.
• Unless you have a pile to invest you are probably going to need some form of financing. A good credit score will help you get a bank or finance company loan. If you are seeing more than 75% of net operating income per month in rents, you shouldn't have any problem. Private money is also an option and is usually a much easier process than traditional sources.
• Never close any deal unless you have all the numbers. Having good information on the costs of running the building as contrasted against potential profits will allow you to make sound decisions.
• Any property that you are considering should be assessed by a professional building or general contractor. You will have to clean up the building and get it ready for leasing and you will need to know the cost of the repairs and remodeling to factor it into your profit analysis.
Investing in an apartment building can be much more complex than investing in single family homes but the risk is not proportionally larger and the money will continue to come in long after you have spent the money you would have made with a single family home sale.
CLICK HERE!!! for more details.
Monday, 14 December 2009
Commercial Real Estate - Tips For Investment
If you are considering leaping into the world of commercial real estate investment, be prepared to make some difficult decisions and spend time conducting lengthy research. Commercial real estate can be a tough business to get started in; however, it can reap great rewards for those who are savvy (or sometimes just lucky). If you are ready to venture into this new investment world, here are some things to keep in mind.
1. Commercial real estate will not make you a quick dollar.
Most properties require a long-term investment before you will begin to see any profit at all. Many people are fooled by residential real estate television programs where sellers renovate a home in a few months and sell it for a massive profit. Commercial real estate works in a completely different way. If you've seen past success in the residential domain, proceed with caution before plunging into commercial real estate.
2. You're in charge of maintenance and building upkeep.
Even if you are renting out offices, you're the landlord. If it breaks, you have to fix it. That means you'll have to pay out quite a bit to ensure the building remains in good condition. There will be a few major bills if you do happen to hold onto the property for many years.
3. Choose the right type of commercial real estate.
Pick a route and stick with it, whether it is apartments, condos, offices, or parking lots. Each kind of property must be managed in a different manner. Investing in two very dissimilar properties, such as retail and apartment buildings, will only cause greater stress to you and more opportunity for failure. Choose one type and work to become an expert in that before you branch out to new venues.
4. You need to attract reliable tenants to keep the profit streaming in.
You will have tenants that pay late, break contracts, and do many other things that might be upsetting. This is all part of the commercial real estate business. Be prepared to be hands on and involved with your clients and the building. Your investment will collapse if you do not care for it.
5. Get help.
Find successful commercial real estate owners and follow their lead. Listen to their advice and most importantly, use it. They have the knowledge to help you get your new investment up and running. And why make the same mistakes that others have made time and time again before you? They can warn you about common pitfalls. Remember, if you were an expert on the subject, you wouldn't be looking for tips on the internet.
6. Enlist in the services of a financial planner or accountant.
Don't bury yourself in debt or a bad investment. Be sure that this is something you can afford and are willing to take a certain economic risk in order to achieve. There is no guarantee that you will make a wise investment, but being aware of your finances can help lessen the potential (and shock) of failure.
CLICK HERE!!! for more details.
Article Source: http://EzineArticles.com/?expert=Andrew_Stratton
1. Commercial real estate will not make you a quick dollar.
Most properties require a long-term investment before you will begin to see any profit at all. Many people are fooled by residential real estate television programs where sellers renovate a home in a few months and sell it for a massive profit. Commercial real estate works in a completely different way. If you've seen past success in the residential domain, proceed with caution before plunging into commercial real estate.
2. You're in charge of maintenance and building upkeep.
Even if you are renting out offices, you're the landlord. If it breaks, you have to fix it. That means you'll have to pay out quite a bit to ensure the building remains in good condition. There will be a few major bills if you do happen to hold onto the property for many years.
3. Choose the right type of commercial real estate.
Pick a route and stick with it, whether it is apartments, condos, offices, or parking lots. Each kind of property must be managed in a different manner. Investing in two very dissimilar properties, such as retail and apartment buildings, will only cause greater stress to you and more opportunity for failure. Choose one type and work to become an expert in that before you branch out to new venues.
4. You need to attract reliable tenants to keep the profit streaming in.
You will have tenants that pay late, break contracts, and do many other things that might be upsetting. This is all part of the commercial real estate business. Be prepared to be hands on and involved with your clients and the building. Your investment will collapse if you do not care for it.
5. Get help.
Find successful commercial real estate owners and follow their lead. Listen to their advice and most importantly, use it. They have the knowledge to help you get your new investment up and running. And why make the same mistakes that others have made time and time again before you? They can warn you about common pitfalls. Remember, if you were an expert on the subject, you wouldn't be looking for tips on the internet.
6. Enlist in the services of a financial planner or accountant.
Don't bury yourself in debt or a bad investment. Be sure that this is something you can afford and are willing to take a certain economic risk in order to achieve. There is no guarantee that you will make a wise investment, but being aware of your finances can help lessen the potential (and shock) of failure.
CLICK HERE!!! for more details.
Article Source: http://EzineArticles.com/?expert=Andrew_Stratton
Friday, 11 December 2009
Commercial Property Investment in the UK
Britons just enjoy comedy property. Eventually days, hit the development popularity, options are interminable for concerned parties to buy considerable properties at craved locations. Choose a property trader there can accomplish your demands and assure a corner for yourself.
Since the Real Estate marketplace is departure done a monolithic change, investing hit residential lodging isn't the just workable option. Many buyers are look forward to investing in tonight class of property as well. Commercial establishments including offices, retail outlets and industrial repositing are tremendously pop and handsome as well returns as normally live ask occasionally residential property investment.
It is rather real there person investors are not encouraged to put money in commercial properties quite Southey invest done property funds. As a result, many investors are enjoying improve returns more Southey normally have occasionally investing in other chopine of real estate investing.
Assessing Property Market:
Since the real estate property returns are real encouraging, investors are acquiring dismaying returns class finish straight years. According to promulgated news, in finish 26 months the IPD UK Monthly Index, a positivist 26% give is observed. Isn't it amazing? It just indicates there high-pitched rates of returns are supporting live to invest hit the commercial risky and handsome liberal returns to all investors.
Factors you stooped think ahead jump hit commercial property market:
The saving - Earnest the man is departure done an economic slowdown, substantial challenges are existence faced by the UK and world economies.
Sector returns - Sectors returns are positivist indications there this class of property returns are handsome better returns in rule property industry.
Demand - The decreased renter require minimizes majuscule values therefore many investors are moving towards Commercial Property Investment UK market.
CLICK HERE!!! for more details.
Since the Real Estate marketplace is departure done a monolithic change, investing hit residential lodging isn't the just workable option. Many buyers are look forward to investing in tonight class of property as well. Commercial establishments including offices, retail outlets and industrial repositing are tremendously pop and handsome as well returns as normally live ask occasionally residential property investment.
It is rather real there person investors are not encouraged to put money in commercial properties quite Southey invest done property funds. As a result, many investors are enjoying improve returns more Southey normally have occasionally investing in other chopine of real estate investing.
Assessing Property Market:
Since the real estate property returns are real encouraging, investors are acquiring dismaying returns class finish straight years. According to promulgated news, in finish 26 months the IPD UK Monthly Index, a positivist 26% give is observed. Isn't it amazing? It just indicates there high-pitched rates of returns are supporting live to invest hit the commercial risky and handsome liberal returns to all investors.
Factors you stooped think ahead jump hit commercial property market:
The saving - Earnest the man is departure done an economic slowdown, substantial challenges are existence faced by the UK and world economies.
Sector returns - Sectors returns are positivist indications there this class of property returns are handsome better returns in rule property industry.
Demand - The decreased renter require minimizes majuscule values therefore many investors are moving towards Commercial Property Investment UK market.
CLICK HERE!!! for more details.
Thursday, 10 December 2009
What is a Residential Investment Property and Why is it Important to You?
Residential investment property is, as its name indicates, residential property than an investor purchases in order to profit either by reselling or renting. There are typically three types of residential properties, each with their own potential investment risks and benefits. They are:
Private Houses: An individual house on an individually owned plot of land. The value of a private house is typically high due to the space and privacy but precisely because of its higher price it is more likely to stay unoccupied and on the market for longer than ideal. There is also no mechanism to ensure it won't depreciate due to neglect by its occupants save for what direct observation and attention the landlord can provide himself, which can be difficult if he or she has invested in multiple properties.
Condominiums: A type of housing where part of the property (the house itself) is individually owned and the rest (exterior areas, internal roads) are owned commonly. The value of a condominium is generally lower than that of an equivalently located private house and they are governed by a series of agreements and bylaws that each of the inhabitants have signed. Proper governance can raise the value of a condo and improper one can lower it. As a whole, the value of a condominium can fluctuate but because much of it is owned by everyone then maintenance and cosmetic repairs, at least in the exterior, are less of a problem than with private houses rented out.
Multifamily Housing: A classification of housing where several individual housing unites reside inside one building (most commonly, apartment buildings). The main advantage to using multifamily housing as residential investment property is the following: when a condominium property or a private house is inhabited, it is completely inhabited and when it is uninhabited it is completely uninhabited. The same is not true of multifamily housing: a single building can be completely inhabited, completely uninhabited and anything in between. Because there are so many housing units inside the building it makes for an ideal source of diversified income which eliminates the hassle of depending exclusively on one specific source.
CLICK HERE!!! for more details.
Article Source: http://EzineArticles.com/?expert=Mark_Gavalda
Private Houses: An individual house on an individually owned plot of land. The value of a private house is typically high due to the space and privacy but precisely because of its higher price it is more likely to stay unoccupied and on the market for longer than ideal. There is also no mechanism to ensure it won't depreciate due to neglect by its occupants save for what direct observation and attention the landlord can provide himself, which can be difficult if he or she has invested in multiple properties.
Condominiums: A type of housing where part of the property (the house itself) is individually owned and the rest (exterior areas, internal roads) are owned commonly. The value of a condominium is generally lower than that of an equivalently located private house and they are governed by a series of agreements and bylaws that each of the inhabitants have signed. Proper governance can raise the value of a condo and improper one can lower it. As a whole, the value of a condominium can fluctuate but because much of it is owned by everyone then maintenance and cosmetic repairs, at least in the exterior, are less of a problem than with private houses rented out.
Multifamily Housing: A classification of housing where several individual housing unites reside inside one building (most commonly, apartment buildings). The main advantage to using multifamily housing as residential investment property is the following: when a condominium property or a private house is inhabited, it is completely inhabited and when it is uninhabited it is completely uninhabited. The same is not true of multifamily housing: a single building can be completely inhabited, completely uninhabited and anything in between. Because there are so many housing units inside the building it makes for an ideal source of diversified income which eliminates the hassle of depending exclusively on one specific source.
CLICK HERE!!! for more details.
Article Source: http://EzineArticles.com/?expert=Mark_Gavalda
Wednesday, 9 December 2009
Choosing Residential Investment Properties For Profit
Picking well residential investment properties rather of bad help isn't as hard as it may seem. Thither are sure things to seem for once you're considering a possible real estate investment property. Fortunately, thither are things there stooped now case you to simply say no, and prevent looking. Don't be discouraged. Money devising residential investment properties are out thither and usable for buy if you recognize how to feel them.
The beginning matter to think is how often take you can ask occasionally the possible property. This will decide how often stooped be exhausted to buy the property. The mean take inevitably to hold the lend required to buy and renewal the property. Hit for a profit of at smallest $200 a month supra and beyond the mortgage payment. Once you've dictated there the financing visibility improvised sense, begin look at the family itself. Is the property in a localization wherever you fortunately be capable to deal it, if necessary? About properties there hold distinguished possible as rentals may be difficult to deal once you are prepare to region hit them. Part of your portfolio stooped be rentals there are unbroken for the yearn haul, and about are properties there may be for sale at any granted time. This will permit you to ever hold approach to cash if needed, fairly departure done a refinance. Now seem at the construction of the property. Hold certainly thither is no grave morphologic price to the basis or other areas of the home. Hold to see if the utilities are however thither (heating, plumbing, and electrical). If a family has might-have-been vandalized, eventually overhead may be missing. If you're favorable plenty for this to be the case, it will immediately involve the bid you place, in your favor. Hold to see how often infantry dealings thither has might-have-been self-examining the house. If thither are wanderer Webster in hallways, doorways or in the walkways in the basement, this will let you recognize thither has not might-have-been anyone in the family for about time. There could possibly intend thither are no other bidders for the property. If that's the case, your cost can be still frown to start. Once you've made an idea of the entire repairs, you can state a ibid. Remember, your bid is the fathom of the negotiation. The list cost is the top. The fetching bid is someplace in between.
Now let's seem at how sure residential investment properties may not be worth your time and effort. If the property is not a trust owned or a foreclosure, you may lack to guide away. That's not to say there you can't feel superman in the ruffle there lowered owned by an individual. It simply may be a small More hard to get the cost you are look for. If the property has an subway oil tank, simply prevent looking. If there cooler leaked at one time, the fairly up could be real expensive. Properties in finish propinquity to other innocense there are boarded up are probably to be problem once it comestible to securing financing. About Banks hold a insurance whereas if a family has too many plank ups adjacent to, or about the property, Southey wish not add money on there home.
As you can see thither are not real many residential investment properties there cannot be purchased for a profit. As property is a possible money maker. You simply demand to hold certainly there the property profit your goals and expectations at there time. Never seem at a family wish it's your ambition investment. Thither is no such thing. Your ambition property simply way you gainful too often and you'll likely sorrow buying it. Be smart, stay to your property rating criterial and you'll be successful.
CLICK HERE!!! for more details.
The beginning matter to think is how often take you can ask occasionally the possible property. This will decide how often stooped be exhausted to buy the property. The mean take inevitably to hold the lend required to buy and renewal the property. Hit for a profit of at smallest $200 a month supra and beyond the mortgage payment. Once you've dictated there the financing visibility improvised sense, begin look at the family itself. Is the property in a localization wherever you fortunately be capable to deal it, if necessary? About properties there hold distinguished possible as rentals may be difficult to deal once you are prepare to region hit them. Part of your portfolio stooped be rentals there are unbroken for the yearn haul, and about are properties there may be for sale at any granted time. This will permit you to ever hold approach to cash if needed, fairly departure done a refinance. Now seem at the construction of the property. Hold certainly thither is no grave morphologic price to the basis or other areas of the home. Hold to see if the utilities are however thither (heating, plumbing, and electrical). If a family has might-have-been vandalized, eventually overhead may be missing. If you're favorable plenty for this to be the case, it will immediately involve the bid you place, in your favor. Hold to see how often infantry dealings thither has might-have-been self-examining the house. If thither are wanderer Webster in hallways, doorways or in the walkways in the basement, this will let you recognize thither has not might-have-been anyone in the family for about time. There could possibly intend thither are no other bidders for the property. If that's the case, your cost can be still frown to start. Once you've made an idea of the entire repairs, you can state a ibid. Remember, your bid is the fathom of the negotiation. The list cost is the top. The fetching bid is someplace in between.
Now let's seem at how sure residential investment properties may not be worth your time and effort. If the property is not a trust owned or a foreclosure, you may lack to guide away. That's not to say there you can't feel superman in the ruffle there lowered owned by an individual. It simply may be a small More hard to get the cost you are look for. If the property has an subway oil tank, simply prevent looking. If there cooler leaked at one time, the fairly up could be real expensive. Properties in finish propinquity to other innocense there are boarded up are probably to be problem once it comestible to securing financing. About Banks hold a insurance whereas if a family has too many plank ups adjacent to, or about the property, Southey wish not add money on there home.
As you can see thither are not real many residential investment properties there cannot be purchased for a profit. As property is a possible money maker. You simply demand to hold certainly there the property profit your goals and expectations at there time. Never seem at a family wish it's your ambition investment. Thither is no such thing. Your ambition property simply way you gainful too often and you'll likely sorrow buying it. Be smart, stay to your property rating criterial and you'll be successful.
CLICK HERE!!! for more details.
Tuesday, 8 December 2009
The Right Time to Buy Investment Property
Today, is it not the properly sentence to buy property investment? The headlinese may hold predicted you there mortgages are in an all sentence high-pitched in price of foreclosures. Costs are high-pitched over the board. The significant matter as a real estate investor knows the properly sentence to invest in real property. One of the almost significant things to contain in idea once investing in a property is to remember of yearn condition plans and hold an enlightened program there you follow. Deciding once to buy is not as significant as really buying.
The well word for you as a property investor is there now is the properly sentence to invest in real property. Real estate is trouble a suddenly condition and a long-run investment. On a suddenly term, an investor wants to buy property and deal subject rapidly for profit. A way to do tonight is to require reward of buying spell the market costs are low and buy foreclosed properties there are promptly usable now. Real estate investing handsomeness distinguished now in price of a short-run plan.
When you think long-run investment, real estate however handsomeness good. The conclude for tonight is the fact that, real estate is ever valued high-pitched and wish remain to treasure across time. You hold many choices in pick and choosing your localization earnest long-run real estate investing handsomeness well end-to-end the country.
Although real property investment can be risky, yet it doeskin not intend there you stooped not get started if you are preparation to invest in one. However, you stooped use care ahead purchasing. There is at show the sentence of world fiscal crisis, you can see companies struggling hit other real estate markets, yet, rather of avoiding an investment, seem for a improve way to invest there reduces the danger of the property you are buying. Property options can assistance you. The key here is to figure riches and the better way however is done real estate ownership. Later all, investing in a property doeskin pay off.
You can select 'tween buying a residential and a commercial property. It is too significant to decide arbitrarily form of property has the More market today. Residential properties wish ever be needed, still in a polish economy. People will ne'er end look for a home to live. On the other hand, commercial properties such as warehouses, offices and other retail properties are excelsior emptiness place increase. This will distinctly indicate there the require for eventually setter of properties is low in the show times.
After deliberation all eventually things, you power curiosity if this is the properly sentence for you to invest. There are however various factors to think ahead you proceed, such as the concern rates, the mortgage, marketability and your cash run assurance. Real estate investment is ill-used for business, and in as business, thither is ever danger to consider. Nevertheless, real estate ne'er depreciates in time, and because it is a necessity, it is ever wise a constant investment whether you draw the profit earlier of later.
CLICK HERE!!! for more details.
The well word for you as a property investor is there now is the properly sentence to invest in real property. Real estate is trouble a suddenly condition and a long-run investment. On a suddenly term, an investor wants to buy property and deal subject rapidly for profit. A way to do tonight is to require reward of buying spell the market costs are low and buy foreclosed properties there are promptly usable now. Real estate investing handsomeness distinguished now in price of a short-run plan.
When you think long-run investment, real estate however handsomeness good. The conclude for tonight is the fact that, real estate is ever valued high-pitched and wish remain to treasure across time. You hold many choices in pick and choosing your localization earnest long-run real estate investing handsomeness well end-to-end the country.
Although real property investment can be risky, yet it doeskin not intend there you stooped not get started if you are preparation to invest in one. However, you stooped use care ahead purchasing. There is at show the sentence of world fiscal crisis, you can see companies struggling hit other real estate markets, yet, rather of avoiding an investment, seem for a improve way to invest there reduces the danger of the property you are buying. Property options can assistance you. The key here is to figure riches and the better way however is done real estate ownership. Later all, investing in a property doeskin pay off.
You can select 'tween buying a residential and a commercial property. It is too significant to decide arbitrarily form of property has the More market today. Residential properties wish ever be needed, still in a polish economy. People will ne'er end look for a home to live. On the other hand, commercial properties such as warehouses, offices and other retail properties are excelsior emptiness place increase. This will distinctly indicate there the require for eventually setter of properties is low in the show times.
After deliberation all eventually things, you power curiosity if this is the properly sentence for you to invest. There are however various factors to think ahead you proceed, such as the concern rates, the mortgage, marketability and your cash run assurance. Real estate investment is ill-used for business, and in as business, thither is ever danger to consider. Nevertheless, real estate ne'er depreciates in time, and because it is a necessity, it is ever wise a constant investment whether you draw the profit earlier of later.
CLICK HERE!!! for more details.
Monday, 7 December 2009
Residential Property Investment is at Its All Time High
You can invest your excess cash in diverse placeman as considerably as there are many options to gain your wealth. Real estate investments or investing in property has re-created often More millionairess quickly more any other character of investment. However, Investing in residential property is the stream style of the fiscal market. Residential properties are More fruitful more the commercial properties. Due to the speedy development of universe about the globe, there has might-have-been a develop in the job of residential properties. Residential investment in property is an investment in property there an investor buys in tell to hit benefit either by rental or reselling. Generally, thither are 3 setter of tonight form of property, apiece hit neck-deep own investment benefits and risks:
Condominiums
The presidency part a character of lodging in arbitrarily possession know in one region and the left region is divided commonly. The evaluate of tonight character of lodging is mostly frown more a individual family governed by the serial of bylaws and agreements there apiece of the presidency has signed. Appropriate organization raises the evaluate of condo and unfitting organization flowerbed it value. Overall, the evaluate of tonight character of lodging fluctuates but as a lot of live jointly town the property; there is no trouble in the yearly upkeep and other international repairs.
Private Houses
The evaluate of a individual family is often upstairs due to secrecy and space; however, because of its high-pitched cost it corpse untenanted for a thirster menstruum of time. There is no mechanics to see there its evaluate wish not deprecate due to the carelessness of its occupant. However, property possession can ever pay More care and concern to the family more the tenants can.
Multifamily Housing
It is a character of lodging wherever many person lodging SI know within one building. The briny advantages of investing in multifamily housing, as residential investment in property is there for almost of the sentence presidency take it, arbitrarily is not real in the suit of private, or condo property. As thither are, various lodging SI in one construction or flat it improvised for an saint income origin there solves the trouble of contingent on one particular origin of income.
Following are few reasons for investing in Residential Property:
* It is requirement to invest 100 per penny in almost of the investment plans but you can buy a family hit little quantity of payments.
* Tax Benefit
* You can derive local property EBITDA and concern on mortgage occasionally your tax returns. Your property EBITDA are entirely deductible occasionally your tax return.
* You can adopt the lend break your fairness and thus, derive the defrayal of concern on loan. It is a kind of repeat dipping on your debt.
* Thither are diverse incentives for beginning sentence homeowners and boothose who characterize for VA loans. However, eventually incentives hold turn out and politically unpopular.
* If the evaluate of your property increases, you can hold a benefit by marketing it. All or about region of your benefit is excuse occasionally the Union taxes.
CLICK HERE!!! for more details.
Condominiums
The presidency part a character of lodging in arbitrarily possession know in one region and the left region is divided commonly. The evaluate of tonight character of lodging is mostly frown more a individual family governed by the serial of bylaws and agreements there apiece of the presidency has signed. Appropriate organization raises the evaluate of condo and unfitting organization flowerbed it value. Overall, the evaluate of tonight character of lodging fluctuates but as a lot of live jointly town the property; there is no trouble in the yearly upkeep and other international repairs.
Private Houses
The evaluate of a individual family is often upstairs due to secrecy and space; however, because of its high-pitched cost it corpse untenanted for a thirster menstruum of time. There is no mechanics to see there its evaluate wish not deprecate due to the carelessness of its occupant. However, property possession can ever pay More care and concern to the family more the tenants can.
Multifamily Housing
It is a character of lodging wherever many person lodging SI know within one building. The briny advantages of investing in multifamily housing, as residential investment in property is there for almost of the sentence presidency take it, arbitrarily is not real in the suit of private, or condo property. As thither are, various lodging SI in one construction or flat it improvised for an saint income origin there solves the trouble of contingent on one particular origin of income.
Following are few reasons for investing in Residential Property:
* It is requirement to invest 100 per penny in almost of the investment plans but you can buy a family hit little quantity of payments.
* Tax Benefit
* You can derive local property EBITDA and concern on mortgage occasionally your tax returns. Your property EBITDA are entirely deductible occasionally your tax return.
* You can adopt the lend break your fairness and thus, derive the defrayal of concern on loan. It is a kind of repeat dipping on your debt.
* Thither are diverse incentives for beginning sentence homeowners and boothose who characterize for VA loans. However, eventually incentives hold turn out and politically unpopular.
* If the evaluate of your property increases, you can hold a benefit by marketing it. All or about region of your benefit is excuse occasionally the Union taxes.
CLICK HERE!!! for more details.
Friday, 4 December 2009
Investing in Apartment Buildings - Your Fast Way to Wealth and Financial Freedom
Most people know that you can make big money as a commercial real estate investor. But the also think that you need a lot of money to get started. In reality, it is possible to buy commercial real estate with little money, sometimes even with no money. It is not easy to buy your first apartment building but if you manage to pull it off, you are well on your way to financial freedom. Even small deals will put thousands of dollars into your pockets, per month.
Investing in apartment buildings is one of the safest ways of getting started in commercial real estate. Since you have a lot of tenants your cash flow will be relatively stable. This is very important for new investors since you will probably not have any other income stream that can make up for a temporary shortfall in the rental income from the property.
When the economy turns south, the rental income from most commercial real estate goes down. But apartment buildings are a little bit safer. After all, people need to live somewhere regardless if the economy is good or bad. As a new investor, it is generally easiest to get started in suburbs that are slightly below the average market rent. The prime locations are generally too expensive, that is, the cash flow will most likely be negative unless you put in a lot of money into the deal. In most cases you should avoid the places at the very bottom of the scale. The places with the cheapest rents often attract trouble tenants, most landlords prefer to avoid them.
Owning an apartment building with rents a little bit below the average has the advantage that most people can afford the rent. Additionally, minor renovations can often be done that increase the rental income, thereby improving your cash flow.
So how do you get started in apartment buildings? The knowledge you need to get started is easy to acquire, just buy a training kit with email support. Then you need to select your target area and get to know the rents and prices inside out. It is easy but it takes some time to get the necessary knowledge. As long as you can find a motivated seller, you do not need much cash. The motivated seller will provide seller financing. Generally, the biggest hurdle is to get comfortable with the big money in commercial real estate. But it is well worth giving it a go, because your profits will also be big.
If you are interested CLICK HERE!!! for more details.
Article Source: http://EzineArticles.com/?expert=Robert_MacPherson
Investing in apartment buildings is one of the safest ways of getting started in commercial real estate. Since you have a lot of tenants your cash flow will be relatively stable. This is very important for new investors since you will probably not have any other income stream that can make up for a temporary shortfall in the rental income from the property.
When the economy turns south, the rental income from most commercial real estate goes down. But apartment buildings are a little bit safer. After all, people need to live somewhere regardless if the economy is good or bad. As a new investor, it is generally easiest to get started in suburbs that are slightly below the average market rent. The prime locations are generally too expensive, that is, the cash flow will most likely be negative unless you put in a lot of money into the deal. In most cases you should avoid the places at the very bottom of the scale. The places with the cheapest rents often attract trouble tenants, most landlords prefer to avoid them.
Owning an apartment building with rents a little bit below the average has the advantage that most people can afford the rent. Additionally, minor renovations can often be done that increase the rental income, thereby improving your cash flow.
So how do you get started in apartment buildings? The knowledge you need to get started is easy to acquire, just buy a training kit with email support. Then you need to select your target area and get to know the rents and prices inside out. It is easy but it takes some time to get the necessary knowledge. As long as you can find a motivated seller, you do not need much cash. The motivated seller will provide seller financing. Generally, the biggest hurdle is to get comfortable with the big money in commercial real estate. But it is well worth giving it a go, because your profits will also be big.
If you are interested CLICK HERE!!! for more details.
Article Source: http://EzineArticles.com/?expert=Robert_MacPherson
Wednesday, 2 December 2009
Residential Investment - An Appropriate Investment These Days
Residential investment in property is one of the best ways of earning millions. Think about it - it is one of those demands that will always exist, no matter how market changes. There is so much land in this world and every individual needs a shelter to survive. Although, investing in property is at its all time high but investing in residential property is a highly popular choice these days. Unlike, investing in commercial property, investment in residential property involves low risks because you do not have to worry about how the business is doing. Additionally, it is easy to get investment property loans as compared to other types of loans. Many benefits come with investing in residential property. So, check out some of it hottest benefits:
- Investing in Residential property serves as the future purpose of home
- Property bought turns into a huge capital income in the long run
- Depending on the location of the property there is a considerable amount of appreciation on its actual worth.
- This type of investment opens door to a slow/low but fixed income
Before spending a single penny, it is wise to talk to other people who have invested in residential property. Find or locate someone who has invested in residential real estate and use him or her as a source of your information. You can also get information from the real estate investing forums. Many people approach banks for advice while investing in property. However, this is a big mistake- often committed by the first-time investors. As the bank has its own interests, the bankers would always advice you otherwise.With a residential investment in property, you can easily protect your venture. Most of you want to purchase property at a low price so that you can eventually sell it at a much higher price. You can determine a property's value by looking at the neighborhood and then compare its prices. A thorough research on a particular area will help you in getting a good deal on an undervalued site. Consider those houses that have been in the market for a short while.When opting for investment property loans, always consider low interest loans. In this way, you can make smaller payments and keep more cash that comes from your rented properties. Always negotiate, even if the price is low.
This may help you save a small amount of money and thus, make your investment more valuable. If you are renting your residential investment property, then it is imperative to ensure that one is familiar with the property owners and tenants of that place or area. Make sure that the lease is as detailed as possible and clearly states about the late fees, deposits, rental charges and everything else regarding money from your tenants. It is difficult to maintain residential property. Once purchased, you have to spent more money on its maintenance. These days' people prefer to invest money in property instead of keeping it in the dark corner of a bank. Generally, people invest in property with a notion of increasing their current income. However, a good income depends upon the thoughtful and good investment.
To find out more >>> CLICK HERE!!!
Article Source: http://EzineArticles.com/?expert=Piter_Smith
Monday, 23 November 2009
Residential Property Investment - A Gamble That Pays Off
Residential property investment is indeed a sound investment. But in order to succeed, a delicate brew of business savvy and street smarts topped off with hard work will pay a major role. After all, the real concept of property investment lies in purchasing the property in a conservative and modest cost and have it market in a much greater amount to gain excellent profits. But how are you going to do it as a property investor? Firstly, you should keep your ears on the ground. Secondly, come out with new and exciting ideas and fleshing them out is paramount. And lastly, know your market, create a distinct identity, and make this your primary goal. For without knowledge in this area, your business will fail no matter what you do.
So whatever hats you wear, you may be a property investor selling a newly purchased residential property investment, a broker representing a real estate company, or an independent agent, the guidelines that follow will help you ascertain that you'll generate sound takings once these investment advices are trailed religiously. So will the gamble pay off? Find out how you can maximize your investment:
Go back to the pretty basic concepts. Just try to imagine buying a really good residential in a bad and high-risk area, would you still go for it? How about a not-so good asset but in a decent and civilized neighborhood? Which of these two would you rather go for? An unpleasant looking house in a good neighborhood is good; a pleasant looking property in bad environs is bad. A physically worst looking house can be renovated and remodeled, but neither repairs nor rigorous restoration can change an uncivilized neighborhood. So you really have to go back to the basics.
Narrow down choices. It is but normal that you come up with multiple of favorites, but this isn't a time for favorites. You're tackling business here, a real big trade that apart from a property that you favor, you must also take into account a lot of pecuniary considerations. Find out details and backgrounds about the realtor you're eying to start with your investment. If possible, look for low ball offers, something that grants even a 50% asking price.
The preclosing inspection. Every buyer or investor for that matter has the right to preclosing inspection. Meaning to say, if there will be cases when you feel like backing out for whatever intents or purposes, you can do so without being subjected to any unlawful defiance or commit a breach. Preclosing inspection is deemed as the weasel clause, oftentimes a loophole of many investors who find difficulty making up their minds.
Publicize and advertise. Make your property known to the public by putting an advertisement in many different mediums available in the industry. But most importantly, as you post an advertisement, you likewise specify your requirements. Whether the property is meant for sheer rentals or for legal ownership, setting your jurisdictions and conditions matters a great deal prior to entrusting your asset to a third party.
There you have, pretty good ways in maximizing your investment. For now, go and make some money. To find out more >>> CLICK HERE!!!
Real Estate Investing Tips - Residential Property Vs Commercial Property
The definition of residential property is a distinct property that draws an income from houses, apartments, co-ops, and apartment buildings.
Commercial property is a term utilized for the description of property that's income is drawn from non-residential such as retail space, office buildings, industrial business tenants, and all other non- residential dwellings.
The Advantages and the Disadvantages
Residential Advantages:
1. Large selection of tenants to rent to, and a great demand for rental housing.
2. High brink of income from consistent cash flow from multi-units and houses.
3. Residential property is relatively easy to finance, and can simulate home-financing.
4. residential property is commonly lower priced than property that is commercial.
5. Worst case scenario, you may dwell in a multi-family property and supervise tenants.
Residential Disadvantages
1. Management and maintenance is required consistently in residential property.
2. For a house that only has a single family inhabiting it, if no tenant pays or moves there is no income.
3. Repairs are more likely in residential property.
4. Harder to dispute a residential property tenant and there are boundaries that need to be adhered to.
Commercial Advantages:
1. Commercial properties offer long-term leases that provide consistent income and stability in the investment.
2. In commercial property management is not as demanding, because most leases state that is responsible for damage and repairs.
3. To fit up the space in commercial property the tenant can pay the landlord a flat rate fee and discount rent.
4. Commercial property owners flourish with steady incomes that increase as the value of the properties skyrocket.
Commercial Cons:
1. Commercial property loans are more difficult to obtain, because lenders require up front down payments that can be rather high as well as Adjusted rate loans can rise to unreasonable affordability.
2. Commercial spaces often are difficult to lease, and can sit empty for long periods of time; this is not positive for an investor who has limited funding. It also often takes attorneys to draw up the leases that commercial tenants must abide by.
3. Inexperienced individual's who want to invest in commercial property should be forewarned that it is not easy just to jump into, and can be overwhelming to a new property owner.
There is not a perfect answer on what property is right for a certain purpose or person, however whether it be commercial or residential an individual who is seeking this sort of investment need to consider all aspects of the venture. Ask yourself what you really want to accomplish and do not haste into making an ultimate commitment until you are well aware of every worst case scenario that can occur. Once you have really thought about it all you will recognize what option suits you best. To find out more >>>>> CLICK HERE!!!
Residential Investment Property - Is it Really Worth the Effort?
This article is the beginning of a series of articles focussing on investing in residential real estate.
The title of this article poses a very good question. My definitive response is YES. There are so many valid reasons you should consider residential real estate as a vehicle for building wealth, some of which are described below:
Reason 1: Generally speaking property is a stable investment. It does not experience the volatility that for example, the share market does. In fact, well researched residential property very rarely drops in value . . . it may plateau BUT normally does not drop in value.
Reason 2: Everyone is involved in the property market. In one way or another, each and every one of us is involved in residential property - either as a property owner OR tenant. This creates significant demand.
Reason 3: Banks and other financial institutions are happy to lend money using property as security. From the point of view of a bank, there is nothing like bricks and mortar as security for lending.
Reason 4 Tax benefits help pay expenses. In affect, this assists with buying an investment property. Such benefits include tax deductions for relevant expenses such as rates, interest, repairs, property management, and depreciation.
Reason 5: You can add value and achieve immediate capital gain. There are many ways to add value to property. One of my favourites is to focus on cosmetic changes. In other words, concentrate on minor expenditure items such as a new coat of paint, new door handles, new cupboard doors in the kitchen, new light fittings, etc.
Reason 6: Rental income will eventually more than cover associated expenses. I recommend holding property for the long-term. In my experience, and this depends on the circumstances of each individual property, it takes approximately 4 to 5 years for a negatively geared property to become positively geared. Once that happens, not only is the property not costing you anything, it is actually putting cash in your pocket.
Reason 7: Property ownership is relatively familiar to most folks. This makes the purchase of residential property a much easier option to get right.
Reason 8: Generally on average, real estate doubles in value every 7 to 10 years. This becomes an enforced method of saving AND when the rent increases sufficiently, it can put money in your pocket.
Reason 9: You do not need to earn a fortune to invest in residential real estate. Many property investors earn less than $40,000 per year. It is not necessarily how much you earn that counts, rather it is what you do with what you earn.
These 9 reasons only scratch the surface. In my opinion there are literally hundreds of reasons to consider residential real estate as your primary investment tool. Let's face it, unless history changes, well chosen property will result in increased wealth.
We could keep going, however hopefully I have convinced you to at the very least, consider residential real estate as a serious option as your wealth building vehicle.
A mistake when purchasing residential property can be both expensive and long-term. If you are not an experienced property investor I strongly suggest you either gain sufficient knowledge through self-education OR short-cut the process and hire professional Buyers Agents. To find out more >>>>> CLICK HERE!!!
article from: http://EzineArticles.com/?expert=Garry_I_Macdonald
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