Showing posts with label Property. Show all posts
Showing posts with label Property. Show all posts

Saturday, January 28, 2012


Investments can be a great way to get ahead, and more and more people are jumping into the market of buying investment property. However, this decision should not be taken lightly. If certain tricks of the trade are ignored, you might find yourself deeper in debt than before. There is a lot to gain from buying property to either flip or hold and rent. That said, first time investors should consider buying for the long term, as this is generally more of a sure thing than a short term flip strategy.

Factors to Consider When Buying Investment Property


By A. Kappauf

Investments can be a great way to get ahead, and more and more people are jumping into the market of buying investment property. However, this decision should not be taken lightly. If certain tricks of the trade are ignored, you might find yourself deeper in debt than before. There is a lot to gain from buying property to either flip or hold and rent. That said, first time investors should consider buying for the long term, as this is generally more of a sure thing than a short term flip strategy.

First and foremost, take a look at the numbers. You want to make sure that the monthly rental income will cover all of the property expenses such as property taxes, insurance, financing, repairs and maintenance, and everything else. When you analyze the numbers, remember to be conservative with any estimates you make, and always bake in a 10% vacancy rate. If the property appears to be cash flow positive on a monthly basis, you can continue on with the due diligence process.

The second thing to consider when buying property is the location. Location is everything, and the general rule of thumb is to buy rental properties in the best neighborhoods you can afford. The neighborhood will determine the type of tenant you can expect, as well as the amount of rent that can be charged. Another aspect of the neighborhood relates to fixer uppers, and the degree to which you make the necessary improvements. Avoid improving a property so much that it is far better than the surrounding homes on the block. Keep the home comfortable and user friendly. People will choose the neighborhood for a reason, so make sure the home is fixed up to fit in.

Another tip is when looking at potential houses to buy, look at the property for what it could be, instead of what it is. Spot the potential of the property and keep the renovations at a reasonable level. Make sure that the vision is reasonable for the labor that is needed to be done, and the price of the needed materials. Remember that hiring professionals to do the labor can help to assure things are done correctly the first time -saving money for things that may need to be fixed later. Hiring professionals shouldn't be taken lightly, either. Make sure all references are checked out to ensure that all your contractors have the experience and qualifications to do the job appropriately and in full compliance with municipal codes.

Once all the hard work is done and the home is ready for a tenant, make sure that a screening process is used. Run a credit check, call old landlords and references, and verify income and employment. After all the sweat and money that was poured into the property, it's only natural to want to keep it from being destroyed by deadbeats.

The bottom line is that buying a property requires a fair amount of due diligence. Do the homework that goes with being a great property investor, and also read up on landlord and tenant rights. It's one of the most important steps in protecting the investment. Study eviction processes, and understand all the laws to help keep the profits flowing for the long haul.

Visit free-rental-property-investing-info.com for free landlord forms, tools, and no-hype educational info focusing solely on investing in rental properties. Browse topics like how to find good landlord insurance, how to remove PMI, how to buy property, and much more.


Article Source: http://EzineArticles.com/?expert=A._Kappauf
http://EzineArticles.com/?Factors-to-Consider-When-Buying-Investment-Property&id=6795954

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Saturday, January 21, 2012

4 Important Reasons Why People Prefer To Stay In Rental Properties



In this article, I have shared the 4 main reasons why people in United States like to stay in houses for rent. Every single individual in United States prefer to stay in houses for rent.

4 Important Reasons Why People Prefer To Stay In Rental Properties


By Sharon Cooper Lee

In United States, in previous year i.e. in 2011, it has been seen that, the demand of rental homes were increased like anything and many Americans were not at all interested in buying the properties. So this year also i.e. in 2012, the scenario will almost be the same.
There are several reasons why people in United States prefer to stay in rental homes and over here, below I am sharing the top most 4 reasons that makes people to stay in a rental property.
4 Main Reasons Why People Like To Stay In Homes For Rent
1) It Is Affordable:
Homeownership is the dream of every single American. But if we think practically, then to buy the own house is not the cup of tea for everyone. Why I am telling so, because it is very expensive to buy the house in United States. Hence, many people over there simply avoid to buy a property and they opt for the home rentals because it very economical.
So people are doing right thing, that they are not buying a property keeping in mind their financial conditions. To stay in rental houses is a great decision from financial point of view. So that's why, more and more people in United States select house rentals for staying as it less expensive.
2) No Maintenance And Repairs Expenses:
When you purchase your own house then it is quiet natural that all the expenses of your home, you have to pay. Every time if something breaks in your house, then you have to do expenses in order to repair it properly. So to own a house is really very costly and these kinds of expenditures will make your pockets empty.
But if you renting a home, then these types of expenditures will be paid by your homeowner. As a tenant, you need not to pay any kind of maintenance and repairs expenses. So due to this benefit, almost every American loves to stay in house rentals.
3) Tenants Insurance Is Very Affordable:
Tenants insurance is very much cheaper as compared to homeowners insurance. So due to this reason people give high priority to rental properties.
4) Tenants Can Easily Change Their Location When They Want:
Well, suppose if you are a homeowner and you have to change your location then first of all you have to sell your home and then only you will able to move to other area. You never know when your home going to sold, it may take some time because these days everyone gives more preference to rental houses and many individuals are not at all interested in buying a property.
But if you are a tenant and you are migrating to other location for a job or for some other purpose, then comfortably you can change your location and that too very easily. Just you have to inform your homeowner that's it. So because of this, rental properties have gained higher popularity among the Americans.
So due to all these reasons, the demand of rental homes has been reached on peak.
In coming days, the popularity of duplex for rent, single family home rentals and apartment rentals will be rising more and more.

Article Source: http://EzineArticles.com/?expert=Sharon_Cooper_Lee
http://EzineArticles.com/?4-Important-Reasons-Why-People-Prefer-To-Stay-In-Rental-Properties&id=6791919

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Saturday, January 14, 2012

How to Buy Your First Rental Property



Property exterior - villa for sale near Barcel...
Image by lucasfoxbcn via Flickr

How to Buy Your First Rental Property


By A. Kappauf

Due to the present economy and the low prices on homes, the time to buy rentals could not be better. 99.9% of everyone interviewed who has rental properties say that there are some headaches that come with renting out properties, however, they all added that the positive aspects of having rental properties far outweighs these headaches. Now the question is how does one go about getting into this type of business?

The most important first step to real estate investing is to explore why you want to do this. What is your primary goal? Is the goal to pay off debt? Is the goal to bring in income to live off of during your retirement years? Is the goal money for college? There are many reasons why you might want to be a real estate investor, and whatever the reason, you must understand and stay focused on this goal. As stated above, it is not always going to be smooth sailing, but if you keep focused on the goal at hand, it will help you get through some of the hard times as they arise.

English: AmeriFirst Home Mortgage logo
Image via Wikipedia
The next step is to figure out how you are going to actually buy the rental property. Although many people put in an offer and then try to find financing, it is much more efficient to visit a mortgage broker or lending institution and get pre-qualified for a loan. Find out in advance how much they are willing to loan you, and what the down payment requirement is. This will allow you to have a general idea of your targeted price range, which will save you time because you can simply ignore properties that are too expensive for your financial position. A good rule to remember is that if you can put at least 20% down you have a better chance of obtaining the loan.

Next, decide on your location. Make sure that the area you have chosen has growth potential. If not, then go look at another area. There are many issues to consider in this step, such as, is it possible to change the rental property from a single to multiple dwelling property? Like I mentioned previously, there are many foreclosed homes at this time that are selling below market value, so you must always ask yourself if a given property can be purchased at a bargain price. You will also want to consider whether or not you going to able to increase the rent annually, as well as the impact that small improvements might have on the property values within the neighborhood.

The final step is to get a good real estate agent and start checking out actual properties. Your agent will send you MLS listings, which you can then run the numbers on to see which ones make financial sense. You can then have your agent schedule physical property showings for those listings in which the preliminary numbers look good. Also, get in the habit of always soliciting feedback from your agent, as he or she will ideally have a lot of experience. Your agent can give you good tips on the best locations, as well as property pitfalls to avoid. Good luck and happy investing!

Visit free-rental-property-investing-info.com for free landlord forms, tools, and no-hype educational info focusing solely on investing in rental property. Browse topics like how to find good landlord insurance, how to buy property, how to be an effective landlord, and much more.

Article Source: http://EzineArticles.com/?expert=A._Kappauf
http://EzineArticles.com/?How-to-Buy-Your-First-Rental-Property&id=6795961

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Thursday, January 5, 2012

Lesser Known Real Estate Investments

English: Fountain Hills, Arizona, USA Français...
Image via Wikipedia
Lesser Known <a class="zem_slink" href="http://en.wikipedia.org/wiki/Real_estate" title="Real estate" rel="wikipedia"><a class="zem_slink" href="http://en.wikipedia.org/wiki/Real_estate" title="Real estate" rel="wikipedia">Real Estate</a></a> <a class="zem_slink" href="http://www.wikinvest.com/metric/<a class=" zem_slink"="" title="Investment" rel="wikipedia">Investments</a>" title="Investments" rel="wikinvest">Investments
Lesser Known Real Estate Investments

By Juhlin Youlien
Ever since the 1940's the world of real estate has consistently seen small but steady increases in value each year. Real estate is a legal term for property possessed by an individual as part of their "estate" that is "real" or tangible and is fixed like the land, the landscape, the fencing and other permanent fixtures. Because real estate has been a dependable asset, more and more investors have invested part of their portfolio in real estate. The most common type of investment is buying rental property. Renters pay a rent to live in property owned by the investor and they usually will pay enough for the owner to pay the mortgage, the taxes, the repairs, and other home expenses. Although renting is the most common and popular form of real estate investing, it is not the only.

A solid way to try and down play the negative side of renting, which is a lot of one on one contact with the tenants, doing the repairs, finding renters to fill a vacancy, is to be part of a investment group. A real estate investment group is a group of investors who want to be involved in the property world but do not want to have the usual negative side of renting. The group is a company that will pool the investors money and then buy a block of homes, condos and apartments and divide the properties up fairly according to the share that the different investors invest. The return is cumulative so even if one of the condos that is under the investors name is vacant, the money will still be delivered to the investor. The groups company will be in charge of the repairs, the renting out of vacancies and the other detailed work management must do.

Another type of investor is the property trader. Trading in property can be a risky venture. Trading real estate is comparable to a stock market day trader who is mostly gambling that stocks they buy low will increase during the day and that stocks they short sale on will lose value during the day. This is opposite from any investor who wishes to make money in the long run. A real estate trader is someone who buys a home or land with the intention of selling it quickly. They are called flippers because they flip a home. Flipping is only successful when a home is purchased that is greatly undervalued and can be resold at a high price. It also works when the market is extremely good and the prices are increasing by the day and month. The problem comes when the two scenarios don't pan out and the investor is committed to an expensive enterprise and they have no way of getting out of it and are sunk by the fact that they do not have long term ability to make mortgage payments and keep the house a float. The other type of trader are those who buy homes that are by no means over priced and they renovate them and fix them up and then resale them at a higher price and make money.

This article is brought to you by Juhlin Youlien who writes articles about Paradise Valley AZ homes and Fountain Hills Real Estate. Paradise Valley real estate is the premier real estate in Arizona.


Article Source: http://EzineArticles.com/?expert=Juhlin_Youlien http://EzineArticles.com/?Lesser-Known-Real-Estate-Investments&id=4993251

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Monday, December 7, 2009

Property Investment Finance

Property Investment Finance


Your Express Elevator to Real Estate Investing Success

The way in which you obtain and use property investment finance can make a sizeable impact on the rate at which your property portfolio grows.

I'm sure you've heard it said before but it is absolutely true that


Investment finance


The golden rule in real estate investing is other people's money (OPM).




This is the most important lesson you can learn!

 


Yes it's true, the golden rule in real estate investing is other people's money.

Use Other peoples Money

What this means is that whenever you are buying an investment property you should be aiming to pay as little as possible from out of your pocket, and obtain real estate investment finance for as much of the purchase price as you can. This is a vital factor in real estate investment property purchasing.

"I'd Rather not have any Debt"


"I have enough money, I'd rather pay cash."

OR
"I'd rather not have any debt."

This is not the way to build your property empire.

Even if you have $100,000 sitting in the bank right now, you could go and buy one real estate investment property but with the system that I am going to show you, you will be able to acquire multiple properties and reap the harvest of exponential capital gains and increasing rents for many years to come!

Gain Leverage by Using Real Estate Investment Finance

Return from
Property Investment Finance
To
Real Estate Investment Financing

Or To the Home Page
Freedom Steps With Property Investing






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Wednesday, November 25, 2009

3 Reasons to Hire a Property Management Company to Run Your Real Estate Investment Property

Delhi Properties - Real Estate India - Unitech...Image by nancyarora2020 via Flickr

3 Reasons to Hire a Property Management Company to Run Your Real Estate Investment Property






The recent downturn of the global stock market saw millions of 'every day' investors having their fingers badly burned. Overnight life savings were eaten away, retirement funds went into decline and the economic forecast for all of us who had any money invested in stocks and shares was gloomy to say the very least.

Real Estate Investment sounds like a cool thing to do during the weekend but the problem arises when you start having to many properties to handle. The solution to your real estate investment problem would be to hire a property manager who can then run your property for you and deal with any problems that may arise. The key is to get a reliable person who can then do any repairs or maintenance work for you.


This article will highlight three additional reasons why you might want to hire a property management company to look after your real estate investment property for you.

The Time Element

Firstly, you might be a busy professional or business person during the weekdays and you do not want to run around looking for a plumber or roof repairer sometime during the week. Time is valuable also if you have several properties that you own and it does not make sense to baby sit your properties.

Opportunity Cost

Thus you would do well to remember that your monthly income is dependent on the number of deals that you can find to add to your real estate investment portfolio. Get your focus right and you will make more money from your real estate investments.

Proximity Is A Key Issue

Secondly, proximity is a key issue. One real estate investment author states that he does not own property unless it is within one mile from his own residence. If you want to look after your own properties it is fine but you must be able to go down and take a look if there is any issue arising from your properties.


Note that returns from both offshore rentals and capital appreciation currently in places like Dubai might prove more lucrative so if you are looking into offshore real estate investment, hiring a property management company is a must. Similarly, if you are looking at investing in property outside the state that you reside in, it will be necessary for you to hire a property management company to look after your property.


Familiarity With The Documentation, The Procedures

Thirdly, if you are new to the type of property class, you might want to consider employing the services of a property management company. For example if you have been involved in residential real estate for a long time and you decide to expand to commercial real estate, you might not be familiar with the documentation, the procedures and the possible problems that may arise from such real estate. Hiring a property management company therefore may help you solve some of your transition problems and like mentioned earlier free you to explore other real estate investments.


In conclusion, real estate investment property when done on a small scale in your locality may be okay for a while but when your investments start getting numerous and unwieldy, you might want to tap on the services of a property management company to help you manage your properties thus freeing you to look for more property deals.


By Joel Teo 2006 All Rights Reserved



Joel Teo is the owner of several websites and takes a keen interest in real estate investment.
Learn more about real estate investment at http://www.realestateinvestment101.info


Article Source: http://EzineArticles.com/?expert=Joel_Teo
http://EzineArticles.com/?3-Reasons-to-Hire-a-Property-Management-Company-to-Run-Your-Real-Estate-Investment-Property&id=197571







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Monday, November 2, 2009

A Property Investing Business Plan

Real Estate Business Planning by Diane FlanniganImage by JohnHallAssociates via Flickr

Use this Business Plan to
Keep You Focussed on
Your End Goal

The Big Picture

The end state you want is to be able to retire wealthy with your wealth guaranteed to continue to grow.

This business plan will help you progressively increase your net worth to the point where you can retire.

The best part is that this process can take as little as seven years.

This plan presents an attitude of optimism. Your future is assured as you progress through the various stages of building your property investment business.

Business Plan for Property Investors

Your starting position right now may vary slightly in detail, but the execution of the plan does not change greatly. :You may be a home owner right now or currently renting where you are living. It doesn't matter.

What matters most to your success is your attitude right now!




Stop looking at yourself as a person who works
for a living.



I want you to start seeing yourself as a person
who has a property investing business.


I will show you how to acheive this!

 



Home Owners With Equity

For home owners with equity the steps are as follows:
  • Set a goal
  • Do initial financial research
  • Do property search
  • Select target property
  • Finalise financing
  • Finalise Purchase
  • Find a tenant
  • Start collecting the rent
  • Manage the property
  • Move on to next property

All of these steps are expanded on in the sections below. For now the important thing is to start changing your focus from a worker to an investor, in particular a property investor.

If you Don't Have Equity

If you don't have equity the steps are very similar to those listed above. The difference is in a small variation in how you finance the property.

You can read more about it on this page:
Financing your very first property starting from nothing

And remember you only have to do this for the first property or so. After that you will have some equity on your side.






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Monday, October 12, 2009

Property Selection - The Vital Component in Your Investing Tool Kit

SHANGHAI, CHINA - DECEMBER 12:  Visitors look ...Image by Getty Images via Daylife

Property Selection is
The Vital Component in
Your Investing Tool Kit

Property selection, Choosing the right type of property and the right location for your investment properties will make an enormous difference to your ongoing success.

This can make a huge difference...

Here is a example of just how much difference effective selection can make.


Let's say that you were considering two properties of similar size and features. Both were townhouses with two bedrooms, two bathrooms and a one car garage.

However Property A is new, the purchase price is $330,000 and it will rent for only $280, giving you a rental return of 4.4%. ($280 times 52weeks divided by $330,000 as a percentage.)

The Ideal Type of Investment Property

The ideal type of investment property has these characteristics:
  1. Buy new investment property
  2. Priced at the median price for the area
  3. Is in demand with tenants
  4. Has potential for future growth

Buy new investment property

There are a number of good reasons to focus your purchasing of investment properties on new properties.
  • Higher depreciation allowance to deduct from your tax bill.
  • Lower maintenance cost and therefore lower overall cost of ownership.

Median Priced Property

Buy property that is priced at or near the median price for the area.

The reason for this is simple. The property you want to offer for rental, especially when you are just starting out, is property that is closest to the most in demand type of property in any area.

This will ensure two things, that you always have a supply of ready and willing tenants to rent your property. (This is a very important part of your investment property business.)

Secondly, if your unit or townhouse is in demand then the value of your investment property will rise. This is perhaps the most important part of your investment business.

We've only covered two reasons so far.

Read on to discover why it is so important for you to become knowledgeable at effective property selection.

Buy a Property that is in Demand with Tenants

We have already touched on the importance of this above. Here are some other considerations to take into account.

A property in a better area will attract a better type of tenant and that will ultimately lead to less problems both with property maintenance and perhaps even collection of rent due and avoiding a default on rent.

Generally well located median priced property will prove to be your best bet for long term capital growth and rentability. After all the real money to be made in real estate is not by buying a property and reselling it a short time later for a small profit.

No the the real money to be made in property is to buy and hold as many well selected pieces of investment real estate as you can for as long as you can. In fact if you maintain a philosophy of just not selling this will in time provide you with a continually growing rent stream as well as a rapidly increasing equity base.






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Sunday, October 11, 2009

Why Property Investing?

Panama Property = MoneyImage by thinkpanama via Flickr

Why Property Investing?

Three Good Reasons to Invest in Property

Plus others you may never have considered

Many future investors ask why property investing is better than any other type of investing. Here I will give you a brief rundown as to the advantages of property investing over other forms of investing.

I'm sure you have heard about all the beat up about using investiment property to create instant wealth. But the truth is that is just not true. Successfully investing in property needs a different mind set. The change in mindset required is a change from a trader mentality to that of an asset holder.

A Trader is always looking to buy something at a lower price than he can sell it for.

There are three very good reasons for you to invest in property and they are:

The Multiplier Effect
This is the best reason. Property always trends upwards. If you buy a real estate investment propertty today, in 7 to 10 years (or even shorter) it will double in value! Stick with me and I will show you how to hold it and aquire more to grow your wealth faster.
Ready Access to Cash
Yes this is true and one of the little realised secrets of the truly wealthy. They do NOT sell as soon as it goes up in value, rather they use the increased value to borrow more money.
Property is Great Security
This is the basis for the whole philosophy behind property investing. this is the reason why banks will lend so much against real estate investments as opposed to any other form of investment. It just is plain and simply is the best form of security, even in the light of recent market fluctuations. But more on that later.
These are the three best reasons as to why property investing is still a great investment and here are some more.

  • Property prices Trend Upwards.
    There are records going back for many years that show every property has doubled every 7 to 10 years. To verify this for yourself, just go the local department of records and examine the prices of properties for the last 50 or 100 years. You will see that each seven years a properties value is almost exactly double that of 7 years ago.
    Yes it's true there are exceptions to this. In some areas prices go up faster and in some areas prices will hardly seem to rise at all with time. but well located property, as I will help you to identify, will inevitably rise in value.
  • Peace of Mind Investing
    The main reason why property investing is "Peace of mind investing" - you dont have to follow the markets and make daily, weekly or monthly adjustments.
  • Property Investing is Very Tax Effective
    Another reason why property investing is so great are that the costs of owning a real estate investment can be deducted from your taxable income. (You will need to check your particular circumstances in your particular jurisdiction.)
  • Risk and Reward
    The approach I advocate in these pages of taking a long term holding position with regard to your property portfolio
  • Multiplier Effect
    A Comparison of Growth Potential
  • Liquidity
    What if I need money quickly? This is a question often asked by people who are trying to come to grips with the idea of balancing several million dollars of growing equity against a diminishing debt.
    The answer lies in managing your credit. That is every year or so as your property values increase have them revalued and arrainge for a corresponding increase in your lines of credit from your banks. for my wife and I this happens automatically each year or so as we purchase new properties.

Do some of these reasons surprise you?

On other pages I'll go through these in more detail so you can see the analysis and support behind them.





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Thursday, August 13, 2009

Real Estate Investors in 2008 and Beyond

Ranch style home in North Salinas, CaliforniaImage via Wikipedia

Real Estate Investors in 2008 and Beyond


By Nic Faivre



With the economic state in many countries on the down slide, many people are wondering if they will be able to afford to ever own their own piece of the dream. The dream, being owning their own home.

What is important to note is that many people purchased property at high prices. The public were lead to believe that if the price was high ... then that meant quality and stronger selling power.
In reality it meant 1. Risk 2. Debt .... and loads of it.

In 2008, people have been told to shy away from the housing industry because of the ever decreasing housing market. If you are an individual who purchased high and are now seeing the prices fall .. I feel for you. If however you are considering to enter the arena of real estate investing, then there is no better time. The real estate investor needs to be alert and know that markets have constant trends. Sure, we see the housing prices going down, so what should that indicate to the astute Real Estate Investor?

Sirens should be blaring to indicate that now is the time to buy. Private real estate investors have more negotiating power than ever before. Before the housing slide, the Seller would have the bargaining chip over the investor. This has now changed and simply stated, the seller can not afford to lose the interested investor.

It is not unheard of to decrease an offer by more than $20,000. Actually all real Estate Investors should never accept a price as advertised. I don't care if its been reduced previously ... or even if the seller indicates that they will only accept 'offers over ..' Remember the key for 2008 - The Real Estate Investor, or the potential buyer has the power.

This economic down period is prime time to buy and hold if you can afford to do such. An important key to real estate investing is that when the market is down ... then it will surely go up again.

For land developers there is no change to your profit margins. Putting it simply, yes houses, apartments and residential/ commercial projects will be less for the selling price HOWEVER, please take note that the land will be cheaper. In almost all cases you will end up with the same or near the same profit margin. Just don't forget to do you home work when purchasing land at the commencement.

I must take my hat off to an expert in the field of Real Estate Investing - Mr. Charles Dudley. He has coined the phrase which will be my guide and which also should be the guide of all real estate investors. "Pigs get fatter, while Hogs get slaughtered" - how true is this in the real estate industry.
Accept and project your profits - then march forwards and reap what you expected to gain. If you do this then you will receive repeated customers.

So, if you are doubting 2008 - don't. make 2008 and onwards - the year of your real estate investing business!



Nicolas Faivre is a full time Entrepreneur and Real Estate Investor. Nic believes in the power of giving without want and his dedication to his networking team shows. Nicolas Faivre can be reached at http://www.RealEstateInvestorsAustralia.com


Article Source: http://EzineArticles.com/?expert=Nic_Faivre
http://EzineArticles.com/?Real-Estate-Investors-in-2008-and-Beyond&id=1174905



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Monday, August 10, 2009

Real Estate Investors & The Importance of Knowing Your Exit Strategies

Bangalore Properties - Real Estate India - Ste...Image by nancyarora2020 via Flickr



By Chris Parks


Real Estate Investors are often tasked with knowing his/her exit strategies before getting into a particular situation. It is important to remember that exit strategies will be different depending on what type of investing you plan on doing.

One particular difference is whether you are planning on holding a property long term (as a rental) or if you are planning on making money as soon as possible.

If a property has little or no equity, holding long term will generally give you more options then if you are looking for short term exit strategies. And then it depends on how much the mortgage is vs. how much you can get for rent and how much your expenses are. Also, how much money you are willing to spend and whether or not you are willing to go negative in terms of cash flow (which I do not recommend, but know many investors who will).

If you are looking to get in and out of a property quickly, then properties with little or no equity would not be the way to do it unless you or investors you know work short sales or are interested in buy/hold like I explained in the previous paragraph. If this is the case then you can pick up bird-dog fees all day long by referring these types of properties to real estate investors who are looking for them.

Always ask around at your local REIA meetings to see which real estate investors are buying properties with little or no equity and find out what exactly they are looking for.

A property with a lot of equity generally gives investors the most options, especially if it needs work and provided the seller needs (not wants) to get rid of it. Of course a real estate investors' overall purchase criterion needs to look at more than just equity.

There are a lot of different ways to make money in Real Estate. You can bird-dog properties, wholesale properties and/or rehab them as well. Investors often make the most money rehabbing properties from sellers who need to sell. Many of these types of properties can be major fixer-uppers, or condemned properties that have equity.

As a rehabber, the very bottom line for quick-cash is this:
  1. Buy low
  2. Improve
  3. Price it to sell quickly (especially in today's market)
  4. Deposit your money


That being said of the three, rehabbing is not the quickest way to profit and by far much more involved. Real Estate Investors who know his/her exit strategies before putting any property under contract will have the most flexibility and thus the most choices.


About the Author:

Chris Parks is a member of a small group of Real Estate Investors and Entrepreneurs who created Real Estate Investing for Newbies http://www.REIforNewbies.com in order to teach and assist new Real Estate Investors in a step-by-step and easy-to-understand manner.

Visit http://www.REIforNewbies.com Today to Claim Your Free 7-Day eCourse!

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