Important Property Investment Secrets

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There are times in your life when you have the opportunity of getting really good advice that has the potential of changing your life and to give you the encouragement to achieve your dreams. I recommend that you investigate the full potential of investing in property and perhaps if you are serious about changing your financial future then you may consider taking some really good advice from the experts. Once you have received all the necessary information, then you can make an educated decision about whether this is for you and if so, avoid making all the most common property investing mistakes that could lose you a fair bit of money in the process and not have the need to say if only I had have taken some advice.

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Six Property Terminologies Every Investor Should Know

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By Elly Graham

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Important Property Investment Secrets
I am aware there are a lot of real estate investors who say that they will go it alone with their property investing and that they know how it is done, but these people tend to make many if not all of the most common property investing mistakes, which has the potential to lead them to either financial ruin, or else they may be totally oblivious to the money they are losing along the way, through ignorance. Do you want to retire early and have a fun and exciting life with lots of investment properties in your portfolio? Just imagine what it would be like for you if at the end of your property journey you have loads of cash to live a life of freedom with no money worries. Let's investigate and consider the following real estate investing strategies.

STRATEGY 1: MAKE A PLAN

The first thing that is very important is that you need a plan. In other words have a big dream, know where you are going and start mapping out where you want to be. It is so important to have a goal to work towards, therefore:

1. Set goals
2. Develop a plan for achieving those goals
3. Remain focused and take action on implementing your plan.

With clearly defined goals you can easily devise a plan and with an end result in mind you can easily work towards your dream. This dream must be your dream and not someone else's this will ensure you stay focused and motivated at all times even when things may not be going quite as planned. However in order to turn your dreams into reality consistent action is required. And a plan will enable you to do so and can be achieved by following these steps:

1. Set your property goals and write them down.
2. Set a time-frame for your goals.
3. Identify the things you need to do to achieve your goals and put these into little bite size pieces.
4. Take immediate action and remember to review your plan on a regular basis to make sure you are on track.

STRATEGY 2 - GET A MENTOR

It would be a good idea not to ask family and friends unless they are expert property investors. I would recommend that when it comes to financial decisions and investment planning you need a proper coach. Just think about all the famous sports stars and millionaire identities and you will realise one important thing about them and that is, one of the reasons these people are mega-rich and successful is because they all have a mentor or coach. They fully understand that seeking the personal guidance of those who are experts in their field to assist them in getting to the next level. A mentor is accessible to you either in person or through books and you can be in contact with them either by email and phone calls or else you can follow them around by attending their seminars or talks.
Mentors use their experience and knowledge to guide and motivate you towards the goals you set yourself and generally they are happy to do so encouraging you to reach for the stars and often assist you to get out of your comfort zone and move you to the next level of success. They are happy to support you every step you take on your journey to the top! In order to find a mentor you need to start by keeping your eyes and ears open to identify the best people from whom you can learn professionally. Funny thing, when you seek you will find. No point in saying who will mentor me and why would they anyway? Simply be on the lookout and ask lot of questions. Find a mentor that has a good reputation and who has a proven track record a real estate investor and has built long term wealth, obviously, someone you look up to and is successful in the field.

STRATEGY 3 - FIND A REALLY GOOD PROPERTY INVESTING NETWORK

Align yourself with a property investing network or group consisting of experienced people and professionals. Here are some simple measures you might want to take to help you easily identify a good Network.

1. Find out what the network, are they ethical do they share your core values.
2. Check and ensure those professionals in the network are all registered in their field of expertise.
3. Speak with other property investors to find out the reputation of the property network and get the network to provide you with testimonies from past clients.
4. Make sure to conduct your research into any information the network provides you.

These measures will go a long way in protecting you and help you identify the best advice and support that you can find.

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STRATEGY 4 - DO NOT LISTEN TO NEGATIVE FRIENDS AND FAMILY

Although friends and family may have your best intentions at heart the advice they give is not always the best for achieving your personal goals and realising your dreams. Therefore you would be well advised to:

1. Remember your personal and financial position will be quite different from others therefore you may want to consider this when someone gives you advice based on their own financial position.
2. Think twice about taking advice from someone who has made bad financial decisions.
3. Be aware of the area of expertise your advice giver has and see how that relates to the advice they are giving.
4. Only ever take advice from people who have already achieved the goals that you are aiming for as these are the people with the experience to help you navigate any obstacles you will face.
5. Refer back to your investment plan and be sure to keep on track.
6. Find yourself an experienced property investor to act as your guide and mentor and keep abreast of the current property market.

STRATEGY 5 - DO YOUR HOMEWORK

You are taking the right step in reading articles such as this one, we are in the age where timely, accurate information is a highly prized and sought after but remember that information is always changing. To be confident in all your investment decisions you need to have instant access to relevant, up-to-date information obtained from reliable sources. Keep in mind also that you will always find what you are looking for therefore look for positive things about the property investment market don't look for negative because there are always people out there with negative input and negative experiences. As with most things, information gathering and analysis is a time-consuming process. It also requires a certain level of expertise to be able to sift through all available information to find which is relevant to your requirements. In an age where we are constantly bombarded by information from all angles, this activity can become overwhelming and coupled with our everyday responsibilities such as family, jobs and social activities the tendency is to drop the ball. Therefore to learn from the experiences of others it would be recommended to:

1. Always investigate every opportunity before investing.
2. Ensure you have every detail of the investment thoroughly explained.
3. Ensure you understand your legal documents and that they are accurate.
4. Once you have secured your properties then continue to conduct your due diligence remembering that your investment is your responsibility and only yours so you will then not point the finger at others if things go wrong.

STRATEGY 6 - ENSURE YOUR REAL ESTATE INVESTING STRATEGY IS DONE FROM THE HEAD AND NOT THE HEART.

In other words, investing has nothing to do with emotions and everything to do with financial returns. For instance it does not matter if you prefer to live in a quiet country lane or in an older house away from railway stations, big malls and entertainment. You are not going to live in it - it is an investment and you have to look at it from that point of view. Good idea for instance to purchase your property when everyone else is selling and sell when everyone is buying! Remember: it's all about your return on investment - let the figures and supportive information do the talking and not your personal preferences. Therefore:

1. Obtain and assess relevant information.
2. Refer to your investment plan.
3. Never lose sight of the reason you are investing, to make money - preferably loads!!

If you have read Robert Kiyosaki's bestselling book 'Rich Dad, Poor Dad' you will understand that profit is made at the time of buying and realised at the point of selling! The housing market can go up as well as down and when the market is on a downward trend you need not worry so long as you hold on to your property for the long term. Do not do what the majority of people do which is sell.

1. Adopt the purchasing at below the 10% below market value mindset whenever possible.
2. Look into wholesale real estate investing, e.g., direct from the developer.
3. Sharpen up your negotiating skills. Read Donald Trumps' bestseller 'The Art of The Deal', get good assistance with finding the ideal property and close the deal.
4. Do not sell; remember this is a long-term investment; use your current property as equity to purchase the next property, or else if you sell only do so to purchase another property or appreciating asset.

Right - you are now one step away from being well ahead of the pack. Final Word: Follow these strategies, the earlier in life the better and one day you too will have your name listed above with the mega rich and very successful real estate investors and have for yourself long-term wealth. You will find the above strategies a very good start to see you safely on your way to success so take your newly obtained knowledge and have the edge on others: 'Knowledge is power but only when combined with action!' Start today, right now and take the necessary actions required, go on it isn't as hard as you think it is.
Author Elly Graham is a mentor who provides free information, she has a mentor too, Jim Downs, Author Appreciating Assets. Elly provides support and guidance on personal development and personal empowerment for people looking into property investment advice

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Article Source: http://EzineArticles.com/?expert=Elly_Graham http://EzineArticles.com/?Important-Property-Investment-Secrets&id=6785060

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Taking a shot at investments in the housing market for the first time can be quite daunting. If you want to be at par with the best investors in the industry, learning the necessary terminology comes with the territory.

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Six Property Terminologies Every Investor Should Know

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By Orit Gadish

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Taking a shot at investments in the housing market for the first time can be quite daunting. If you want to be at par with the best investors in the industry, learning the necessary terminology comes with the territory. While it might be confusing at first, some bit of patience and practice will see you get the hang of it. The following are some of the terminologies you will frequently come across.

Floor Loan

This refers to the minimum amount of money a lender will provide to finance a building project. Most lenders will offer part but not 100 percent financing at the start of the project. The remainder is accessed when certain agreed milestones are achieved. Your lender might agree to lend you 65 percent to start the project with the rest to be committed when some flats are sold.

Alligator Properties

It is possible to earn less from a property than it cost to manage it. Costs like mortgage repayments, maintenance and taxes can be greater than rental income. Alligator properties will lose you a lot of money over time.

Assumable Mortgage

This is a financing agreement to transfer a mortgage and all its terms from the seller to the buyer. This is a great way of avoiding taking on a mortgage yourself. You will benefit from an assumable mortgage if interest rates are high.

Curb Appeal

A property is generally gauged by its attractiveness. Some of the factors that will influence attractiveness include: painting, landscaping and any visible improvements to the property. This can play a major part in determining the fair market value of a property.

Blanket Mortgage

You are likely to come across this term as an investor and not a single home buyer. It is a loan advanced to you to cover more than one piece of property. This is the perfect mortgage to go for if you would like to build many properties for sale. The main advantage associated with this type of mortgage is being able to sell individual properties without affecting the blanket mortgage.

Broker Price Opinion

This is a rough estimate of a property's value and is usually given by brokers. There are several factors the broker will take into account before making the final estimate. This includes: renovations, prices of neighboring properties as well as location.

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If this is a bit mind-bending for you, an experienced real estate company can help. Gadish Properties is a real estate company with experience in short sales, property management, and REO sales. It is advisable to use a professional like Orit Gadish to take care of all the necessary property transactions. You will have at your disposal a team of people with access to numerous financial institutions and lenders such as Wells Fargo Bank.
As President and CEO of Gadish Properties, Orit Gadish has assembled a team of highly qualified real estate professionals who manage hundreds of REO deals throughout California. Orit Gadish has implemented technological innovations at Gadish Properties to create an efficient and effective sales process from start to finish. Working with a variety of banks and moneylenders, such as Wells Fargo Bank and One West Bank (IndyMac), Orit Gadish has secured essential business relationships for the facilitation of the sale of REO real estate. Orit Gadish is a California Real Estate Broker and a member of the Beverly Hills Greater Los Angeles Association of Realtors. Committed to her clients, Orit Gadish also operates Gadish Financial, an affiliate of Gadish Properties, which pairs property buyers with the best financing options at the lowest interest rates possible.

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Article Source: http://EzineArticles.com/?expert=Orit_Gadish
http://EzineArticles.com/?Six-Property-Terminologies-Every-Investor-Should-Know&id=6798036

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How to Buy Your First Rental Property

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By A. Kappauf

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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.

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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.

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2012 is set to be a year of many changes, including many new trends continuing to evolve in the world of real estate investing. So what can we expect in the new year and how can real estate investors stay ahead of the curve? Government Programs It is quite likely that we will see a new round of government initiatives or two before the 2012 Presidential Election.

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The Future Of Real Estate Investing In 2012

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By Duane Ortega
2012 is set to be a year of many changes, including many new trends continuing to evolve in the world of real estate investing. So what can we expect in the new year and how can real estate investors stay ahead of the curve?

Government Programs

It is quite likely that we will see a new round of government initiatives or two before the 2012 Presidential Election. However, as with the last few they are unlikely to directly help many homeowners and if anything will further restrict conventional mortgage lending rather than loosen it up. Perhaps the one exception is the FHA extension of the waiver of the 90 day rule. This investors can continue to flip houses with ease to new buyers who can use low down payment financing immediately.

Inventory

Inventory levels should continue to decline, despite a final clear out of the remaining foreclosures in the works right now. Banks will continue their strategies to maintain rising home prices and a continued uptick will balance new listings. However, in many parts of the country real estate investors will find the shortage of REOs and short sales continues. This will mean needing to work with major bulk REO buyers to get a hold of a significant amount of wholesale properties, meaning that forging new contacts and partnerships now is critical.

Growth

The current improvements in the US housing market are likely to continue and expand exponentially. Home ownership will continue to rise gradually and new confidence from US buyers should offset any slow down in demand from foreign investors who see their own local markets turning around too. As far as hot spots go, coastal resort areas and cities with the best job markets should produce the highest returns. Among the top picks for 2012 are New York, Miami, San Francisco, San Jose and Washington.

Mortgage Lending

With conventional mortgages still hard to get, especially for higher priced properties we will probably see more growth in lower price ranges. As real estate investors become more aware of the availability of transactional funding and focus more of their marketing on attracting buyers, transactional lenders will likely be among the biggest winners in the new year.

Marketing

Marketing will see some of the biggest swings for real estate investors throughout 2012. Investors should not just be sitting down to plan out budgets and dates for next year's marketing but focusing on developing more permission based and mobile marketing initiatives as well as local search. Trying to catch up on new trends next year is going to mean an uphill battle. The time to start developing is now so that the huge number of cash rich buyers at tax time can be cashed in on.

Duane Ortega has been enabling real estate investors to increase their volume and make real profits from real estate in both good times and bad over the last 10 years with no hassle transactional funding through http://www.BestTransactionFunding.com.

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Article Source: http://EzineArticles.com/?expert=Duane_Ortega
http://EzineArticles.com/?The-Future-Of-Real-Estate-Investing-In-2012&id=6695921

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I Lost Thousands Of Dollars By Trying To Save A Dollar Day

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Here's the interesting thing about this property. The home was priced right however, we saw the property at 8pm in the evening, there were multiple bids on the home and we were creeping up to the irrevocable date and time of midnight very fast. We had two choices... let this deal pass us by or take action and get our offer in. We paid $5000 over the asking price!

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I Lost Thousands Of Dollars By Trying To Save A Dollar Day

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By Gary Anthony Hibbert

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Some weeks can be a roller coaster ride. The good thing with our adventures is we acquire some valuable lessons, and as a result put necessary fail safes in place to ensure things go much smoother the next time.

One of the things that we are continually focusing on are our checklists. By creating a good checklist system you're creating a step by step process that can be passed on to others to produce the same positive results without even having to think.

The other day one of our investors purchased another rent to own home. A beautiful detached home with a finished basement and tons of upgrades.

Here's the interesting thing about this property. The home was priced right however, we saw the property at 8pm in the evening, there were multiple bids on the home and we were creeping up to the irrevocable date and time of midnight very fast. We had two choices... let this deal pass us by or take action and get our offer in.

Knowing the value of the home, the type of tenants we could get and the positive cash flow this property could produce, we put in an offer that couldn't be refused.
...$5000 over the asking price!!

Crazy or what!! ...or is it?

Lets do the math; Now, the home was priced at $265,000 and we put in an offer at $270,000. If the home is amortized over 35 years the difference works out to approx. $17.00 a month. You can't even get a coffee a day in the month of February during a leap year for that price.

I'm not a mathematician by any means but for $17.00 a month, we couldn't let a deal like that slip through our fingers. Especially knowing that this home can easily cash flow. So who actually pays for this additional $17.00 a month if you have a property that's cash flowing? Some people may argue this, but as long as you're making money from your property each month, that $17.00 is passed on to your tenants. In other words, you don't have to go to your bank to withdraw your money to make a payment for it right? So... if you are not a numbers person here is the key things to remember. When your purchasing an investment property using our strategies, what you are really doing is providing a service for your tenants. If the public see value in your home, they will pay top dollar for it. Many people miss this valuable insight.

By trying to save a penny today, many people miss the big picture and lose out on tens of thousands of dollars a few years from now on a great investment property.

Now, I'm not promoting to over pay for every house that you come across. I love a great deal like anyone else does. What I am saying is this... understand every deal on the table in depth before you walk away from it. You could be leaving your kid's education, your trip around the world or simple a coffee and a bagel a day that you do not have to worry about for a very long time.

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Gary Hibbert is a Canadian Real Estate investor. He uses a very smart and proven Rent to Own technique that provides a win win scenario for both the investor and the tenant. His technique of buying beautiful homes in beautiful neighbourhoods has proven to be a great strategy. Visit Gary and his team at http://shcinvestor.ca

Article Source: http://EzineArticles.com/?expert=Gary_Anthony_Hibbert
http://EzineArticles.com/?I-Lost-Thousands-Of-Dollars-By-Trying-To-Save-A-Dollar-Day&id=6797382

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Lesser Known Real Estate Investments

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Lesser Known Real Estate Investments

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By Juhlin Youlien

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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.

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

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Should You Consider Rent to Own?
By Jacquelyn B Marks
Rent to own homes present a perfect solution for homebuyers and sellers when it comes to the surplus of pre-foreclosures, foreclosed and REO properties along with stringent credit policies. This alternative offers cash-strapped homebuyers a chance to save on the down payment as well as increase their credit standing. On the other hand, equally cash-strapped pre-foreclosure sellers will be able to relieve himself or herself with the impending foreclosure with someone else assuming mortgage payments. Then ultimately, the new owners will take the property off one's hands.
While rent to own homes are no doubt an ideal alternative plan, the theory may not carry out in real life scenarios. If seriously considering this option, what are the key aspects to look for? Alternatively, is a rent to own arrangement ideal for you?
Ideal Factors that Can Work to Your Advantage
The great aspect of this trend is most of the underwater homeowners are now willing to take lesser upfront payments. This means a buyer or renter is at a lesser loss when deciding to push through with the purchase. In addition, with the flood of pre-foreclosures and foreclosed properties, one can take a pick from the numerous choices available. In most cases, home sellers who consider a rent to own purchase are actually well into the desperation stage.
Potential Risks
As with any type of real estate purchase, these arrangements come with its own set of risks. It is possible for the buyer to find out that the homeowner has actually stopped making the mortgage payments while property is under the lease term period. On the other hand, owners/landlords can also potentially end up with a tenant who is remiss in making payments on time and completing the purchase.
Who Should Consider Rent to Own?
Even with risks, one can foresee these arrangements becoming more popular in the upcoming years. It presents one of the best transitional steps to curing the housing market crisis. Despite the set of risks, it is still one of the better options available for both homeowners and homebuyers. If executed flawlessly, it can be the best pre-foreclosure deals one can find.
However, here are some of the factors that need to take into account:

1. Rent to own is not recommended for individuals who require time to repair their credit standing to make a purchase.
2. It is ideal if both parties involved have good track records or those who have something more at stake, such as a long time tenant, a family member or maybe a friend who is very interested in assuming the property.

A lease to purchase agreement should be prepared by an attorney or real estate professional to ensure the protection of the homeowner and potential buyer. Moreover, as we all know when it comes to dealing with contracts, the devil is in the details. This means one needs to take the necessary precautions such as knowing everything about the homeowner. By doing so, requesting for a home inspection and discussing thoroughly the stipulations of the agreement with a fully outlined 'conditions precedent.'
If one has a potentially ideal rent to own opportunity, go ahead and explore the possibility. If keeping oneself well protected all through the transaction process, it can turn out to be the perfect investment opportunity.
Renttoownhomes.cc is the leading online listing service for Rent to Own Homes.
Article Source: http://EzineArticles.com/?expert=Jacquelyn_B_Marks
http://EzineArticles.com/?Should-You-Consider-Rent-to-Own?&id=6739212

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Smart Guide to Investment Property

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Source: www.moneymanager.com.au

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Buying a small apartment to rent out can be a good way to accumulate funds so you can eventually buy your own place, in an area where you want to live.
What you'll learn in this step: Sensible investments in property residential or non-residential have many benefits, including capital growth.
Property has been a popular route to wealth for many Australians for many years.
Buying their own home is often the first investment many people make; purchasing another property may well be the second even before shares and other assets.
But your first investment in property neednt be your home.
Indeed, buying a small apartment to rent out can be a good way to accumulate funds so you can eventually buy your own place, in an area where you want to live.
Increasing numbers of young Australians are choosing this route, buying in one suburb while renting in a more desirable and expensive area or living at home for a while longer.
Still others are diversifying into non-residential property via property trusts and syndicates.
Sensible investments in property have many attractions.
Property can be less volatile than shares though not always and it tends to be regarded as a safe haven when other assets are declining in value.
It has the potential to generate capital growth (an increase in the value of your asset) as well as rental income.
Then theres the tax advantages associated with negative gearing (more about that later).
However, as with any investment, there are no guarantees.
Property prices go down, as well as up, and sometimes tenants are hard to find especially good ones who pay on time and take care of your investment.
Investors need to have a keen awareness of the interest rate environment how higher rates might affect their expected net return and the market for their property should they wish to sell.
They also need to make sure the return or yield from their property stands up against the return they might have achieved had they invested in shares, for example.
Of course, you dont have to make a direct investment in property.
Pooling your funds with other investors in managed funds with a property focus, listed property trusts or property syndicates provides exposure to a broader range of property including commercial, industrial and retail as well as residential often with a smaller investment required.
Many financial advisers would argue that too many Australians let direct investment in residential property dominate their portfolios.
In theory and this is far from reality for most people property should account for perhaps 10 per cent of an investment portfolio.

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Concepts:  investment, Smart Guide, loans, buying, funds, shares, font, savings, FINANCE, assets, Australians, property trusts, syndicates, rent, portfolios.

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Real Estate Investors Discover Forex to be a Better Deal During Bubble

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By Scott Shubert

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Every day we read more news about the real estate "bubble" and how prices are leveling off or even dropping around the country. Naturally this news makes many real estate investors more cautious about buying. Flippers are no longer able to rely on rapid appreciation in order to make their profits. Investors who buy and hold or lease option properties are wondering if their deals will earn any profit in the next 2 to 3 years and many wonder how long they will have to hold a property to realize any profit. Many investors have discovered that they may be stuck with a property they cannot sell for a profit and cannot rent with a positive or break even cash flow now that real estate is just not selling the way it was in the recent boom cycle. Some investors are considering other alternatives and either holding off on further buying or getting out of the business altogether until there are signals that the market has reached the bottom of its current correction.

Accelerated Wealth Through Forex Trading

While it is currently uncertain as to whether real estate prices will see any rise over the next few years some investors have chosen to postpone any further buying activity and look at other alternatives. One of these alternatives that has become quite appealing to some is Forex trading. Investors who have been taught the power of leverage through "no money down" buying strategies quickly understand the power of leverage in the Forex market. Forex trading is one of the few businesses in which one can start with a relatively small amount of capital and within a short period of time begin multiplying that capital into a larger and larger numbers. Some traders who have mastered this business have taken accounts from $1000 to over a million in one year. Not only would that be extremely difficult to achieve in real estate, in most cases the equity that is achieved in real estate is not necessarily liquid.

No "Down" or "Bear" Market in Forex

"Forex" is short for Foreign Exchange or the currency market. Because currencies are traded in pairs such as the Euro vs. the U.S. Dollar traders are never stuck with a downward trending market. If the Euro's value is falling relative to the U.S. Dollar the dollar is rising relative to the Euro and vice versa. A trader may buy or sell the currency pair at any time and profit is earned by trading in the direction of the movement whether it be up or down. If a Forex trader believes the Euro vs. the U.S. Dollar pair will rise she will enter a trade position of buying the pair. In this case Euros are being bought and dollars are being sold. If the trader believes the pair will fall he will simply enter a trade position of selling the pair. For trading purposes it makes no difference whether the pair is rising or falling. Buying and selling are both executed the same with the click of a button and profits can be seen immediately as the pair moves in the direction of your trade.

100% Liquid Market

The Forex market is the largest market in the world and it is driven by banks and institutions as well as managed funds and individual investors. A currency represents and entire nation's economy and it is not possible to manipulate the value of a currency the way it sometimes happens in the stock market. Because banks throughout the world always have an exchange rate for currencies there is never a time when a Forex trade is not totally liquid. A Forex trader does not need to wait for a broker to locate a buyer because a trade is always immediately closed with the click of a mouse. Transactions are settled in cash that appears in the trading account immediately when the trade is closed.

What is the Risk?

Often we may hear that trading Forex is risky business. There are risks and expenses involved in any business. One of the benefits of starting a Forex trading business is that a trader can open a demo account and trade while learning the business without ever risking any real money. Only when the ability to trade profitably consistently over time has been demonstrated should a live account be opened. One of the most important aspects of learning to trade is using proper money management and risk management. Successful traders know how to identify trading opportunities and they know exactly how much to risk on a given trade. Win to loss ratios and risk to reward ratios are a part of trading just like knowing what products to stock are an important part of the retail business. If you hear of people who lost their trading capital while learning to trade you can be assured that they did not 1. learn to trade before opening a live account and 2. use proper money management and risk management.

How to Learn More about the Forex Trading Business

There are many sources of information on Forex trading available all over the internet. Unfortunately, very little of it is really effective in helping people to master the business of trading. Most of the information available is connected either directly or indirectly with the Forex Broker industry. And as many traders have discovered, the methods being promoted are often designed to benefit the brokers more than the trader. Is there any way to bypass the process of trial and error and really save time on the learning curve that is required in Forex trading? Entrepreneurs who have been successful in other businesses know the answer to this question.

Find people who are already successful in the business of what you intend to do and do what they do. Mentors and mastermind groups provide the key to the fastest route to success. Just be aware that many "mentors" and training companies are connected with the broker industry as Introducing Brokers and they have a vested interest in teaching trading strategies that may not be in your best interest. For more information you may want to discuss the credibility of training programs with other traders in a trading discussion forum or at a trading club in your local area.

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Scott Shubert is the founder of www.TradingMasterMind.com , a community of traders who share insights and results to contribute to the success of the entire community.

Article Source: http://EzineArticles.com/?expert=Scott_Shubert

http://EzineArticles.com/?Real-Estate-Investors-Discover-Forex-to-be-a-Better-Deal-During-Bubble&id=368079

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Investment Property Jargon Explained - CAP Rates

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By Ian F. Campbell

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If you are looking to buy some investment property you are sure to meet a barrage of jargon, from R.O.I. to A.P.R., to capitalization rates to net operating income.

Finding your way round the accountant-speak is essential if you are going to plan your property purchase thoroughly.

Doing a little research could make a big difference to the rental income you can achieve or the capital gain you can expect, two important factors for any investment property.

Of course, you could pay a financial adviser, lawyer or notary to do all the work for you, but it's actually not that complicated and this short investment property glossary series should help as a reference guide.

In each part we look at a different piece of investment property jargon. In this, the first in the series, we look at CAP or Capitalization Rates.

CAP or Capitalization Rates

CAP or Capitalization Rates are a way of calculating how fast an investment property will pay for itself. The higher it is, the quicker you make your money back.

The first step is to work out the sales price, if you have bought the property already you can just use the total price you paid for the investment property including closing costs and other fees.

If you haven't bought it yet, use the asking price and add your expected costs.

The next step is to calculate the property's Net Operating Income (N.O.I.). Take the monthly rent that you hope to charge and times it by 12 months, to work out the annual rental income.

Next, work out the monthly operating expenses per month and also multiply them by to find the yearly cost. Then, simply subtract the operating expenses from the rent total to find the Net Operating Income or N.O.I.

When listing expenses be sure to include everything, including maintenance, reserve fund, trusts fees (if applicable), association fees, reserve fund, management, property taxes, insurance, etc.

Finally, all you need to do is take the N.O.I., divide it by the investment property price and multiply by 100 to turn it into a percentage.

Let's take an example: if you think you can rent your property for $3,000 per month, then your annual income would be 12 x $3,000 = $36,000.

Then, if your expenses are $600 per month, that would be $7,200 per year and your N.O.I. would be $36,000 - $7,200 = $28,800.

Divide 28,800 by the purchase price, say $300,000, multiply it by 100 and you find your CAP rate is 9.6%.

This CAP rate is essential for comparing the profitability for your choices of investment property.

Article by Ian F. Campbell at Investment Properties Mexico, experts in Mexico real estate.

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Visit their website to find out more about the what Mexico can offer you in terms of investment property.

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Article Source: http://EzineArticles.com/?expert=Ian_F._Campbell

http://EzineArticles.com/?Investment-Property-Jargon-Explained---CAP-Rates&id=4076855

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Six Rules When Buying an Investment Property

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By Mark A Walker

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Investing in properties is a good way to make money and build up your net worth. It is a very safe option of getting rich over the long term, as real estate values generally increase over time. However, returns are not very fast and you have to wait for considerable time before you make substantial money from real estate. To make the most of your investment into real estate, follow the six simple rules below.

1. Use Your Expertise and Knowledge

When purchasing investment property, look into your areas expertise and knowledge. Do you know about vacation homes, single-family homes, multi-family buildings, or commercial properties? You should know how and when to sell the property to earn the highest returns. If you are unaware of all rules and regulations relating to that property type, you may not be able to sell the property at a high profit.

2. Study Your Options

It is not essential to sell an investment property immediately after purchase. You can hold on to your investment until real estate values increase and then sell the property. Sometimes, it is best to bide your time and wait for real estate booms to sell and earn good profits on your investment. Another opportunity is to make suitable renovations and sell the property at an escalated price to earn very good returns. Property values increase over time and net worth of your investment increases. You can invest in real estate to receive a regular income from rent while you are waiting for property values to rise.

3. Consider the Benefits of the Location

Purchase your investment property in an area experiencing higher growth than other local areas. Inspect properties in different areas and choose those that satisfy necessary requirements. If you plan to invest in the property for several years, look into how the area will develop in the next few years and whether you can receive desired returns. You should have sufficient foresight and knowledge of the area.

Visit local councils and research what developments are happening in the vicinity in the near future. Drive around and scout for development and other area investments. Check the property is located near essential amenities like schools, hospitals, banks, transport, and supermarkets.

4. Reflect on Rental Demand

Your investment property yields good returns if there is sufficient rental demand for the property. Renters should be interested in renting the property. Normally, rental demand is high in densely populated areas like cities. Countryside locations do not have high demand and rental income could be substantially less.

5. Buy Property for Less than the Current Value

If you want to make money from real estate investing, choose properties that are being sold for less than the current market value. These properties may not be in the best shape and condition, so plan to incur repair and renovation costs. Before buying, hire a renovation consultant or home inspector to evaluate the cost of all repairs and renovations. Decide on the purchase price after deducting all additional costs. Ensure you can make a good profit when you sell the property after the renovation is complete.

6. Gather Financial Support

Investment property purchase requires strong financing. You may not be able to pool the entire cost, so consider the options for property loans. Assess all your mortgage options, so that you do not have excessive burden of repayments. If you are renting the property, apply the rent directly to the mortgage. Select a mortgage that can be repaid from the sale of property without additional fees or penalties for early repayment, especially if you plan to resell the property quickly.

Real estate investing for profit is a good option to earn money if you are an educated real estate investor. Investing in real estate is wise and can give even conservative investors high returns in the long-term. Renting the property while waiting for the best time to sell will increase your current income and cover the mortgage repayment costs.

Real estate is a complicated market. Even more so thanks to economic slips and slides.

The best way to survive it is to save thousands buying a home. We've got the ultimate inside scoop on http://www.EdmontonHomesBlog.com.

Article Source: http://EzineArticles.com/?expert=Mark_A_Walker


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SiteMap For Freedom Steps With Property Investing

Home Page
Begin Real Estate Investing the Easy Way
Discover how easy it is to begin real estate investing and build wealth with property. An experienced property investor shares his knowledge and experiences with you.

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How To Start
Your Real Estate Investment Guide
Use this real estate investment guide to help you get your first investment property and then move on to set yourself free with real estate investing.

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Finance
Real Estate Investment Financing, 7 Tips To Help With Getting The Best Result.
Real Estate Investment Financing - These 7 tips can enthusiastic and hopeful applicant in to an long term client of any financial institution.

Statement Of Financial Position - facilitate your property finance application
Statement Of Financial Position - give your self the best chance for a real estate investment loan by having a list of your assets and liabilities.

Refinancing Real Estate Investment, Your First Step To Freedom
By refinancing real estate investment, you gain access to money that is lying dormant and put it to use.

Loan to Value Ratio - learn what it is and how it affects you
Loan to value ratio (LVR) is a ratio that the banks and financial institutions use to assess the level of debt that a certain asset should have. The LVR for property is higher than the LVR that banks

Lenders Mortgage Insurance - use it to increase your investing power
Lenders mortgage insurance is a great tool in the arsenal of any potential investor. It will help you to borrow more when purchasing property, improving your return on equity.

Line Of Credit, The Sophisticated Way To Finance Your Real Estate Investments
A Line Of Credit will give you the freedom and flexibility to repidly move towards your property investing goals.

Use Your Home Equity To Finance Your Real Estate Investments
Your home equity will enable you to begin investing in property, and then it can make you wealthy. Read on to see how.

Other Finance
Property Investment Finance
Real estate investment finance puts power in your hands. It's an opportunity to vastly multiply your return on investment and be way more creative in your wealth building.

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Property Selection
Use these Property Selection Tips to Help You Find Long Term Success
Investment Property Selection is vital to your ongoing success. Use these tips to help you find the easiest to manage and most profitable properties.

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Business Plan
Use this business Plan to Keep you Focused and Moving Forward
Here is a simple business plan to guide you as you build your property portfolio and wealth through investment property.

Real Estate Investing Primer
Real Estate Investing Primer - Investing in real estate does not have to be complilcated. Here are some easy strategies to begin investing in property. property investing is not a get ricH scheme.

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Why Property
Why Property Investing - Compelling Reasons to Invest in Property
Why property investing as a vehicle for creating your financial freedom? Here are three good reasons to invest in property, plus several others you may not have thought of.

Financial Freedom Can Be Yours With Real Estate Investment Property
You can have financial freedom, sooner than you think. Here is a picture of how to do it.

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Flipping Property
Flipping Real Estate - Follow these 7 Simple Steps to Making Money
Flipping real estate - This outline shows two ways to do it and outlines 7 simple steps to follow

Make Money Flipping Property - Discover the real way to make money property.
Make money flipping property - This articles outlines 10 principles you need to be aware of if you want to flip real estate.

Flipping Real Estate Contracts To Build Your Capital Base
Flipping Real Estate Contracts is a low cost way for beginner investors to accumulate capital.

Tips For Flipping - 7 Simple tips for flipping real estate.
7 Tips For Flipping Houses that will help find and analyze the right property to flip and avoid the mishaps.

Calculate profits flipping real estate by understanding your costs.
Calculate Profits Flipping - This article outlines how to calculate your profits for any particular flip or contract assignment by understanding the costs involved in making a deal.

Risks Flipping Property - Be aware of the risks involved in flipping real estate
Risks Flipping Property - There are risks involved in flipping real estate, be aware of what can happen and you will avoid setbacks. This article gives a typical example of what can happen.

Real Estate Bubble Aftermath -, Disregard talk of a terrible aftermath....
Real Estate Bubble Aftermath - The end of the real estate bubble has been talked up by a number of sources, but who really benifits and should you pay any attention.

Wholesale Real Estate Investing - Skyrocket your net worth $20,000 to $100,000..
Wholesale Real Estate Investing - discover how you can find and acquire large chunks of equity for cents in the dollar and skyrocket your net worth by $20,000 to $100,000 on every real estate deal ...

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Software
Real estate investment software package s - Help with property investing
Real estate investment software package s can be divided into 2 groups. Those that help you before you buy and those that help you after you purchase a property.

Real Estate Analysis - How to Construct an APOD and Nail Your Next Investment
A must-read if you are working with or want to work with rental property. Learn what you need to know about an APOD, how to use it to evaluate the property's first-year performance, and how to constru

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