Saturday, February 4, 2012

Six Property Terminologies Every Investor Should Know

English: A Wells Fargo bank on College Avenue ...

Six Property Terminologies Every Investor Should Know

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.

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.

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

Saturday, January 28, 2012

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

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

Saturday, January 14, 2012

How to Buy Your First Rental Property

Property exterior - villa for sale near Barcel...

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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.

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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.

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

Monday, January 9, 2012

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.

The Future Of Real Estate Investing In 2012

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.

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

Saturday, January 7, 2012

Three Steps to Getting Financing for a Home in Tough Times

Factors contributing to someone's credit score...

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Three Steps to Getting <a class="zem_slink" href="http://en.wikipedia.org/wiki/Finance" title="Finance" rel="wikipedia">Financing</a> for a Home in Tough Times
Three Steps to Getting Financing for a Home in Tough Times

By Juhlin Youlien

Getting into a home, especially for the first time, is a legitimate challenge. Almost everyone who buys a home will have to take out a loan for the home given the fact that it could take a lot of Americans their entire lifetime to save up enough money to get into a home which are often the highest priced things to buy in any market. Getting a lone can complicate things, but just buying a home is tough with our without a loan. Here are three steps to getting into a home using a loan..
The first thing a potential buyer can do is to dramatically increase their credit. By law, anyone can view their credit score for free twice a year. It is a wise thing to take advantage of that free service.

If a potential buyer has had identity theft or a crazy out of control spouse who somehow has racked up a ton of credit cards that one was not aware of, then the credit report will make one aware of these potential credit hazards and allow for the situation to be rectified. Credit scores are a measure of an individual's ability to handle responsibility. Some great examples of responsibility is making the rent payment on time, making the utility payments and other bills on time, paying the car loan every month any other form of repayment such as paying the credit card down or making the credit payments on time. When time has passed and a person has made good on their payments, and make sure no funny business is taking place, then the credit score will start to be good.

Česky: Kreditní karty Deutsch: Kreditkarten En...

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The second thing one can do is save up as much money as possible to use as a down payment. A down payment should be somewhere between ten to twenty percent of the entire bill for the home. So if one saves up an incredible amount of money, they could potentially buy an incredible amount of home. For example, if a buyer has fifty thousand dollars saved up, then they could buy a home anywhere between five hundred thousand dollars and a million. More realistically though, a buyer will have ten thousand dollars saved up, and given their debt ratio, they can buy a home between one hundred to two hundred thousand dollars. The important thing though is having the highest amount possible of the home saved up and used as a down payment as it will lower the monthly payment by lowering the interest on the mortgage.

The last thing a person can do is to get pre-approval. Establishing a healthy relationship with the lender or bank or whoever is going to front the money for the loan. When a buyer really is ready to buy a home, they have their credit score looking great, and they have a lot of money saved up, not to mention they have a steady job with a steady income, then they are ready to meet with a banker and to get totally ready to buy a home. A banker will go through everything they can about the banker and then write a letter of approval outlining how much they can probably get approved for as a total amount on a home.

Juhlin Youlien writes about homes for sale like Paradise Valley AZ homes for sale and other real estate like Fountain Hills AZ homes for sale. Juhlin is a good source for all your home needs.

Article Source: http://EzineArticles.com/?expert=Juhlin_Youlien
http://EzineArticles.com/?Three-Steps-to-Getting-Financing-for-a-Home-in-Tough-Times&id=5068296

Friday, January 6, 2012

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

A Northern European single-family home in Denmark.

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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!

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

By Gary Anthony Hibbert

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.

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

Thursday, January 5, 2012

Lesser Known Real Estate Investments

English: Fountain Hills, Arizona, USA Français...

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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

Should You Consider Rent to Own?
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:

Rent to own is not recommended for individuals who require time to repair their credit standing to make a purchase.
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

Friday, October 29, 2010

Smart Guide to Investment Property

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Smart Guide to Investment Property

Source: www.moneymanager.com.au

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.

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

Tuesday, June 1, 2010

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

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

By Scott Shubert

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.

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

Thursday, April 15, 2010

Investment Property Jargon Explained - CAP Rates

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Investment Property Jargon Explained - CAP Rates

By Ian F. Campbell

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.

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

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

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

Sunday, February 14, 2010

Six Rules When Buying an Investment Property

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Six Rules When Buying an Investment Property

By Mark A Walker

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.

: 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.
: 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.
: 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.
: 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.
: 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.
: 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

http://EzineArticles.com/?Six-Rules-When-Buying-an-Investment-Property&id=3717013

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Sunday, February 14, 2010

Six Rules When Buying an Investment Property

1. Use Your Expertise and Knowledge

2. Study Your Options

3. Consider the Benefits of the Location

4. Reflect on Rental Demand

5. Buy Property for Less than the Current Value

6. Gather Financial Support