Investing in Real Estate Cycles
Author: Michael Joseph Wilsonbr
Source: ezinearticles.combr
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The Real Estate Cycle is Your First Key to Successful Investing
The real estate cycle is the most influential key to your real estate investing. If you do not understand how the cycle works, your real estate investing will be more difficult. When you understand the cycle and identify where your market lies, then investing becomes easier because you are going with the trend instead of fighting it. Lets look at the cycle:
For now, we are only going to focus on the outer edge of the cycle. The primary factors that drive the real estate cycle are based on supply and demand. The supply is based on the amount of homes that are available for sale (new and existing homes) as well as the homes for rent. While the demand is based on the number of buyers/renters that there are for those properties.
In essence, economic factors drive the market. When you start to get to the top portion of the cycle Sell High, it is because the supply begins to out pace the demands. Too many people have purchased existing properties, too many people are building new homes, and too many people have rentals that they have purchased. As a result, the cycle begins to change downward.
The masses hear about how prices have increased during the previous stages of increasing rents/prices and begin to build new homes. This stage of increasing construction is usually when many speculative investors build a new home to sell. What the speculators have not realized is that the market has changed. As a general rule of thumb, when the media is talking about a great investment opportunity, the real opportunity has come and gone.Now that people have overbuilt, there are many more vacancies and properties for sale. Why?
Because the inventory of properties (supply) has outpaced the demand and the market turns down towards the Buy Low portion of the real estate cycle.
With vacancies increasing, landlords will do what they can to get a tenant in the home. Rent concessions will be commonplace as landlords offer free rent, lower deposits, or something else to entice tenants to come to them. Similar concessions will also be apparent with people selling their home.
As landlords/sellers begin offering these concessions, they are trying to offer something better than their competition. Rents/prices decline as a result. As inventory is not moving, declining construction is the result. Builders do not want to build if they cannot sell the property.
High vacancy will also be present in the bottom portion of the real estate cycle. Again, there will be more inventory than there will be people to fill them.
A change will happen in the market where a little activity will begin to build. This is usually a result of new jobs coming into an area. People will move into the area for the jobs and demand will rise as a result. This helps the demand catch up to the supply.
When the supply and demand begin to even out, investors that track these figures will begin to accumulate properties. The investors that understand this concept can watch the real estate market trends and adjust their strategy accordingly. With demand increasing, there will be low vacancy because people will be buying/renting.
Increased demand with buying and renting will force rents/prices to increase. And the cycle will begin again, and again, and again...
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The World of Real Estate Investing – The Quirks and the Risks
Author: Chris B. Jenkinsbr
Source: ezinearticles.combr
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Real estate investing is all about committing some personal funds on a specific property with the goal of creating income by having capital appreciation, leases or rentals.
The term real estate generally refers to properties considered immovable like land with all the fixtures erected or attached to it like buildings or apartments. Once a person starts to enter the world of real estate, he will be required to handle some set of elements like the transferring and controlling of rights and possessions. Understanding the turns and quirks of this aspect of business is very important because it engages some long-term and substantial investments in the part of the investor. Moreover, it is good for beginners in this field to assume that real estate market is highly dynamic and unpredictable.
Being ready for this quirk is needed when an individual already decides to go aboard buying buildings or estate investing. Moreover, there are different methods in which an investor can engage in estate market.
The first type of real estate investing is through rentals. Individuals can decide to participate in this business with the goal of having a tenant rent the property they own. Through this method, the landlord earns money continuously from the renters through they are still subject in managing the payment of taxes, mortgage, and other costs for maintaining the property. Capital appreciation or the increasing of value of the rent of the property through time is also a benefit that the landlord can acquire. A risk of this kind of real estate is when the owner of the property cant find any possible tenants. This will lead to negative monthly cash flows because of all the maintenance and mortgage payments. As compared to possessing some bonds and stocks, this area of investing needs time, effort, and patience from the part of the landlord.
Other kinds of real estate investments are trading, investment groups, and investment trusts. In trading, the owners are just required to manage their properties for only a short period of time like less than four months and concentrates to sell them within that time range. Another term for this can also be flipping properties which is all about having to purchase significant popular and undervalued properties. It is up to the landlords if they want to invest some money into maintenance and improvement of their possessions before putting it on sale again. Investment groups, on the other hand, are more like small mutual funds and are all about setting up rental properties. This involves a landlord owning some units and a professional company managing, acquiring, and building out the units with some percentage of the monthly rent going to them. Investment trusts, lastly, is a corporation that focuses on real estate investing. They have some trades on major exchanges and use the money of their investors to operate and acquire their possessions. Some benefits of this kind of investing is continuous income, exposure of the investors to non-residential investments, and the rule of the distribution of the 90% of the taxable income to shareholders through dividends.
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pFinally, idid you know there are 7 secrets that most successful Real Estate Investors dont want you to know?/i In my free report SHOCK AWE a target=_new href=http://www.realestatesyndicationriches.com/ rel=nofollowCrisis Investing/a, Ill reveal these and many more techniques that can improve your bottom line./ppRemember the report is free a target=_new href=http://www.realestatesyndicationriches.com/ rel=nofollowClick Here Now/a/pbr
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Real Estate Investing Deals That SkyRocket Your Net Worth 10-Fold
Author: Alain Dizabr
Source: articleage.combr
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Consider these ambit for a absolute acreage deal:
Property Value: $250,000
Purchase Price: $160,000
Repairs: $2,500
If you assay the numbers, you see that the disinterestedness accessible in this accord is $87,500 (Property Value bare Acquirement Price bare Repairs).
So heres a academic catechism for you: Assuming that the advice aloft is accurate, and the acreage is amid in an breadth that you appearance as adequate and/or favorable, then:
If I offered to accord you this accord in barter for $10,000 in cash, would you do it?
Remember - this is hypothetical. The absolute catechism actuality is this:
Would you barter $10,000 in banknote for $87,500 in equity?
For a lot of adeptness investors, the acknowledgment is: Absolutely YES!
This is alleged Wholesale Absolute Acreage Investing - the activity of affairs a lot of disinterestedness at a actual cogent abatement from addition absolute acreage broker who has already done the harder plan of award a accord and accepting it beneath contract.
Just anticipate about that - accede how simple absolute acreage advance would be for you if you had a arrangement of absolute acreage investors in your breadth (and maybe even all over the country) who, several times anniversary month, offered you the befalling to acquirement cogent amounts of disinterestedness for a astringent discount...
...It would be absolutely simple to become wealthy, adequately quickly, wouldnt it?
The acknowledgment again, is: Absolutely Yes, it will.
It is through acute wholesale absolute acreage investing that you can access your net account by $20,000 to $100,000 on every absolute acreage accord that you do.
...Now the afire catechism becomes, Where absolutely do I acquisition these broad absolute acreage advance deals?
I apperceive of at atomic 3 solid sources...
Youve got to accept - it will be a appealing admirable affair if you apperceive how to acquisition abundant absolute estates deals in which you can barter a baby bulk of banknote for a ample bulk of disinterestedness after even accepting to acquisition the deals yourself...
...And thats absolutely what wholesale absolute acreage investing is all about.
So lets get appropriate to it. Actuality are 3 places to acquisition wholesale
real acreage deals:
1.) Visit the bounded absolute acreage advance club in your area.
Almost all of these clubs accept networking opportunities to plan with added investors who broad deals regularly, and this is an simple way to acquisition abundant opportunities.
2.) Watch for ads in the newspaper, television, and in added media that acquaint slogans like, We Buy Houses, or Sell Your House in 9 Days or annihilation agnate to that. A lot of of the time, these humans are absolute acreage investors, and they are blessed to broad deals to humans like you.
3.) Watch your email-inbox. Why? Because if and if you accept to accept in assorted chargeless e-courses online, such as that via tm-RealEstateInvesting.com, youll be provided with automated notification about abundant bounded and civic deals as they become available. But be forewarned - youve got to act bound whenever these deals are announced, because acutely the acknowledgment is consistently significant.
Happy Hunting!
Alain Diza is an Ex-Enron survivor angry absolute acreage broker who, through the accurate mentorship of absolute acreage gurus Bryan Ellis, Omar Periu, and Robert Shemin, catapulted to accelerated banking success. He always creates assorted assets streams with his different alliance of Absolute Acreage Advance and Internet Marketing.
To see a sample of his strategies in action, go to Alains clandestine website at:
http://www.tm-RealEstateInvesting.combr
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Real Estate Investing – So You Want to be a Landlord!
Author: Dr.Phil Speerbr
Source: articleage.combr
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Is landlording the way to go if you are starting into real estate investing today?
Receiving cash flow from rental residuals is an exciting idea. If the rental housing is congregated in large apartments within a focused area, the costs of management and maintenance are more economical. Rentals are even more appropriate when all of the portfolio is in the path of developmental progress with upward mobility population of a prime metropolitan city. This results in clustered landlording of an area free of crime, prostitution and drug traffic. However, whether purchasing large quantities of these apartment complex units as fix-up properties or pristine properties, acquisition usually demands deep-pockets and is not within the cash range availability of the beginning real estate investor. Therefore, I suggest such acquisition of these larger apartment properties after some experience in real estate investing has resulted in a big wad of cash in the hip pocket. For the beginning real estate investor, the choice is usually between becoming a near-slumlord or fixing up cheap properties for resale.
I recommend residential fixup for quick return on investment and less hassle from landlording for the beginner.
I bought $10 million dollars in rental properties during my first four years in the business, and it made me a multi-millionaire. I followed the instruction of the books and seminars precisely. It made me rich. But it was a costly mistake. In fact, in my opinion, becoming a landlord in the beginning of my real estate investing career was what I consider my $10 Million Mistake.
Perhaps an explanation of what I term a serious mistake can guide your decision in starting a real estate investing career.
Problem 1. I can clean out toilets pretty well. Ive cleaned out quite a few. Its not the most fun activity Ive ever had. I never thought of it as a party. But I can clean toilets in the maintenance of rental property as well as anyone.
Cleaning toilets is simply symbolic of all the upkeep jobs necessary for being a landlord. But let me assure you, there are many, many other detestable jobs required in landlording, too.
I can clean out one toilet. But cleaning out toilets in $10 million dollars worth of properties is a little beyond me. So, thats why I had to quickly start an in-house maintenance company.
Problem 2. I can rent one apartment to an applicant. But renting $10 million dollars worth of properties is beyond me. So thats why I had to start an in-house management company.
Heres the point. Any person who becomes a landlord can handle a few properties. But a few rental properties seldom make you rich. I became rich as a landlord by acquiring a lot of properties which required a lot of renting and a lot of maintenance work.
Eventually, my landlording life became helter-skelter.
I never want to be a landlord again in this same capacity. It is a deterrent to real estate investing success.
Real estate investing has many better opportunities other than landlording.
The easiest and most quickly initiated opportunity is the fixup of cheap housing. With efficiency, the beginning real estate investor can acquire a cheap house with little or no money down, repair it with sweat equity, and dispose of it through a sale within 30 days for $5000 to $10,000 profit minimally. Several of these cheap houses can quickly replace a job income and can lead to full-time real estate investing.
Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. http://www.CashinHouses.com/ He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director.
To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.BigMoneyinRealEstate.com/nomoneydown/flipping.html/ Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online Academy of Advanced Real Estate Investing Techniques at http://www.AAREIT.com/br
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Real Estate Success
Author: Steven Gillman
Source: articleage.com
Real estate success? It happens by way of the many things you repeatedly do right, and it is your habits that ensure they get done. Here are some habits to develop for your real estate investing success.
Ask for people's names, and tell them yours. People are your most valuable resource in real estate investing. The more you know, the more likely you are to find good properties, or buyers for your good properties. Get to know the right people too. Start with a real estate agent that gets many listings of the type you are interested in. Wouldn't it be nice if he called you first?
Think numbers. Think people first, but know the relevant numbers. Ideally, when you look at a rental property, for example, you should be thinking about the income, the expenses, and the cap rate. You should be imagining how certain changes would allow you to raise the income, and what that would do to the value. Having a "feeling" about a property, and ignoring the numbers, gets investors into trouble.
Carry supplies. Always have at least business cards, pen and paper on you. You never know when you might see a property for sale, or hear about one. Mention that you invest in real estate, and sellers, buyers and other investors suddenly appear with information, opinions, and sometimes deals. Be ready.
Think risk reduction. Put those inspection, financing, and other contingency clauses in the offer, so you will get your deposit back when a deal falls through. Know your exit strategy before you buy. Find value by comparables, not "hunches." Buy properties through your corporation or LLC. Always look for ways to reduce the risks.
Real Estate Success Is Found In Action
Set action-oriented goals. Get in the habit of taking regular steps towards real estate success. Require yourself to look at a certain number of properties, and maybe even to write a certain number of offers each month. Set at least minimum goals for all sorts of little steps, like making five phone calls per week, checking online for new listings twice per week, and so on. Action creates momentum, and repeated action creates habits. Good habits lead to success.
Finally, learning more about investing from books, magazines and even tapes or CDs is a great idea. Just be sure to spend as much time doing something as reading about it. Some of us let our fascination and enjoyment of reading about investing get in the way of actually investing, and of our real estate success.
Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
Getting Some of the Best Deals in Real Estate
Author: Mark Gavalda
Source: ezinearticles.com
The Real Estate market, even with all the financial depressions, remains one that has full viability to become a richly rewarding investment. And the golden rule of business is, minimize the costs and maximize the profit. That does not change in real estate, and its even more applicable since the investments made are huge, and its all about making all the right moves at the right times. The first thing is, you should aim at getting some of the lowest selling property that is highly worth it for investing. But question is, how do you do this?
Well it's quite simple actually, and there is one thing that you do need to understand, and that is foreclosures. They are nightmares to the property owners affected, but good news for those eyeing to own the said properties. When a person is making more than one mortgage payment, it's only natural for them to feel overwhelmed by the financial burden of covering all those payments. This is one of the deals that you need to secure. Should you find someone like this, chances are, they will offer a pre-foreclosure sale, so that they can get rid of the property before the real foreclosure comes to take it away from them. Because of the state of desperation that these people are usually in, it would be easy to manipulating them into selling the property in a price lower than its market value. And what that means for you is more profit.
Once you secure the house, or whatever property, you can flip it, rent it or resell it. But no matter the road you choose to take, you can be sure of profit generation because you got it at a bargain. And for a business investor, getting a bargain in initial dealings is usually a pointer for awaiting success ahead.
As the housing crisis bottoms we'll have plenty of one in a lifetime real estate investment opportunities. If you don't want to miss out on them, visit my real estate blog today!
Reasons to Engage in Real Estate Investing
Author: Bruce Swedal
Source: ezinearticles.com
A lot of people have become interested in the world of real estate investing but still others are still not sure of the reasons of why they should even consider this fast paced career. Here are just some of the more common reasons.
Probably one of the biggest reasons is that right now the world of real estate is at an all time low. As a result more and more people are turning towards real estate investing as a great way to get rich quick. Since the real estate market is the lowest it has been since 1989 this is quickly becoming a huge reality to them.
Due to the fact that the real estate market is in such a huge slump right now and therefore if you purchase the property now and hold on to it the market turns around you stand to gain a considerable amount of equity. This as you can see ties into the number one reason why so many people are turning towards real estate investing as a way of getting rich quick.
With the current unemployment rate at an all time high there are a lot of people that are unfortunately losing their homes. If you purchase the home before it hits the foreclosure market you stand to not only help the family out of a tight financial situation but also you can save yourself a lot of money on overall costs which includes such things as any back taxes owed and other expenses on the property.
Right now with the current economy in a continuing downward spiral you are entering into a buyer's market. More and more people are looking to investors as a way to avoid foreclosure so therefore they are going to be much more willing to bargain with you.
Even landlords are facing tough times and therefore are looking for ways to dispose of some of their rental properties. This means great opportunities for you as the investor because a lot of times you can pick up these properties fairly cheap.
Another great reason is that a lot of the foreclosures and bank owned properties can be bought at almost a fraction of the cost right now. A lot of these houses are going for at least half of their total value. This gives you a great opportunity to make a great profit once the market switches around.
All of these are great reasons for you to jump into the real estate investment career today. They can all provide you with a great money making tool if you take the time to analyze each reason and make wise decisions. If you take the time to do this you will be well on your way to a profitable income in no time.
Free Real Estate Investing Course
Author: Mark Goldberg
Source: articleage.com
So you know you have what it takes to make a healthy living in the investment real estate market but you don't know where to get started? This FREE real estate investing course will show you the process used by some of the biggest names in the industry and how they got started in the industry ( you can bet it wasn't searching for months in their hometown for ugly fixer uppers). Remember, if you think cents you'll make cents, if you think dollars - you'll make dollars.
If you're going to devote your life to a real estate career then why not choose a path where the profits are big and the risks are small? Do you really think your time is well spent competing in the "We Buy Ugly Houses" cults that dominate every newspaper classifieds? Of course not, you've had enough of the rat race and now you're ready to make a name for yourself in the profitable investment real estate industry. Do you think The Donald spent his early days buying run down houses in New York and fixing them up or do you think he started actually investing in preconstruction investment properties.
This Free Real Estate Investing Course is designed to give both the newcomer and the experienced investor a chance to succeed in the investment real estate market. The main way to succeed in the investment real estate industry is simply to use common sense, of course it helps if you are also armed with an education of the industry. This is why it's important to learn as much as you can about the industry and read as many real estate articles as you can and meet with local agents and developers. The more contacts you can gain the better.
1. Don't Believe the Hype - Sorry to be the barer of bad news but many of these real estate "gurus" don't know any magic tricks to making money in real estate. It'snot that they are ill informed it's that their is NO MAGIC TRICK. It's fairly easy rules that everyone knows and few people actually take the time to do. These real estate agents often times fail selling real estate so go to selling over priced CD sets instead. Here's an interesting thing to do on a Saturday evening, do a search online and add the keyword "scam" or "rip off" after your favorite real estate gurus name. If you're going to follow the right real estate investing course then you need to get these fairytales out of your head before you get started.
2. Save Up Capital / Build Credit Score - If you want to invest in real estate the right way you'll need money for down payments and reservations. If someone tells you it's possible to make millions with no money chances are they're trying to sell you something (probably an over priced CD set). If it was possible to make millions with no money everyone in the industry would be millionaires in a few months. If you're serious about investing be sure to have capital and a good credit score before buying your first project.
To build your credit score there are a number of easy ways. I'd recommend logging in to your favorite search engine and searching for phrases like "build my credit score" and "raising my credit score".
3. Find an Investment Brokerage - No matter how many free articles you read or research on the industry you should still find yourself a responsible real estate brokerage that specializes in preconstruction and investment real estate. You can only know so much first entering the market and brokerages have their fingers on the pulse of the industry. An educated investment brokerage will know what developers to stay away from and which ones have a healthy track record or which locations in a city are growing and which are going to be dominated by HUD or section 8 in the next few months.
4. Research Multiple Cities - Don't just buy investment real estate in a city because a friend of a friend did really well there. You never know what factors were involved in the transaction or even worse if it really happened. Cities usually only have a few years of substantial growth before it cools down so must be careful of outdated information. While you'll still make a decent profit in almost any major city if you do your due diligence wouldn't you rather invest in an explosive market where real estate is skyrocketing?
***Note: As of Nov 8, 2005 I believe the best markets now are Orlando, Miami, and Las Vegas.***
5. Read Free Real Estate Investing Courses - Although most of the free advice you get is often the most expensive there is much to be learned from every author or expert. The trick is to read as many of these free real estate investing courses and only pick out the useful information and let the rest go. I can honestly say that I learn something useful from every free real estate investing course I read. Maybe I learn that a certain person has no clue what they're talking about and I make a mental note or maybe I learn a new technique that I haven't thought of yet. Either way free investment real estate courses are very useful if you stay educated in the market and don't rely too much on them for all your information.
Why do I say research free real estate investing courses and not the expensive ones? If a real estate brokerage or agent needs to sell CD's or books to make a living chances are they are not as knowable about the real estate industry as you think. Also, they all tend to regurgitate the same information over and over again.
The above information was taken from the Free Goldberg Executive Realty Investment Course found at http://www.investrealestate101.com
Goldberg Executive Realty Group
Mark Goldberg
Phone: 1-866-247-2259
E-mail: GoldbergRealtyGroup@cfl.rr.com
http://www.InvestRealEstate101.com
Real Estate Investing and Home Ownership
Author: Dr.Phil Speer
Source: articleage.com
If you already own your home, you will probably make money in real estate without ever buying another property.
The home you are currently buying with a mortgage is probably one of the most valuable appreciating assets you will ever own.
You are making money by living in your own home, even if you never buy any additional property. This, within itself, makes you a successful real estate investor.
I have been fascinated with real estate investing for many years, but it all began with a startling discovery 35 years ago.
In 1970 I had bought a little house for my family in the Green Hills area of Nashville. It wasn't much, but it was adequate and it was home.
In 1978, we decided to sell.
We sold that little house for $67,000.
That's when the light bulb went off in my head.
I was shocked with a discovery that led me to fall in love with real estate investing.
I suddenly realized that we had made $40,000 profit in 8 years JUST LIVING IN THAT HOUSE!
We had not painted it. We didn't add any rooms. We built no patio.
We just lived in it!!!
We had made $5000 a year simply living in that house.
I began to think to myself: what if I had two similar houses that generated $10,000 a year profit? Or, five houses that generated $25,000 a year profit? I began to fantasize the possibilities. This awareness launched my real estate investing career.
Soon I was buying millions of dollars in real estate.
But the real challenge was buying real estate without any capital. I had just experienced a serious business failure, and had no cash reserves and no credit. I learned how to buy a house with only a $10 bill. I never walked into a bank to ask for a loan, and I never applied for a mortgage. But conquering the challenge led to buying $10 million in real estate in only four years.
That whopping $40,000 profit that went into my pocket from simply living in that house I sold in 1978 was just the tip of the iceberg.
I still live in the Green Hills area of Nashville. I pass that same house every day that we owned in the 1970s. It recently went on the market again, and it quickly sold.
This time that same house sold for $200,000.
I don't know what's been done to improve the interior, if anything, but no exterior changes have been made to that house. It's still about 2000 sq.ft. The lot is the same size. But the value has increased significantly.
Discovering this concept has made real estate investing very exciting to me.
Phil Speer, Ph.D., started his real estate investing career 25 years ago. With no credit and using only a $10 bill, he purchased $1 million in properties his first year, and accumulated $10 million in properties within 4 years. http://www.CashinHouses.com/
He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement. He won a Caribbean cruise as top investor of the year. In his hometown of Nashville, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. Anyone can profit in real estate investing, even without cash or credit. http://www.CashinHouses.com/ Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online "Academy of Advanced Real Estate Investing Techniques" at http://www.AAREIT.com/
The Language of Real Estate Investing: Use the “F” Words toSucceed
Author: Lee Salinas
Source: articleage.com
If you're new to real estate investing, you probably haven't
figured it out yet. But you will. It's inevitable. Stick around
long enough and you'll discover that successful real estate
investors have their own lingo. Yes. Their own language. And if
you ever talk to these investors, most of them will quickly
resort to certain "F" words to explain their success.
Let me share just a few of these "F" words.
Focus
The all-important concept that keeps you on a clear, purposeful,
directed path is focus. We are all focusing on something at
every moment. For example, right now you are focusing on this
article. How often are we focusing on the wrong thing? The key
is to be focusing on the right thing. If you carry a lighted
flashlight that is focused up instead of down at your feet, what
would be the odds that you would trip in the dark? The odds, I
say, would be fairly good. The flashlight is pointing at
something; it just might not be pointing at the right thing.
For example, successful real estate rehabbers focus on the
process - the rehab process - not the product. The product is a
natural outcome of doing the rehab process well. Real estate
achievers focus on implementing a duplicatable process to keep
their rehab business growing. Non-achievers lack focus and
haphazardly rehab the home. If the rehabbed house turns out all
right, they credit their lucky stars. If the house is a dud,
well, their lucky stars were not aligned just right.
Focus is the act of actually doing those actions that lead to
the desired outcomes that you have chosen for yourself. Focus on
the right things and you will get the right results.
Fix and Flip
If you are just getting into real estate, fixing and flipping
properties is one of the best ways to realize substantial
profits without using your own money. You start by searching for
motivated sellers with junkers. In other words, find people
desperate to sell their house that is in bad condition. Once you
acquire the house, you fix it and quickly add value through a
systematic rehab process. Then you resell the house quickly for
a profit.
Let's suppose you stumble on a property suffering from neglect
by its prior owners. You sense that there is a lot of money to
be made because you can buy the property well below its market
value, make the necessary repairs, and then sell the property.
To successfully implement a 'fix and flip' strategy, you don't
need perfect credit, but you must have access to some cash.
Preparing a real estate business plan to present to prospective
lenders will vastly improve your chances of getting all the
money you need to purchase the property including the repairs.
You can use the real estate business plan to provide your
potential money lenders with your approach to your rehabbing
business. You need to assure them that they'll have a first
mortgage on the property that will be secured by the property
itself. Most importantly, your lenders need to know that that
you'll only purchase deals that are 20 to 30 percent below their
after repair value.
After you purchase the property, the average turnaround on a
'fix and flip' property is approximately 90 to 120 days from the
date you purchase the property to the date you cash out on the
property. This timeframe is based on 30 days to fix it up, 30 to
45 days to sell it on the market, and usually 30 to 45 days to
close. This process can be done faster, of course, under the
right circumstances. However, the process can also take longer
if you don't get the property up to market standards and in
selling condition in this time frame.
How many houses do you want to do? How much money do you want
to make? Even on a part-time basis, doing a 'fix and flip'
several times a year can generate a nice second income. Yes. A
second income that can quickly surpass your full time income.
Financial Freedom
Real estate is one of the best and easiest ways to create
wealth. More millionaires have made their fortunes in real
estate than anything else! Here is what some of the wealthiest
Americans have said: ? "Real estate is the basis for all
wealth." - Theodore Roosevelt ? "Buying real estate is the best,
safest way to become wealthy." - Marshall Fields ? "90% of all
millionaires made it through real estate." - Andrew Carnegie
Generally, most individuals that are looking for ways to get
ahead financially give some serious thought to real estate
investing. And many take the plunge. But why do so many that
take the real estate investing plunge fall short of their
financial goals?
Well, there are plenty of reasons to go around, but the
principal reason centers around unrealistic expectations.
Many new investors are unwilling to pay the price. All
worthwhile endeavors require some sustained and focused effort.
In other words, some real work.
But many of us are searching for the magic key that will open
the "real estate treasure chest" to instant wealth. Is it
possible this magic key exists? Honestly, I think I have a
better chance of getting my face carved on Mount Rushmore than
you have of truly finding that magic key just lying around
somewhere.
By now you know that success comes before work only in the
dictionary. Sure, it's a clich?, but it's also a profound truth.
There are other "F" words that permeate the vocabularies of
successful real estate investors. But if you will make focus,
fix and flip, and financial freedom a part of your vocabulary,
you will be on your way to reaching your financial goals.
I should know. Seldom a day goes by that I don't use one or all
of these "F" words in my business.