Predisposition Strategy to Get Private Money Investing in Real Estate
Author: Chris B. Jenkinsbr
Source: ezinearticles.combr
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One of the ways to ensure that private money investing in real estate happens is by targeting the correct investor with the appropriate deal. Private money will flow to those ventures the lender is comfortable with - usually the sectors he himself has worked in or with. So a medical expert is more likely to put money into a venture related to medicine - say for example setting up of a nursing home or an ambulance service.
Similarly, getting funding for real estate deals requires the broker or the borrower to approach experts in the real estate business who are also investors or would like to become so by using the funds he has available for investment. If the dealer can identify a home owner (the borrower or seller) with the most predisposed lender (investor) to such a deal, then the chance of it being a success increases many times over. Interacting and networking with different buyers and lenders in the real estate business (and even outside it) will allow an individual managing such deals to get a very good idea of individual idiosyncrasies and preferences in the kinds of deals each of these people prefer to get into.
The buyer already knows that real estate is a good investment opportunity, having already shown the familiarity, willingness or affinity to invest - now all he needs is to be persuaded to go in for a particular deal over another that is less suited to his requirements. This is what predisposition strategy to get money investing in real estate is all about!
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Armchair Millionaire Community Bulletin: Real Estate Investing On the Rise.
Author: Anonymous
Source: free-articles
While making money in real estate is easy if you believe the late-night TV hucksters touting instant profits with no money down, the reality is quite different. Yes, it certainly is very possible to get better returns in real estate than in the stock market. But it requires a lot more work and a bit of luck.
When we recently asked members of the Armchair Millionaire community about investing in real estate, we heard about some good and not so good experiences:
"I first opted to try investing in real estate several years ago when moving out of state for new employment. Instead of selling my house, I contracted with a local property management company to rent it out and take care of it for me. This was one of the best moves I've ever made. This property has not only appreciated to near double what I owe on it, it also generates some monthly passive income. Since then, I have acquired other properties and am using the income they generate to purchase more." --Kevin
"My parents invested in a commercial real estate deal to build student apartments in a small town a few miles from a state university, but they lost money on it. It did sound like a project with good potential, but the person in charge went bankrupt during the building phase and all the investors lost their money."
--Simplicity Key
When considering the pros and cons of investing in real estate versus the stock market, consider these fundamental differences between the two:
When you invest in stocks, especially if you do so through an index fund, you can build a hugely diversified portfolio of stocks from around the country and the world. But when you invest directly in real estate, you're usually restricting yourself to one property (or type of property) in one geographic location. This leaves you vulnerable to shifts in that market.
On the upside, real estate prices in general over the years have tended to be much more stable when contrasted with the volatility of the stock market.
If you're determined to dabble in real estate, our checklist will get you started in the right direction.
The Armchair Millionaire Checklist for Investing in Real Estate
Understand what it takes. You'll have to devote a nice chunk of your time to your new enterprise. Also, be advised that you could expose yourself to financial and legal difficulties, and may have to deal with tenant and maintenance issues--all with no guarantee of a profit. If you don't have the right temperament for all this, stick with stocks.
Choose your specialty. Your could buy property with the intention of selling and turning a quick profit within days, or purchase a property, rent it out, and then wait years for it to increase in value. You might invest in single family homes, apartment buildings or commercial property. You could focus on run-down neighborhoods or glitzy shopping malls. Each of these is a very different game, so understand the advantages and disadvantages of each and then pick one to excel in.
Start slow. Don't take on too much too soon. Deal with one property and then, if it works out, go on to another. The learning curve is steep, so don't over commit your money while you're learning the ins and outs.
Get professional help. Positively have an attorney and CPA on your side, preferably ones who specialize in real estate transactions.
Consider REITs: Real Estate Investment Trusts (REITs) invest in publicly traded real estate companies but you buy and sell them like a mutual fund. With REITs you get diversification into real estate without the headaches of being a landlord.
THE BOTTOM LINE: As with all investments, when you're looking for higher returns in real estate you'll have to take on higher risks. Before you make the leap, closely scrutinize whether it's the best course for you, and then create a clear strategy for making it work.
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Armchair Millionaire Web site was founded in 1997. The company's first book, The Armchair Millionaire, was published in 2001. Today, www.ArmchairMillionaire.com is a fast-growing community of common sense savers and investors.
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Real Estate Investing : Team Building
Author: James Gage
Source: articleage.com
I didn't understand the concept of a real estate team at first, so I had a hard time with real estate investing. I tended to be a "lone wolf," trying to do too much myself. I have learned over the years that in real estate, you need a team of people you can trust and rely on. Here are some possible team members, and what they need to be on the team.
1. A Credit Repair Specialist: You may be saying - Why? My credit is fine or I can get by with my FICO score. The truth be told ,we can always use someone to monitor and repair our credit, especially in the age of identity theft. Why not have a professional monitoring your credit 24/7 - don't let a deal fall apart because you are unaware of a ding on your credit. Did you know that anyone can put a mark against your credit without you knowing about it - sad but true! Enough said.
2. An Accountant & Or Bookkeeper: To keep proper books for real estate investments is getting more complicated with all the tax-law changes. Find someone that understands the law, and understands what you want and what you do as a creative real estate investor.
3. A Creative Real Estate Attorney: Find someone familiar with the laws and legal customs of your area, and that has experience with the type of deals you intend to do (If you are buying rentals, he/she should be familiar with doing evictions, if your doing lease options they should be familiar with all the aspects of them.)
4. A Good Real Estate Agent: An agent with experience in the area you invest in and access to the MLS (Multiple Listing Service), can be a great help. If he/she is a seller's agent, she can still ethically bring the best deals to you once he/she knows you're a serious buyer.
5. A Payoff Specialist: We all have personal and business debts all through our working years. It has always been my recommendation to have someone who is good with numbers that can keep investors on track with the pay down of there obligations in the least amount of time possible. Example: pay down a investment property 30 year loan in 9 ? years without increasing my monthly payment. Can't be done you say ! Wrong, with the right individual at the helm, it can be a reality.
6. Investment Advisor: When you start making profits from your investments, you must have someone on your team that will make investment suggestions based on your leverage tolerance . So many people try to reinvent the wheel and spend thousands of dollars on information that is never going to get them the return they seek. Why not have a person who devotes 24/7 to the investment industry, while giving you sound diversification strategies to maximize your investment dollar. Never place all your eggs in one basket.
Start building that team Now. Investing in real estate is a whole lot less stressful and more profitable with a good real estate team. That being said, most gurus' tell you to go out and interview at least 3-4 of the above listed individuals before you assemble your team. If you take their advice you will spend more time on interviews rather than devoting your time to investing in real estate - does that sound like good use of your valuable time?
So, what's the answer?
After 15 plus years of real estate investing I have found the answer to assembling the best team to achieve all of the above goals for a ridiculously low fee structure.
What is it?
Visit my website and E-Mail me with your contact information and I will be happy to share the information with you.
James A. Gage is a best-selling author and internationally-known expert in Lease Purchase, AKA Rent To Own Real Estate Investing and Negotiating. He Mentors One-On-One throughout the U.S. and across the world. James is also director of the Gage Consulting Group, LCC , 800 Main Street, Suite 104 Holden, MA 01520 . http://www.jgage.com