Real Estate Investing Produces Extraordinary Profits
Author: Dr.Phil Speerbr
Source: articleage.combr
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Imagine making $5000 a year from real estate investing without recognizing you are real estate investing!
Real estate values are so dynamic. The marketplace is always fluid and changing. The only constant is the eventual escalation of value.
Suppose you had owned that little piece of property in your neighborhood years ago where McDonalds is located today. If you had owned it for 20 or 30 years, what would your profit be from that sale?
Real estate values fluctuate in cycles and according to a myriad of owner situations. However, the price of real estate almost always goes up.
Let me give you a real-life example. (And if you are old enough, you have your own similar story!)
In 1970 I bought a little house in the Green Hills section of Nashville for $27,000. You know it wasnt much because of the price. But it was home, and the location was respectable.
In 1978 I sold that house for a bigger house in Green Hills. The sales price for that little house I sold was $67,000.
Thats when the light bulb went off in my head! I suddenly realized that I had profited $40,000 from that little house in only eight years. I hadnt added any more rooms or a patio. And I hadnt even painted. I was witnessing first-hand how property values increase, often drastically!
I made a $5000 profit per year from that house, just from living in it.
It was an amazing discovery to me. It had been a reality forever, but it was no longer a vicarious experience in my mind. It was alive, because it was happening to me. And it changed my view of the world. That personal experience led me to start a real estate investing career.
I still live in Green Hills, and I pass that house every day on the way to the post office. That house recently sold for $200,000. Same size. Same location. But a phenomenal increase in value.
Asset growth from $27,000 to $200,000 is pretty astounding. And while the asset growth ratio varies from property to property (and city to city), real estate values generally increase. Even owning and maintaining your personal residence is cash generation right under your nose. I cant believe I was so dumb not to see it before it became so apparent.
If even home ownership can be so profitable, can you fathom the profitability in 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. 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 at 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 -
http://www.AAREIT.com/.br
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Freddie Mac Changes Hit Real Estate Investors Hard
Author: Jennifer Mingebr
Source: ezinearticles.combr
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With todays historically low interest rates coupled with a glut of foreclosed properties that can be picked well below market value, one would think today would be a great time to be a real estate investor.The old adage of buy low and sell high is tailored made for todays market but the bubble is about to burst with a recent announcement by Freddie Mac.
August 1st Freddie Mac revised its requirements for investment property mortgages that will negatively impact the real estate investor community.With these new revisions real estate investors will be limited to a maximum of four mortgages on 1-4 unit investment properties.The previous limit was 10.
Why should investors care about a change made by Freddie Mac?Freddie Mac and its sister organization Fannie Mae underwrite almost 50% of conforming mortgages on the secondary market in the United States.Freddie Macs impact on the lending market is so great that if it sneezes, the entire industry catches a cold.
If Freddie Mac makes a change in the lending requirements then you can bet that Fannie Mae will follow soon thereafter.Many lenders have already implemented these changes in their lending practice well ahead of the August 1st date.These changes do not bode well for the real estate investor community.
With the recent tightening of the credit market followed by these changes by Freddie Mac it is becoming a difficult time for real estate investors.Savvy investors are salivating at the opportunities in the marketplace that allow them to purchase properties in some cases up to 50% less than their value just a few years ago.Starting August 1st these opportunities will disappear as investors will be unable to get mortgage financing.
For investors like myself who already own more than four investment properties, we will no longer be able to get mortgages, and most of us will probably leave the real estate investment market.The only lending option available to us would be portfolio lenders.
Real estate investors may choose to just sit on their current inventory of investment properties and wait out the storm.Until the clouds clear these investors will not be able to even refinance their existing mortgages.
These changes will have a ripple effect in the real estate investment community.There will be a smaller pool of investors competing to purchase investment properties.Houses that are normally purchased by investors instead of owner-occupied buyers will languish longer on the market which will result in a decline in price.
The only silver lining with these changes are for all cash buyers.If you have money then you can almost name your price for investment properties since the pool of competitors will have all but dried up.Banks will be jumping at the opportunity to offload their non-performing assets at any price.
The changes by Freddie Mac appear to be punishing investors as if they were the sole culprits of the recent turmoil in the lending market.Investors will be forced to find alternative sources of financing or just be content with four investment properties.
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pThere are many ways to make a fortune investing in real estate. For more information about real estate investing visit my website at a target=_new href=http://www.investinrealestate101.com/ rel=nofollowInvestInRealEstate101/a./ppFor access to three of the greatest books every written on personal development visit a target=_new href=http://www.investinrealestate101.com/your-free-reports/ rel=nofollowYour Free Gifts/a./pbr
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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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How to Use Real Estate Cycles to Your Advantage As an Investor
Author: Kevin Melitobr
Source: ezinearticles.combr
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Recently, there have been events within the real estate market that have caused many markets to change. These changes affected many real estate investors because the investors were not adjusting their strategy to the market. When the market changes as it has, your investing strategy must change as well.
You will be able to use this article to help you identify stages in the real estate cycle. When you know what the stages are in the cycle and what is causing the change, it will be easier for you to see the next stage coming. As a result, you can tailor your investing strategy to what is happening in your market.
Real Estate Cycle Stages
When you look at real estate cycle, the stages of the cycle go like this:
1. Increasing Rents/Prices
2. Increasing Construction
3. Overbuild
4. Rent Concessions
5. Declining Rents/Prices
6. High Vacancy
7. Little Activity
8. Accumulation
9. Low Vacancy
10. Increasing Rents/Prices (and the cycle continues on)
Basically, the factors affecting these cycles all revolve around simple supply and demand factors. Supply and demand are the major influences how the cycle changes from one stage to the next. Lets start with Increasing Rents/Prices portion of the cycle. The demand has outpaced the supply and caused prices to go up.
As supply begins to catch up with demand, the cycle goes towards the bottom of the cycle which is declining rents/prices. Listed above are the stages that happen between the top and bottom of the cycle. The important thing to remember is that supply (existing homes for sale/rent and new construction) and demand (people wanting homes for purchase/rent) is what is driving the changes in the cycle.
Keep in mind that there is not a set time frame of how long it takes to go from one stage of the cycle to the next. It could take 20 years or more to go around the cycle one time. It is also important to point out that each real estate market acts independently based on the supply and demand of their own area. This means that New York, Houston, and Seattle are all going to be in different stages of the cycle because they are their own market.
From my experience of training investors, we have found that there are certain investing techniques that are more effective in one stage of the cycle than another. In the top portion of the cycle (this means starting with the little activity stage and going around the cycle until the overbuild stage) rentals, rehabbing, and lease options are the best strategies that are suited for those conditions. These strategies will help you take advantage of the increasing demand to maximize your profits based on strategies that benefit from the increasing demand.
In the bottom portion of the cycle (starting with the overbuild stage and continuing until little activity) wholesaling, seller financing, and lease options are usually the best strategies for those stages of the cycle. Lease options mainly work well in the bottom stages of the cycle as an entrance strategy so that you are not stuck with a deal that is declining in value. These strategies are designed to protect you from the downside of the market while being able to profit.
What Does This All Mean?
The purpose of this article is to keep people from making mistakes when buying investment real estate. When investors understand how cycles work, what is driving the cycles, and what techniques are best, their success rate increases dramatically. You will be investing with the trends of the market instead of fighting against it. You are not going to be able to change the market conditions, but you can use techniques that will put market conditions in your favor. This is truly becoming an investor as you use the market to your advantage.
If you know what stage your market is in, you will also be able to adjust your strategy as the market changes. When you see levels of supply and demand changing, you can prepare for the next market cycle and modify your strategy to match the conditions. I am not telling you to time the market. Trying to time the market usually ends up in disaster. What I am telling you is that money can be made in real estate at any time. It is a matter of knowing how to use various techniques and when to use them. This will make your success rate increase because you will be able to make a profit when other investors cannot.
Critical Steps
Whenever you consider purchasing an investment property, I recommend the following steps:
1. Identify the stage of the cycle in your market - Again this will be based on supply (inventory of properties for sale/rent/being built) and demand (people moving in, jobs coming in, number of properties being sold). Find a qualified real estate agent and your city planner to obtain this information.
2. Analyze the deal - You need to crunch the numbers to ensure that the deal is profitable. Is there a certain technique you are going to use on the deal?
3. Make sure the technique works well for that stage of the cycle - When you align the market stage, the property, and the strategy with your market conditions, profitable deals are much easier to do. Successful deals are more plentiful when all three of these factors are aligned.
Spend the necessary time to obtain the information on your real estate market. This information will make you a more powerful investor so that you do not get stuck in deals that are not good for your market conditions.
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pKevin Melito is a real estate investor, consultant, and runs a company that offers training programs for real estate investors. He has created the web site a target=_new href=http://www.real-estate-investing-cycle.com rel=nofollowhttp://www.real-estate-investing-cycle.com/a to teach people how to invest in real estate./pbr
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An Introduction to Real Estate Investing
Author: Adem Hamidovicbr
Source: articleage.combr
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There are a great many books and web sites devoted to real
estate investing out there, but most of them concentrate on one
specific area of investing. Its often hard to find a general
description of real estate investing, one that lists the various
real estate investing strategies and how to get started. Thats
what this article will set out to do.
Before beginning, you must understand that real estate investing
is not a get rich quick scheme. Real estate investing can, and
will, make you wealthy, but it certainly wont happen overnight
and it will require work. As you perfect your technique and gain
experience, the amount of work needed to gain a lot of money
will reduce, but it will take effort and persistance to make it
there.
If youre completely new to real estate investing then the only
sort of investing strategy youre likely aware of is rental
properties. Landlording has been around since there have been
houses and people to rent them to, and it will continue to be a
wealth builder. In fact, most of the no money down real estate
strategies you hear about still include rentals as part of their
plan. Still, there are other ways to make money from real estate
investing out there.
The next most traditional method is to buy a fixer-upper, fix
it up, and then sell it for a profit. This is commonly referred
to as rehabbing and is a very good way to make a lot of money
in a relatively short period of time. Most rehabbers wont even
look at a property unless they can make at least $20,000 of
profit, and this is usually within 3-4 months time. Rehabbers
tend to be experienced investors with available money, or have
partners who help provide any extra cash required.
But if youre just starting out you likely wont have access to
large amounts of money. One way to get involved in this area of
real estate investing without needing any money at all is to
flip houses to these rehabbers. What this entails is you going
out and finding these fixer-uppers, noting all the work required
to fix the place up. You then place a low offer in to the owner,
taking into account the fix up price and some built in profit.
Once you have the house under contract you then flip it to a
rehabber for a small fee. This can result in several thousand
dollars for you, without you having to spend a dime. Flipping
properties can be a great way to start your real estate
investing career.
Another no money down technique thats popular on the late
night infomercials is called lease optioning. This is
basically a rent to own strategy that allows you to control a
property without ever taking ownership of it. Its a slightly
more complicated strategy that warrents its own article, but it
does allow you to make money in several different ways, each
without ever having to spend any of your own money. If youre
not put off by longer term investments then lease options are
definately worth more research.
There are other strategies that involve foreclosures and getting
the home owner to sign the deed over to you, but for now Id
suggest learning more about flipping and lease options as
entry-level real estate investing strategies.
How do you find properties that would make good real estate
investments? Again, an entire article can be devoted to that,
but there are basically two ways: you go looking for them, or
you get them to come to you. The first way involves reading the
newspaper classifieds and scanning the Multiple Listing Service
(MLS). This is where having a great real estate agent is a must
- they can get you more details on homes than you can view on
the mls website, and can often let you know of great deals
before they even become available to the general public.
Having home owners contact you means setting up an advertising
campaign. This can involve placing ads in the newspaper, placing
bandit signs at strategic locations around town, starting a
direct mail campaign, etc. There are many ways to let people
know that theres a new real estate investor in town, and it
would be in your best interest to try each of them to see which
ones work best for you.
Whether you decide to go looking for deals, have them come to
you, or both, they key is to be persistant. Real estate
investing is a numbers game - most of the time you wont be able
to make the deal work, but every time you do it translates into
thousands of dollars for you. The more owners you talk to, the
more deals youll be able to do, the more money youll make.
I hope this article gives you a bit of an idea of what the world
of real estate investing is like. Theres a lot to learn out
there, and all of it is very interesting. Find the area that
interests you the most, then get out there and start talking to
home owners. Dont be discouraged if youre getting turned down
a lot - just remember that when it does pay off, it will pay off
big!br
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7 Top Real Estate Investing Jobs
Author: Steve Majors
Source: download
Real Estate investing has long been proven to make tons of
CA$H for the active investor and many of the real estate
investing methods and techniques used to make some of
the biggest (and quickest) CA$H only require a little time
and a bit of knowledge (i.e., NO MONEY and NO CREDIT!) to
rapidly bring home a really big check!
That is the appeal of Real Estate investing courses to most
people ?C to do deals that require little/no money or credit
yet pay back huge rewards for the time and knowledge you
get from following their systems.
Yet, the "investing" gets a bit lost in most of the world of
"Real Estate Investing" - there is no "investing" other than
a bit of time - there is no ROI (Return On Investment) other
than the time-for-money factor.
That is why I call these activities Real Estate Investing Jobs -
they stop bringing income as soon as you stop working
them.
Real Estate Investing through these jobs, while they make
you CA$H, will never give you financial freedom as they only
generate quick money and not long-term, passive income.
This article will look at some of the more popular methods of
Real Estate Investing jobs.
One of the biggest challenges to overcome is the fact that,
when discussing the money made through Real Estate
Investing, the numbers of dollars are much more than your
common corporate job, and many people simply are not
ready to handle such discussions.
You see, when you were very young, you were
programmed to think that $X was a large amount and often
this amount was only a few hundred, or perhaps, a few
thousand, dollars.
Yet, when discussing Real estate investing deals, there are
often multiple thousands of dollars at stake.
Most people simply are not used to discussing such
numbers, and wind up not making the money they could.
They simply have not learned the language of Real Estate
Investing.
One of the first lessons I teach my students is how to get
past the fear of discussing hundreds of thousands of dollars
and changing the programming you were given as a child to
form open ideas about money and investing to make even
more money.
One quick step you can do to begin this journey is to look
deep inside yourself and ask yourself how you feel about
money. Can you comfortably discuss figures in the hundreds
of thousands of dollars?
Most people learn quite quickly - with just a little bit of
practice.
With that in mind, it is time to look at these Real Estate
Investing Jobs more closely.
These 'jobs' bring you various levels of income, depending
on your area, so instead of discussing them in dollar values,
we will look at them from a percentage standpoint.
Of course, with these examples, the amount of work, time
and knowledge you put into it will certainly pay off more (or
less);
1. Property Profiling (birddogging) - this popular way to get
started in real estate investing provides a real estate
investing job with a decent income - something along the
lines of what a factory worker would make in the area.
2. Lease Purchase - this powerful tool can be utilized to buy
and sell property with no money out of your pocket (a Real
Estate Investing sandwich), while keeping a nice pocketful
of money for your time (can you tell this is one of my
favorites?) An active person can make about 1.5 - 3 times
more than the Property Profiler, on average.
3. Subject To - with a bit of training, you can make this
method of real estate investing really pay off big. Once you
know how to negotiate these deals, your real estate
investing income will reach that of corporate executives -
with much less of a time requirement.
4. Foreclosures - while highly lucrative and one of the top
income producing methods of real estate investing, the time
and knowledge required to actively pursue such deals is
becoming more difficult all the time.
The payoff to those that can perform these deals is huge -
about 10 times that of the Property Profilers, however,
finding deals is much more difficult due to the number of
people looking for them.
5. Tax Lien certificates - this is a true form of Real Estate
Investing - actually putting your money into something that
produces a return - one of the safest investments around
with returns that beat any other form of passive investing.
If you have money to invest, this is a great area to get into
with 15%+ return with almost no down side.
This is still a real estate investing 'job' as tax lien
certificates are short term, quick turn profit generators, not
sustained over time, plus they take skill and talent to make
the maximum profits.
6. Short Sales - this form of Real Estate Investing is another
job, as your knowledge level and timing are extremely
important. A lot of money can be made with this type of
Real Estate Investing job - as much or more than any other
form - once you know how.
7. Secondary notes/Purchasing Equity positions - a 'higher
level' of real estate investing, where more knowledge is
needed to limit the risk, however, the returns on equity
position purchases can be extremely high - from 6%-10%
for fully passive results and 'sky's the limit' for purchasing
equity positions.
Yes, once you get past the internal false programming - the
LIES you have been taught all your life about money, you
can begin a successful career in Real Estate Investing -
through a variety of Real Estate Investing Jobs and then
onto true, full, watch-your-money-grow Real Estate
Investing.
Steve Majors - The Lazy Investor
Profit from Real Estate Investment articles, real estate investing information and news from one of the most creative investors on the planet ~FREE MEMBERSHIP & real estate training course~ http://TheLazyInvestor.com
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