Peter Vekselman Teaches YOU New Real Estate System
By Vic Hurlstorm | November 20, 2008
You don’t have to be a massive sports fan to notice the effect that the best coaching has on teams: the best coaches get the best results possible from their players. This often tends to result in countless wins. If your team performs to poor standards, it will to replace the coach rather than replace the players. Like anything that has the potential to be greatly rewarding, real estate investing is risky. You need to learn the ropes you so can minimize that risk. Real estate investing is a business where mistakes can be massively expensive. You can’t afford to make the same mistakes over and over; you have start out with good strategies, apply them well, and learn from any mistakes you do make.
Sound, sensible real estate investment practices must become your habits quickly if you are to succeed at investing in real estate. A really good real estate coach can help with that process. For one thing, the instant, objective expert feedback you will get from a real estate coach brings accountability into your process. You will understand the consequences of your actions, and cannot rationalize away your mistakes and regrets, or pass on the blame. According to Vince Lombardi, one of the greatest football coaches of all time, winning is a habit, but so is losing. What habit would you rather have? To win or to lose? Hmmm..? That’s not a question you had to think over very long, is it. A amazing real estate coach.
A real estate coach can also help you put together a business plan, and give you specific ideas as to what you need to do in order for your venture to be a success. Like a sports team, you will only reap the benefits of a good game plan if you carry out the game plan successfully. A good coach will keep your nose to the working hard and won’t be afraid to tell you the truth. A good real estate coach can keep you moving forward, and help you through rough times and answer questions. A good real estate coach can also provide you support, give you motivation,create knowledge, and help you keep your focus.
When you choose your real estate coach, you should choose someone who is actually active and successful as a real estate investor, and not someone merely trained in real estate who skipped the whole important middle step of being successful and went straightaway into training others. They should have many verifiable properties, and local properties are always better—local properties are indicative that the real estate coach works locally, and will be available for training and answers. If you hire someone as a consultant, they should genuinely care about your future. Make them demonstrate this for credability. If they don’t care about you before they take your money, they won’t suddenly start to care after they take your money.
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1000 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US http://www.CoachingByPeter.com
Topics: Marketing | Comments Off
Sob Stories About Property Flipping
By Vic Hurlstorm | November 18, 2008
What you don’t see on many of the television shows about flipping houses are the many sad tales of promising flips gone wrong. These epic tales of woe are often the precursors to financial hardships for quite some time as those who fail at their property flips work on recovering from their heavy losses and moving on with their lives. Some are hit harder than others but the snowball effect of a bad flip are often not even hinted out on the prime time televisions shows that are so proud of the many success stories that arise because of serious and studious efforts in the house flipping arena.
If you are planning to flip a house for a real estate investment you really need to take a step back and decide that you are absolutely not going to be one of the house flip sob stories that are rumored about in Internet chat rooms. In fact, you want to be listed among the success stories. Unfortunately that takes a great deal of proper planning that is almost never shown on these television shows. In fact, in order to put your best effort forward you will need to devote as much time as possible to studying and researching houses, prices, and property values in your area before you ever start to search for your first house to flip as you will need to invest in the whole process of working on your first flip. In other words, months worth of planning need to go into your first property pick in order to lower the risk of failure and to greatly improve the odds of success.
The second thing you will need to do when planning or researching your first property flip and avoiding a sob story is to be realistic about the outcome and avoid great expectations. With your first property flip you will be damn lucky to make any money at all. If you are expecting to make more money on your first flip than you made last year as a full time employee you might need to make other plans. The first flip rarely goes as expected.
Third, you will need to put back at least twice as much money (or even three times as much) as you think you will need for the improvements on the property in order to cover the actual costs that you will incure. There are inevitably tools, permits, supplies, and labor that wasn't counted on in the initial budget figures as well as the tendency to seriously underestimate the cost of the materials that will be needed in order to get the job done. If you can't afford to spend that much and then walk away without a loss then the property you are considering probably is not the best property for your first flip.
Finally you need to plan everything. Every day will need to be planned before you show up and try to work on the house and you will need to have all the materials and supplies you will need on hand such as coffee, lunch, drinks, tools and supplies. To many trips to the hardware store, lumber yard, lunch and coffee breaks will quickly eat up the hours of a day and any productivity that might have happened during that day. Avoid these costly delays by proper planning and you will discover that you have a real estate investing success story worth writing home about.
Please make sure to check out my real estate blog at http://cashmoneyhousebuyerblog.com
Topics: Real Estate Investing | Comments Off
How To Find The Money To Fund Your Flip
By Vic Hurlstorm | November 17, 2008
Real estate investments are quite expensive. Not only do you need the money to purchase the property you will be flipping but you will also need money for the improvements, repairs, and renovations that need to be made along the way. Unfortunately, the real estate business is very tricky and there aren’t many traditional lenders that would be willing to go all out to support you in your real estate investment business venture.
This means you are going to have to come up with a good portion of the money yourself or you are going to have to find someone else to fund a portion or all of your house flip. Let’s talk about first things first, the less interest you pay, the more money you bring home. You do not want to max out your credit cards in search of profits from a house flip if it can be avoided. Merchant accounts aren’t much better but they can help you keep better track of exactly how much money you are spending on the flip and some will even give you 90 days same as cash (this is great if you can complete the process within 90 days).
I should tell you that these aren’t strategies that are endorsed by me but they are definitely possibilities when it comes to finding money to fund your house flip. The best-case scenario is that you would have the money to play with and assume no real risk in the house flipping process but very few people trying to get started in real estate investing have that luxury.
That being said, one way that is probably to risky for most (especially if you are nearing retirement age) is to cash in your retirement funds. This is not one of the best methods for many reasons not the least of which is the fact that there are pretty big penalties for doing it like this and you are also risking your retirement security. It is an option however if you are in a bind for your flip. If your property flip is successful it will be water under the bridge, the money can be repaid to the lender or reinvested and the profit that came from the house flip can then be used to fund your next flip or other types of real estate investments.
If you talk about things carefully with your family and friends and you decide you are all willing to take the risk you can also use your home as collateral by taking out a second mortgage for the money. Again this is not the preferred method because the assumed risk is great for the security of your family. It is very important that everyone involved be aware that flipping houses is a risky investment. Not only is it risky because you aren’t experienced but the real estate market is fickle. Your house could sit for several months requiring costly carrying costs before it sells.
Forming a partnership is another way to share the risks and help lighten the burden when it comes to flipping houses. Keep in mind that this is a stressful business venture and should be treated as a business venture. Because of this reason a volatile or not so good friendship probably won’t be the best risk for a venture such as this. If you do choose to do a partnership you will need to discuss in depth the type of financial and labor investment that will be expected of each partner and the what share of profit that each partner will receive as well. You should also take into consideration whether you are willing to risk your friendship for the sake of profits or would you prefer to go with a partnership that isn’t one of your close friends (many real estate investment groups have investors that are willing to help with the financial side and assume most of the risk for a bigger share of the profits).
Banks will usually fund a part of the property costs if you can come up with a sizable down payment and show them a well thought out business plan. Do not rely on banks however if you have poor credit, lack a business plan, or do not have a sizable chunk of your own money to invest in the venture.
Please make sure you check out my real estate blog at http://cashmoneyhousebuyerblog.com
Topics: Real Estate Investing | Comments Off
MY FUTURE HOME, is it woth my HARD earned Time, Money and Effort?
By Vic Hurlstorm | November 15, 2008
WOW, I was asked to write an article to HELP a first time HOME Buyer not familiar with the United States system of purchasing a property. Having lived overseas I can relate to being very intimidated about such a decision and makes me reflect on the first time I purchased real estate in Puerto Rico.
After thinking about this and modifying this article, here is what I came up with. I hope this helps:
- A Buyer needs to determine how much HOUSE/PROPERTY they are qualified for. It makes no sense to look for a property to purchase if you can’t afford it. This is something that the American consumer is finding out NOW as we speak. Get a professional to pre-qualify you so you know what that magic number is and always look for a purchase price less than, 10-20%, that number.
- The purchaser needs sit down and write what items the property must contain that are important and affordable:
- Number of bedrooms/bathrooms.
- Square footage. Remember the more square feet the more expensive!
- Parking - Can you park all your vehicles on the property?
- Garage - An awesome place for storage and protection for your second largest purchase.
- Kitchen. This has always been important to me since I have experienced small ones. It is a high traffic area so make sure it is BIG.
- I could go on and on with this but you get the idea.
- By now most people would look for a REALTOR to help them look for a property. While this maybe a good option there are other avenues available to the FIRST TIME HOME BUYER:
- INVESTOR Properties. This is a property owned by an investor who is looking for a quick sale, profit, and moving on to the next deal. They will DEAL with you. This is a good opportunity for you to save a lot of money but you have limited property choices. More investors available more choices. There are many organizations available throughout the United States that attract INVESTORS.
- Since I am in Miami, Florida you can find investors at: Miami Real Estate Investors Association (MREIA)
- For other organizations check the internet. Google “Real Estate Clubs” or “Real Estate Investor Associations”
- Or check out http://www.creonline.com/ and click on the menu link:”Real Estate Clubs”.
- Foreclosures - Right now you can get AWESOME deals on pre-foreclosure properties but there is a learning curve. Rather than go into all the real estate jargon and explain the process, you can speak with my wife Alejandra. She is a FORECLOSURE COACH and teaches people expressing an interest in the foreclosure market. Check out her course description at: Foreclosure Coaching Program. She is also bilingual (Spanish/English) which really helps one of the largest minority groups in the United States purchase a property if English is not their primary language.
- FOR SALE BY OWNER (FSBO) - Usually this is not an option for someone who is looking to negotiate a deal. The owner of the house does not want to pay commission and probably does not want to pay for anything else. They are less likely to deal with you. If this is the case, state your offer and walk away. They may call you later.
- There are so many ways to pick up a deal and I highlighted some but not all. For more information contact your local Real Estate Investment Club. They usually produce seminars and workshop events on investment strategies that allow you to find a deal and save yourself some money.
- INVESTOR Properties. This is a property owned by an investor who is looking for a quick sale, profit, and moving on to the next deal. They will DEAL with you. This is a good opportunity for you to save a lot of money but you have limited property choices. More investors available more choices. There are many organizations available throughout the United States that attract INVESTORS.
- NOW you have found a property what is next? You have to determine what is the value of the property? Not what the SELLER says is the value but what you think is the value. Remember this is the biggest investment you will ever make so you must make sure you can afford this investment. Don’t let anyone talk you into doing something you don’t feel comfortable with. Listen to your inner voice. Here are some tools that can help you:
- Go to the property information sites provided by the county. These sites are useful to provide you with recorded history of your targeted purchase. For Florida, I have a page on my web site that lists all the property information sites by county at: Florida’s County Property Information and Clerk of the Court Websites
- For Example: The property maybe listed as a 3 bedrooms 2 bathrooms but the county records say it is a 2 bedroom 1 bathroom. A red flag should go off in your head. Why don’t they match?
- The county sites usually list all the Year-to-Date Recorded Sales information based on the purchase property’s address. Here is the sales link for Miami-Dade county in Florida: Miami-Dade Year to Date Recorded Sales
- Comparables - What are the comparable prices of properties listed and selling in your specified neighborhood?
- If you are using a Realtor, ask them to provide property comparables for your review. Make sure you get copies of:
- Pending Sales. This are current properties listed in the Multiple Listing Service (MLS) but have not been sold.
- Sale of Properties from the last three months if available. No sales maybe a good sign. Neighborhood Stability!
- If you are not using a Realtor, don’t panic. There are sites that list property comparables for FREE.
- Go to the property information sites provided by the county. These sites are useful to provide you with recorded history of your targeted purchase. For Florida, I have a page on my web site that lists all the property information sites by county at: Florida’s County Property Information and Clerk of the Court Websites
- Once you have determined the value you want to submit an offer to purchase. There are two ways to make and offer based on the determined value:
- Price - Buyer/Seller will negotiate based on purchase price.
- Seller/Buyer feels comfortable talking about price because they believe there is some room for negotiating the price but still produces a win-win deal for the Buyer and Seller.
- Terms - There may be no room to drop the price due to various reasons but the Seller will give you better terms.
- Maybe the Seller will hold a mortgage for the Buyer.
- Maybe the Seller will allow you take over “Subject To” the existing mortgage.
- Do a “No Money Down Deal”
- Exchange an Asset for another Asset. I have learned that you don’t need money to do a deal. The “Greater Miami Real Estate Exchangors” specializes in exchanging assets.
- There is a million ways to negotiate on terms. Don’t be afraid to get creative. Just make sure to place it in writing.
- Place everything negotiated in writing.
- Realtors have a contract template that is full of disclosure forms and allows you to enter your negotiated terms if it not available on the contract template.
- Deposit - Make sure you negotiate the smallest amount as possible. The minimum amount by law in Florida is $10.
- If you are not using a realtor, contact a local investor and ask them what they use for a contract. See if you can get a copy of one. I never had a problem getting any document for FREE. Just ASK!
- Price - Buyer/Seller will negotiate based on purchase price.
- After Buyer’s contract has been accepted by the Seller, the Buyers needs to do the following:
- Find financing to qualify for funding if the Buyer is borrowing money to purchase the property. I use Phoenix Capital Funding, LLC, licensed in 38 states.
- You may want to check the following:
- How are the taxes and insurance going to be paid?
- Is there going to be a pre-payment penalty?
- Are you going for a fixed or adjustable rate (OUCH!) mortgage?
- What is the interest rate you are going to pay?
- What percentage will they finance the property up to? 75%, 80%, 100%? This means you may have to come up with the rest of the money.
- Be careful of PMI. Ask your Mortgage Broker about that.
- What are the closing costs and their amounts? These can be negotiated.
- You may want to check the following:
- Get the house appraised. Make sure you have a true picture of the properties value from a professional. If you are financing the property, usually the bank will hire the appraiser.
- Look for a FULL SERVICE Home Inspection Company to do a complete examination of the property the Buyer has under contract. Their job is to find out what is wrong with the property so it can be repaired. The results of this examination may save you additional money before the purchase occurs. I use Castrillo Home Service.
- Property will need to be surveyed to check for property encroachments.
- Start looking for an insurance company that will provide coverage for you after the purchase has occurred. Please note that if the property is beyond a certain age, the insurance companies may require a 4 point inspection. This is used to determine whether the property has been brought up to existing code for plumbing, roofing, electricity and mechanical (A/C and Heat).
- In order to facilitate the deal a Title company is used to make the purchase transaction smooth, legal and protect the Buyer, Seller and the financial institution. Depending on whose Title company being used, the Buyer’s or Seller’s, make sure you have a Title company that knows what they are doing. Especially when the transaction maybe different from your normal purchase. I have been financially burned many times by Title companies that didn’t check for “OPEN Permits”, missed an existing mortgage during a Title Search, liens, violations, etc. Make sure you get Title Insurance to protect you from mistakes made by them.
- Also, you may want to order a C.L.U.E Report that provides a 5 year history of insurance claims against the property. This will tell you the insurance history about the property:
- Was it flooded?
- Fire Damaged?
- Vandalized?
- Find a good Real Estate Attorney. They charge a fee but they will protect you from many things that may cost you much, much more later on.
- I use in South Florida an awesome Real Estate attorney named Paul Woods for all my transactions and issues.
- His contact information along with several other individuals can be found on my website at: South Florida Service Providers.
- Find financing to qualify for funding if the Buyer is borrowing money to purchase the property. I use Phoenix Capital Funding, LLC, licensed in 38 states.
- You nearing the finishing line! All the documents, inspections, appraisals, searches, deposits (MONEY that may come out of your pocket or not) have been done. Both parties are ready for CLOSING. An appointment is scheduled to sign a bunch of papers. CAUTION: Deals can and will blowup at the closing table!
- A good friend and mortgage broker Joseph F. Suarez wrote an article: “Ten Reasons Deals Fail at Closing”. It explains why deals fail at the moment of Truth! Don’t go crazy like I have done in the past! If it is a sound deal and both parties are motivated everything can be negotiated and fixed.
- Last but not least, make sure the transaction is recorded properly. One time I received a recorded DEED with a strange name of a woman. Try explaining that to your wife! It’s OK! Call your Title Company to correct the error and record it again.
- You’re DONE! Go enjoy your HOME that you have worked so hard for!
Bob Burns
(305) 300-6242
Email: mailto:rkburns@investmentpropertiesmiamiflorida.com?subject=Article%20-%201st%20Time%20Home%20Buyer
Website: http://www.investmentpropertiesmiamiflorida.com/
Topics: General Real Estate | Comments Off
Peter Vekselman Real Estate Consultant
By Vic Hurlstorm | November 10, 2008
Do you invest in real estate? Is your business as successful as you feel it should be? You might consider hiring a real estate consultant. Real estate consultants can focus on a number of different aspects of your business. Real estate consultants can specialize in many different aspects of the real estate business, or they can provide comprehensive consulting services.
One approach to real estate consulting is through management consulting. This would entail the consultant taking a close look at your business practices and determining what you are doing right, what you are doing wrong, and what you are doing right but could be doing better. For example, have you set measurable, testable performance benchmarks? Do you have a sound, practical business plan? A good real estate consultant can help you structure your business practice in ways that will help ensure success. They can provide support, , motivation, knowledge, and help you know where to focus and learn to keep our focus there.
Another type of real estate consultant is the type of consultant that performs research. This research may consist of no holds barred market research. Market research will help you determine which types of properties best suit which type of customer, as well as who is buying. Market research can also highlight demographic trends that will impact your business. Wouldn’t it be great to buy up the next hot, trendy neighborhood well before everyone else gets there? There is some luck involved, but you don’t need to read the tea leaves or consult oracle bones. Most of what you will need to know is present in what’s happening on the ground right now. A consultant can mine the vast reams of data present in any market and help you spot these trends.
Real estate consultants often offer other types of research as well. For example, if you are thinking of taking your real estate investing into another market, and thereby diversifying geographically, real estate consultants can advise you on local real estate law and zoning practice. They can also advise you on tax planning for your real estate investments. Real estate consulting firms can also do boots-on-the-ground research, such as locating properties that you can potentially invest in. This would give you a leg up on competitors not employing such research as you may find properties well before everyone else is aware of the opportunity.
These are just some of the many potential benefits of partnering with a real estate consultant for your real estate investment business. The right real estate consultant can help you firm up your business practice in exactly the areas where you need help, whether it be managing your business, performing market research and anticipating investment trends, or advising legal, zoning and tax planning aspects of your business. Real estate consultants can give you a clearer picture of what you need to do for your real estate investment business to thrive, and help you plan the roadmap to get where you want to go, as well as set achievable benchmarks—and achieve them.
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1000 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US
Coaching By Peter)
Topics: Selling Your Home | Comments Off
Would A Property Manager Help?
By Vic Hurlstorm | October 15, 2008
There are several decisions you must make when investing in real estate. One of those decisions, for those handling rental properties is whether or not you need a property manager. Property managers can be used in many different ways and are great for those who have many properties to manage and wish to have a social life away from their real estate investing businesses. A property manager is your buffer between your tenants and your family.
The benefits of a good property management service are quite numerous. To begin with you will find that they eliminate the need for tenants to have your phone number. If you’ve dealt with rental properties before without the buffer of a property manager you are surely aware that it doesn’t matter what time of night or the morning things go wrong, you are the first person your tenants call to fix those things. A property management service is able to handle many things for you while letting you sleep through the night. It’s no small favor when you consider the multiples of tenants as you purchase more properties. A few late night phone calls and many rental property owners are almost ready to get out of the business of renting properties.
Property management services also often happen to have a qualified staff of maintenance people that can handle many of the things that go wrong with rental properties. The costs for these services might be included in the fees for using the property management service in general or certain services may have additional charges. Regardless your property manager or property management team is often the best source to find contractors to handle the repairs they cannot make for you as well as the repairs that they can. It’s very comforting knowing that you won’t be getting up in the morning and having to call around for a plumber on the first cold day of winter. Moreover it’s nice to know that someone else can deal with some of the negative things about owning rental properties.
My favorite reason for seeking the services of a property manager is that they are qualified to handle the legal aspects of taking care of tenants who cannot pay their rent for months on end. After all, this is a business and while you can relate to the circumstances that make some people unable to pay their rent you need the agreed upon rent from their property in order to pay your own bills. It is way easier to leave the unpleasant tasks to someone else, especially if you are soft hearted like me, and are willing to help every sob story you hear.
Property managers will also handle all the advertising for your property and the cleaning up and repairing that are necessary between tenants. They also allow you to take vacations and such filled with the knowledge that your properties and tenants are in good hands even when you aren’t there to oversee everything. Everyone needs to take a break sometimes it’s nice to know that with a reliable property manager you can actually sit back and relax while taking those breaks without worrying about all the particulars of the properties you own so far away.
If you are going to invest in real estate, this is one of the most worry free ways you can do it. The more properties that you have, the more sense it makes to use the services of a property manager.
Please don’t forget to check out my blog at http://cashmoneyhousebuyerblog.com
Topics: Property Management | Comments Off
Boot Camp For Flipping Houses
By Vic Hurlstorm | October 14, 2008
If you are anything like millions of Americans you have probably caught countless shows on cable television that boast the serious profits that can be made by flipping houses. This is a very true statement, serious money can be made when one goes about flipping the correct way, however, serious money can be much more easily lost when a house flip goes wrong. If you are trying to find your fortune through real estate investing you need to pull yourself up by the bootstraps and understand a couple of property flipping basics.
The first thing you need to understand is that the biggest goal in a project such as this is to make as much money in as little time as possible. This means several things to the wise investor not the least of which is that you must always have a complete inspection performed before you make any sort of financial commitment to the house. A good inspection can help you identify work that must be done, whether or not there is any structural damage, or whether there are any unexpected problems such as signs of termites or water damage behind the walls.
These are very important things to know and should have a significant impact on your offer on the property as they will have a direct effect on how much you will need to invest in making the property sellable and whether or not the property will even be profitable when you consider how much money will be needed to get it in minimal selling condition and how much you can reasonably expect to sell the house for after that.
Once you have the inspection done it is a good idea to take into account all the things that will need to be done to improve the property and the things that must be done in order to get the property in sellable condition along with permits that are needed, inspections that are needed, and jobs that require licensed contractors in order to meet local code requirements. Each of these will take a big investment in order to complete and that should also reflect in your offering price.
Far too few would be house flippers manage to take in the big picture when making plans and this is where they end up missing out on the bigger profits that can be made by successfully flipping houses for the lowest possible investment with the highest possible return on their investments. When making plans you will definitely want to go with improvements that are very cost effective.
Avoid making structural improvements to the property unless you have a licensed contractor sign off on the wisdom and safety of those changes, as most of them can be very expensive as well as dangerous to the stability of the house. At the same time you should salvage as much as possible within the existing structure. Flooring and paint are almost always required in a house flip but you do not always need new cabinets in the kitchen or bathroom fixtures. Chances are that new doors and new hardware on the cabinets in the kitchen would be a great fix for old and tired cabinetry while make a drastic impact on the overall look of the kitchen without stealing some of your serious profits (cabinet doors cost way less than making new cabinets and so does paint and they can add the appearance of good cabinetry).
The biggest idea to walk away from house flipping boot camp with is the idea that the most eye catching impact you can have on the house for the least amount of money spent the better. In other words you don’t want to purchase a home that needs new heating or air conditioning as they are not visual changes and are quite expensive. Find a property to flip that needs only minor cosmetic repairs and a dash of style and imagination and you will be able to maximize your profit. After all, that is what real estate investing is all about.
Please don’t forget to check out my blog at http://cashmoneyhousebuyerblog.com
Topics: Real Estate Investing | Comments Off
Do Your Due Diligence When Buying Property in Costa Rica
By Vic Hurlstorm | October 14, 2008
As with any major investment, when investing in Costa Rica, it is important to do your due diligence.
This means getting all the facts and figures, about all facets of your transaction. This means you need to understand what exactly you are buying, what the purchase includes and what the limitations (if any) are. In many areas, there are limits to building heights, depth of setbacks, and other details which you need to be aware of before purchasing there.
While the Internet has made real estate investing and land purchasing easier, it is wise to approach any large transactions from a perspective of information gathering and fact-finding. Don’t buy homes or land sight unseen.
It can be tempting to try and purchase a beautiful piece of land from the Internet pictures, but you can make a grave mistake if you end up paying for land, or a home, or some property which is not what you actually take ownership of at the completion of the sale.
Some areas in Costa Rica can not be built upon, but since there are few regulations on who can sell land; the unwary buyer may end up purchasing land which can never be built on. This is why doing your due diligence is vitally important when investing in Costa Rica.
Save yourself some grief- work with professionals who know the details of investing here. Select a company or individual who has experience in this area, who has successfully sold to other happy customers, and, who, ideally, has purchased property in the country him or herself. Find someone with whom you can work well, and don’t be shy about asking a lot of questions and seeking a great deal of advice.
The more you know, the better prepared you will be to make a good decision.
Topics: Real Estate Investing | Comments Off
Commercial Real Estate
By Vic Hurlstorm | October 14, 2008
The financial industry greats will be among the first to tell you that commercial real estate investing has the potential to bring in very big profits. They will also happily inform you that in some cases the risks far outweigh the potential, especially if they are among the more conservative investors in the industry. Those investors that have made their wealth and fortunes in real estate however will tell you that investing in real estate is well worth every bit of risk when you can manage to work through the tough spots and find your way to real estate investing fortunes.
Commercial real estate is somewhat unique among real estate investment types. This is the type of real estate that requires a high investment to get into the game, much higher than most residential property and poses equally great risks depending on what you plan to do with your commercial real estate investment. Of course you will also find more than a few options for your commercial real estate investment that many investors find appealing.
Most commercial real estate investors find that leasing office or building space to be the safest and best route to take when it comes to real estate investing is the way of renting office space or warehouse space to other businesses. They feel that this is a relatively steady source of income because most businesses prefer to keep their locations as long as possible. Very smart business owners are made well aware that customers, clients, and vendors will need to be able to locate them in order to do business with them and for this reason, want to keep their business in the same location when it is possible rather than reestablishing themselves in different locations year after year.
Commercial real estate investing is a bit of a different animal than traditional residential real estate that many of us are more familiar or comfortable with. You must do a lot of research before jumping in with this particular type of real estate investment. Commercial real estate investments can take on many forms. From strip malls and shopping malls to office buildings and industrial complexes to sky scrapers and high rise condos you will find all commercial real estate interests. Whether your interests lie in business or personal types of commercial real estate there are significant profits that stand to be made.
Unfortunately, beginners often find the path to commercial real estate investing laden with thorns. You will need a massive contribution to fund your commercial real estate pursuits and it is probably best if you can find a group of investors in order to share some of the risks. Real estate, in and of itself, is a high-risk venture. Commercial real estate is a little more risky in the beginning however once you get established and people, especially investors, get to know your name you will find that way to real estate wealth will be much easier obtained through commercial real estate, if you play your cards right than many other types of real estate investing.
To create even bigger profits it is often best to work as part of a team of investors when it comes to commercial real estate investing. Not only does how you approach your investment spread out the risks to some degree but also helps find the good deals, spreads out the labor pool, creates a brainstorming environment of ideas, and allows you to bounce those ideas off everyone else seeking temperance and enthusiasm for members of your investment group in like measures. It is a great idea for those who are looking to build a prosperous future in the field of commercial real estate investing and can be extremely profitable for all involved.
Commercial real estate investing can be extremely intimidating if you allow it to be. Don’t put yourself in a situation where you feel that you are not in control or you feel completely uncomfortable for your first commercial real estate investment but if you have the means, the price is right, the deal appears to be solid, and you feel you are up for the challenge, commercial real estate profits can be a serious source of motivation.
Please don’t forget to check out my blog at http://cashmoneyhousebuyerblog.com
Topics: Commercial Property | Comments Off
The Advantages of Flipping Houses
By Vic Hurlstorm | October 12, 2008
Aside from the obvious financial rewards that go along with real estate investing and flipping houses there are a few more abstract benefits that can be gained when you embark on a house flipping adventure if you are looking for a little more incentive to get going in the direction of your dreams of real estate riches through flipping houses.
Most things in life have more than one pro or con to them and the same can be said when it comes to flipping houses. Whether you are doing this for a living or this is a one-time deal you will find that there are all kinds of little lessons you learn along the way. Knowledge is rarely a bad thing and the lessons you learn while flipping houses are lessons that can be applied in many aspects of your life.
1) Budgeting. There are only a couple of things that can give you a crash course in budgeting your money faster than flipping a house. In order to successfully flip the house you are working on you will need to learn to budget quickly or you will wind up literally hemorrhaging money. Learning to set a budget and making sure you stick with it are both very necessary skills for flipping houses but when they carry over into other real life situations you will find that this is a very useful skill that has you looking at everyday purchases through your new eyes.
2) Muscle Definition. Who knew that flipping houses would be such an excellent workout? This is especially true for those who traditionally hold jobs that aren’t necessarily dependent upon physical labor and those that do much of the work themselves (which is highly recommended when you can in order to save expensive and profit eating labor costs). From heavy lifting to hammering and several other physical jobs in between you should discover that your labors are rewarded in more ways than simply watching your project come together.
3) Attention to Detail. This is a big perk that comes from flipping properties and you can bet you will get better at this with every new property. The money, when flipping houses is often made in the small details that others will overlook such as new electric faceplates, proper staging, and a good eye for color throughout the property. These items make potential house buyers see a property that is loved and cared for rather than another house on their list of properties to see. If you take this attention to detail into your 9 to 5 job after flipping houses or into your tax preparation, event planning, and home organizing you will find that the lessons you've learned while flipping houses are well worth the time, effort, and labor that went into learning them.
4) Positive Thinking. You will hear many times in life that positive thinking is a powerful tool. There are only a couple of areas that this holds true more than when it comes to flipping houses. You will definitely want to season your thinking positive with a BIG dose of reality but you should be well aware that thinking positive has many advantages to you when flipping houses and in almost every other area of your life. You do not want to spend the time you could be improving your flip searching for problems or excuses.
5) Just Do It. The old Nike commercials had a point and if flipping houses doesn't teach you anything else it should teach you this lesson. Procrastination wastes money. For every day that you own the property you carry the expenses of the house (electric, mortgage, interest, etc.) get in there, get it done, and move on to the next project. Procastinating on the tasks that you don't want to do, will not make them go away so you might as well just go ahead and complete them.
Flipping houses isn’t rocket science but it does take a unique combination of luck, skills, and stubbornness to turn a profit in this particular business. Learning the teachings above will help you not only be successful when it comes to flipping properties but in other areas of your life as well.
Topics: Real Estate Investing | Comments Off