Condos

Condominiums are simple. Ordinarily the lawn mowing and all outside maintenance is included in the association dues. You never worry about the yard or the roof, and there may even be a pool that you don’t have to clean. This makes life simple for retirees, single people and young couples without kids. Sometimes they are also great starter homes. When we were living in Tucson, Arizona, for example, two bedroom houses started at $160,000, but a two bedroom condo could be bought for $80,000. Keep in mind though, that in some areas condos will cost more than houses. Also, there will be rules, so be sure you can live with them before you buy.

A Family Home

A basic family home is usually the goal if you have children. Whatever the style, the idea is to have room for everyone and preferably a yard for the kids to play in. One advantage of buying a basic three bedroom, two bathroom house is that this is the easiest type of home to sell. One disadvantage is that these “regular” homes can take a lot of work and money to maintain.

A Mobile Home

People buy mobile homes because they are affordable. A used mobile in a park might sell for under $10,000, and though they go down in value, if you paid cash you would have only the monthly lot rent. That can be hundreds less per month than what it would cost you to rent an apartment. On land a mobile will often cost less than half of what a similar-sized house costs, and will appreciate in value (because of the land). This can be a great way to get into home ownership. My first home was a mobile on a lot I bought for $19,500 and sold for $45,000. They do generally have lower-quality construction compared to houses, so be prepared for a few repairs and annoyances.

A House In Town

I don’t like the fact that our current house is over 100 years old. It is nice, but I don’t see why people are so fascinated by old homes. This is one of the problems of buying near the center of a town or city - the houses are usually all old. The big advantage, and the reason we are here, is that you can walk downtown. There is even a grocery store within walking distance. Being in town is a lifestyle we love.

A House In The Suburbs

In the suburbs you get newer homes and room for the kids to play. In some cities this is where you have to move to get away from the crime. If it is a nice subdivision, you can expect decent appreciation over time as well. The drawbacks include yard work, maintenance and being farther away from stores and jobs. You may want to consider those extra miles now that gasoline is getting so expensive.

A Fixer Upper House

There are two good reasons to move into a house that needs a lot of work. One is just to get your home cheap. You might save $25,000 or more if you buy a “problem home” and do the repairs yourself. The other reason to do this is to make some money. The current law allows you to keep all the profits tax-free if you live in the home for two years or more. If you like working on houses and don’t mind moving a lot, you could have a good chunk of tax-free profit every couple years.

Other Types Of Real Estate

Cabins are sometimes cheap, and may even be suitable as a home if you have a business that can be run from anywhere. People live in houseboats in some parts of the south, fishing off of their porches. A piece of land with an RV on it can be used as a starter home until the money is saved to build something. A duplex or triplex is a way to simultaneously invest in a home and rental units. There are many types of homes, so consider carefully what you really need.

Copyright Steve Gillman. To see a photo of the house we bought for $17,500, get a free ebook on how to buy Cheap Homes, and a free real estate investing course, visit: http://www.HousesUnderFiftyThousand.com

Grab Your Investment Property Type

The two kinds of property that exist are commercial and residential. Residential properties are those that house individuals, families, or other groups. This includes homes, apartments, mobile homes, etc. Some examples of commercial properties include shopping malls and offices. You may also qualify as having commercial property if your residential dwelling houses a shop on the lower level.

Vacation Property Shopping

Vacation properties are a great option when it comes to buying an Investment Property especially if you purchase it in a coveted vacation market. There are certainly all kinds of vacation properties. Deciding to buy a bed and breakfast or a hotel can be choices you ponder. You could choose to purchase and rent out cottage property or beach investment property. The catch may be that seasonal areas lead to drastic slowdowns off-season. Still, such a challenge is not difficult to overcome, as long as you plan well.

Proper Planning is Key

To invest in real estate successfully, proper planning is a must. Each property needs to be well researched and considered before purchased. You can turn to financial planners, attorneys – and even a listing agent can aid you in planning your investments. Boost your portfolio by getting that first property to turn a nice profit.

Profit Portfolio

Those who have diversified portfolios tend to be among the greatest successes as real estate investors. A person with a diversified portfolio is one who has numerous properties which either will bring profits or already do. Combining land, residential and commercial properties can create attremendous real estate portfolio. They also will not invest in just one market. They may have income properties all over the globe. And to think – everything originates from that very first property you purchase.

Choosign to focus o neither residential or commercial properties is no problem. You can easily diversify within the two. For example, if you want to focus on making money with a commercial investment property, consider making your next investment property in the UK to be a commercial one as well, just of a different type. It is best to diversify funds than to throw all into one venture.

Investing in an estate provides a rewarding experience for those at all levels of investment experience. To attain a strong property portfolio, you have to relly look into the properties you want and choose wisely. To get firsthand experience in real estate investing you could start by working with a property investment company. This is how many property investors have started their property portfolios.

Financing your property investment

Being one of the most important components of investment means this needs to be addressed upfront. Getting professionals to assist you in balancing your check book is absolutely vital. This is the initial portion of your financing journey, and many qualified people wish to assist you. These professionals are financial advisers; mortgage brokers and finance experts who can help you get some of the best deals on your financial requirements. Ensuring you finance your property the right way is the very first crucial step towards a successful return on your endeavour.

Be a part of a property investment club

If you desire to make even more money from your investmens and are confident I nyour abilities, try out an investment club. Thanks to these clubs, you can connect with similar investors and soak in their methods of success. Over time, you can hobnob with some really important investors at various seminars.

Reasons for Clubs

Property club members are rich in experience with consultation, including real estate investment abroad. Not only can you take advantage of local opportunities – but there is a whole new market opened up to you overseas. Some of the opportunities that you may get can be some of the best property investments you may ever make.

Being a Part of Property Management Companies

For those who don’t get maximum benefit from property investment clubs, they can always turn to property management corporations as another option. The chief benefit seekers get from these companies is the rental real estate investment experience. You can reap rich rewards from rental investments, if you’re willing to assume risk. Included in rental property investment is residential and commercial real estate.

Odds and Ends

By flipping real estate and leasing apartments via off-plan property investments, you achieve residential income property profits. With a smart financial plan, you can make money flipping real estate investments and finsh off deals. Being knowledgeable regarding real estate is key, as is locating eager sellers. When you accomplish this, and seal the deal, you have to market the right way to see big profits.

Taking Part in Property Management Corporations

Property management companies are a solution for anyone who isn’t fully satisfied with what they get out of property clubs . The advantage that you will have with such companies is that besides the usual property investing they are also into rental real estate investing . You can reap rich rewards from rental investments, if you’re willing to assume risk . Commercial and residential real estate are each components of rental investment .

The present economic climate in the UK has meant that residential property prices are in freefall, the same fate, however, has not befallen the Commercial Property market. Traditionally industrial real estate doesn’t drop as sharply or quickly as residential real estate. Commercial property investment is rooted more strongly in calculation than emotion; commercial property resists artificially high prices .

Commercial Tenants Take Better Care of Property

People who rent homes often tell of tenant nightmares . A commercial property lease deals with businesses and professionals, rather than with people interested in partying at home .

On Average Commercial Property Yields a Greater Return on Investment

Although you pay out more on average when you acquire a commercial property for investment, you also receive a much healthier return on your investment than your residential counterparts . This is largely due to the longer lease terms you can impose on your tenants which means you greatly reduce the vacancy periods that a residential landlord may suffer every 6-12 months .

There’s Less Competition for Commercial Property
Competition is lower for commercial realestate because there aren’t as many buyers. Lower competition means the seller sets the rules . You have the advantage, and the more you invest the more you will be able to reap the benefits of an investment vehicle that most people overlook simply because they are not familiar with it . By the time a UK citizen is 40 years old, chances are they have made at least one residential real estate purchase, but a much smaller number of those will have made any sort of commercial property investment . Even so it was likely something small like a corner shop or pub .

Commercial Property Retains Value

Commercial property is a proven value retainer . Successful businesses are better able to handle economic down turns, compared to individuals who often mismanage their finances .

Being a Part of Property Management Companies

If you are not satisfied with the property investment appraisal that investment clubs offer, you can also try your hand at property management companies . The chief benefit seekers get from these companies is the rental real estate investment experience . The rental property game offers great rewards…but some risks, as well. Both residential and commercial real estate are parts of rental investments.

Unusual Decorating Schemes

We have made a disco out of our garage, complete with mirror-ball, colored lights, and flowers painted on the walls. As much as we like it, this probably lowers the value of our home. We can live with that, but if you want to maintain the resale value of your house, avoid unusual decorating schemes and other such “improvements.” That television room painted in the colors of your favorite football team may be appealing to you, but it almost certainly means selling your home for less.

Reducing The Number Of Bedrooms

I know of a family that decided to make two bedrooms into one large one by knocking out a wall. Doing this may or may not affect a home’s value if there are at least four bedrooms to start with. But if you make a three-bedroom home into one with two, you are going to have a lot fewer families looking at it when it is time to sell. Ask a real estate agent or two what kind of homes are most in demand before you ever reduce the number of bedrooms.

Bad Landscaping

You might have put thousands in improvements inside the house and still have reduced the selling price because of an ugly lawn. Why? Because buyers will never see the inside of your home if they are scared off by the outside. The fewer people that see the house interior, the less likely you are to find the right buyer who will pay what you want.

The appearance of the front yard (or whatever part is first visible) is the important thing. It is that first impression that people have when driving around looking at houses, which gets them to call up the agent and set up a viewing. Make sure the bushes are trimmed and the grass is green when it is time to sell.

Odd Additions

A neighbor of ours decided that he wanted a “mud room” on his house, because the front door opened directly into the living room. Perhaps there was a way to make it look good (not sure about that even), but he chose to build it himself using plywood. Soon afterwards he was selling his now much-uglier home. My guess is that it cost him $500 to reduce the value of his home by a lot more than that.

Of course, sometimes an unusual addition can add value to a house. An extra bedroom stuck on the back of the house, for example, can certainly make a home more usable for families. But if it doesn’t go well with the rest of the structure, it may add less to the eventual sale’s price than it cost to build. In other words, you might spend $10,000 to add $5,000 to the home’s value. Keep that in mind if you are planning to sell in the next few years, and are thinking about converting a back porch into a bedroom or making an office in the basement.

If you are going to live in your home for a long time, you may want to make the changes that make sense to you, regardless of whether they lower the value of the home, or cost more than they return. But you should at least keep in mind what that effect will be, so you make such decisions wisely. I once met a nice young couple who had increased the value of their home by $10,000 with kitchen upgrades, the year before they sold it. Unfortunately, they spent $40,000 to do it. That $30,000 difference means it cost them $2,500 per month to enjoy a prettier kitchen for that year.

Copyright Steve Gillman. For more Home Selling Tips, and to see a photo of the house we bought for $17,500, get a free ebook on how to buy cheap homes, and a free real estate investing course, visit: http://www.HousesUnderFiftyThousand.com

Single Family Rental Properties

Houses are appealing to investors for a few basic reasons. First, they provide the easiest way to get into real estate investing, because of the financing options and possibility of a low down payment. Second, they can build equity fast during times of rising prices - even if rents are not rising. Third, they can be sold to other investors or home owners. These two markets make the eventual sale easier.

Of course they have problems too. First, it is very difficult to find houses that can produce cash flow after all expenditures are considered. Also, as a single unit, if you lose your tenant, you lose 100% of your income until it is rented again. If you own multiple homes, it can be a lot of work to collect rent and maintain them versus an apartment building with a similar number of units.

Apartment Buildings

The primary advantage of apartment buildings is that the prices are based on income, because unlike houses, only investors are buying them. This means decent cash flow is normal (otherwise why buy?). Also, because the prices are based on net income more than anything else, if you can find a building with low rents, you can quickly increase the value just by raising them. Of course, the primary problem with apartment buildings is the greater difficulty in financing them, and the larger down payment normally needed.

Small Multiple-Unit Residential Rental Properties

Between single family homes and apartment buildings are the duplexes, triplexes and four-plexes. As long as you stay under five units, you can finance these like a home. Though this is an advantage, it is also the reason it is tough to make this type of rental produce cash flow. There are many people out there buying them to live in one unit and get the equity gains from the whole property. Most of them are not thinking of cash flow, so they push the prices too high. It is convenient to live where your rentals are, though, so if you can come close to breaking even, the eventual gain from equity build-up may be worth it.

Low Income Housing

Mobile homes and small houses in need of repairs get their own category because this low income market has unique advantages and problems. Normally you’ll have more late rent payments and other issues with tenants. You also will have more repairs. In general, investing in low income housing means more hassles and more time invested.

What makes it worth it? Cash flow. Suppose a normal three-bedroom house costs $130,000 and rents for $750 per month. You may find a three-bedroom mobile home on a lot nearby for $45,000, and get $600 per month in rent. Repairs, though more frequent perhaps, are cheaper, as is insurance and property taxes. You can see that there is greater potential for cash flow.

Low income housing is all about cash flow. As for the added hassles, there are ways to deal with that. I know a man who has forty rental properties with low income tenants (mostly mobile homes with real estate), and he gives free rent and a small salary to a handyman/manager who does everything from fix toilets to collecting rent.

Other Residential Rental Properties

This “other” category includes the less common residential rentals. Since these properties often don’t have the advantages that the ones above have, people invest in them for one reason: cash flow. For example, a large house that would lose money every month as a normal rental might do well as a boarding house, where you rent rooms out individually. This can be very profitable in a college town.

Even less common, but still potentially profitable, are rentals of RVs, or recreational vehicles. You’ll see this more in the southwest than in other areas (it’s almost common in Arizona). Conversion of old motels into residential rental properties is another way investors create cash flow. Certainly there are a few I have missed as well. Probably houseboats are rented by the month somewhere.

Your New Town

An online search by city and state (Fresno California) will usually lead you to an official city site, or a chamber of commerce website. These sites can provide a lot of useful information, but they are “selling” the city. For the good and the bad, find a local newspaper online as well. See what going on in town, and check the classified advertising section to get an idea about home prices too.

Detailed statistics on almost every town and city in the U.S. can be found at city-data.com. Click on a state, then find the city you want on the list (it covers towns of 6,000 people or more). You’ll find more statistics than you can possibly use, ranging from population, average income, crime statistics, maps, photos and much more.

Visit weatherbase.com for climate information on almost every city in the U.S. Click on a state, choose the city you want, and see how many inches of rain or snow they get each year, how hot or cold it gets, etc. You’ll also find a link to the current weather forecast for the town.

Call somebody from the Chamber of Commerce or a local real estate agent. Their phone numbers can be found online at realtor.com or a Chamber Of Commerce website. Make a list of questions, and ask about stores, libraries, jobs, crime and anything else that is important to you. We asked many people in many towns, “Do you own a snow shovel?” before choosing to move to Tucson, Arizona.

Your New Neighborhood

Once you have a local realtor or city official on the phone, ask about the various neighborhoods in town. If they hesitate to label areas as “good” or “bad,”, ask more specific questions, like where older parts of town are, and where the most rental units are. If you listen well and read between the lines you should learn something about where you might want to buy a house.

Visit the town before buying a house, of course, and visit a good local bar. Residents there will tell you which employers are about to move in or out of the town, how fast or slow homes are selling, whether there are criminal gangs, and more. But verify what they tell you, since people do sometimes exaggerate a bit. For best results, choose a bar with customers who are most like you (income level, interests, etc.), to get the information most relevant to your needs.

Drive around town. It will help you get a good feel for where you might want to live. Stop to ask questions when you see people out in their yards, and take notes.

Your New Home

Realtor.com has a lot of information on the homes they list. You can search for other real estate listing sites. They won’t mention things like whether a house is in an area with scorpions or street flooding, but answers to these questions can also be found on the internet. Google the name of the town and “forum,” and if there is one, sign up (they’re usually free). Read the posts, and ask about the specific area you are thinking of moving to. People usually respond, as they did when we visited a community forum and discovered that a good cat will take care of scorpions.

When you have a good idea of the problems which might be associated with a certain neighborhood, you know what to ask when you start looking at houses. Carry a home inspection checklist with you when you do look at homes, and work your way through it. Pass on your notes to the professional inspector once you decide to buy a house.

When you’re sure you like a home, walk around the area. Find a person or two out in their yards, and talk to them for a few minutes. Ask about noisy neighbors, recent crime and other things that will help you decide if this neighborhood is the right one for you. Do this and take the precautions above and your New Home shouldn’t have too many unpleasant surprises for you.

Copyright Steve Gillman. To see a photo of the house we bought for $17,500, get a free ebook on how to buy Cheap Homes, and a free real estate investing course, visit Houses Under Fifty Thousand .com.

Getting Into The Business

For new investors, finding homes to invest in is easier when you have access to bank foreclosure listings.  While you can purchase standard homes being sold by regular home sellers, some of the best opportunities for low costs are found online on these bank foreclosure listings.Foreclosures can provide a higher profit margin especially when they have the opportunity to be successfully priced lower than the house value.  Finding properties is not all you have to do to get into the real estate investing market, though.

One of the more difficult aspects of getting into the bank foreclosure listings and buying homes is lending.  Most real estate investors caution that you really do need to pay attention to the amount and way you invest.  If you attempt to invest with a high interest rate, with an adjustable rate loan, or with all cash, you may be putting yourself in too much of a risky situation.  Therefore, take into consideration the home’s ability to be financed with an affordable loan.  Getting that loan in place and ready to go before you start looking at bank foreclosure listings is an important part of the process.

It is also helpful to have a low cost, reliable and ready to serve real estate agent on hand to help you with the bank foreclosure listings.They can make available the information and resources you need to have a successful investment strategy.  However, most importantly, working with a real estate agent will also give you access to more foreclosure properties, get you in to see these properties and they can help you to close on them.  Do not overlook the key investment in their services.

Bank foreclosure listings are readily available for most areas online.  If you do not find one, work with your real estate agent to find affordable properties to invest.  Foreclosures are just the start of your opportunities though as other properties on the market may be worthwhile too.

For more foreclosure investment information please visit:Foreclosure Guide

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

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