How to Buy Cheap Investment Property

January 31, 2010  //  Posted by: Home & Estate  //  Category: Property Investments

nullCheap investment property has a huge market. They are of a great variety right from apartments, condominiums, houses and even mobile homes. While buying cheap investment property, you need to consider few things. It is important that you know about the area very well before you invest there. From the local newspapers, people and reliable sources you can gather information about the property’s value. Real Estate agents may help you with this task of finding the right kind of property. But you must be aware of their reputation for getting the cheapest and the best deal.

It is also important to study the market laws in cheap property investment as they vary greatly. In order to invest in cheap property, the location should have stable financial conditions. Be sure that you are striking the right deal and make the contract carefully. Cheap investment property is best when you plan to spend time after your retirement.

How One Real Estate Investor Uses an Open Net Listing

January 29, 2010  //  Posted by: Home & Estate  //  Category: Property Investments, Real Estate Rumblings

nullFor a real estate investor, it is obvious to look for profit from his investments. Hence, it is not feasible to pay commission to the real estate broker for using their services while selling off your property to the prospective buyers. Open net listing gives you that opportunity to classify your ad in a manner that you need not spend an extra buck. While putting up an ad, you don’t have to sign a contract for paying him commission, but you may ask him to take the excess he can get above your sales price.

While using open listing, you can invite brokers for your property and take down their details. In very simple language specify what your objective is. Open net listing is best utilized when there are many saleable properties around you and number of potential buyers quite few. It is a beneficial means to save money and earn great profits from your investments.

Reviewing the Multifamily Property Improvement Plan

January 27, 2010  //  Posted by: Home & Estate  //  Category: Family Holdings, Homes & Properties

nullConstruction as well as improvements plans are regarded as important considerations for investment. But when the time comes for reviewing this plan, it needs to go through quite a few levels. Some of them include:

  • Material costs
  • Quantity of human resources
  • Skills of human resources
  • Labor costs

Schedule

When a multifamily operation is taken into consideration, savings can be made on the basis of existing staff expansion during the periods when the improvement plan is supposed to be implemented. Also, if realistic rental schedules are made available in between projects, it will cause the improvement plan can spread over a period of time and the units also can be made available to meet the ongoing demands.

Multifamily Property Improvement Plan should also take into consideration the amount of revenue that can be generated from and also how much cost can be avoided in this while. The final review of such plans can be done on the basis of the managers and maintenance staffs’ resumes.

5 Reasons to Have a Pipeline of Private Money Investors

January 26, 2010  //  Posted by: Home & Estate  //  Category: Property Investments

null5 reasons to have a pipeline of private money investors are:

One of the biggest reasons to have a pipeline of private money investors is to seal bold deals. When you have cash ready for investment, you can obviously think of bagging greater deals with huge profits.

We are in a phase when banks might not issue you loan, that easily. So here, your private money investors can be of great help in providing flexibility.
A line of private money investors provides you with ready cash whenever you get a solid deal. It might be that you get a good offer and you cannot finalize it due to cash shortage. Here they play an important role.

Private money investors provide a boost to expand your real estate business to the core.
You get ‘cash buyer discount’ if you are funded by private money investors.

Over all, private money investors are very important for steady growth in reality investments.

Buying Investment Homes For Profit

January 25, 2010  //  Posted by: Home & Estate  //  Category: Homes & Properties, Property Investments

nullIt is a great idea to purchase investment homes when the price has fallen down. If price is high then it is not profitable. While buying investment homes for profit, it is better if you check out different online sites for updated reports on market trends. This gives you a niche to decide on the best deal. Certain locations like Nevada, Arizona, California and Florida have noted a fall in the prices in real estate, so this is ideal to buy investment home in such locations. The main purpose of these homes is to get you huge profit in future when rates go high.

While buying investment homes for profit, you need to consider few important things like the practicality of the location. Whether you have suitable schools for your kids, public amenities, well connected expressway among others. These factors enhance your chances of getting god resale value and also attract renters. If you have sorted out financial issues then buying investment homes for profit is beneficial for you.

What is a Property Auction Catalogue?

January 24, 2010  //  Posted by: Home & Estate  //  Category: Real Estate Auctions

nullA Property Auction Catalogue is a comprehensive list of properties that would be on sale soon enough. The catalogue offers you choice or option for the best property deal in brand new or unsold category. Yes, in these catalogues you may also get the details of those properties that were not sold during auctions. Here you also have a fair chance of getting concession in the price.

Property Auction Catalogues are produced both by individual business houses and auction information providers. These informative catalogues were available by post, but in present times, they are easily available online. They are more accessible online than hard copies. You will get a lot of details about property deals online. This also gives you an extra edge as you can compare the price of other properties quite easily. Besides, it is a cost effective way of producing catalogues. Property Auction Catalogues are great means of choosing the most suitable property in the business.

Step Pre Foreclosure List Profit Strategy

January 23, 2010  //  Posted by: Home & Estate  //  Category: Foreclosures

nullThere are steps which can help you in profit for pre foreclosure. Firstly, you should find the correct online pre foreclosure list. So find the default homeowners. There are numerous lists which are incorrect or incomplete. Many sources online have properties in foreclosure status but very few have pre foreclosure listings. This is when homeowners have missed payments. So get this list which will help you in making money in foreclosures.

Secondly, when you have access to the pre foreclosure list, you should find homeowners who have at least 40% or more equity. It is 40 % as an investor will be assuming the repairing costs and offer some exit cash. This percentage will absorb these expenses. Thirdly, you should make sure that the list has the attorney who is dealing with the homeowners’ case. There have been times, when the property was in the pre foreclosure list while the owner worked out a modified loan with the lender.

So, just follow these simple steps to make profit from the pre foreclosure list. You can find these lists in banks and on the internet.

10 Influences on the Real Estate Market

January 22, 2010  //  Posted by: Home & Estate  //  Category: Real Estate Rumblings

nullThe real estate market can be influenced by various factors. You cannot fill in the deficit by producing same items. The pieces are different supply is limited. You may be able to create condos but the space is limited. If there is over supply, prices will come down. So when land in a certain area is over the supply, prices will come down. Since you can’t shift the over supply to a new area to stable the prices.

At the same time lower supply will mean higher prices. There will be an increase in price if there is not enough land. The real estate is also influenced by new housing starts, interest rates and national home price trends. If you have a market for vacation home and resorts, factors like weather, population age, health, general stock market etc can affect this.

You should pay more attention to the influencing factors of the local market as these will affect the real estate market.

Is Real Estate Predictable?

January 21, 2010  //  Posted by: Home & Estate  //  Category: Real Estate Rumblings

nullSome research has suggested that asset returns can be predicted with more returns on real estate. The performance will depend on the performance of a buy-and-hold strategy. There is moderate success in real estate in market timing. Real estate stocks also have higher trading profits and greater returns with risk-adjustment. Investors in real estate can get a seller 10 to 20% discount by following the cost-to-sell guidelines. This is performed by subtracting all selling expenses (like closing costs, maintenance, holding costs etc) from the price asked.

There are times when you can get lower discount by asking if you can make a little profit on the deal. You can estimate the price of the house by offering the buyer a lease option or owner financing. This will help you calculate the maximum allowable price you give to the seller. With owner financing, if you get a discount and sell at a premium, it will be easy to create a 15 to 25% equity spread.

Therefore, we see that real estate can be predicted in certain cases. But you must invest in them with the correct knowledge.

Renovations on Your Own Home and on Investment

January 21, 2010  //  Posted by: Home & Estate  //  Category: Homes & Properties, Property Investments

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You may have to make expensive repairs, if maintenance has not been made regularly for your house. In an investment property, you need to do the work through contractors and you don’t have to supervise the work. But you must visit regularly and check the work progress even if you know them well. In an investment property, you can use medium-grade or low-grade items for getting in the tenants.

You can upgrade for your home, but for an investment property it is different. There may not be enough time for all these. You have to bring in income as early as possible and in a lower cost. If you are hiring an interior designer you need to know that the builder can work with him. When there is a rise in property prices, you can make money as a beginner. But in the current economic time, you can make profit very easily.

So if you invest in property, try to ascertain what costs will be needed to make it better. You can get a profit only after renting out the property a few years.