Ways To Invest Money

If you want to secure your future, you should have a substantial investment portfolio. You must be knowledgeable on every investment tool that you are going to use in order to avoid bad investments that eventually result to financial losses. If you want to venture in real estate, better seek for good investing advice from reliable and expert real estate investors.

Protect Yourself from Bad Real Estate Investments

It seems like the only thing we hear about these days is how bad the financial situation is in America.  If it’s not that, we hear about how much worse it’s going to continue to get.

Four of the big five investment banks have gone bankrupt, governments are raising taxes and ripping through cash reserves, and even your old Aunt Millie is squirreling her spare change away behind her false teeth and up under her knickers.

But in the midst of all of this ecomonic decay, someone mentioned to me that they were amazed that I still had cash-flowing real estate.  Then I realized that I was just as surprised that they did not.  All of my real estate cahse flows, and it’s a great business to be involved in, especially during times like these.  This article is intended to give even the seasoned real estate investor some serious food for thought on how to appropriately approach real estate, the best investment South of Wall Street.

1) Buy Low.  That sounds silly.  Of course you want to buy low, but so many people don’t that I really have bring it up first.  So many investors feel like they have to get in while the action is hot.  YOU DON’T.  Wait for a good price.  It is better to buy nothing than the wrong thing.  You can look for distressed properties, bankruptcies, divorces.   My blog, www.wallstreetsouth.blogspot.com has strategies for finding great deals at low prices.  Just free information, no sales pitches.  However you do it — bird dogs, tips, property records, buy low.

2) Control your costs.  Again, it should be common sense, right?  Well, it isn’t.  Buy construction materials direct from the manufacturer whenever possible.  Control your labor costs.  Do what you can yourself.  Have your tenants do what they can for a discount in rent.  Bill all utilities directly to the tenants whenever possible.  Make sure to get three or four bids for any work that needs to be done, and create a blanket cservice contract across all of your properties for emergency services like furnace repairs, electrical repairs, and plumbers.  Put the volume of your holdings to work for you.

3) Find ways to make quick money.  Buy and hold is a great strategy, but don’t cling to it at all costs.  If the opportunity presents itself to sell, always consider doing so.  For example, if you make $200 per month on an investment single family home, and you can make a quick $10,000 by selling now, I would sell now and reinvest the earnings into another property.  You make money by turning it over as quickly as possible.  Why wait for five years to make the same amount of money that you can make right now?  Especially in today’s depreciating environment.

4) Treat investments as investments.  Never put your personal money into an investment property once you have bought it.  It is an investment and it should pay for itself.  Credit scores are very important, and most investors are careful about them, but when it comes down to making a late payment or tapping the family’s nest egg, choose the former.  If you start using your savings to pay for your investments, it becomes a black hole that you will never escape from.

5) Choose good tenants and charge a lower rent.  Bad tenants can destroy your property and cost far, far more in damages than they pay in rent.  Perform credit checks, but more importantly, criminal background checks, get a deposit and references.  It will be easier to avoid vacancies if you are just a little more reasonably-priced than the competition.

6) Offer other services.  Be sure to check if it is legal in the state and city in which you operate, but I like to offer finance services for my tenants.  Many of my tenants need washers, dryes, TV sets, and other items that they can’t afford upfront.  Buy the item for them and charge them a reasonable amopunt every week until it is paid off.  For example, I had a tenant who needed a washing machine.  It cost me $300.00.  I charged her $50 per month for nine months, so I was paid $450 in total.  That’s a 50% simple return on my money.  If the tenant doesn’t want to buy, you could buy a TV, for example, for $200 and charge $15 extra rent each month.  If they stay two years, that’s $360, or a simple return of 90%, or 45% per year.

Just be smart, creative, fair and always have an eye towards common-sense savings.

I will never sell you anything.  I do that on my own time and earn a decent living, but I love everything about finance, investing and credit.  Visit my blog at www.wallstreetsouth.blogspot.com for more real estate, credit, and investing tips.  I welcome all comments and questions.

Mr. Finance, of wall street south, is a renowned expert on financial matters. He has helped people to invest in real estate, stocks, businesses, and other investments.
What he lacks in good looks, he makes up for in good heart. He never charges a fee for his services.

Visit his blog at www.wallstreetsouth.blogspot.com

Article Source:http://www.articlesbase.com/real-estate-articles/protect-yourself-from-bad-real-estate-investments-884710.html

Real Estate Investment Gone Bad

In a time when every program promoter is out in full force, it is important to remember that there are many wolves in sheep’s clothing laying in wait. When involved with the wrong people real estate investment goes bad, very bad! Read more..

Real Estate Investment – Good Or Bad? This Will Answer the Question

People mistakenly think that real estate is an area for investment in a global market sense. They think that it is going up or it is going down. That’s completely wrong. Individual real estate is going up and individual it is going down. The market isn’t going anywhere…Read more

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Investing in real estate is undoubtedly profitable because real estate properties never depreciate their market value. Real estate investment is an avenue to achieve financial stability.

Real Estate Investing: A Summary

Every industry has a code of ethics. Real estate investing too follows ethical codes. They are mentioned below;

• Do not lie for a deal to take place.
• Follow the ethics in landlording

There are some deadly mistakes that almost all investors in real estate commit. They are summarized below;

Hobby

Many investors think that they are only following a hobby by being in the real estate investment industry. It is serious business. Certainly there is no denying in making huge profits. But this does not in any case mean that the industry is not a business of its own. Successful agents do distribute their business cards to almost everyone. This sure ought not to give a bad picture about their intentions and business model.

End of education

Many investors who entered the industry by chance or without any motive do feel this. They assume that they are on top of the world once the first property purchase is made. Be alarmed. This industry teaches you a different thing every moment.

Investors are uneducated

This is a common notion that lives in many minds. It is a funny myth. The industry is so full of intellectuals. There is no way that a person with lower levels of IQ can survive in this industry.

Hiding the job profile

Investors can be proud to be a part of this multi billion dollar industry. There can be no one who can degrade their job profile. And there is no reason to hide their work type to anyone.

Comparison to stock market

Please wake up. This industry is nowhere related to stock market. People have money and dreams so they buy a home for themselves.

In spite of every hurdle you can reach that goal. Remember these suggestions to be successful in real estate investing;

• It is not about properties. It is not about deals or financing either.
• Avoid renting to anybody you know very well. Rent only to people who you’ve never had close acquaintance with.
• There are diverse ways in which investing in real estate can be made possible.
• People do tell lies. Trust no one except yourself. Keep your senses working and sensitive to the world around you.
• There is nothing called “enough”. The bar only keeps rising.

And there the following ways in which money making becomes easier in this industry.

• Real estate appreciation is the easiest way to receive those beautiful dollars. But there is a vicious circle of inflation and appreciation. Only through sheer experience can one be able to fetch great profits for himself.
• Buy discounted property by constant tracking. There are even $15,000 houses bought for $1500.
• Thoughtful when making a deal is another way to keep your dollars increasing. Deals are very important. Strategic talk and negotiation is highly vital to get the best bargain.

Jeff Adams is an author for Jeff Adam Investments Websites. He has written article Jeff Adams Investments. For more information visit our site Real Estate Investing

Article Source:http://www.articlesbase.com/real-estate-articles/real-estate-investing-a-summary-1386357.html

Real Estate Investing – Selling Houses Creatively

During the time of economic recession, there is a great amount of uncertainty involved. The same goes for selling the houses. You do not know where to start, how to bring potential buyers or how to value your property. This is a guide that is sure to help you in selling your houses creatively in today’s situation. The reason behind selling a property can vary from the need of cash to personal reasons such as divorce…Read more

5 Important Real Estate Investment Tips

Real estate investing means purchase, ownership, management or rental/sale of real estate for profit. Many people find it difficult to invest. It requires a lot of cash. Are you interested in becoming a real estate investor? To become a successful investor you should be determined and flexible. There are a few tips that will help the prospective buyer to become a successful investor…Read more

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If you are just starting out in real estate investment, buying foreclosed properties is a good step. This is due to the fact that foreclosed properties are usually sold at lower prices. With just few fixing, you can resell these properties at higher values, giving you more profit. If you are  serious of achieving success in your real estate investment, you need to educate yourself about the multiple facets of real estate business.

Why Foreclosure Real Estate Investing Is Hot

If you’re a new real estate investor looking to take advantage of the best bargains on the market, foreclosure real estate is the place to begin. Foreclosed homes can sell at immense discounts from market value, offering buyers like you the opportunity to turn a profit by fixing up and selling a home or leasing it to renters. Read on to learn why foreclosed real estate investing is all the rage right now.

What is Foreclosures Real Estate Investing?

A foreclosed home is a property that was repossessed by the bank or lender when the owner was unable to make the mortgage payments. If a homeowner defaults on a mortgage, banks and lenders are entitled to reclaim the home, then resell it to earn back some of the money they lost on the loan. Lenders are typically very eager to sell as quickly as possible, with homes often sold at auction for 30% to 50% less than their actual market value.

It’s possible to earn a substantial profit margin by buying homes at bargain prices, fixing them up, and reselling them for much higher prices. Even a 10% increase in price can earn you $10,000 for what can amount to, in many cases, a relatively small amount of work. And when you purchase a foreclosed home at a rock-bottom price, you stand the chance of making 50% or more of the value of the home—a significant profit that’s well worth the time and effort.

How Profitable is Foreclosure Real Estate?

Even for inexperienced buyers, foreclosure real estate can be remarkably profitable. Consider this example: A house valued at $50,000 is foreclosed by the bank and sold at auction. Joe Smith buys the house for $28,000 at the auction and then resells it a year later after doing some basic handyman work and giving it a fresh paint job – repairs that cost him about $2,000. It’s a competitive market, and the new buyers purchase the home from Joe for $60,000.

Joe has just turned a tidy profit. Not only did he receive more than $10,000 above the house’s market value, he’s been paid twice the amount of money he paid for the house, including repairs. That’s a 100% return on investment (ROI) in one year! Even if he had sold the home for $50,000, its actual market value, he would have made $20,000 above his costs, or 67% ROI.

Foreclosed real estate has immense potential as an investment strategy, provided you know how to pick winning homes and do some basic repairs yourself. This is a hot business—and many analysts believe it’s going to remain hot for years to come.

www.auction.com (REDC) is a fully licensed and bonded real estate auctioneer and sanctioned real estate broker. We specialize in helping home buyers in short sales land auctions, purchase of foreclosure properties, commercial real estate, foreclosures real estate and more at affordable prices.

Article Source:http://www.articlesbase.com/real-estate-articles/why-foreclosure-real-estate-investing-is-hot-1310386.html

Are Foreclosures a Safe Real Estate Investment?

If you are thinking of investing in real estate, or are already an investor, then buying a foreclosed property must have crossed your mind. A foreclosed property is basically one where the property owner in unable to make mortgage payments, and the bank or the lien agency takes over the property and sells it on the market, usually below cost. Most of these houses are in a bad condition, needing repairs or general maintenance. Hence these houses sell almost 20%-30% or more below market price…Read more

Real Estate Foreclosure – How to Make Money from Them

As of now, investing in real estate foreclosure is considered an intelligent and well-thought strategy for gaining money and getting rich. The mortgage foreclosure procedure provides two opportunities in real estate foreclosure when a suitable agreement can be made. You can opt for buying a home in the pre-foreclosure phase and second option is in the auction phase. In any of these phases, you transact with property owners that have to sell their property or have to otherwise lose it without getting anything. So as they are running out of luck, they are eager to agree to large discounts…Read more

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Investing in real estate needs careful decision-making. It is true that real estate investment is a smart move but you have to know the do’s and don’ts of this investment tool. If you want to know more about this investment, read on some Real Estate investment strategies.

Five Real Estate Investing Tips

There are always new things to learn about real estate. Hopefully one or more of the following real estate investing tips will teach you something new and useful.

1. Time Your Sale For Tax Savings

We once had a December closing on a property that we had owned for a few months. By pushing the closing up to the first week of January, we were able to put off paying tax on the gain for a year. If you have a property to sell that will result in a taxable gain, you might also want to hold off the sale if it is near the end of the year. Consider also in which year you are likely to be in a higher tax bracket. If the tax will be substantially more in the following year it is better to close now and pay less.

2. Use Home Equity For Investing

Whatever people say about zero-down investing (and yes it is possible), it is easier and often more profitable to invest in real estate when you have some cash to work with. Short on cash for investing? You can borrow against your home if you have a good chunk of equity. An even safer way – if you are serious about investing – is to downsize to a smaller home to free up that equity. That way you get money to invest without having larger payments on your own home.

3. Check For Code Violations

Check for any code violations or problems before you buy (or put a contingency in the purchase agreement). Once, while looking at a property, we learned that in order to keep using a property as a triplex, we would have to provide two parking spaces for each unit. That just happened to be the rule in that particular community, and there were only three spots total at the time. Problems like this don’t have to be deal-breakers, but you need to know what the costs of bringing a property into compliance will be before you make an offer, or adjust your offer before you close the deal.

4. Crucial Clauses Your Offer Needs

If you are buying through a real estate agent they will most likely provide a purchase agreement for you to make your offer with. These normally cover the important points, but be sure you have the few truly important clauses in the contract. These include a financing contingency (unless you are paying cash) specifying that the offer is only valid if you can obtain a loan (and specify the terms you need on the loan). There should be a clause that gives you the right to an inspection and to renegotiate or cancel the contract if the results are not satisfactory. There should also be a “liquidated damages” clause (common in many pre-prepared contracts now), which says that if the deal falls through because of some fault of yours, the seller only gets to keep the good faith deposit. If there are other obvious issues, like junk that needs to be removed, be sure to address these in the offer as well.

5. Learn A Few Negotiation Techniques

This is one of the more important of these real estate investing tips, because your profit is often determined by how you buy a property. You might use the “limited authority” ploy, for example, to get a lower price when negotiating directly with a seller. This involves hesitating and saying something like, “Well, I would have to check with my wife to go any higher than this.” Hopefully the seller then imagines the wife saying no to the whole deal, and so agrees to what you are offering. There are dozens of great techniques used by master negotiators, but even learning and using just a few can boost your profits.

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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

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Tips For Real Estate Investment

Through real estate you can earn huge profit in a short period of time. If you’re planning to invest your money, then the best option would be real estate investment. Here are some of the tips that will help you in choosing to invest in real estate… Read more…

10 Important Tips to Successful Real Estate Investing

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know…Read more..

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