With the roller-coaster in Wall Street and the crisis in Europe has helped push mortgage rates closer to a record low. With this, we are expecting an increase in mortgage refinancing. Freddy Mac announced on May 27 that the average 30 year fixed rate loan was lowered to 4.78%. This represents the lowest rate this year and barely above the record established on December 2009 of 4.71%.
This window of opportunity is not expected to be there for long. As the confidence of investors continue to grow, they will shift money from the bond market to the stock market which will make mortgages more expensive. The Mortgage Bankers Association has announced an increase in mortgage refinance. However, many homeowners due to the collapse in home prices they bought homes during the housing boom and have little or no equity left, so they can't refinance — a problem compounded by far tighter lending standards these days.
Before you decide to refinance your mortgage you should think carefully the process and costs, since upfront costs can be high and new mortgages extend the period of indebtedness unless borrowers substitute a shorter-term loan. However, sometimes the savings can be substantial: A monthly payment of principal and interest on a $350,000 loan at 6.25% is $2,155; at 4.75% the payment is $1,826, saving nearly $4,000 a year.
Saturday, May 29, 2010
Gain a Competitive Edge in Real Estate
Real estate investing success does not occur overnight. There are many factors that need to be taken into consideration for a successful real estate investing business. Real estate investing goes beyond locating for properties that are advertised at "Below Market Value" or watching for the mortgage interest rate levels. To be successful you must develop an eye and nose to detect gems that are being overlooked at the moment.
To have a successful real estate investing business you must have a plan and execute it. You must work hard and continue to improve your skill. You must stay abreast of the drivers that affect the real estate market. For example, the residential real estate market is affect by more than the interest rate. You need to take into consideration general factors such as, employment levels, income levels, interest rates, wage rates, transaction costs, and purchasing power. The relationship between national economy, regional economy and local economy should be inspected as well. This will help an investor to identify all the possible effects of all the variables on residential real estate investment.
Going beyond some of the economical factors that have an impact in real estate investing, you need to take into consideration social factors. Factors such as age distribution, crime rates, and education. You also need to think like the buyer, regardless if the buyer is another investor, rehabber or a family. Some other factors influencing the purchase of real estate are legal, political, and governmental factors. Down to the more specific factors that influence the purchase such as access, public transportation, schools, police protection, and fire protection. Also, shopping center, school, freeway, central business district, and parks must be taken into consideration.
As you can see, the purchase process is more than looking for the obvious. You must go beyond what everyone else is doing to be successful. You must have a competitive edge. As Jack Welch said "If you don't have a competitive advantage, don't compete". If you go beyond what everyone else is doing and gain a competitive advantage, then you can get one step ahead of rest people.
To have a successful real estate investing business you must have a plan and execute it. You must work hard and continue to improve your skill. You must stay abreast of the drivers that affect the real estate market. For example, the residential real estate market is affect by more than the interest rate. You need to take into consideration general factors such as, employment levels, income levels, interest rates, wage rates, transaction costs, and purchasing power. The relationship between national economy, regional economy and local economy should be inspected as well. This will help an investor to identify all the possible effects of all the variables on residential real estate investment.
Going beyond some of the economical factors that have an impact in real estate investing, you need to take into consideration social factors. Factors such as age distribution, crime rates, and education. You also need to think like the buyer, regardless if the buyer is another investor, rehabber or a family. Some other factors influencing the purchase of real estate are legal, political, and governmental factors. Down to the more specific factors that influence the purchase such as access, public transportation, schools, police protection, and fire protection. Also, shopping center, school, freeway, central business district, and parks must be taken into consideration.
As you can see, the purchase process is more than looking for the obvious. You must go beyond what everyone else is doing to be successful. You must have a competitive edge. As Jack Welch said "If you don't have a competitive advantage, don't compete". If you go beyond what everyone else is doing and gain a competitive advantage, then you can get one step ahead of rest people.
Thursday, May 20, 2010
Wednesday, May 19, 2010
Four Tips to Improve Your Results in Real Estate Investing
As I have mentioned before, real estate investing is not complicated. It offers many great opportunities, as well as grants financial freedom to those who are determined to succeed in their chosen career path. However, to succeed as a real estate investor you have to avoid making costly mistakes that can significantly affect the way you run your business. Here we discuss four tips to help you with your real estate investing enterprise:
1. Real estate education. I am a big believer of real estate education and the results in improving our skills which will translate in higher profits and greater efficiency. Applied knowledge is power, like Napoleon Hill mentions on his famous book "Think and Grow Rich". A word of caution, avoid the notorious gurus. See the article written about real estate scammers http://tinyurl.com/37sfvjy.
2. Trusted advisor. Many real estate investors fail because they don’t recognize the importance of having the guidance of a seasoned colleague. I am not talking about the real estate marketers or "gurus" that are only there to sell you their useless crap. I am talking about a seasoned real estate investor that can partner with you and you learn how to handle real estate transactions from A to Z.
3. Buy Below Market Value. I know, you are think DAH!. You will be surprised how many real estate investors buy properties at or near market value, which does not allow them to cover any costs for improvements and the rental income wont cover their mortgage. Remember, in real estate investing you make money when you purchase a property, not when you sell them.
4. Create an investment plan. Buying properties without a plan is suicide. Take time to develop your goals you want to achieve. Develop an action plan where you list how you are going to achieve your goals.
Success in real estate is possible. It requires to have a clear vision of the direction you want to take. These tips will reduce the risks of loss in real estate investing and increase your chances of profit.
1. Real estate education. I am a big believer of real estate education and the results in improving our skills which will translate in higher profits and greater efficiency. Applied knowledge is power, like Napoleon Hill mentions on his famous book "Think and Grow Rich". A word of caution, avoid the notorious gurus. See the article written about real estate scammers http://tinyurl.com/37sfvjy.
2. Trusted advisor. Many real estate investors fail because they don’t recognize the importance of having the guidance of a seasoned colleague. I am not talking about the real estate marketers or "gurus" that are only there to sell you their useless crap. I am talking about a seasoned real estate investor that can partner with you and you learn how to handle real estate transactions from A to Z.
3. Buy Below Market Value. I know, you are think DAH!. You will be surprised how many real estate investors buy properties at or near market value, which does not allow them to cover any costs for improvements and the rental income wont cover their mortgage. Remember, in real estate investing you make money when you purchase a property, not when you sell them.
4. Create an investment plan. Buying properties without a plan is suicide. Take time to develop your goals you want to achieve. Develop an action plan where you list how you are going to achieve your goals.
Success in real estate is possible. It requires to have a clear vision of the direction you want to take. These tips will reduce the risks of loss in real estate investing and increase your chances of profit.
Monday, May 17, 2010
Saturday, May 15, 2010
1031 Exchange Transactions
The easiest method to begin a 1031 Exchange transaction is to contact a good Exchange Company. The information concerning the exchanger, time and place of the closings, and a copy of the contract to sell the relinquished property are the preliminary papers to start the process.
A 1031 Exchange, like any real estate transaction, involves balancing competing pressures in speed and quality. Therefore, companies in this line recognize pressures and design their service to satisfy both. Good companies manage all aspects of the exchange. They provide service that is quick, easy to use and backed by experience. In good companies, experienced attorneys are the managers. The senior staff will be rich in experience with regard to investment property transactions. The specialized team of attorneys mainly deals with more complex reverse and build-to-suit exchanges.
The main parameters that distinguish a good and bad exchange company are speed, service and the security they offer the client. Speed lies in the pace at which the company prepares the document. The documents are then sent to the closing table, allowing the seller to close and proceed with the exchange. Service is the dexterity in preparing all documents required for the exchange, including reminders of 45 and 180-day time limits and extensive complimentary consultations.
A 1031 Exchange, like any real estate transaction, involves balancing competing pressures in speed and quality. Therefore, companies in this line recognize pressures and design their service to satisfy both. Good companies manage all aspects of the exchange. They provide service that is quick, easy to use and backed by experience. In good companies, experienced attorneys are the managers. The senior staff will be rich in experience with regard to investment property transactions. The specialized team of attorneys mainly deals with more complex reverse and build-to-suit exchanges.
The main parameters that distinguish a good and bad exchange company are speed, service and the security they offer the client. Speed lies in the pace at which the company prepares the document. The documents are then sent to the closing table, allowing the seller to close and proceed with the exchange. Service is the dexterity in preparing all documents required for the exchange, including reminders of 45 and 180-day time limits and extensive complimentary consultations.
Friday, May 14, 2010
Mortgage rates sink to five-month low; National average for a 30-year fixed loan is slips slightly to 4.93 percent http://ow.ly/1LgVn
Real Estate Investing Scams and How To Detect Them
Today I will share with you my views on an unfortunate event that happens in our industry. Real estate investing is not exempt from scammers. These scammers come in different forms. These scammers have become more sophisticated in their presentations and now they take their show on the road. Do you remember the movie "Yes Man" with Jim Carrey?; lots of people crammed into a amphiteather building the tension until the presenter comes out and people explode and start screaming Yes!. They kept repeating it everytime the speaker ask them to do it and after the show is over, people leave like zombies repeating Yes!
Scammers have found new ways to motivate young and inexperienced investors into spending money in what many times are useless and outdated strategies. Many times is the same information repackaged into a different format. Many years ago I remember it was the infomercials. Now a days they come in the form of expensive investment seminars where a motivational speaker, an investment expert or even a self-made millionaire will give you advice on investing and will try and convince you to follow high risk investment strategies. Also, the internet is filled with many landing pages with free offers for you to get useless information so they can have your contact data. These free offers will then be followed by enticing offers that seem unreal on how easy is for you without knowledge and without working to become a gazillionare real estate tycoon. While investment advice can be legitimate and beneficial, it is important to look carefully at what an investment scheme or seminar is offering.
In my opinion the organizers of these seminars and real estate investment schemes make their money by charging you an attendance fees, and by selling you over-priced reports or books. They are real estate marketers more than real estate investors. Many of them are so humble that they have done the research for and bring you a list of properties ripe for the picking (ouch! many of these are their properties they are trying to sell) and you do not need to seek an independent advice. The unfortunate event here is that these scams do great harm to beginning investors, who waste hundreds of dollars on old information. What is worst, those beginners soon get discouraged and miss out on the true (and profitable) adventure of real estate investing.
The problem is not the scammer, it is us. We allow them to do this. They exist because of us. We do not want to work and become rich. We want to become experts and not have to think. We want the food already chewed so we do not have chew it ourselves. We go to 7-Eleven and other "convenience stores" and pay somewhere around 15% more for the milk than going another block to get it at a fair price.
So how can you detect a scam? Here are 10 basic points that will help you on how to spot a B.S. artist:
1. Emphasis on luxurious lifestyle. The B.S. Artists want to present a fantasy where you live in your own island and all of the money was made from real estate investing and best of all you did not have to work for it. The B.S. artists feature the imagined lifestyle of the rich in their TV ads. They also accessorize themselves with flash jewelry, rented limousines, and rented private jets. Bottom-line they imply that they have achieved great financial success. Real investors do not need to try to oversell their success.
2. The "Expert" claim. These "gurus" are self-proclaimed experts. There was a time when you needed it to prove your knowledge and experience by your actions. You earned the "expert title" and it was given to you by true independent third parties experts. Today there are real estate investment experts everywhere describing themselves as the “leading real estate expert in the United States today” and “Number One, most-sought-after...” Blah, blah, blah.
3. No Risk. Please read this carefully, there is risk on ALL investments. However, these B.S. Artist insist that they have discovered a way to defy the financial and investment laws. Real estate investing is a real investment, thus it exposed to tax, lawsuits, economical changes, etc. To be successful in real estate investing you must learn to mitigate these factors.
4. Emphasis on no-down, low-down techniques. In their fear the their victim will object to the "opportunity", they like to emphasize on the fact that their programs do not require any money from you. They like tell you that there is no risk (see point No. 3). Fundamentally, these techniques are unsound. It has been proven time over time that when you over-leverage your real estate properties you are exposing yourself to a higher risk of loss during the natural fluctuations of the market. Also, the higher the amount of the loan the more difficult it is to cover the monthly mortgage payments of the property. They will try to convenience you that the higher loan amount will generate higher interest expense which is tax deductible. This is useless if you cannot make the mortgage payments with the rental income and have to cover the deficiency with money out of you pocket.
5. Pressure to get your credit card limit raised. When you have a guru ask to raise your credit card limit, you need to be concerned. Only a scam artist will ask you to raise your credit limit and spend it in their products. They are concerned about THEIR financial success.
6. High prices. Legit real estate books should not cost more than $80 depending on whether they sell in book stores or only by mail. A legit real-estate seminars should not cost more than $500 per day. More than that, you should question the reason for the higher price and the value received. I am in favor of training and improving our skills, I think that it makes us better investors. However, we should pay a fair fee for the information.
7. Use of "Puff" Selling Words. The fraudsters will use marketing puffing words to entice you into believing that you are being offered a "secret" (which is no longer a secret after the first book is sold) or invited into an "exclusive club" making you a "perfect offer" to make "easy money" the "lazy way". This is a "risk-free" opportunity which is "bullet-proof" or what they offer is a "no brainer". The use of these type of words in their offer indicates that they are trying very hard to sell you a scam.
8. The focus is entirely on the acquisition phase of real-estate investment. Real estate investing goes beyond the acquisition phase. Real estate investing just starts at the acquisition phase. A legit "guru" will tell you how to buy, finance, renovate, manage, and sell real estate and how to avoid paying income taxes in the process.
9. Catchy title. These gurus love to award themselves titles like "Mr. Flipper", "The Millionaire Man", "The Wholesaler Lady". These are just hype! These titles prove nothing, it is just a PR title which offer no proof of its accuracy. Stay away from them.
10. Allowing Automatic debiting of your account. This is one of the strong signs that this guru is after your money. Think about it, a legitimate business is not afraid to have you reconsider whether you want to pay them monthly or annually. Customers know that if I offer a quality service and deliver what I promise I do not have to bind them, you will want to come back, you want more of what I have to offer. Illegitimate businesses fear that you think about their offer and decide against it. That’s why they want to get you to sign non-cancellable leases and “mentoring” contracts, and other documents to prevent you from looking somewhere else, after all you already spent your hard earned money with "Mr. Guru". If someone is trying to get you to agree to let them debit your account, run away.
This is a short list of warning signs that can help you detect a potential scam. I hope this information is useful to you. If you have any other ideas on how to prevent scams, please share them with the rest of the readers of this blog.
Scammers have found new ways to motivate young and inexperienced investors into spending money in what many times are useless and outdated strategies. Many times is the same information repackaged into a different format. Many years ago I remember it was the infomercials. Now a days they come in the form of expensive investment seminars where a motivational speaker, an investment expert or even a self-made millionaire will give you advice on investing and will try and convince you to follow high risk investment strategies. Also, the internet is filled with many landing pages with free offers for you to get useless information so they can have your contact data. These free offers will then be followed by enticing offers that seem unreal on how easy is for you without knowledge and without working to become a gazillionare real estate tycoon. While investment advice can be legitimate and beneficial, it is important to look carefully at what an investment scheme or seminar is offering.
In my opinion the organizers of these seminars and real estate investment schemes make their money by charging you an attendance fees, and by selling you over-priced reports or books. They are real estate marketers more than real estate investors. Many of them are so humble that they have done the research for and bring you a list of properties ripe for the picking (ouch! many of these are their properties they are trying to sell) and you do not need to seek an independent advice. The unfortunate event here is that these scams do great harm to beginning investors, who waste hundreds of dollars on old information. What is worst, those beginners soon get discouraged and miss out on the true (and profitable) adventure of real estate investing.
The problem is not the scammer, it is us. We allow them to do this. They exist because of us. We do not want to work and become rich. We want to become experts and not have to think. We want the food already chewed so we do not have chew it ourselves. We go to 7-Eleven and other "convenience stores" and pay somewhere around 15% more for the milk than going another block to get it at a fair price.
So how can you detect a scam? Here are 10 basic points that will help you on how to spot a B.S. artist:
1. Emphasis on luxurious lifestyle. The B.S. Artists want to present a fantasy where you live in your own island and all of the money was made from real estate investing and best of all you did not have to work for it. The B.S. artists feature the imagined lifestyle of the rich in their TV ads. They also accessorize themselves with flash jewelry, rented limousines, and rented private jets. Bottom-line they imply that they have achieved great financial success. Real investors do not need to try to oversell their success.
2. The "Expert" claim. These "gurus" are self-proclaimed experts. There was a time when you needed it to prove your knowledge and experience by your actions. You earned the "expert title" and it was given to you by true independent third parties experts. Today there are real estate investment experts everywhere describing themselves as the “leading real estate expert in the United States today” and “Number One, most-sought-after...” Blah, blah, blah.
3. No Risk. Please read this carefully, there is risk on ALL investments. However, these B.S. Artist insist that they have discovered a way to defy the financial and investment laws. Real estate investing is a real investment, thus it exposed to tax, lawsuits, economical changes, etc. To be successful in real estate investing you must learn to mitigate these factors.
4. Emphasis on no-down, low-down techniques. In their fear the their victim will object to the "opportunity", they like to emphasize on the fact that their programs do not require any money from you. They like tell you that there is no risk (see point No. 3). Fundamentally, these techniques are unsound. It has been proven time over time that when you over-leverage your real estate properties you are exposing yourself to a higher risk of loss during the natural fluctuations of the market. Also, the higher the amount of the loan the more difficult it is to cover the monthly mortgage payments of the property. They will try to convenience you that the higher loan amount will generate higher interest expense which is tax deductible. This is useless if you cannot make the mortgage payments with the rental income and have to cover the deficiency with money out of you pocket.
5. Pressure to get your credit card limit raised. When you have a guru ask to raise your credit card limit, you need to be concerned. Only a scam artist will ask you to raise your credit limit and spend it in their products. They are concerned about THEIR financial success.
6. High prices. Legit real estate books should not cost more than $80 depending on whether they sell in book stores or only by mail. A legit real-estate seminars should not cost more than $500 per day. More than that, you should question the reason for the higher price and the value received. I am in favor of training and improving our skills, I think that it makes us better investors. However, we should pay a fair fee for the information.
7. Use of "Puff" Selling Words. The fraudsters will use marketing puffing words to entice you into believing that you are being offered a "secret" (which is no longer a secret after the first book is sold) or invited into an "exclusive club" making you a "perfect offer" to make "easy money" the "lazy way". This is a "risk-free" opportunity which is "bullet-proof" or what they offer is a "no brainer". The use of these type of words in their offer indicates that they are trying very hard to sell you a scam.
8. The focus is entirely on the acquisition phase of real-estate investment. Real estate investing goes beyond the acquisition phase. Real estate investing just starts at the acquisition phase. A legit "guru" will tell you how to buy, finance, renovate, manage, and sell real estate and how to avoid paying income taxes in the process.
9. Catchy title. These gurus love to award themselves titles like "Mr. Flipper", "The Millionaire Man", "The Wholesaler Lady". These are just hype! These titles prove nothing, it is just a PR title which offer no proof of its accuracy. Stay away from them.
10. Allowing Automatic debiting of your account. This is one of the strong signs that this guru is after your money. Think about it, a legitimate business is not afraid to have you reconsider whether you want to pay them monthly or annually. Customers know that if I offer a quality service and deliver what I promise I do not have to bind them, you will want to come back, you want more of what I have to offer. Illegitimate businesses fear that you think about their offer and decide against it. That’s why they want to get you to sign non-cancellable leases and “mentoring” contracts, and other documents to prevent you from looking somewhere else, after all you already spent your hard earned money with "Mr. Guru". If someone is trying to get you to agree to let them debit your account, run away.
This is a short list of warning signs that can help you detect a potential scam. I hope this information is useful to you. If you have any other ideas on how to prevent scams, please share them with the rest of the readers of this blog.
Monday, May 10, 2010
Is Fannie Mae Closing The Doors on Investors?
As you remember back in November 2009 Fannie Mae launched its "First Look initiative" Program. This program has gone thru a recent adjustment to facilitate the sale of REOs to owner-occupants and entities using public funds, such as local housing and community development agencies. According to Fannie Mae says these buyers bring permanency and stability to tenuous markets where swollen inventories of foreclosures have taken their toll.
One of the main changes is that First Look properties will now be listed on HomePath.com rather than MLS. This program has been designed to put owner-occupants in homes. This is an honorable idea, now what I wonder is that if they are trying to exclude or reduce the number of properties available to investors. For example, for the first 15 days of "Fannie Mae REO listings", only offers from owner-occupants and public entities will be considered. What I wonder is the reason to exclude the rest of the public (investors) from the bidding process. I understand their fears of the past mistakes. However, having the government now control the real estate market may be going a little too far. I agree with making corrections and legislations to prevent the past mistakes. Like history has shown us, everyone is better served by letting the forces of the market work on its own. Something that we should consider is that if an investor is willing and capable of making a higher offer, then Fannie Mae and the taxpayers would benefit by recouping more of its losses. What is next, will a governmental agency will exclude certain batch of stocks from the market for 15 days and only a certain group of buyers will be able to acquire them?
One of the main changes is that First Look properties will now be listed on HomePath.com rather than MLS. This program has been designed to put owner-occupants in homes. This is an honorable idea, now what I wonder is that if they are trying to exclude or reduce the number of properties available to investors. For example, for the first 15 days of "Fannie Mae REO listings", only offers from owner-occupants and public entities will be considered. What I wonder is the reason to exclude the rest of the public (investors) from the bidding process. I understand their fears of the past mistakes. However, having the government now control the real estate market may be going a little too far. I agree with making corrections and legislations to prevent the past mistakes. Like history has shown us, everyone is better served by letting the forces of the market work on its own. Something that we should consider is that if an investor is willing and capable of making a higher offer, then Fannie Mae and the taxpayers would benefit by recouping more of its losses. What is next, will a governmental agency will exclude certain batch of stocks from the market for 15 days and only a certain group of buyers will be able to acquire them?
Sunday, May 9, 2010
Is This The End of Zillow?
Many of us in the real estate industry have used the services provided by Zillow.com. Now Santa Ana-based First American CoreLogic Inc. has filed a federal lawsuit against eight rivals, including the popular real estate website Zillow.com, accusing them of infringing on a 1994 automated appraisal patent, according to the lawsuit.
The seven other firms named in the suit are Fiserve Inc., which is based in Wisconsin; IntelliReal LLC, based in Denver; Interthinx Inc., based in Agoura Hills; Lender Processing Services Inc., based in Florida; Precision Appraisal Services Inc., based in New Jersey; Real Data Inc., based in Houston; and Realec Technologies Inc., also based in Houston.
Are you a user of Zillow.com? What is your opinion about these on-line valuation services?
The seven other firms named in the suit are Fiserve Inc., which is based in Wisconsin; IntelliReal LLC, based in Denver; Interthinx Inc., based in Agoura Hills; Lender Processing Services Inc., based in Florida; Precision Appraisal Services Inc., based in New Jersey; Real Data Inc., based in Houston; and Realec Technologies Inc., also based in Houston.
Are you a user of Zillow.com? What is your opinion about these on-line valuation services?
Real Estate Investing Oppotunities in Colombia
Colombia offers more than coffee and emeralds. It also offers a wide range of real estate opportunities for investors. The options go from the caribbean coasts of Cartagena and Santa Marta to the cosmopolitan Bogota to the coffee regions of Pereira and Armenia. Colombia is trully an amazing place, it offers environments that will appeal to pretty much any taste, from urban enclaves to quiet beach towns… from highland retreats to steamy tropics . Also, Colombia offers low cost of living, inexpensive properties and a colorful and diverse culture. Unless you’ve got your heart set on snow, you’re almost certain to find your ideal spot in Colombia.
Here are a couple of points on the real estate market of Colombia:
> A 1,200-square-foot apartment in the Chapinero sector goes for $64,000.
> A 1,400-square-foot apartment in a new, exclusive condo building in the exclusive secto of Rosales was selling for $171,000.
> For $55,000 you purchase an older three-bedroom apartment in Santa Marta and for $125,000 you can buy a new beachfront condo in the 12th floor.
As a opposite to the United States and many parts of the world, the real estate market in Colombia has been solid and the rental market is strong. So whether you’re an investor, a second-home buyer, a retiree, or just someone who wants to try a new country, you will find a climate and setting in Colombia that’s just right for you.
Here are a couple of points on the real estate market of Colombia:
> A 1,200-square-foot apartment in the Chapinero sector goes for $64,000.
> A 1,400-square-foot apartment in a new, exclusive condo building in the exclusive secto of Rosales was selling for $171,000.
> For $55,000 you purchase an older three-bedroom apartment in Santa Marta and for $125,000 you can buy a new beachfront condo in the 12th floor.
As a opposite to the United States and many parts of the world, the real estate market in Colombia has been solid and the rental market is strong. So whether you’re an investor, a second-home buyer, a retiree, or just someone who wants to try a new country, you will find a climate and setting in Colombia that’s just right for you.
Saturday, May 8, 2010
How Real is Virtual Real Estate Investing?
The internet and other advancements in the technology has made real estate investing simpler. Virtual real estate investing (VREI) takes the traditional concept to another level. Today, I would like to talk to you about real estate investing utilizing technology to allow you to multiply yourself and reduce costs.
Virtual real estate investing is possible, if you know how to and take it seriously. It is not a game. VREI combines the power of the internet and technology with real estate investing. The traditional real estate investing method requires that you visit several properties, screen them, listen to sellers tell you about their wonderful properties and why you should pay more for theirs, then come the several documents needed to bring the transaction into closing. With Virtual Real Estate Investing you utilize the power of the internet and technology to reduce time and costs, and promptly implement marketing techniques to advertise the properties for sale until they can be sold for a profit. With the internet it is easier and faster for investors and buyers to find each other.
Another advantage is that the internet has connected the world, paperwork no longer has to be signed in person, and buyers are not normally dead set on seeing a property first hand before they purchase. Now real estate listings do not have to be handled by agents on a local level, but rather than be bought and sold over long distances by the investors websites. This is the way to implement your wholesale business. Even though virtual real estate investing, may not be able to be implement 100% virtual, it will expedite the process of the acquisition and sale of your properties. The faster your turnaround the faster you become liquid and reduce your costs of financing your transactions. Conclusion more profit.
I encourage you to implement technology into your real estate investing business. Now a days there are many options for all budget sizes. For example, contract negotiations can occur largely via e-mail and instant message and all of the marketing for the property can be carried out via social networking and social media channels rather than through traditional marketing techniques.
To be successful in today's market you have to be on the cutting edge. Virtual real estate investing and especially virtual wholesaling is the wave of the future. Here I share a couple of resources for you that could help your business.
CRM - http://www.zoho.com
Real estate social network - http://www.real-estate-investing.com
The best part is that they are free!
Virtual real estate investing is possible, if you know how to and take it seriously. It is not a game. VREI combines the power of the internet and technology with real estate investing. The traditional real estate investing method requires that you visit several properties, screen them, listen to sellers tell you about their wonderful properties and why you should pay more for theirs, then come the several documents needed to bring the transaction into closing. With Virtual Real Estate Investing you utilize the power of the internet and technology to reduce time and costs, and promptly implement marketing techniques to advertise the properties for sale until they can be sold for a profit. With the internet it is easier and faster for investors and buyers to find each other.
Another advantage is that the internet has connected the world, paperwork no longer has to be signed in person, and buyers are not normally dead set on seeing a property first hand before they purchase. Now real estate listings do not have to be handled by agents on a local level, but rather than be bought and sold over long distances by the investors websites. This is the way to implement your wholesale business. Even though virtual real estate investing, may not be able to be implement 100% virtual, it will expedite the process of the acquisition and sale of your properties. The faster your turnaround the faster you become liquid and reduce your costs of financing your transactions. Conclusion more profit.
I encourage you to implement technology into your real estate investing business. Now a days there are many options for all budget sizes. For example, contract negotiations can occur largely via e-mail and instant message and all of the marketing for the property can be carried out via social networking and social media channels rather than through traditional marketing techniques.
To be successful in today's market you have to be on the cutting edge. Virtual real estate investing and especially virtual wholesaling is the wave of the future. Here I share a couple of resources for you that could help your business.
CRM - http://www.zoho.com
Real estate social network - http://www.real-estate-investing.com
The best part is that they are free!
Wednesday, May 5, 2010
Recession and Real Estate Investors
Recession can be a good opportunity for real estate investors to get a great deal on a home. The recent real estate meltdown has provided an inventory of millions of foreclosed homes and hundreds of banks and other lenders desperate for liquidity. It is possible to take possession of a foreclosed home for pennies on the dollar.
I am a believer that real estate is one of the best investments available. I am not talking about the saying "homes is my greatest investment". I am talking about real estate as a hard core and cold investment. Using real estate to build wealth. With a solid investment strategy, an investor has an opportunity in this market to build a solid real estate portfolio.
Savvy investors understand that real estate investing always carries with it inherent risks. Before you sink your hard earned capital into one of these opportunities, you should understand exactly what the investment entails. Understand the market where you are planning on investing and understand your level of risk. I always suggest that you should not invest "scared money", if you need the money to pay your next month rent or buy food; do not invest it.
In the current market we are in, you need to be prepared to wait longer to recover your investment and the credit market is tighter which may require more of your capital to be put at risk. Finally, to be able to succeed in real estate investing you must take action. So once the analysis is done, you must take action.
I am a believer that real estate is one of the best investments available. I am not talking about the saying "homes is my greatest investment". I am talking about real estate as a hard core and cold investment. Using real estate to build wealth. With a solid investment strategy, an investor has an opportunity in this market to build a solid real estate portfolio.
Savvy investors understand that real estate investing always carries with it inherent risks. Before you sink your hard earned capital into one of these opportunities, you should understand exactly what the investment entails. Understand the market where you are planning on investing and understand your level of risk. I always suggest that you should not invest "scared money", if you need the money to pay your next month rent or buy food; do not invest it.
In the current market we are in, you need to be prepared to wait longer to recover your investment and the credit market is tighter which may require more of your capital to be put at risk. Finally, to be able to succeed in real estate investing you must take action. So once the analysis is done, you must take action.
Five Mistakes Made in Real Estate Investing
Real estate investing can be a rewarding profession. It has been proven that wealth can be built with real estate investing. However, it has also been seen when many investors have lost their pants with real estate investing. Many of the loses can be minimized by following some basic procedures.
Here I share with you five mistakes commonly made by those that have lost in the process of real estate riches:
1. Lack of planning. This is a typical mistake made by novices. Many times investors purchase a property because "it seems like a good deal". I know many courses will sell you the idea that you do not have to think to become a real estate investor. However, I do not agree. Real estate investing like any other profitable business, requires planning. Instead of buying for the heck of buying and then developing a strategy, the investor should focus on developing a plan and gearing their purchases on the strategy developed. This will ensure that good properties matches the strategies developed.
2. Get Rich Mentality. Again many real estate investment courses will sell you the idea that you will get rich quick with real estate. I understand them, it would be hard to convience someone to buy a course where the title is "With dedication and proper planning you will get rich". You mean I have to actually work and think? Yeap. The get rich quick on real estate is only a myth and the reality is that the ones getting rich quick are the ones selling the courses.
3. Doing it alone. To become successful as a real estate investor you need to build a team of professionals. You need a power team that will assist you in the successful completion of your transactions. For example, you should consider having in your team a real estate agent, an appraiser, a home inspector, a closing attorney and a lender. Other members of your team could include insurance agent, a real estate tax accountant or attorney, and a bird dog.
4. Overpaying for a property. This is one of the reasons many real estate investors fail in this industry. You remember the old saying "You make your money when you buy, not when you sell", well it is true for real estate investing. Paying too much and locking up all the funds in the erred property deal will leave you with no money to redeem yourself.
5. Not doing your homework. This goes along with the planning mentioned above. However here is more specifically about the studying the market where you are planning to invest. Learn the basics of the market where you are planing to venture. Understand the dynamics in the area, demands, economics, etc.
By avoiding these mistakes, you will increase the chances of improving your experience in real estate investing. Like any other business, real estate investing requires preparation and dedication. I hope you find this information useful. If you have any other suggestions or comments I want to hear from you.
Here I share with you five mistakes commonly made by those that have lost in the process of real estate riches:
1. Lack of planning. This is a typical mistake made by novices. Many times investors purchase a property because "it seems like a good deal". I know many courses will sell you the idea that you do not have to think to become a real estate investor. However, I do not agree. Real estate investing like any other profitable business, requires planning. Instead of buying for the heck of buying and then developing a strategy, the investor should focus on developing a plan and gearing their purchases on the strategy developed. This will ensure that good properties matches the strategies developed.
2. Get Rich Mentality. Again many real estate investment courses will sell you the idea that you will get rich quick with real estate. I understand them, it would be hard to convience someone to buy a course where the title is "With dedication and proper planning you will get rich". You mean I have to actually work and think? Yeap. The get rich quick on real estate is only a myth and the reality is that the ones getting rich quick are the ones selling the courses.
3. Doing it alone. To become successful as a real estate investor you need to build a team of professionals. You need a power team that will assist you in the successful completion of your transactions. For example, you should consider having in your team a real estate agent, an appraiser, a home inspector, a closing attorney and a lender. Other members of your team could include insurance agent, a real estate tax accountant or attorney, and a bird dog.
4. Overpaying for a property. This is one of the reasons many real estate investors fail in this industry. You remember the old saying "You make your money when you buy, not when you sell", well it is true for real estate investing. Paying too much and locking up all the funds in the erred property deal will leave you with no money to redeem yourself.
5. Not doing your homework. This goes along with the planning mentioned above. However here is more specifically about the studying the market where you are planning to invest. Learn the basics of the market where you are planing to venture. Understand the dynamics in the area, demands, economics, etc.
By avoiding these mistakes, you will increase the chances of improving your experience in real estate investing. Like any other business, real estate investing requires preparation and dedication. I hope you find this information useful. If you have any other suggestions or comments I want to hear from you.
Subscribe to:
Posts (Atom)