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Posts Tagged ‘property’

One of the main questions that every new investor should ask themselves is, “What characteristics make a particular property a worthwhile investment?” In most cases, the answer given by new investors is a simple one – they do not want to lose their investment. Naturally, they want it to be worth more in a few years than the amount they invest. While these are all laudable goals, there is no amount of gazing into the proverbial crystal ball that can guarantee they will be achieved. The best bet for every investor is to maintain some perspective about the entire process.

One of the first things to think about is the amount of profit you would require each month from your rental property investment before you would consider the investment a success. Some might cite an amount as low as $ 100, while others would look for a return of $ 500 or more. That answer helps you to determine how long you need to hold the property to realize your desired return on the investment – a couple years, or more? With the current rent-friendly economy, investors are finding that profits of $ 300-400 a month are very feasible, with calculations based on the amount of collectible rent minus the costs of the property.  Read more...

As a successful real estate investor, you must avoid potential losses that could quickly put you out of business. Identifying and avoiding such pitfalls if therefore crucial to your real estate investing business.

The following tips will guide you to stay safe when buying investment property.

1)Buy properties with equity
This is a must. Avoid properties you buy at market value.

Do not expect the real estate market to improve any time soon and your market value to go up.

Houses are sitting on the real estate market with no buyers. You can even get highly discounted properties at deep discounts from banks, sometimes as much as 30%.

If you buy directly from motivated sellers, focus on those properties that have immediate equity even if you use creative means of financing such as lease options.

2)Know your area
Buying in the wrong neighborhood can mean you may have problems selling it, even if it has equity.

If you keep your properties as rentals, you will get better tenants in the right neighborhoods.

Focus on an area that is favored by most people. Can you live there? Would you like your kids to grow up there?  Read more...

Property investments are nothing new. Before the advent of stocks and foreign exchange, people used to invest their money largely in land or some sort of property. It is only recently that people after looking at the stock markets and the like and with the lure of instant money have begun to stay away from property investments. But, the lack of popularity in no way mitigates or reduces the benefit or safety of these investments. If you invest wisely and choose a piece of property after consulting all the right factions, the results will definitely surprise you. A property investment is something that just incurs a one-time expenditure of the down payment. If you play your cards well and have been doing so, the cash flow of profit will start immediately.

Getting Property Investment Knowledge

Many people sometimes suffer losses and discourage other people from making a good investment.

This is because those people perhaps did not take a measured decision or perhaps did not seek proper expert advice. When you are considering a property investment, you should always make sure to take the help of good property consultants.  Read more...

People who have finished their mortgage plans or have put it under control almost always look through real estate as a prospective investment. A property is always a good investment because, given enough knowledge and some expertise, you can vouch for success. Properties are solid and are almost always appreciating. So when it comes to putting your hard earned money where it has the potential to grow, property investment almost always comes to mind.

For those who are still new to real estate, the first thing they think about when you say property investment is buying a residential property, a rental property or a flat, which they can make money of. It is quite easy to manage, does not require much expertise in real estate and renting residential properties, demands a pretty low investment, and provides a very good promise of ROI (return of investment) in such a small period of time.  Read more...

What is an equity report? Allow me to explain. I was buying all of these bank repo homes and with everyone I bought, I increased my equity. That’s why we buy bank repossessed houses.

I wanted to know how much equity I had. So I broke it into categories by purchase price.

Now when someone moved into one of my properties and trashed it, then I had to clean up their mess and rehab the place. This included hauling out their trash, cleaning it, repainting it, landscaping, carpet and other expenses. I had a lot to pay for and lost money on the houses.

Having equity reports illustrates what I lost, even though I really didn’t want to know.

This equity report includes the property, the sales price, how much of a down payment was put into it, what the mortgage is and what the equity is. We can see how much equity we have in the home. It’s laid out from lowest to highest.

We list what the cash flow is on the property. It is set up month by month and step by step. The cash flow summary looks at the mortgage payments, private lender payments and rent payments.  Read more...