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5 Things To Look For When Buying A Foreclosure Investment Property
Author: Real Estate Investor, Category: Foreclosures
Buying foreclosure property is a good way to make money for many people. But if you’re just starting out you need to look at some very important factors when buying. Here are five to keep in mind when you start your search for a property you want to invest in.
1. When you find a property in a listing that you think you’d be interested in, go and take a look at the neighborhood before going any further. The real estate slogan ‘location, location, location’ holds just as true for foreclosure property as it does for conventional house sales. The house may be beautiful, may be grand, but be sure to look at the other houses in the neighborhood. If they are in decline or are in poor condition your house will be more difficult to sell. That doesn’t mean that it won’t sell; it simply means that it may take more time to sell and you may have to decrease your selling price and take a lower profit. If this your first property it will be easier for you to start with a house in a better neighborhood.
2. Check to see how close schools are to the neighborhood you’re house is in. Does the school have a good reputation? Other amenities to consider are shopping, parks, and possible neighborhood upgrades. Is shopping close by? Is there a neighborhood park for the kids? Is the city going to revitalize this area of the city? All of these issues will have an impact on how quickly you can sell the house. They also make great selling points to prospective buyers.
3. The condition of the house is a key issue. If a house needs major repairs this is a house to be avoided. Paint, paper, small repairs are all you want to take on, otherwise you will be losing a large portion of your potential profit, if not all of it. You’re looking for a shabby house that’s structurally sound. No major plumbing, structural or electrical problems. Remember that the amount of money you spend on repairs comes out of your pocket right up front.
4. When buying a foreclosure property you need to do a title search to make sure you are paying for only one mortgage. If there is a second mortgage attached to the house that you didn’t know about before purchasing, you will have to resolve this second mortgage before taking possession. There may be other liens on the property, as well, and a title search will reveal this. Read the rest of this entry »
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Apartments Kiev
Author: Real Estate Investor, Category: Closing in your Investment Deal
Most of us sooner or later face the need for business travel to another city. Arriving a couple of days on a business trip or on business, you can stay in a hotel, but much more comfortable and cost-effective option would be renting an apartments kiev.
Apartments for rent suitable for business people, as it allows for the need to invite partners to themselves and to negotiate in the comfort of a beautiful apartment. In the hotel you will be met with a number of challenges, trying to organize a business meeting in the room.
On the other hand, came after a day in the rented apartment to rent, you can really relax in a cozy home atmosphere, which never attain to the soulless and dreary hotel room. Nobody will bother you, walking down the hall or talking behind the thin walls of adjacent rooms. You will retire to a quiet and calm.
If you come to Kiev on a business trip, we will make all the necessary documents, you may need for accountability.
Apartments for rent – the best choice for business people!
If you are celebrating a big family or corporate celebration – a wedding, anniversary yl opening a new branch office, then surely you will come to many guests, including those from other cities or even countries. How do I put a lot of people, without making costly, and thus put them in decent conditions? The best solution for this situation will rent apartment for rent.
Taking off his flat for rent, you will be able to settle all of its guests in a cozy home atmosphere, in an area that is most convenient for you and for them. In this case you do not have to pay for each person, as is the upon arrival to the hotel. When renting an apartment for rent, you pay for the area, not the number of people living on it. This means that in a two-bedroom apartment can easily accommodate ten people, and in some cases – even more. Think how much accommodation would be worth ten of your guests in one of Kiev’s hotels, even with modest prices? Thought? – Lot. And while the appearance of rooms in such hotels is poor. A rent apartment for rent gives you the opportunity to settle as many people as needed, in comfortable, renovated, cozy apartment.
Occasionally there will be situations where the presence of their own homes, there is a need to move somewhere for a couple of days. For example, to make minor repairs in their apartment or a disinfestation. Of course, you can stay with friends or relatives. But what if the inconvenience friends do not want? What to do if you want to live these days with the same comfort as home? An excellent solution to the problem would be to rent. Thus, you can get excellent accommodation for such period as the need, do not hesitate friends and remaining master in his own house, even temporarily.
Rent apartment has many advantages. First, rent an apartment for a few days is much cheaper than rent a hotel room. Secondly, you can find apartments in the same area in which your house, so do not feel comfortable with the way to work or school-children. Third, most commercial premises to rent such apartments, which are equipped with all necessary equipment for healthy living – from iron to the washing machine.
Therefore, as a temporary housing is difficult to find anything better than to rent.
apartments kievArticle Source:http://www.articlesbase.com/real-estate-articles/apartments-kiev-1402999.html
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Flipping Or Renting?
Author: Real Estate Investor, Category: Flipping
Investing in real estate has created more millionaires than just about any other type of investment. Why is this?? It is likely because investing in real estate (if done right) has the potential to create income at an amazingly rapid rate. Appreciation is the key to long term success in real estate while convenience and curb appeal are the defining factors of the shorter term holdings. Which kind of investment you seek purely depends on you and what you are looking or. If you have the time and the money to pay in the market for some time then renting is a great way to increase your equity and therefore your borrowing power Arranging mortgages so that they are completely paid by the renters with a little left over every month is a great feeling to have.
Of course, not all of us can afford the time that is required to be a professional landlord. This leaves flipping a home as the most likely candidate for an investment. Home flipping is all about fixing a home up and getting rid of it quickly before the monthly bills start to stack up. Home flip usually involve some renovations to bring the home up to par. Once there you can renovate a bit to improve the asking price of the home. Remember that you have a definite bottom line on this kind of investment where you cannot afford to spend any more money for fear of not being able to make it back when the home sells. Read the rest of this entry »
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Leveraged Property Investments – Why Do Property Investors Use Leverage To Maximise Their Returns?
Author: Real Estate Investor, Category: Real Estate Investing
The following case study outlines the reasoning why it is financially beneficial to use the banks money to finance property investments rather than ones private reserves. Lets assume that we are purchasing a property for 100 000 and that property inflation averages 10 percent per year over a 5 year term. (I have specifically left out the currency as this example can be applied to any country.)
Your Capital Growth on the property would look as follows:
Year 1: 100 000 + 10 000 (10% growth) = 110 000
Year 2: 110 000 + 11 000 (10% growth) = 121 000
Year 3: 121 000 + 12 100 (10% growth) = 133 100
Year 4: 133 100 + 13 310 (10% growth) = 146 410
Year 5: 146 410 + 14 641 (10% growth) = 161 051
Case 01: You use your own personal savings to finance your acquisition
In this case you would have made no more than the average rate of property inflation. In other words, you would have made a return of 10% per year plus of course any rental income that you may have received less any property related expenses that you may have incurred.
Your initial investment of 100 000 would have yielded a return of 61 051. This is a rather poor return on investment of only 61% over the 5 year period.
Alternatively you look at the advantages of leverage or as it is also commonly referred to as gearing.
Case 02: You put down a 20% deposit and use the Read the rest of this entry »
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All about Capital Gains and 1031s
Author: Real Estate Investor, Category: Closing in your Investment Deal
Primarily, there are two ways of making capital gains quickly and easily on real estate. They are compounding and leveraging. As a result of the application of compound interest in the case of the former, the investment grows exponentially. In the case of the latter, a loan is taken and it is invested such that the rate of return is many times higher than the rate of interest applicable on loan. Although the risks involved in leveraging are quite high, but the returns are also high. 1031 exchange is a unique law that provides you the benefit of both compounding and leveraging. It ensures that your investment in real estate grows by leaps and bounds.
What is 1031 exchange?
1031 is an IRS (Internal Revenue Service) Code that states that if a property is sold off and the money obtained from the sale of real estate is used to buy a like-kind property, then gain or loss is not acknowledged. This law simply defers the taxes that are applicable on the profits made during the sale of real estate. The most important feature of 1031 exchange is that it is a law framed by the U.S. Government. It is not loophole where people tend to take advantage of the convolute technicalities of law. Thus, it is a safe, secure and legitimate way to make capital gains on real estate.
What are the rule and regulations associated with 1031 exchange?
As per the 1031 IRS Code, the transaction should be like-kind that is the asset purchased should be similar to the asset sold. Secondly, the money garnered from the sale of real estate can only be handled by a Qualified Intermediary (QI). Neither you nor your real estate agent can handle this money. QI is basically a professional facilitator whose job is to collect and hold the money until it is used to purchase a like-kind asset. As per the third rule, the value of the replacement property should not be less than value of the property that has been sold off.
Additionally, two timelines are also associated with the law. One is the 45-days identification period during which you have to search, identify and suggest some replacement properties. The second one is 180-days exchange period during which you have to buy the replacement property and complete all the formalities associated with it.
What are the main benefits of 1031 IRS Code?
The taxes applicable on the sale of real estate can be as high as 35 percent. These taxes, on the one hand, can reduce your capital gains considerably, and on the other hand, they can prevent you from buying more profitable real estate. With the help of 1031 exchange, you can not only protect your profit from the havoc of taxes, but you can also buy more lucrative properties. It is one of its kind wealth-building tool that helps you to increase your net-worth significantly. One thing that should be kept in mind while using this law is that it is basically a device to defer taxes. Whenever you decide to sell off your property, the taxes will become applicable on your capital gains.
Some other remarkable benefits of 1031 exchange:
- You can buy replacement properties in different real estate markets of different states.
- Instead of owning and managing many small properties, you can buy a larger property and thereby reduce your ownership liabilities and increase your ownership benefits.
- You can buy a replacement property in a more desirable and profitable location.
- Last, but not the least, you can reduce your property management obligations dramatically by dumping high-maintenance properties and buying real estate that require little or practically no maintenance.
In nutshell, 1031 exchange provides a tremendous opportunity to make capital gains year after year.
For some of the best real estate properties, take a look at Anthem AZ Bank Owned Homes, Carefree AZ Golf Homes and Glendale Waterfront Property. Article Source:http://www.articlesbase.com/real-estate-articles/all-about-capital-gains-and-1031s-1398782.html
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Flipping a House – Is it Right for You?
Author: Real Estate Investor, Category: Flipping
Of all the reality TV shows that have come and gone since the fad started, very few have caused people to sit up and say, “hey, I can do that, and I can make a mint!” like the house-flipping shows that seem to be everywhere on cable these days. But is what you see on TV accurate? Can the process really be that easy? Let’s take a closer look.
The first step is analysing your finances to see if you can afford to take on a second home and remodel it. You should have an idea as to how much your total budget is going to be for the project, and make sure to factor in closing costs on the project home, contractor overruns because things are bound to take longer than you thought, and then money for incidentals and accidentals, as well.
Once you’ve got an iron clad budget, the next step is to find a home that you think is flappable. Most people go into these projects with a property already in mind, but for some, searching for a saveable house that is within their budget and at the same time will be sellable can be extremely difficult. There are many people out there looking to flip houses, so finding one for yourself can be a real chore.
Once you’ve picked your property, you have to go through the buying process. Expect delays and make sure you have the property appraised by an independent appraiser. Also, be aware that closing costs can fluctuate dramatically. Read the rest of this entry »
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What Does It Take To Be A Professional Investor?
Author: Real Estate Investor, Category: Real Estate Investing
With current mortgage problems and the market on a constant roller coaster when is the right time to become a real estate investor? What is do successful investors know that the hobby investors fail to recognize? Who can we listen to get solid investing advice that will help me achieve my investing goals?
The first rule of thumb when it comes to becoming a professional real estate investor is buy low and sell high. Wow what a break through concept! Lets take a look at what the reality is. Right now as the real estate market is tanking, according to some people, the professional are starting to come in and buy everything up. What are the hobby investors doing? They are panicking and dumping their high priced investments that they bought right before the market tanked.
The professional investors are getting wholesale priced real estate at incredible terms. The hobby investors are giving away their properties at incredible terms, lease options, rent to own, no bank qualifying etc. This isn’t exclusive to real estate…the same thing happens with the stock market and the hobby investors always wonder why they are losing money. The hobby investor waits that the market is going up and looks like a safe risk before jumping in the game. The professional investor makes up the rules to the game and makes money on the follies of those that don’t understand what the rules are.
Buy low and sale high. Why is that concept so difficult to grasp? Read the rest of this entry »
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Real Estate Investor Leads – Why Investors Need Real Estate Leads?
Author: Real Estate Investor, Category: Real Estate Leads
Everyone from a real estate agent to a seller, buyer or investor needs real estate leads. The seller needs a buyer, the buyer needs a seller, the investor needs a seller and a real estate agents needs all of them. In such a need based market, where does the investor stand?
The investor is unlike a buyer or a seller. An investor will buy a home as a part of their investment strategy and sell it off when the real state market is doing very well or when he/she is sure of making a profit.
The real estate industry is extremely competitive and ever growing. In such a market, an investor can find true value for his money. This is one of the main reasons for investment in real estate. To find the best home or property to buy, an investor will require real estate leads. Let’s look at what options he has in terms of getting real estate leads:
- An investor can buy real estate leads from lead generation companies.
- An investor can take out an advertisement and get enquiries or hot and cold leads
- He or she can approach a real estate agent and take leads from them or ask them to get a buyer.
- They can pick up cold leads and call them to find out if they are selling a home or property
- They can also search through the Internet or real estate classifieds and call up the buyer directly or get their potential leads.
For a real estate investor, a potential lead is like a gold mine. They can even invest in homes like fixer Read the rest of this entry »
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Tenant Screening – Ten Rules to Always Follow
Author: Real Estate Investor, Category: Become a Landlord
It is your house. Maybe it was the family home that you inherited, and now you are renting it out. Maybe you purchased it as an investment and plan for it to be a big part of the retirement fund.
And now, you want to rent it out to some people who you think are really nice. They told you a story about what hardships they have gone through and you, being a nice person, want to help them out.
Well, maybe they told you the truth. Maybe. But then, maybe they are people who will tear up your lovely house, cost you thousands of dollars in damage, damage your reputation, and perhaps even drive you into bankruptcy.
Protect yourself. ALWAYS, ALWAYS, ALWAYS screen your tenants. And NEVER EVER violate tenant screening rules numbers 1 through 10!
Rule number 1: Screen your tenants.
Rule number 2: Screen your tenants carefully.
Rule Number 3: Screen your tenants thoroughly.
Rule Number 4: Screen your tenants even if you think they are OK.
Rule Number 5: Screen your tenants always.
Rule Number 6: Screen your tenants without fail.
Rule Number 7: Screen your tenants under all circumstances.
Rule Number 8: Screen your tenants especially if they wave money under your nose.
Rule Number 9: Screen your tenants even if they seem clean and well educated.
Rule Number 10: Never ever ever violate rules 1 through 9.
Because it does no good to tell you to screen, without telling you HOW to screen, here is how you screen a tenant.
First, make them fill out an application that asks for, at a minimum, the following:
(1) Full Name;
(2) Social Security Number;
(3) Current Address;
(4) Time at current address;
(5) Current Landlord’s name and phone number;
(6) Employer;
(7) Employer’s phone number;
(8) Their income;
(9) ALL – that means EVERY – address they have lived at for AT LEAST the last 3 years, with landlord names and numbers, and dates they lived there;
(10) Names of EVERYONE to occupy the rental Read the rest of this entry »
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