Refinancing Real Estate Investments

Why should you consider refinancing real estate investments instead of selling them? Maybe you've owned a rental property for years, you've paid down the mortgage, the value is up, and you want to cash in on that equity. You will do better to refinance. Here's why.

There are two problems with selling. First, selling means paying a large capital gains tax. You can avoid this if you reinvest through a 1031 exchange, but then the point is that you want your money, right? Second, you'll be giving up your inflation-indexed retirement plan. A good rental property generates more income as rents go up.

Refinancing Real Estate Investments Is Better

If you refinance, you can get much of your gain out of the property, without paying a penny in taxes. You see, borrowing money is not a taxable event. Take your loan proceeds and spend them however you want, and still keep your rentals. Doesn't that sound better than losing a big chunk of your equity to taxes?

Now, let's look at an example. We'll suppose you have owned a small apartment building for several years. Let's say you bought it for $340,000, with a down payment of $80,000. Interest rates at the time were at 9.5%, giving you a payment of $2,106 monthly on the balance of $260,00 (30 year amortization).

The property is now worth $560,000, and you owe $220,000. Your cash flow is around $2000/month. Now, how do you get at some of that equity? If you sell, you will give up the income, AND pay a big part of the profit in taxes. What happens if you refinance?

If a bank will loan you 70% of the value, that would be $392,000. Pay off the first mortgage, and you are left with $172,000. You can spend it any way you want, and no taxes are due.

It gets even better, especially when interest rates are low. If the new interest rate is 6.5%, your new payment will be $2295. In other words, you get $172,000 to spend any way you want, and you still have over $1,800 cash flow each month, from an inflation-indexed retirement plan.

Here is an even better scenario: Spend $50,000 of the loan for high-return upgrades to the property, such as carports and a laundry room, and raise the rents. You could have $122,000 left over to spend any way you want, AND have higher cash flow than before! Isn't that sound better than selling your retirement plan? When you want that cash, consider refinancing real estate investments.

Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

Article Source: http://EzineArticles.com/?expert=Steven_Gillman

Real Estate Investing - Follow-Up - The Key To Successful Closings

If everyone always did everything they said they’d do, we’d all be a lot richer. Unfortunately, tasks are overlooked, and the ball is often dropped. If you want to have successful closings, you must have strong “follow-up” skills to catch problems early in the process. Follow-up on everyone and everything.

We can’t begin to tell you the number of closings that almost fell apart, or would have fallen apart had we not kept a watchful eye on the entire process to make sure that everything was completed when it needed to be. Here’s a typical scenario: you’re wholesaling a house and you have just 30 days to get it closed before the contract with the Seller expires. You find a buyer who can get a loan and close before the expiration. Then a few days before closing you find out that the loan isn’t ready and closing must be delayed two weeks, but the Seller already has another Buyer ready to pay more than your price, so they refuse to extend your contract. You just lost the deal.

So what is follow-up? We used to think it meant staying in touch with the buyer to make sure that everything was completed for the loan. Then we learned that the buyer is often a newbie and clueless of what needs to be done. Mortgage brokers just usually respond “Everything looks great” until they can’t close the loan. So the real trick to following-up is to speak to the final decision maker for each step. This works whether you’re selling a retail house or a wholesale house, or even if you are the buyer/borrower. The goal is to close without delays.

Assuming that you have already received a pre-qualification letter from the lender, and ensured that the lender will loan on the deal (i.e. no issues with title seasoning, assignment fees, inhabitability of the property), the first step is to follow-up with the broker/lender that all of the application paperwork was submitted, and have they forwarded it to the lender? If not, what is still required? Determine if the lender requires a termite letter, appraisal, and a survey (most lenders do). If so, have they all been ordered? When is each to be completed? Keep following-up until you verify that each has been delivered. You also want to verify that the appraisal was sufficient for the loan.

If we don’t already own the house, we order a title report as soon as we go under contract with the Seller to discover any defects early in the process, and begin resolving them. Closing attorneys usually do not order the title report until just before closing to receive as current information as possible. But if they find problems, it could delay your closing. It is well worth the $125 to run title ahead of time, and eliminate delays.

Once the broker has forwarded the paperwork to the lender, the next step is to verify the loan has gone to underwriting. If not, what is the delay? If so, was the loan approved? Do any conditions need to be met? What are they and who is handling them? Make sure that once the conditions are met, the loan is returned to underwriting and approved.

Verify that the closing has been scheduled with the attorney, and that they have cleared title. Find out if and when the loan package will be forwarded to the attorney. Then remind all of the players of the date and time of closing, to bring a picture ID to closing, and to bring any funds required in a certified check.

This seems like a lot of work that should be handled by other people, but the reality is that often times something is overlooked. Through your diligent follow-up efforts, problems will be detected early and corrected, allowing your closing to occur flawlessly and on schedule.

Best of success & abundance,

Lou Castillo

Lou Castillo has been successfully investing in real estate since the early ‘90’s. Castillo was on his way up the corporate ladder until he recognized that real estate offered a greater opportunity for financial freedom, and for the lifestyle he desired. Lou has a knack for developing powerful & proven systems that work in real estate and has authored more than 7 books and courses on the subject.

For more information, visit http://www.Investorriches.com or sign up for his Powerful Investing Tips at http://www.Freerealestatestrategies.com

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Investment Real Estate Done Right - Your Quickest and Safest Path to Wealth

In investment real estate the quickest way to wealth is through owner financing, or lease optioning. So, let's take a look at one model transaction, involving the purchase and sale of two properties on lease-option contracts so you an apply it to your own investment real estate system.

Assume you buy an investment property for $50,000 to $60,000, and you sell it on a lease-option contract for $80,000. You receive $4,000 as a down payment from the buyer, and you will get the remainder of the balance in 12 months. You’ve created a note for the remaining $76,000 that pays you $570 monthly (interest-only payments of 9%). This gives you nearly $7,000 more in interest payments, if you keep this property for a year. You then find a rehab property in an inexpensive neighborhood that you can get for $35,000. You offer a 10% down payment of $3,500, promising to pay of the loan in 13 months or less.

Now, you can use the $4,000 from the first property, so you don't have to come up with your own money for the down payment on your second property. Offer to pay 8% on the remaining $31,500. This is a monthly payment of $231. Be sure your agreement allows you to defer your first payment for 30-60 days. Now, if you can’t sell the house in 13 months (this certainly won't be a problem, though), you’ll have the cash from the first house you bought, when the $76,000 balloon payment comes due in 12 months, so you won’t lose anything or have to get your own financing, when you have to pay off your second home in 13 months.

You see, you always cover yourself, when using this approach. If you purchase smart on this second house, you should be able to put a few thousand dollars into it and re-sell it in a few short months. Be sure you make a profit well above your $35,000 purchase price and anything you have put into it. Again, if you buy smart, after a few grand of rehabbing, you should be able to sell the property for $45,000 to $50,000. You wind up making roughly $30,000 to $35,000 in a year or less on the sale of your first two properties. This doesn't include the extra thousands of dollars in interest you've made on the payments you're collecting. Learn more about this strategy at www.winningthemortgagegame.com.

Check out more great loan information now at Direct Lending Solutions

Article Source: http://EzineArticles.com/?expert=Mark_Barnes

How To Successfully Invest In Property Abroad

There's no doubt that if you are looking to invest, that investing in real estate can yield you maximum returns while at the same time giving you a beautiful vacation home, overseas office, or any other real estate desire you may have. Property investment overseas can be very lucrative and it's quite a bit easier than people think but investing in overseas property also has its own unique set of challenges and to avoid making any mistakes, you must first do your research.

The first thing to remember when considering overseas property investment is the country in which you will invest. This may seem like the easiest decision you will make but you must be very familiar with an area before you purchase property there. Visiting it once in its prime season is not enough. You should make every attempt to visit the area as many times as you can before making your overseas purchase. Also make sure that you visit at different times of the year if possible so that you will be fully aware of what to expect from the area throughout the entire year.

If you are purchasing property abroad as a means of property investment, you also need to consider what type of property you want to buy. If you are looking for an investment property that you will rent throughout the entire year, you may choose a condo or a single-family home. However, if you simply want an investment property that will also serve as your vacation home, you may wish to choose a villa or a condo within a resort. It's also important to consider if you are going to be renting the property, who is most likely to rent from it and will it serve that person's needs? If you want to rent to college students, you will probably want to choose an investment property that is close to a campus. If you want to rent to retirees, you may choose a quieter spot close to many amenities such as grocery shops and post offices.

Culture and different ways of living are an absolute must on the list of items to consider before property investment abroad. Not only will certain aspects of culture be different in terms of the different mannerisms and customs but it could also have a major impact on how real estate investment is handled in the overseas country and could be a bigger hassle than you had originally intended. In general, purchasing property abroad can be much easier than purchasing property in other countries but there may be certain situations that are handled differently.

Whatever your reason for purchasing property abroad, you will want to hire a local expert such as a local real estate agent. These professionals will be much more familiar with the area and will be able to offer invaluable advice on how your property investment should be handled. They will be able to alert you of any special paperwork you may require or how to obtain the property you really want when investing overseas. No matter which country you decide to have as the location for your property abroad, this will be new territory for you and so you will want the help and advice of someone who has much experience with it.

Dream Homes Worldwide specializes in property abroad and is highly recommended in the area of overseas property investment

Article Source: http://EzineArticles.com/?expert=Rakesh_Gaikwad

Questions to a Beginning Real Estate Investor

Real Estate investing is probably one of the most lucrative forms of business, when done properly. If it is not done properly, it can be one of the most detrimental. The main reason that many people fail when trying to invest in real estate is either they do not understand the magnitude of the project or they mismanage the deal before it has the chance to reveal money-making potential.

Before beginning to invest, there are a few questions that you must ask yourself. Here are just a few of them:

1) What is your credit rating?

The number one key in securing a loan from the bank is maintaining a good credit rating over time. This will gage their willingness to take a risk with your new venture.

2) How much money do you have in the bank?

The extent to which the answer to this question affects your ability to engage in a new venture depends upon whether or not you are going to live in the property you purchase, or if you are going to rent it out completely. As a general rule of thumb, in addition to the down payment, it is a good idea to have 6 months worth of mortgage payment in the bank to save for a rainy day.

3) What is your exit strategy?

There are two approaches to real estate investing: buy and hold in order to make money on appreciation, or buy, revamp, and sell quickly to make money on perceived value. While both of these strategies are viable ways to make money, they require very different personality types, engagement approach, and exit strategy. You must be sure to know what style you wish to pursue when you decide to invest.

4) What do you know about the market?

No matter what, it is always advisable to do your due diligence before plugging lots of money into a property. The ability to accurately anticipate the direction of the local market is absolutely vital to making successful investments.

5) How much time/energy can you devote to management?

Effective management is the path to success. You must be able to make sure that the rents get collected, the property is maintained, and that cash flow is stable. Without keeping a close eye on the investment, it is really easy for it to get out of hand.

For more information on real estate invest for beginners, visit www.carvajalgroup.com.

Joseph Devine Article Source: http://EzineArticles.com/?expert=Joseph_Devine

Why Invest In Property?

Why property, some people ask when looking for an investment. Well, as far as I am concerned, property investment is, and always has been, the most powerful type of investment for building wealth. It has been said that over 90% of the world's millionaires got there by owning property. The reason property is such a powerful way to build wealth is due to one key concept: leverage.

Once I realised this, I didn't look back. Now if you are an experienced investor this may be obvious, but for the benefit of those who haven't seen the light, let me explain ... Leverage is your ability to magnify your returns by using other peoples' money (in this case, it's usually the bank's money).

To give a clear example, say you have £20,000 to invest. This can be a lump sum or by releasing equity in your main residency.

So what is the best way of investing this money?

Option 1 - Stick it in your local bank

Considered by some as the safest option, "at least you can't lose it, and you get some guaranteed increase in value" usually goes the argument.

Money in the Bank - assumed return: 4%

Now £20,000

1 Year £20,800

5 Years £24,333

10 Years £29,605

As you can see, after 10 years, you've made virtually no progress at all, especially when you consider the effects of tax and inflation.

Option 2 - Stocks and Shares

Now over the last 10 years, although admittedly not in last 4 years, the stock market has been very popular. However I cannot accept it is a better bet. When I read that the stock market is a better bet over the next 2 years as will go up by 15% a year, as opposed to the property market that may go up by 5% a year this does not take leverage into account and so paints a very distorted picture!!

And I will show you why. It's hard to say what sort of return you might get on the stockmarket, but let's say you get 12% a year for the next 10 years - very unlikely, but let's just go with this. So if you could beat the odds and get a 12% return every year ......

Money in the Stockmarket - assumed return:12%

Now £20,000

1 Year £22,400

5 Years £35,247

10 Years £62,117

Now that's a big increase on sticking the money in the bank, but clearly is not guaranteed. But can you do better?? I think you know what I'm going to say...

Option 3 Property

One of the great things about property is it enables you to leverage the £20,000 to purchase a £100,000 investment property (in other words, borrow the remaining £80,000 from the bank). Now say the property market slows down to an average of only 6% return for the next 10 years. This would probably be a fair estimate in the UK, although there are plenty of markets which are growing more rapidly, lets concentrate on UK for this example.

Money in Property - assumed return: 6%

Now £20,000 (£100,000 property value - 80,000 mortgage)

1 Year £26,000 (£106,000 property value - 80,000 mortgage)

5 Years £53,823 (£133,823 property value - 80,000 mortgage)

10 Years £99,085 (£179,085 property value - 80,000 mortgage)

Make sense? So you make 6% increase on the full value of the property, not just the £20,000 which you initially had. This is the power of leverage. In effect you have increased your initial investment 5 fold in 10 years! So even if the stock market increases by twice as much per annum as the property market over the next 10 years, you can make far more money from property.

Now for simplification, I have not included lawyers fees, agents fees or stamp duty. Admittedly buying a property has more additional costs than buying shares, but would not make a significant difference on your profits - around 4% in the UK, higher overseas.

One thing to point out is that in the short term you have greatly increased your potential loss ie if the property went down by 10% in value, you would lose more of your initial investment, because the property value would go down to £90,000, you still owe the bank £80,000, so you now have £10,000. In comparison if the stock market dropped by 10%, your investment would be worth £18,000, as only lose 10% of £20,000.

However over a length of time, using leverage to good effect and using all the other skills you need when buying property, property is by far the best investment, for the majority of individuals.

The figures I have used have been very conservative, many individuals are making far more than this on property, whereas anyone making the same returns on the stock market, will generally be benefiting from some sort of insider dealing or be very high up in the company, I would imagine!

Alan Forsyth is a full time property investor and developer with 10 years experience in UK and overseas. He is managing director of http://www.property-investment-tips.com and http://www.property-investment-deals.com which offers free independent advice and tips on property investment, courses, countries, strategies, mortgages and much more - with a free newsletter every 3 weeks giving latest tips and offers to over 7000 investors. Sign up today at the site for free independent recommendations!

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Achieving Positive Cash Flow from Your Real Estate Investments

Even if you’re counting on rising property values to eventually make a profit on an investment property, it’s far more desirable to have a positive cash flow each month. If you’re losing money on a property every month, it may not take long until your future profits will have been lost. Owning investment property is much more enjoyable if you’re making money along the way.

Here are a couple of ideas for keeping your investment property cash flow in the black:

If you don’t already own your own home, your first goal should be to live in your first "investment" property. Interest rates and down payments are considerably lower for a primary residence, and you won’t have to deal with finding and managing tenants or absorbing the cost of an occasional vacancy.

Once you begin looking for your first "official" investment property, you’ll want to concentrate your search for less expensive homes, because they’re generally easier to rent for a profit than higher cost houses. You can also purchase two or three smaller homes for about the same cost as one larger one, thus giving you an even greater cash flow.

One of the easiest ways to achieve a positive cash flow is by obtaining a loan with a very low interest rate for the first several years. One example is known as a “payment option” loan, although these types of loans may not be available in all states.

These loans allow you to set up an optional minimum payment, which can result in low monthly payments, often for the first five years. During that period, your minimum payment will increase by a small amount every year, although it’s usually no more than a factor of 1.075. During the minimum payment period, your interest will still continue to accrue at whatever rate you’ve agreed on (such as 4.5%), but the interest that your payments don’t cover will be deferred. At the end of the first five years, that deferred interest is then added on to the loan, and the loan becomes a standard variable rate loan. Normally, that’s not a problem, however, because the property’s value probably will have increased enough to cover the deferred interest.

Another way to minimize monthly interest payments is through an interest-only loan. The period of most such loans is usually 5-10 years, during which time, you’ll be paying only the interest on the loan. To make this type of loan work most effectively, it’s best to sell or refinance the property by the end of loan period.

There are many other ways to realize a positive cash flow on your investment properties, depending upon the financing options available in your area of the country. But regardless of where you live, it’s always desirable to have your investment properties pay for themselves, and can move you a long way toward your goal of financial success as a real estate investor.

(c) Copyright 2004, Jeanette J. Fisher and Robert S. Kramarz. All rights reserved.

Jeanette Fisher, Design Psychology Professor, is the author of "Doghouse to Dollhouse for Dollars: Using Design Psychology to Increase Real Estate Profits," the only book to reveal interior design secrets on how to make top dollar investing in real estate. For real estate and interior design psychology books, articles, tips, and newsletters: http://www.doghousetodollhousefordollars.com.

Robert S. Kramarz is a loan officer for a major loan brokerage. He has over 20 years experience in finance and business management and comes from a family a long background in real estate investing and banking. He specializes in providing financing for purchase of investment real estate. He can be reached by email at MrFunding@22cv.com. Further information is available at the website http://www.sweetloan.info.

Article Source: http://EzineArticles.com/?expert=Jeanette_Joy_Fisher

5 Tips For Getting Started in Property Investment

Property investment is a proven investment strategy for millions of people around the world. Real estate offers a variety of options for potential investors, including flipping undervalued properties, fixing properties up and then selling, becoming a landlord or considering the foreclosure market.

While there are a tremendous amount of options to consider for real estate investment, there are tips that should be considered to improve the opportunities for generating revenues in property investment. Consider getting a property mentor or at least attending a property investment seminar in your area as this will be money very well spent and could save you making mistakes and costing you money.

1. Do Your Research

In order to turn a profit in real estate, it is important to fully understand the market and the opportunities presented. The best place to start is to identify the best market available for property investment. For example, up and coming neighbourhoods, new property developments or areas going through revitalization. While these are not the only opportunities for profits in real estate, they are certainly a good place to consider beginning.

In addition to locating the best area to begin property investments, you will also want to understand how to value property, starting with learning the values of surrounding properties and the market information. You need to become a market expert in whatever area you choose to invest in as this will help you to make the best offers possible on the properties that you consider investing into.

2. Start Small

While it is natural to want to go big when you are working on a new project, in terms of real estate investing, it is important to start small. Start with one property and then as you generate profits, take those profits and purchase additional properties. You may also consider starting with rental properties or undervalued, low priced properties before moving onto higher priced properties.

3. Set a Budget and Stick to It

One of the largest mistakes that new property investors make is to either not set a budget or to not properly establish a budget. The budget for any property investment needs to have a margin of error included, typically between 10-20% for unforeseen expenses that may arise. Also, it is important to research each item on the budget so that your budget is accurate.

For example, if you need to remodel a kitchen in order to list a property for sale, you will need to accurately assess the total costs by pricing out each item that will be replaced or refurbished. Once you start a project, you will also need to monitor the budget so that you can make adjustments accordingly if you are coming close to going above it.

4. Consider a Rental Property

While some new property investors look to flip properties or to fix them up, others begin by purchasing a property to rent. Rental properties can generate an immediate income, allowing the investor to generate a passive income over time. This income can be used for personal savings to build wealth or used to reinvest into additional properties for further wealth generation. It is important to research the rental rates in an area prior to purchasing the property and prior to establishing the rental rate. You also need to make sure you take all costs into your calculations such as rates and an allowance for repairs and maintenance.

5. Consider Foreclosures

In many economies around the world, the foreclosure market is on the rise. As home owners lose their properties, it creates opportunities for those interested in real estate investment. When purchasing foreclosures, investors can purchase the properties in any one of three stages: pre-foreclosure stage, from the mortgage lender or at auction.

Investors who purchase foreclosure properties can fix them up and then sell them, can rent them or can immediately sell them for a profit if they do not require any repairs. One of the most significant advantages to investing into foreclosure properties is that they can be found at prices that are often 20-30% of market value.

Passionate about helping people create their own unique financial future Linda Rugg retired before she was 50 years old. Through her web site http://www.CreateYourFuture.co.nz Linda is helping people just like you "Retire Healthy, Wealthy and Financially Free!" Be Linda's guest and grab yourself a free copy of her latest new wealth creating audio report at http://www.CreateYourFuture.co.nz

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Real Estate Hidden Treasures in Fire Damaged Properties

To find the best treasures in life, you have to look at what others passed by and have thought was too much work. The more damages, the higher the profits.

For the real estate investor, the art is to buy very low, fix up and sell higher to make a profit. To buy low, there is generally a problem with the property. Most properties have visible damages along with aged and worn items that are typical.

With properties that have sustained fire damage, most all investors shy away from due to all the many unknowns. With so many investors that are not interested, that means that the competition is mush less.

For properties that have suffered light damage, there is the usual cleanup of debris and replacement of visible damaged items such as broken windows. In talking with the seller and or the insurance or fireman, they can generally tell you what caused the fire. Many are electrical, which usually means the property has to be rewired.

The other two variables include estimating the actual areas that have suffered burn damage and put together an estimate to remove and replace the pieces. Other damages are water related and the cost to remove, deodorize and replace. The last and most worrisome to most is getting rid of the odor.

Actually, getting the odor neutralized is easier than you think. There are many great chemicals available to kill the smell. Just a matter of exposing all the areas to remove, replace and treat. Typically the chemical is diluted with water and applied with a tank sprayer.

With the removal of the smoke filled items, usually carpeting, furniture, insulations and fabric material, chemical applications, new items and paint, the property will regain an aroma of a new home.

Do make sure that you fully disclose that the property had fire damage and that all items were professionally repaired and corrected and the property was inspected by all required agencies. For more detailed information on this and other profitable creative real estate tips, please visit my website. Thank you...

http://www.truthofrealestate.com/profits
Clint Cohen is a renowned national expert in foreclosure resolutions and short sale negotiations. Clint has been actively involved in various forms of real estate for over thirty years and actively involved with negotiations foreclosures for more than ten years. Clint has been helping and assisting buyers and sellers with special challenges (hard to sell properties and hard to finance buyers) long before there were any books, tapes, Internet information and boot camps. Clint has volunteered his time to help hundreds of homeowners in foreclosure situations and has succeeded in getting many reinstated and also educated so they would know the truth, and all without any charge to homeowner. Clint has been successful in helping so many homeowners to keep their homes. For those with major financial challenges and did not want to keep, he has been able to negotiate with the lenders to accept a lesser payoff which created a win-win for all parties. Through many years of success, Clint has helped thousands by educating the real and honest Truth of Real Estate and is offering Free and Easy Foreclosure Tips. There are many people offering many foreclosure services, but very few have been actively involved in the actual business, and fewer that have a sincere desire to honestly want to help the homeowner in his time of need. Please visit our website now for a copy of Free and Easy Foreclosure Tips. Always better to know the truth and all your available options now than to have any regrets later.

Article Source: http://EzineArticles.com/?expert=Clint_Cohen

How to Make $5,000 a Month - Time After Time!

Welcome to real estate investing; new and seasoned investors alike. In this article you will learn the efforts and rationale it takes to bird dog and wholesale. I found this is the best way to begin or to continue your investing career to make money with very little cash and minimal risk. It is how I started my career as an investor; it will work for you as well!

I hope you find these suggestions helpful. They are not difficult; you don't need to spend $5000 bucks for a mentor, nor attend every one of the latest in-town seminars, nor do you need to buy 15 different courses your first month in the business. There will come a time later for more in-depth learning.

This is how to get the information and knowledge to make money bird-dogging and wholesaling.

A commitment to not quit, no matter what! Be prepared to come to grips with all the negative self-talk you may have, like "I really can't do this, the guru's can but not me." You have to learn to believe you can do this business, really believe.

A commitment to work hard and diligently. A very successful person said, "do something in your business everyday, even if it's small." These are words you want to live by.

A commitment to post on various real estate investing forums and blogs, your successes, failures, hopes, dreams, and every question you think is too silly and too embarrassing to ask, the latter are the most important ones. And I don't know why, they just are.

I bought one particular book on wholesaling, read and reread it about 12 times, it's invaluable.

Perform "searches" for all your investor questions. Many of your questions have already been posted along with a string of replies. Do searches of the wholesale personalities who have been successful wholesalers.

Find and read "success stories" on this site and others like it to read. This kept my spirits up during the initial rocky climb the first year.

I recommend purchasing a Marketing course. This course will help you learn how to market for, and find motivated sellers and have them calling you! Which will be key to your success.

Stay focused on bird-dogging and then wholesaling. Read all you can on these two specialties. The reason is it brings cash in NOW, this is what a majority of new investors need. There will come a time for other specialties of investing. Speaking from this investor's experience it's not in the beginning. So prevent yourself from getting side tracked on other specialties the first 8-10 months, regardless of what other new investors tell you. I felt this vital to mention as most new investors are trying everything and eventually get burned out because they cannot focus and make money in one specialty.

Stay focused, on bird-dogging and wholesaling, did I mention that :)

It's about learning and educating yourself. When you're new; bird-dogging is always the best place to start I was told to forget about making money for myself initially. "Say again???" Yes, learn how and find that first deal for someone else. Once you are able to find deals with the help of a very patient seasoned investor it will cut your learning curve work and time down drastically. So help them first. Then you can wholesale to investors. They like that even better. As you are bringing them a signed contract they can simply close on. You will need less and less of there time, they like this. This is the foundation to mutually beneficial and wonderful friendships and partnerships with your seasoned investors.

Bird-dog first, with a mind on wholesaling second. That's what worked for me. By the time I bird-dogged two deals I already had enough "NO's" from seasoned investors as well as practice to then wholesale my next 40 plus contracts.

After several new investors kept asking me how I bought so many houses 45-75 cents on the dollar without the Multiple Listing Service (MLS), which commonly investors use. I told them it was a code I had cracked, on how to talk with real estate motivated sellers!

The above reading recommendations and courses simply put, worked for me. You can find these products at my website listed below the one that "news." Proper knowledge and education in investing are absolutely mandatory.

Let me pose a question: do you know how to reduce risk and fear, which so many new investors have to the point it freezes them from doing there first deal? The answer knowledge and education. At night I read all I could find on bird-dogging and wholesaling. During the daylight hours, I was driving in subdivisions that one mentor discusses in his wholesale book. It's so funny that it took me so long to find the goldmine areas he wrote about. But you just don't quit. I remember a conversation with him and I had it went something like this:

"I cannot find the subdivisions or houses you talk of in your course! Las Vegas is too new of a city anyway! Your town has hundreds of houses very old and its easy for you to find them!" He replied in his s-l-o-w drawl "there out there Bill, you just have not found them yet."

He was right, and I finally found the subdivisions he terms "goldmines." Then I would post on the site, I have been marketing and marketing like your book says and still nothing!" He would reply, "okay, great...now just don't stop marketing, it will come." I was exasperated, "is that all he is going to say, just don't stop?" But he knew what I didn't. Then, finally motivated sellers began to call me asking me to take there houses again and again.

Have I mentioned that keeping your focus on only bird dogging and wholesaling is the key to success? What I mean by that is to not run with this months favorite investor trick, like lease options, subject to deals, land lording, commercial, rehabbing or renovating. But to stick to the specialty of bird dogging then wholesaling only. Period, end of sentence. De focusing gets new investors sidetracked from making money quicker than anything else I know.

Finally, all the research, reading, posting, sweating, stressing, scrimping, marketing, running, wild goose chasing, defocusing, refocusing, defocusing, hoping, and praying on a whim that somehow it all pays off. Wrong.

One of my first wholesale deals netted me $30,750.00 I simply had the title company wire it into my bank account. Then I posted "oh...well...I guess it does really work huh!?!" I was able to pay for my daughter's 10k medical bill...cash, no payment plans for five years at 10% interest, no collection agencies etc. That is what investing can do for you. And its things like this that reminded me "it certainly was all worth the effort."

Take these suggestions literally, apply a ton of elbow grease, and never ever quit. Then we will see your posts saying the same thing "oh, I guess it does work!" As you are getting 1, 5, 10, 30, and 40 thousand dollar assignments again and again. Now that you know how to make money wholesaling, it's on to more advanced and equally profitable forms of investing!

Blessings,
Bill Guerra (Bill in Vegas)

Article Source: http://EzineArticles.com/?expert=Bill_Guerra

Private Money - Discover the New Way to Fund Your Real Estate Deals

Private money is money borrowed from private individuals as opposed to using banks or mortgage companies to fund your real estate investment deals. Most real estate investors knock on the door of banks or mortgage lenders to take out a traditional mortgage to buy investment properties. However, as the economy is turning negative and traditional lending sources are drying up, more and more investors need to seek out alternative sources of capital such as private money.

So, the secret to look for these sources of private money is to look for those individuals who have the money and may be interested in lending at rates of interest over what they can get with CD's or money markets. Private money lenders are average people who lend money and may include doctors, accountants or other processionals as well as retired individuals. In other words, people who you meet and interact with in your everyday daily life.

To find private money for real estate investment, you need to some research. Generally, you may start your marketing process by meeting people you already know and have an established relationship with as your starting point. Explain how you are a real estate investor and pay high rates of interest on their capital that is secured by local investment real estate. You may have friends who are saving for their retirement and want higher returns or someone who has some extra money and would like to invest on a more aggressive basis. Just spread the word to everyone and people will eventually start to look for you once the word id out and you can demonstrate a successful track record.

In case you do not want to rely on your friends or family you can market for people with private money by placing ads in small local newspapers or with you local real estate investor clubs. These ads need to be simple without too much details and should never promises a "guaranteed investment result". You may also look for people who have a lower rate of interest on their certificate of deposits (CDs) or money markets investment. These people may willingly to lend you in order to increase their rate of interest.

Do you want to learn more about Private Lending then click here ===> Private Lending Presentation Kit. Mike Lautensac is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Magic Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to http://realestatewealthtoday.com/page2.html Article Source: http://EzineArticles.com/?expert=Mike_Lautensack

Growing Your Real Estate Empire

If you are a business owner who owns multiple properties, and are finding out that you just do not have the time or the skills necessary to continually manage and maintain them properly, you may want to consider investing in one of the many real estate management services available to assist you in running your mini empire. In doing so, you can save your self much needed time and energy and do away with the worry and hassle of tending to day to day responsibilities, knowing that your business is being run by professionals who will do the job right, to your specifications.

Real estate management services provide a variety of options when it comes to managing your business empire. They understand the differing needs of their varied clients, and they will go the extra mile to insure your satisfaction in the way that your business is run. Whether you own retail structures, single family homes or duplexes, or a combination of many different types of dwellings, good real estate management services can plug right into your business without skipping a beat, providing quality managerial skills for you, and superior customer service to your tenants.

So, what can real estate management services do for you? For starters, they can assist you in getting the word out in regards to your various locations, and they can help you market your business to find responsible, lawful tenants. They can also aid you in researching the market, giving you the edge that you need to compete with other locations in your area, enabling your business to deliver the best prices to your potential tenants. If you have many vacancies within the structure of your business, you will surely be pleased to see those vacancies quickly filled with people who are trustworthy, and who pay on time. There is nothing more rewarding than receiving payment when payment is due.

In addition, real estate management services will do the all of the leg work for you when it comes to your company's record keeping and financial and accounting issues. Whether it involves tracking your businesses monthly income and expenses, managing tenant accounts and delinquent payments, or maximizing your profits by finding more responsible and effective ways to save you money, you can bet that your bank account will see the difference.

But the benefits do not stop there. If you find it tedious keeping up with tenant complaints, concerns, repairs and requests, then you can add that to the long list of responsibilities that can be taken care of with outside managing. It makes your life so much easier when you know that the issues will be handled, with only minimal requirements from you. Not only that, but outside managing will also stay abreast of local, state and federal laws and legalities that your business must comply with. This gives you time and energy to invest in other money making opportunities.

So, go ahead, take a load off, and watch your business run itself, well, almost. At the very least, it will free up your time and allow you to put effort and focus in areas that can be better spent on acquiring new locations, or even just playing a few rounds of golf every now and then. Who says having your own business has to be difficult? Invest in your business, and give some of the dirty work over to a company that will handle all of the details, while you grow your empire.

Source : Quality Assurance

Please also visit our Self Storage Social Network at http://www.selfstoragesocialnetwork.com/home.php

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Investment Properties For Beginners - 8 Tips on How to Start Making a Fortune From Property Today!

If you are a novice property investor looking for information on investment properties for beginners, this article should help make your life easier. It details eight tips that will help you in your quest to become a landlord.

Don't believe the hype. It doesn't matter if it is negative or positive hype about investing in property; do not take anything at face value. Always consider whether the person or media that is putting out the story might have ulterior motives. Anyone interesting in selling you property or property products will only talk about the positives and the value of investing in property. The media likes to sensationalise the negatives, because that is what sells newspapers. You have to look at the evidence and seek impartial advice and make up your own mind.
1. You have to believe. You have to have a belief that you can make money from property. At times it can seem as though the property investing World is already saturated with people more experienced than you. You have to believe that there is room for you as well. If you start off with negative self belief then you are on a slippery slope to failure and before you know it you will be another one of those that have "tried" property investing, but found that there was no money in it.
2. Decide why you want to invest and formulate a strategy around this reason. Being clear why you want to invest in property can create compelling reasons that will push you forward towards your goals, even when things are not going well. Once you know why you are investing you can then build a clear strategy based around what your goals and aims are.
3. Research and make sure the figures add up. Don't just dive into investing in a location because you have heard a rumour on a forum that it "might" be the next property hot spot. You need to do your research and your own due diligence. It will be hard work to begin with and it might take you several months to find the right location and the right type of property, but after that you can probably continue to invest in the same location for several years, so the initial hard work is well worth it and should pay off in the end.
4. It's a numbers game. You have to be prepared to look at hundreds of properties to find a deal that meets your criteria and that corresponds with the strategy you have set out. This doesn't necessarily mean making hundreds of phone calls a month to different estate agents or vendors. You might achieve your goal by simply browsing the local newspaper which normally has at least a couple of hundred properties in, although a more proactive method is usually needed to be really successfully.
5. Have effective exit strategies in place. One of the main reasons many beginners fail in their efforts to become professional property investors or developers, is that they don't have exit strategies in place. You need to know what route you are going to take to get out of a deal if things do not go according to plan. You also need to have an idea of how you are going to off load the property in the long run, if you don't plan to hold onto it forever.
6. Take a long term view. Successful property investors take a long term view of the property market. Many of the budding investors that have failed, have failed because they wanted to make a quick buck. If you are serious about learning how to become a landlord and being financially independent, then you have to take a long term view. This will help minimise your risk and will stop you from wanting to bail out if the property market goes through a bad patch.
7. Be careful of using property investment companies. There are a host of companies that claim to be able to buy investment properties for beginners, so that novices don't have to do any of the work themselves. Some of these companies are good, many are terrible and a few are crooks. I would advise you to learn the basics about what equates to a good property investment first, before you trust others to buy investment property for you. That way you can access the properties that they put in front of you and you will be able to tell if they are good or not, without being totally reliant on what the investment companies tell you.

If you are a beginner to making money from property, then by following the tips laid out here, you should be more equipped to go out and start hunting for those bargain properties. Keep in mind that people progress at different speeds and don't get caught up in the thought that if you don't become a millionaire in one month through property, then it's not going to happen.

Find your own pace. However, make sure that you are also pushing yourself and forcing yourself to get out of your comfort zone because this is where the real growth, learning and wealth happens.

Don't waste your money chasing profitless property deals. Carlton Johnson is a well respected author and webmaster specialising in helping investors make money in any type of property market. To learn more about becoming a landlord and to claim your free book titled "The Five Rules of Property Success" visit his Investment Property Advice website.

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Real Estate - The Velocity of Money

This lesson is really adapted from Robert Kiyosaki's book, "Who Took My Money?" I strongly encourage investors to read this book. He writes that the Velocity of Money is the one reason why rich get richer and the average investor risks losing it all. I agree. From Robert's book, he writes "As a professional investor, I want to...

1. Invest my money into an asset.

2. Get my money back.

3. Keep control of the asset.

4. Move my money into a new asset.

5. Get my money back.

6. Repeat the process."

When I teach my homes buying homes investment strategy, I am teaching Robert's velocity of money concept. I read Robert's book in the summer of 2005. Little known to me, I was already teaching the velocity of money and didn't really realize it. Thankfully, I was already utilizing it with my investing.

To give you an example: Let's assume you purchase a nice single-family home for $200,000. To purchase this home, you use a 5-percent down payment loan program and invest approximately $10,000. You use a fixed, interest-only loan program and your total monthly payment is, say, $1,400. You offer this home on a Rent to Own Program. Your new tenant/buyer gives you $6,000 up front on this lovely home and picks a program paying you $1,695 a month in rent.

After collecting your up-front payment, you would still have $4,000 invested in this property ($10,000 down payment less that $6,000 upfront payment received from your tenant/buyer). Your monthly cash flow would be approximately $295. (Rent of $1,695 less your payment of $1,400) It would take you another 13 1/2 months to recover your remaining $4,000 invested. ($4,000 divided by $295 monthly cash flow) In this example, it would take you around 14 months to complete steps 1, 2 and 3 above. You would have invested in an asset, gotten ALL your money back and kept control of this same asset. Now you are on to step 4, which is move your money into a new asset. Robert continues his teaching as follows:

"A professional gambler wants to be playing the game with house money as soon as possible. While in Las Vegas, if I had put my money back in my pocket and only played with my winnings that would have been an example of playing with house money. The moment I began betting everything, I lost the game because I lost sight of my goal, which is to stay in the game but to play with other people's money, not my own money."

When you come to a point in your investing at which you have gotten all of your money back and still own the asset, you are playing with house money. In this example, after Month 14, you would still receive a cash flow of $295 a month until the property sells. This is all house money. Now let's move on and assume that the your tenant/buyer doesn't purchase your home during the Rent to Own Program. In four years, your $200,000 home would be worth $243,000 with a 5-percent appreciation rate. This appreciation would ALL be house money. You could then borrow a portion of this increase in equity tax-free. You could refinance this home at 90-percent loan to value. A 90-percent loan on a $243,000 home amounts to $218,700, less your current loan on the property of $190,000 would provide you with $28,700 tax-free (Current loan is $200,000 initial purchase price less your $10,000 down payment).

At this point in time, you would have recovered your $10,000 investment, plus taken in an additional $10,030 in positive cash flow and borrowed out another $28,700 tax-free. This amounts to roughly $48,000 in four years. Remember, you still own the original asset, the $200,000 home.

Now, here is where the fun starts to happen. What can you do with the $48,000? Could you use this $48,000 as a 10-percent down payment on a $480,000 asset? Let's assume you do. What do you think the cash flow would be on this property? Maybe $10,000 a year? In a few years, both of these properties could be refinanced to pull out more money to invest into another asset, creating even more cash flow. For example, at an appreciation rate of 5 percent a year, the $200,000 home would be worth $295,000, and the $480,000 property would be worth $583,000. You could borrow another $100,000 out of these properties and use as a 10-percent down payment on a million-dollar property. What would the cash flow be on a million-dollar property?

Your assets double when you separate your equity from your properties. Can you see what I mean? Can one property properly managed make you a millionaire?

Now if you really think about what happened in this example, you will see that you were making your money work extremely hard for you. You didn't let it sit idle as equity in a property. The key point for you to realize is that equity in a home is idle money. Idle money provides zero return.

If you only take one piece of advice from this report, make it this one:

FUNNEL ALL YOUR INVESTMENTS THROUGH YOUR REAL ESTATE

Most people are making contributions to their company 401(k) plan or some kind of IRA account. These contributions are paid, in most cases, directly out of your pocket. If your company contributes automatically to your retirement plan from your pay check, this is still directly out of your pocket. I truly believe this is a massive wealth destroyer. Instead take these contributions and invest them into real estate. Then invest the cash flow from the real estate into your IRA or retirement plan. To be clear, I am not saying don't invest in your IRA. I am saying to insert real estate in between your direct retirement plan contribution. Buy an asset (real estate) and have that asset fund your retirement plan.

This is the advice that will get many people up in arms. I know Money Magazine tells you to maximize your 401(k) contributions. I know you parents would tell you to put everything into your 401(k). I know your company's human resource department would tell you to invest into your company 401(k). I know. I have been there. I remember all of my co-workers at the international accounting firm I worked for talking about how much they were each contributing into their 401(k)s. They thought I was crazy for investing in real estate. They thought I was a real wacko when I next quit my high-paying job to invest in real estate full-time. I can still hear the jokes and snickers.

This will happen to you, too. Everyone will think you are making a big mistake. The reality is the other way around. You will be making a big mistake listening to everyone else. Please, please listen to this advice. I cannot tell you how powerful it is. I can hear you say, "Well my company matches my contributions." I don't care. Your first investing dollars go into real estate. Real estate dollars then go into your retirement plan. Don't worry about your company match is because it is insignificant compared to what will happen if you follow this advice.

I bought real estate to create cash flow. I used the cash flow to quit my job and start my own company. The profits from the first company were used to start a new company. All of this while my "laughing" co-workers are still arguing over how much they should invest into the company 401(k) plan.

Now, I have all of the real estate, company No. 1 and company No. 2. All of these can funnel my retirement, living expenses, new companies and/or additional assets. This is the velocity of money in action. The key is where your FIRST investing dollars go. If they go to a traditional retirement plan, you aren't creating velocity. You can't leverage a 401(k) plan.

Now had I followed the traditional approach, I would still be working as a public accountant. I would be investing 10 to 15 percent of my income into the company 401(k) plan working at a job that I couldn't stand. Yes, I might have more money in my 401(k) plan,yippee! I wouldn't have any assets working for me. Funding the real estate first was the best decision I have ever made in my life. I really don't care about the amount of money I have invested. I care about the assets I have working for me. Most people are focused on the size of their portfolio. As Robert Kiyosaki's book teaches, your focus should be getting your money back and reinvesting, not letting it accumulate. He writes, "In my world, the velocity and safety of my money is far more important than the amount of my money ... Only amateur investors put their money in their retirement plan and set the parking brake."

I like retirement plans. Don't get me wrong. I just want you to fund your retirement plan from house money. House money is much better than your money. Don't you agree? There are many choices for you to invest your house money. Here are just a few:

1. Build an emergency fund for your family.

2. Invest in more real estate, houses buy houses

3. Pay off credit card debt or other loans

4. Invest into your retirement plan/IRA

5. Invest into a mutual fund/stocks or bonds

6. Start a new business

7. Buy and resell a mobile home

8. Invest into someone else's business

9. Invest into a Whole Life Insurance Plan

10. Invest into seminars/books and audio programs

11. Hire people to assist you with your investments

12. And many more

I know that my way is the hard way. It is a lot easier just to make contributions into your company 401(k) plan and not think about it. Let's face it, you don't have to go look at homes. You don't have to show your properties. You don't have to go through any evictions. But you do have to work until your 65. You more than likely won't be able to live the life you really want in retirement. I started investing in real estate around 1994. I started company No.1 in October of 2000. I started company No. 2 in August of 2005. The velocity of money has taken me to new levels every five years. My guess is that it will be the same for you. Where will you be in 2013?

Rob Minton is a CPA who left the world of public accounting to pursue a career in real estate. He founded the Income for Life Membership for real estate investors. He is a real estate broker, author and consultant. An investor in all types of properties himself, his Income for Life program of deals with single-family homes in desirable locations bought and sold with a proven rent-to-own method outlined at http://www.quitworksomeday.com Or you can visit his blog at http://www.IncomeForLifeBlog.com

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Invest in Your Future With Seattle Real Estate

Investing in Seattle real estate is a wise decision. The Seattle real estate market is one of the top 10 real estate markets in the United States. With the present real estate crisis that has been affecting and plaguing the country at large it is reassuring to know that Seattle real estate remains firm and strong. Part of the reason for this is that while other states in the US are having a hard time coping with economic problems largely affecting its employment, Seattle employment maintains its stability and growth. There are plenty of jobs available, part time or full time, in the city that was voted one of the most job friendly cities in the United States.

The largest city in the Pacific Northwest, Seattle lies between the salt water of Puget Sound and the fresh water of Lake Washington. The Olympic mountain ranges to the west and the Cascade Mountains to the east. Seattle's nickname "The Emerald City" is ever so fitting to describe a city that is surrounded by shimmering bodies of water, snow capped mountain ranges and a beautiful lush green countryside, Seattle's glistening skyscrapers rising up in the middle of this natural beauty truly give it a jewel like appearance. With such natural beauty and a strong real estate market to boot, it only makes sense that one would want to invest in Seattle real estate of some type.

Seattle offers fantastic views from all directions, there are many waterfront homes available as well as the biggest houseboat population outside of the Orient. If you love fishing, boating, water skiing, or just plain being around water, then buying a home in Seattle would be a dream come true. Your investment would be a safe bet as Seattle has such a strong market and you would be able to enjoy living in an area that offers you the things you love in life. Just imagine getting out of bed in the morning, fixing a cup of coffee and within minutes being able to fish, go boating, water skiing or kayaking. Living in a home that is close to the water would save you time and hassle. You would not have to load up the car, pack up gear, drive long distances, because you will be living close to the things you love doing the most.

The median value of a single family home in Seattle is around $520,000. In the Seattle metro area you can purchase a three bedroom home starting at around $400,000. If you are not looking for a stand alone family residence, you might consider a townhouse, prices for town homes start at about $330,000. If you do not want to be troubled with yard work, another option would be a condominium. Two bedroom condominiums can be found starting at around $200,000. As you can see there are many price options, as well as home options available for you to chose from.

One of the big worries about buying waterfront property is loss of privacy. However there are many waterfront homes around Puget Sound that are tucked away in remote locations. Property owners of Puget Sound enjoy a quiet more private lifestyle then owners of waterfront properties on the Lakes in Seattle. Of course living in a Puget Sound waterfront home may require you to take a short ferry ride to reach the downtown Seattle area.

For parent finding your home in an area that provides a quality education for your children will be an important consideration for you. For your family, the school system may be more important than the neighborhood, the commute to work, or the physical structure of the home itself. Talk to your real estate agent about your children's schooling needs such as sports, honor programs, the arts, or any special need, your agent will be able to help find the perfect location for your family, based on your needs.

One thing about it, no matter what part of Seattle you choose to live in, or what type of Seattle property you choose, house, houseboat, condominium, townhouse or apartment you can be assured that the area will be surrounded in natural beauty and maintain its value.

Connie Boling is a writer for Atnetworld.com and Ezfinder.net. She does extensive research on the 50 largest cities in the US and finds what makes them unique. She loves the water and natural beauty surrounding the city of Seattle.

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