TAX SALE SECRETS, THE GOVERNMENT DOESNT WANT YOU TO KNOW

2012-02-03T23:37:00.003-08:00

Simple Ways To Invest In Real Estate

2012-02-03T23:37:00.001-08:00

Buying real estate is about more than just finding a place to call home. Investing in real estate has become increasingly popular over the last fifty years and has become a common investment vehicle. Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate is a lot more complicated than investing in stocks and bonds. In this article, we'll go beyond buying a home and introduce you to real estate as an investment.

Tutorial: Exploring Real Estate Investmens

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Basic Rental Properties
This is an investment as old as the practice of landownership. A person will buy a property and rent it out to a tenant. The owner, the landlord, is responsible for paying the mortgage, taxes and costs of maintaining the property. Ideally, the landlord charges enough rent to cover all of the aforementioned costs. A landlord may also charge more in order to produce a monthly profit, but the most common strategy is to be patient and only charge enough rent to cover expenses until the mortgage has been paid, at which time the majority of the rent becomes profit. Furthermore, the property may also have appreciated in value over the course of the mortgage, leaving the landlord with a more valuable asset. According to the U.S. Census Bureau, real estate has consistently increased in value from 1940 to 2006, then proceeded to dip and rebound from 2008 to 2010. (To learn more, read The Benefits of Mortgage Repayment and Understanding Your Mortgage.)

There are, of course, blemishes on the face of what seems like an ideal investment. You can end up with a bad tenant who damages the property or, worse still, end up having no tenant at all. This leaves you with a negative monthly cash flow, meaning that you might have to scramble to cover your mortgage payments. There is also the matter of finding the right property; you will want to pick an area where vacancy rates are low and choose a place that people will want to rent

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Perhaps the biggest difference between a rental property and other investments is the amount time and work you have to devote to maintaining your investment. When you buy a stock, it simply sits in your brokerage account and, hopefully, increases in value. If you invest in a rental property, there are many responsibilities that come along with being a landlord. When the furnace stops working in the middle of the night, it's you who gets the phone call. If you don't mind handyman work, this may not bother you; otherwise, a professional property manager would be glad to take the problem off your hands, for a price, of course. (For further reading, see Tips For The Prospective Landlord.)

Real Estate Investment Groups
Real estate investment groups are sort of like small mutual funds for rental properties. If you want to own a rental property, but don't want the hassle of being a landlord, a real estate investment group may be the solution for you. A company will buy or build a set of apartment blocks or condos and then allow investors to buy them through the company, thus joining the group. A single investor can own one or multiple units of self-contained living space, but the company operating the investment group collectively manages all the units, taking care of maintenance, advertising vacant units and interviewing tenants. In exchange for this management, the company takes a percentage of the monthly rent.

There are several versions of investment groups, but in the standard version, the lease is in the investor's name and all of the units pool a portion of the rent to guard against occasional vacancies, meaning that you will receive enough to pay the mortgage even if your unit is empty. The quality of an investment group depends entirely on the company offering it. In theory, it is a safe way to get into real estate investment, but groups are vulnerable to the same fees that haunt the mutual fund industry. Once again, research is the key

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2012-02-03T23:33:00.001-08:00

Real Estate Trading
This is the wild side of real estate investment. Like the day traders who are leagues away from a buy-and-hold investor, the real estate traders are an entirely different breed from the buy-and-rent landlords. Real estate traders buy properties with the intention of holding them for a short period of time, often no more than three to four months, whereupon they hope to sell them for a profit. This technique is also called flipping properties and is based on buying properties that are either significantly undervalued or are in a very hot market.

Pure property flippers will not put any money into a house for improvements; the investment has to have the intrinsic value to turn a profit without alteration or they won't consider it. Flipping in this manner is a short-term cash investment. If a property flipper gets caught in a situation where he or she can't unload a property, it can be devastating, because these investors generally don't keep enough ready cash to pay the mortgage on a property for the long term. This can lead to continued losses for a real estate trader who is unable to offload the property in a bad market.

A second class of property flipper also exists. These investors make their money by buying reasonably priced properties and adding value by renovating them. This can be a longer-term investment depending on the extent of the improvements. The limiting feature of this investment is that it is time intensive and often only allows investors to take on one property at a time.

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2012-02-03T23:32:00.001-08:00

REITs
Real estate has been around since our cave-dwelling ancestors started chasing strangers out of their space, so it's not surprising that Wall Street has found a way to turn real estate into a publicly-traded instrument. A real estate investment trust (REIT) is created when a corporation (or trust) uses investors' money to purchase and operate income properties. REITs are bought and sold on the major exchanges, just like any other stock. A corporation must pay out 90% of its taxable profits in the form of dividends, to keep its status as an REIT. By doing this, REITs avoid paying corporate income tax, whereas a regular company would be taxed its profits and then have to decide whether or not to distribute its after-tax profits as dividends.

Much like regular dividend-paying stocks, REITs are a solid investment for stock market investors that want regular income. In comparison to the aforementioned types of real estate investment, REITs allow investors into non-residential investments such as malls, or office buildings, and are highly liquid, In other words, you won't need a realtor to help you cash out your investment. (For further reading, check out How To Analyze Real Estate Investment Trusts, How To Asses A Real Estate Investment Trust and The REIT Way.)

Leverage

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With the exception of REITs, investing in real estate gives an investor one tool that is not available to stock market investors: leverage. If you want to buy a stock, you have to pay the full value of the stock at the time you place the buy order. Even if you are buying on margin, the amount you can borrow is still much less than with real estate. Most "conventional" mortgages require 25% down, however, depending on where you live, there are many types of mortgages that require as little as 5%. This means that you can control the whole property and the equity it holds, by only paying a fraction of the total value. Of course, your mortgage will eventually pay the total value of the house at the time you purchased it, but you control it the minute the papers are signed.

This is what emboldens real estate flippers and landlords alike. They can take out a second mortgage on their homes and put down payments on two or three other properties. Whether they rent these out so that tenants pay the mortgage or they wait for an opportunity to sell for a profit, they control these assets, despite having only paid for a small part of the total value. (For more on taking out a second mortgage, read Home-Equity Loans: What You Need To Know and Home-Equity Loans: The Costs.)

The Bottom Line
We have looked at several types of real estate investment, however, as you might have guessed, we have only scratched the surface. Within these examples there are countless variations of real estate investments. As with any investment, there is much potential with real estate, but this does not mean that it is an assured gain. Make careful choices and weigh out the costs and benefits of your actions, before diving in.

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2012-01-29T22:42:00.001-08:00

The Best Kept Secret In Real Estate Investing – Note Buying

2012-01-29T22:41:00.001-08:00

The Best Kept Secret In Real Estate Investing – Note Buying

One of the best kept secrets in real estate investing is clearly the practice of note buying. While purchasing notes, otherwise known as home mortgages, may seem like a complained process, it really isn’t once you take the time to understand how it works. And, the best part is that you can set yourself up to be a note broker and make money simply for brokering the sale of a note from one person to another without ever having to tap into your own savings and investments to do so.

What is a Note?

A note is simply a mortgage loan which is secured by a piece of property. A note can represent a first mortgage, a second mortgage, a land contract, or even a contract for sale.

Why are Notes Sold?

Have you ever borrowed money on a home, in the form of a mortgage? If so, then you have been the borrower on a note. Generally, if you borrow from a bank or lender you are soon informed that your mortgage note is now held by another lender. So, while your payments are the same, and the terms of the contract is the same, you now send your mortgage payments to another lender instead of the one you originally borrowed from. When this happens your lender has sold your note

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Suppose for a moment that you take out a mortgage with Bank A for $100,000. That bank processes your mortgage and you start making your payments on it. Soon you are told that Bank B now holds your note and you should start making your payments to them. What has happened is that Bank A loaned you $100,000 to be repaid over 30 years. Bank B stepped in and paid Bank A $80,000 to purchase your note today and have the rights to collect your payments. So, Bank A takes the $80,000 today and then Bank B in exchange collects your payments over the life of the rest of your loan. This gives Bank A anoth
1000
er $80,000 to loan to other people right away rather than wait for your monthly payments to come in to them.

Private Mortgage Investor Notes

In addition to the big banks making mortgages and then selling them to other lenders, often people who carry back mortgages on their paid for properties will sell their notes as well. In this instance they make you as a buyer a note for a portion of the purchase price and then choose to sell the note all at once rather than hold on to it and collect payments over time.

Brokering Notes

In addition to the banks buying and selling notes, you as a note broker can do the same thing. However, you can also simply broker the transaction between the lender and the buyer. If you know about a note which is for $100,000 to be repaid over the next 25 years at 6% interest, you can purchase that note many times for say $80,000 all at one time. You then sell that note to an investor for $85,000. This nets you as the broker a payday of $5,000 and you never used any of your own money in the process!

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2012-01-29T22:26:00.001-08:00

Secret Of Commercial Real Estate In California Company

2012-01-29T22:25:00.003-08:00

Article by jesus cuevas

It’s not only that commercial land is famous on the areas of Chicago and Atlanta, but also in the territory of California. Thinking about that this happening is in developing in industry of the mass produced assets, it could to end that same happenings are in developing at the California businesses of the mass produced realty. Presently, you might find a great deal of commercial assets companies of California, that are providing services of helping and giving support to all those people who have some problems related on commercial land issues

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could be said that this is also one of the reasons which has influenced on commercial realty California companies to be hot in California. This is one of the reasons why possibly also confirmed that realty California companies are leaders with glory and success. Hence, it not just that you might find commercial realty in Atlanta, but also leader in this region are likewise realty California companies.

There are a great deal of land California businesses, but people who deserved to be mention are Real-Estate-Gude.Net and also California City Real Estate. Beside of the offers in fields of commercial real estate California properties, these two companies also have a wide offers that cover all kinds of realty properties. When it is about Real-Estate-Guide.Net, it should to mention that this company is commercial assets California providers which has in offer additional kinds of properties, not only commercial realty California, but also and areas in San Diego, particularly areas of the beaches

2012-01-29T22:24:00.001-08:00

s agency also provides and service with giving you help with the agents who are accessible for you, to give you support for finding perfect place for you, but also and ideal home, townhouse, vacant land, condominium and various. With commercial property California agents you will finish your searching very faster and simpler, than if your are performing this alone.

For finding best spot for you and your life in the soon future, it is the better choice if you take help of the real estate California company’s agents. Also, you have and opportunity of using listings, which commercial realty California company makes for available properties. These lists also contain facts about which properties are for lease for the clients or that are on sale. With these details it will be much easier for you to find the best properties for you.

Info about which realty California properties are on sale or for lease, likewise you may find on the web, where likewise you may find and facts like contacts, best offers, etc. Nowadays, you will probably find lots of property California businesses online with almost all offers that they’re providing

2012-01-29T22:22:00.001-08:00

Secret confessions of real estate agents

2012-01-29T22:21:00.003-08:00

When it comes time to buy or sell a house, the term “real estate agent” transforms from a mere job description to a very complicated relationship full of psychological and emotional weight. Eric Benjamin with Keller Williams in Sandy Springs describes the agent's role as “part psychic, part counselor, part psychologist, part therapist

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In the interest of finding out what makes agents tick, what drives them crazy and how both buyers and sellers can reduce the potential for stress and heartache, we sampled some metro Atlanta real estate agents for an inside track on their profession.

In one form or another, it all comes down to unrealistic expectations.

“Probably one of the most annoying things is people who lie on the descriptions of property in the Multiple Listing Service, where they call it a four bedroom and it’s really a three bedroom with an office," said Benjamin. "Or say ‘private backyard,’ because it backs up to power lines. Don’t try to turn a liability into an asset."

When it comes to buyers, a common complaint among agents are house hunters determined to see every house on the market before they choose one

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Benjamin once had a buyer who looked at more than 200 properties in far-flung parts of the metro area from Powder Springs to Tucker.

“I had one first-time home buyer who said, ‘I’m not going to make a decision until I see 100 homes,’” recalled Julie Porter with Roswell’s Solid Source Realty.

Potential buyers who pull up carpet to check hardwoods or peel off paint and wallpaper in vacant properties irritates Julie Sadlier with RE/MAX Metro Atlanta Cityside.

"Buyers should show respect for the different properties they go in to see," she said. “Even if it’s in rough shape, that always irks me.”

Another common complaint is clients who think they know more about real estate than their agents. Even worse, according to Bee Nguyen with Sanctuary Real Estate in Inman Park, is clients who think their parents do.

“With the amount of television shows and Internet access a lot of people feel they are an expert. But my job is to say ‘Hey, I’m in the trenches on a daily basis,’” said Michael Neville of Midtown’s Keller Williams.

Not surprisingly all real estate agents unanimously agreed that the golden rule for sellers is to price their homes accordingly. It is a buyer’s market, they warn.

“[Sellers] need to understand that they are competing with people who have to sell,” said Chereda Miller with Smyrna’s Miller Realty. She said the biggest myth in the industry is that sellers can drop their prices later in the game if they price it too high to start.

“The average sale price is statistically about 13-15 percent lower when you do price reductions and stay on the market for an average of over 120 days,” said Neville

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When getting your home ready to sell, there are certain basics, real estate agents advise, that need to be covered. The home must be immaculate. “You have to have those lights on, you have to have those windows clean. The whole house has got to sparkle,” said Sadlier. “If you have pets you need your furniture steam cleaned,” said Neville. “That’s the hardest thing to sell with people living at home, is pet smell.” And the home has to be scrubbed of personal details and mementoes too. Landscaping is also key. Neville even recommends a light color palate for exterior landscaping, keeping flowers in the pink and yellow range.

Nguyen advised that if sellers stage their homes that they make it better rather than worse. “There are a lot of home stagers out there who create a kind of cheesy home staging,” said Nguyen. Fake plants, frame-less air mattresses in the bedroom, wine glasses with fake wine and plastic fruit are all on Nguyen’s list of the kind of staging that creates “a negative vibe.”

If there is one thing real estate agents are unequivocal on it’s the necessity of sellers not being around when real estate agents are showing their home.

“Being out of sight and out of mind is the best place [sellers] can be to get the house sold,” said Miller.

And most of all, agents said, clients should remember that the agent is on their side, despite the perception that they are just in it for the money. Agents are quick to point out that the commission on a house that sells for $200,000 versus $250,000 is relatively small. More important for most agents is finding homes their buyers love.

“The ultimate goal for me is for the deal to happen,” said Miller.

SIDEBAR

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Quick sale tips

Price accordingly.

“People talk about what a horrible market it is; I’ve been in four multiple offer situations this year. If your house is priced right the buyers know it and they will jump on it,” said Eric Benjamin with Keller Williams.

Condition is key.

Your house will be competitive if trim and paint are fresh. A good power washing outside is also a good idea, advised RE/MAX’s Julie Sadlier.

Stage with care.

If you use a home stager, make sure you see examples of their work before you hire them. You don’t want the kind of details that make your home less appealing. If the home is vacant, staging is key to give buyers a sense of what will fit in each room, said Sadlier.

Make it easy on your agent.

“People who put things in the system like no sign, no lock box, appointment only, you’re eliminating 70 percent of the buyer pool,” said Keller Williams’ Michael Neville.

Pictures sell.

“Everyone starts their search on the Internet. And if you look at a property and their pictures are poor, people will skip over them,” said Sanctuary agent Bee Nguyen. Julie Porter with Solid Source advised homeowners to consider a virtual tour for an even more comprehensive view of your home.

2012-01-29T22:15:00.003-08:00

The Dirty Little Secret About Real Estate

2012-01-29T22:15:00.001-08:00

Real estate 800 call capture systems are a great tool for real estate agents. The dirty little secret...it probably won't work for you. The majority of real estate agents that get an 800 call capture system don't use it correctly and then when the phone doesn't ring, they blame the technology. The technology isn't the problem, the application of it is. Most service providers don't educate their users enough about how to get the most out of their systems. Here are just 2 of the ways you can make real estate 800 call capture technology work for you.

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Lead Generation
Use your real estate 800 call capture number in all of your advertising- business cards- flyers- faxes- direct mail pieces- advertising. Anywhere you provide your contact information, you should provide your 800 number. Why? Each time someone calls your 800 number you've captured a lead. Your call capture system captures the phone number- even if the number is blocked or the caller doesn't leave a message. You can also capture the name and address in most cases.

Real estate 800 call capture systems provide you with unique extensions that can be loaded with a recording of your choice as well as a document that your callers can request to have faxed to them. Load a recording and fax-back document about each of your listings. Then advertise on your sign rider, "Call for free, 24/7, recorded information 800-888-8888 ext. 100." This gives your buyers the ability to call your toll-free number 24/7, at their convenience, for information on your listings.