Rei Resource Blog
GAIN AN ADVANTAGE IN YOUR
REI INVESTMENT BUSINESS
Rei Resource Blog
GAIN AN ADVANTAGE IN YOUR
REI INVESTMENT BUSINESS
Becoming a successful real estate investor requires being able to find good real estate investment deals and put them together. Your job is not to become an closing attorney, a management expert, or a repair person. Use professionals!
You must learn how to appraise and find the true value of real estate this information will help you make better investment decisions. Realtors, appraisers, and banks determine what a property is worth by looking at comparable sales usually three to five sales of similar property that has recently sold in the same neighborhood. You must be able to do the same.
Getting a list of comparable prices of properties bought or sold (and when it sold) for the neighborhood you need information about, and asking active real estate investors in your area what the market is like will be helpful and making a better investment decision.
What is the ideal market for investing?
There is no such thing as an ideal real estate market for investing. It tends to be more difficult to find bargains in rising markets if the market keeps rising the probability of selling the property quickly for a large profit increases. In contrast but when property values are falling more bargains become available.
You need to be able to assess the true value of properties based on when you expect to sell. Your purchase must be made at a good enough discount to allow for a profitable sale at a later date.
Leverage is very important for investors because the less cash you put down on each property the more properties you can buy. If the properties go up in value your rate of return goes up. However if the properties go down in value and you have a lot of debt on the property this can result in negative cash flow.
Since real estate is generally cyclical negative cash flow is only a short-term problem and can be handled if you have other income or a cash reserves. This makes "Nothing down" investing very helpful to protect against negative cash flow for high leverage investor.
If you are a long term real estate investor leverage will work in your favor if the markets in which you invest appreciate in the long run and your income from the properties can pay for most of your monthly debt.
Strategies to limit risk
To limit risk become educated in your local real estate market first by understanding the large scale trends from global down to national regional and specific neighborhoods. Learn about target neighborhoods with the help of successful real estate investors in your area along the way.
Real estate investors can help you interpret market indicators such as the average length of time houses have been on the market this month versus last month or last year. With this information it will help you make better investment decisions.
It is important not to guess the future of a local real estate market you need to have a clear plan in mind when purchasing property. As a real estate investor you must know exactly how you will exit the property before you buy. And have a backup plan or two in case the first course of action doesn't work. You must know your market and your plan before you begin to invest.
Here are a few resources of value we use to date to help us find deals. Some you have to pay to play and others are free to sign up.
Benjamin. is experienced as a property Wholesaler, Fix & Flip and Turnkey Rental Property Sells throughout the United States.
Learn the major advantages of commercial real estate!
The benefits of commercial real estate greatly outweigh the costs. In fact, I would say that commercial real estate is the best industry to be involved with because of the profits that can be made, as well as the fun nature of the work.
There are many who feel that commercial real estate is greatly out of their league, but this couldn’t be the further from the truth! Commercial real estate is accessible to everyone who is willing to learn about a new industry and reap benefits no other industry can offer. Below you will find the best reasons why you should get involved with commercial real estate. It is truly the best kept secret of those already succeeding or just starting out.
Let’s look at the many advantages of commercial real estate.
The first, and probably the most enticing benefit of commercial real estate, is profit. Huge profits, in fact, which can be made with a limited amount of effort. You can make the same amount of money quick turning or selling 100 single family residences as you would make with a single commercial real estate deal. The profits can be astonishing!
It takes the same amount of work for every commercial real estate deal, meaning you must go through the same processes each time. Why not maximize your results and go for the larger returning deals, rather than the smaller ones? Synergy is a key word in commercial real estate, as small changes can yield huge results.
Another great benefit of commercial real estate is you can work full or part-time, depending on your individual situation! Commercial real estate can easily be a part-time job that brings in incremental cash flow. You can even start out part-time, and hold a job until you have enough cash flow and money so that, eventually, all you do is commercial real estate.
Commercial real estate as a full-time job allows you to have many benefits such as being your own boss and having the ability to work from home. You can create your very own commercial real estate business and quickly build a strong net worth as well as positive cash flow.
In commercial real estate, your financial investment is very low, perhaps even non-existent. You can purchase property with 100% of other people’s money (OPM), and create large profits for yourself. This is the only industry where there are literally hundreds of millions of dollars just waiting to be borrowed! Find the money and get to investing!
Commercial real estate is an industry of abundance, not one of limits. In fact, there is very little competition because there is always commercial property becoming available. There is more than enough for everyone, which allows every person to have their opportunity to succeed in this business.
Another great benefit is that you can start right now, today! It does not take years of training or years of moving up the corporate ladder to be successful. You can begin your commercial real estate endeavors whenever you so desire because there are very few barriers of entry to this industry.
Finally, the greatest benefit I think commercial real estate has to offer is freedom. When you become involved with commercial real estate you have the freedom to do as you please. When you are not stressed about making rent, or finding your next job, life can be enjoyed to the fullest.
Commercial real estate can give you financial and personal freedom that, otherwise, would be wrapped up in a 9-5 job and someone else telling you where you have to be and at what time. For you already successful professionals and business owners, commercial real estate can be a great way to build wealth and equity quickly, without much time investment and headache! It is a great alternative to other types of investments that return 1/100th of what commercial real estate can return!
No matter what business, job, or current occupation in which you are involved, no other industry can supply you with the ability to be in charge of your very own life and create a lifestyle that best fits you and your personality.
It is truly amazing how people’s lives drastically change with only a few income producing properties in their portfolio. I urge you to delve further into this industry and get excited about it! Commercial real estate is a sound, extremely profitable, extremely doable, tried and true business that will always be available to those wanting the benefits commercial real estate has to offer. There are a few companies out there that welcomes new and seasoned investor and give them access to great commerical real estate opportunities. From apartment complex, premium buildable vacant lots, strip malls and luxury resorts and hotels. You can see available projects at www.teamniaa.com
Annalyn. is a Marketing Director and Investment Support Specialist at Norita Investments a Commerical Real Estate Investment Company.
If your upside down on your mortgage this might work for you by selling your property yourself with sellers financing. Here are the revealing insights that most home sellers don't know about.
For most people, the prospect of selling their home can be positively daunting. First of all, there are usually plenty of things to do just to get it ready for the market. Besides the traditional clean-up, paint-up, fix-up chores that invariably wind up costing more than you planned, there are always the overriding concerns about how much the market will bear and how much you will eventually wind up selling it for.
Will you get your asking price, or will you have to drop your price to make the deal? After all, your home is a major investment, no doubt a rather large one, so when it comes to selling it you want to get your highest possible return. Yet in spite of everyone's desire to get the top dollar for their property, most people are extremely unsure as to how to go about getting it. However, some savvy sellers have long known a little financial technique that has helped them to get top dollar for their property. In fact, on some rare occasions, they have even sold their properties for more than they were worth using this powerful financing tool. Although that might be the exception rather than the rule, you can certainly use this technique to get the most money possible when selling your property.
Seller carry-back, or take-back financing, has proven to be a surefire technique for closing deals. Even though most people do not think about when it comes to selling a property, they really should consider using it. According to the Federal Reserve, there are currently over 100 Billion dollars of seller carry-back (seller take-back) loans in existence. By any standard, that is a lot of money. But most importantly, it is also a very clear indication that more people are starting to use seller take-back financing techniques because it offers many financial benefits to both sellers and buyers. Basically, seller take-back financing is a relatively simple concept. A seller-take back loan is created when a property is sold and the seller performs like a lender by assisting in financing all or part of the total transaction. In effect, the seller is actually lending the buyer a certain amount of money toward the purchase price, while a traditional mortgage company usually funds the balance of the purchase price. A seller take-back loan is secured with the property. The loan then becomes the primary mortgage and is fully secured by the property. In most seller take-back financing transactions, the buyer repays the seller with interest in accordance to mutually agreed terms over a period of time. Usually, the terms call for the buyer to send the payments, consisting of principal and interest, on a monthly basis. This is advantageous because it creates a steady monthly cash flow for the note holder. And if the note holder decides to cash out, he or she can always sell the note for a lump sum cash payment.
Regardless of market conditions, seller take-back financing makes sound financial sense; whereas, it provides both buyer and seller with flexible financing options, makes the property easier to sell at higher price and shortens the sales cycle. It also has the added advantage of being an excellent investment that generates a steady cash flow and high return. If you ever need immediate cash, you can always sell the note through our office. If you are planning to sell a property, then consider the many benefits of seller take-back financing.
Benjamin. is experienced as a property wholesaler, Fix & Flip and Turnkey Rental Property Sells throughout the United States.