My Cashflow House

Real Estate Investing is a tough business right now. While the business of buying and holding real estate as a long term investment remains a legitimate and viable strategy for wealth building, profit is no longer guaranteed as it once appeared to be.

With that in mind, the astute real estate investor will consider some specific real estate investment concepts to complement the “tried and true” strategy of long-term buy-and-hold investment houses:

* Virtual Real Estate Investing – the term “virtual real estate investing” has multiple meanings, including the use of the internet to buy and sell property, and the purchase and development of internet websites as a means of generating revenue. With an objective analysis, one can see the conceptual similarity between physical real estate and internet properties including entire websites and even individual pages controlled on larger sites like Facebook, Squidoo and Google Knol. Increasingly, real estate investors are seeing the clear opportunity presented by developing web “properties” into revenue generating assets much like physical rental properties. This trend is on the rise and will continue for the foreseeable future.

* Bulk REO – the prevalence of foreclosures in our economy has put mortgage lenders into a difficult position. With large pools of foreclosed properties on their books, it is no longer efficient for these lenders to sell their foreclosed properties one-by-one through real estate brokers. As such, mortgage lenders are increasingly opting to sell their foreclosures in “packages” to well-funded investors, at steeply discounted prices. Bulk REO investing is a rapidly emerging trend and will continue to be a significant tool for real estate acquisition and disposition until such time as the current foreclosure crisis abates and the foreclosure rate regresses to more normal historical levels.

It’s a different world in the real estate investment business. It would be very, very simple to think that the foreclosure crisis has caused the door of opportunity to be slammed entirely shut. Yet that’s simply not the case. When one observes the state of the real estate market, it is undeniable that fundamentals matter more than ever. For example, the selection of the local real estate market is of greater importance than ever, considering the huge disparity that exists among the thousands of real estate markets across the United States. Additionally, the role of regulatory compliance is greater than ever given the activist nature of the current presidential administration.

Without a doubt, there are very major challenges in today’s real estate investing market. But with some persistence, determination and creativity, there is still plenty of opportunity.

Real estate investing is one of the fastest growing industries in the world today. Though to a substantial extent the global economic recession has hit the industry, the future looks bright and thus as a real estate investor, you stand to continue gaining in the long term. In fact, some wise sage said that in the midst of a crisis, opportunities abound. And to drive this point home, the economic meltdown has led to many homeowners in a fix and homes are selling at values never heard of in a long time. With foreclosures the order of the day, as an investor in the industry you have the perfect chance to take advantage and smile all the way to the bank one that is not falling under the meltdown, huh. Talk of one man’s poison being another’s meat.In truth, real estate as an investment choice is a complex enterprise and is definitely not for the fainthearted. For one, you need to understand how the whole system works so that you can be able to maximize the potential returns on your investments. And someone said information is power. That’s the starting point. Seek out all the information that you can find. There are numerous sources of information. With the growth and development of the internet, an electronic real estate investment guide will pop up on your screen at the click of the mouse if you know where to look. And good old magazines are also available with insightful tips on how to make it in real estate investing. Now that iron sharpens iron, you also need to interact with other real estate investors and learn their tricks of success. This is because once you understand fully the workings of the business; a world of opportunities is wide open before you. For example you need to know the best time to buy property and the ideal time to sell so as to make the most out of it. And always network well with other market players in the industry to ensure a steady supply of business. It is more prudent to deal with property on a wholesale basis other than on single units, as this way you make more in a short time.You may also want to specialize in one particular type of property in a bid to create a niche market for your business and thereby tailor your deals towards a given target. Be wide in your thinking and be within the legal limits on your way to seizing the opportunities brought about by recession.

Real Estate Investment sounds like a cool thing to do during the weekend but the problem arises when you start having to many properties to handle. The solution to your real estate investment problem would be to hire a property manager who can then run your property for you and deal with any problems that may arise. The key is to get a reliable person who can then do any repairs or maintenance work for you.
This article will highlight three additional reasons why you might want to hire a property management company to look after your real estate investment property for you.
Firstly, you might be a busy professional or business person during the weekdays and you do not want to run around looking for a plumber or roof repairer sometime during the week. Time is valuable also if you have several properties that you own and it does not make sense to baby sit your properties.
Thus you would do well to remember that your monthly income is dependent on the number of deals that you can find to add to your real estate investment portfolio. Get your focus right and you will make more money from your real estate investments.
Secondly, proximity is a key issue. One real estate investment author states that he does not own property unless it is within one mile from his own residence. If you want to look after your own properties it is fine but you must be able to go down and take a look if there is any issue arising from your properties.
Note that returns from both offshore rentals and capital appreciation currently in places like Dubai might prove more lucrative so if you are looking into offshore real estate investment, hiring a property management company is a must. Similarly, if you are looking at investing in property outside the state that you reside in, it will be necessary for you to hire a property management company to look after your property.
Thirdly, if you are new to the type of property class, you might want to consider employing the services of a property management company. For example if you have been involved in residential real estate for a long time and you decide to expand to commercial real estate, you might not be familiar with the documentation, the procedures and the possible problems that may arise from such real estate. Hiring a property management company therefore may help you solve some of your transition problems and like mentioned earlier free you to explore other real estate investments.
In conclusion, real estate investment property when done on a small scale in your locality may be okay for a while but when your investments start getting numerous and unwieldy, you might want to tap on the services of a property management company to help you manage your properties thus freeing you to look for more property deals.

Making money in Real Estate investment is like what we call in the stock market investment circles made in the buying and this is also known as value investing. The difference between stocks and real estate is that we can actually purchase the property and make changes to it unlike in companies unless you buy a substantial share in the company.
This article will highlight three different ways to purchase real estate investments at a bargain from the market price.
Method #1 – Private Sales
Purchasing property from private owners is good because you avoid the competition from other purchasers at auctions. The advantage of this method is that, sellers usually are facing foreclosure or other cash flow problems and might sell you the real estate at a bargain in exchange for quick cash.
Real estate investment type property usually involves good rental property, so a good start would be to look for real estate in an area that has high rental proceeds. Spend some time understanding the needs of the private owner and you may be able to negotiate a lower price for your real estate investment than the market. Several things that may indicate that you can negotiate for a lower price include, owner migrating out of the state, owner in debt and needs the money, or property looking old and not maintained. Take note of these things and get a better price for your real estate investment.
Method 2#- Sell and lease back
There are many businesses that bought their property during the property boom and now face a liquidity crunch. These businesses then sell a property to an investor for cash, then lease it back for a long period of time at a rent which gives the investor a 9 to 10% return to the buyer. Your focus in this deal is to establish a monthly cash flow when you do your real estate investment in this property.
The inherent risk in this real estate deal is the fact that the tenant may give up the rent and as a result, the valuation of the property might drop after that. Always take this into account when accessing this type of real estate investment property.
Method #3 – Foreclosures
Purchasing foreclosure property can be good for real estate investment because sometimes, depending on how long the loan is outstanding, the bank might want to release the property at a price under the market valuation so as to sell it off. Banks at a minimum have to sell the property enough to cover the outstanding mortgage and anything over the price will go to the owner and usually sell these properties via auctions.
You would want to spend some time looking at the foreclosure property before you bid for it at the auction. Call a representative from the auction house and go down and take a look at the property. If you are the top bidder, always be prepared to give a check of 10 percent of the closing price otherwise your bid will not be upheld.
In conclusion, we have shown you three methods to purchase property at a discount to the market value. Remember that the money is made in the buying and you would want to try to purchase the property at a discount to the normal market so as to be able to resell it later for a profit.

Well, for starters, its definitely safer than the stock market. If not for any other reason, than that the r/e has fewer fluctuations than the incomprehensible to many, stock market! Many other markets such as currency investing, mutual funds, gold and silver trading etc, also do not have a regular timeline, and this makes real estate investment the most safe, and even the most profitable investment.
Governments 1031 Scheme
The government gives a great opportunity to real estate investors through their immensely popular 1031 exchanges. If the money earned from selling real estate is invested in purchasing another piece of property, the government exempts r/e investors from paying tax for the said profit. Obviously, this is extremely attractive for investors, and since you get tax exemption to a great extent, it is not only a safe but also an extremely profitable option.
R/e investment is not the prerogative of only certain people. More and more new amateur investors are entering the market everyday. As long as you have a fair amount of money to invest, and good credit to bank on, you can easily become a real estate investor. This is further proof of the safe and profitable nature of real estate investment.
Real Estates Attraction to Banks
What is very attractive about real estate investments is that you can easily invest someone elses money, and slowly reap the benefits. What this means is that you can easily acquire a loan from a bank. More often that not, a bank will willingly give you a loan for real estate investment because this means you are going to buy a piece of property which the bank can keep as a sort of tangible mortgage against the money loaned to you. Had it been the stock market, or gold trading, a bank would think a few million times before granting you a loan. This is because the r/e investment market is safe, and more reliable. All other investment markets are constantly fluctuating, and this constant flux is obviously enough reason for the bank to develop cold feet when thinking of loaning money.
Guaranteed Income
Real estate is always going to be worth something. This is exactly what is meant by residual income through real estate. You may decide to buy a house right now, but not sell it off immediately. Sometime in the future, you decide you want to sell the house. In all likelihood, youre going to sell this house at a good profit. However, even if you dont make a great profit, the property will always generate some income. That is guaranteed. This guarantee is missing while investing in the stock market or even the gold market. In these markets, you may lose all your money in one day.
Real estate is a very safe, and an immensely profitable market. Invest now and reap great benefits. The real estate sector is growing like never before, and you should make maximum use of it because all those who have invested have only gained from their investments.

Most people spend their time wondering when the real estate market is good to enter and purchase real estate based on some friend’s recommendations. Others are more emotional and buy real estate on their whim and fancy. Such ideas may work sometimes but are not very reliable indicators on when to enter and exit the real estate market. Thus this article highlights a 2 step process to analyze your real estate investments.
Firstly, in real estate investing, just like in the stock market, there is readily available public data, which you can chart to determine if the real estate boom or bust is bottoming out. Like in any investment, try to purchase the instrument at the bottom of a cycle so that you gain on the rebound. Similarly take the rental yield cycle into consideration when you do your maths to determine whether the property is worth acquiring since you want to ensure that you have enough monthly rental to cover your mortgage installments even in the leanest of rental periods.
The best way to analyze this real estate investment analysis is to look at charts and data with regards to the relevant data. You can find a list of real estate related data sources at my site at http://www.realestateinvestment101.info/Statistical_Data.html. You want to look and examine in which part of the real estate cycle, your prospective real estate property lies in and how the rentals are doing in your potential real estate investment. Thus after this analysis, you will know where the pricing of your real estate investment is heading and plan accordingly.
Secondly, after analyzing statistical data, go down to a real estate agents office and talk to them and ask them about their outlook for the real estate investment sector that you are interested in investing in and ask them for indicators of good rental yield in terms of location and whether any events or developments would help to increase rental yields in an area. If for instance they know that a new business district is slated for development next to your prospective purchase, you want to know that too as it would mean a huge jump in price of acquisition and rental yields and a huge gain in your real estate investment.
Always spend some time planning what information you want to get out of the real estate agent before you go down and always know what type of real estate investment property so that you can save his and your time when you view properties. After a while you will get a rough sense of the property prices in an area and when you see a bargain property investment you will know it’s the right one for you.
In conclusion, we have highlighted two ways to identify a bargain from your real estate investment in this article. Spend some time this week looking at your next real estate investment deal and perhaps it might turn out to be a bargain.

From a historical perspective, investing in real estate is almost as old as the construction of property itself. Indeed many business owners who created their wealth through companies then went on to diversify into real estate investments. In fact, over the years real estate investments have produced similar returns to those found in the stock market. Let’s take a look at some of the reasons:

First of all, and most obviously, the supply of building land around the world is limited, even when taking into account landfill opportunities. Since the world’s population is growing and the demand for housing ever increasing, then there would seem to be a never-ending and increasing requirement for real estate of all types.

Now let’s take a look at the mechanics of buying property. Here it can be seen that investing in real estate is quite different from most other traditional investments such as stocks. With real estate you can often borrow up to around 80 percent of the value of a property, sometimes even the full value and beyond under special circumstances. Thus a more modest investment of say 20 percent of the value can be used to buy and control the full value of the larger investment. Naturally, if the value of your investment increases, I.e. property prices rise, then the value of your real estate investment also increases. If so, then you are into profit, including that on the money you originally borrowed.

Naturally, there will be costs associated with real estate investing (such as legal fees and property maintenance, taxes, etc), but these are usually small in comparison with the potential gains.

Borrowing in order to invest in real estate makes real estate a type of leveraged investment. But if you know anything about leverage, you will realize that leveraged investments can also go against you. What, for example, if the property you purchased for $300,000 decreased in value to $240,000? Even though the value only dropped by 20 percent, you actually lose 100 percent of the original $60,000 investment. And if you have a mortgage on this property making up its full purchase price, you will actually need to pay money to the mortgage provider in order to cover the costs of selling the property. That’s in addition to the loss of the whole of your initial investment.

So, as you see, investing in real estate is something to be taken very seriously and should not be done with money which you might need for other things in the near future. Investment in property is more secure as a long-term investment. In the above example, if you could have held onto the property and not sold it, the loss would purely have been ‘on paper’. In all likelihood, over time the value of the property, unless grossly overpriced when you originally bought it, will rise and you will likely not only recover the full value of the initial investment, but also possibly make a nice profit when you do come to sell.

Another reason that real estate is a popular investment is that there are profits to be made from it whilst you are the owner. In addition to the tax-saving benefits (in that any tax due on the property’s increase in value doesn’t become due until it is eventually sold), you can also make additional money from renting out the property. This can often cover all your running costs of the property, plus providing a profit on top.

Unless you make a large down payment, early on during your ownership the monthly operating profit from your property business is likely to be small or non-existent. But over time this profit will increase as the amount of rent you can charge increases at a higher rate than the running costs. Naturally these profits will be subject to normal income tax rules.

A further benefit of investing in property is that you might be able to purchase cheaply a run-down or ‘distressed’ property and fix it up or develop it further. Properties like this can still be found if you look around carefully. Naturally, investing in this type of real estate can still produce large gains. This is something you certainly can’t do with traditional stock market investments.

However, returning to the initial question about whether real estate investing is still a viable option when current prices seem to be nearing their peak: yes, it can still be so, but you might need to be more creative and prepare to be in for the long haul. Property ‘flipping’ methods that worked extremely successfully yesterday, might not work at all well tomorrow.

You might also consider diversifying into overseas real estate markets. Whilst this will require greater study and analysis, and there are many more legal issues to consider, seeking out what appear to be undervalued international real estate opportunities has the potential to be highly profitable if handled correctly.

Naturally, you should always seek the advice of professionals, both financial and legal, before investing in properties of any description, particularly when considering investing overseas. There might be major implications to your overall taxation. Risks can also be substantially higher when you are not there to oversee your investment in person.

The real estate investment industry, within a region or offshore, is very lucrative as it is unpredictable. The industry is known to have made people rich overnight and at the same time reduce the careless investors to paupers. The benefits of offshore real estate investments include tax benefits, regular and profitable cash flow and the opportunity to expand. However, the industry is also one that involves intricate aspects to every deal, which any investor cannot afford to ignore.
Real estate is big time investment for anyone, irrespective of the indulgence. You can make the real estate investment market work for you by exercising a little caution and paying heed to your intuition! There are a number of first-timers who end up parting with cash, without even studying the market. You cannot rely wholly on traditional trends within a region. As an offshore real estate investor you need to assimilate all the information you can on the current market trends, professionals who can give you sound advice and the legalities involved.
You need to pre-plan essentials like the cash flow, both during the ‘ups’ and ‘downs’- calculating on the differences experienced in the recent past, capital appreciation and tax benefits and most importantly the equity implications which could be major. You should always evaluate your needs and ‘cover’ the possible deal from all angles. You should also double check claims and contact numbers. Never get carried away. Look into aspects like the payment history, taxes, expenses, and possible future modifications. Cover yourself and your business with a sound insurance policy.
Do not only focus on the positives of offshore real estate investing. You should also consider some potential difficulties like possible eviction, re-investment and even dealing with inefficiency in time management. Avoid properties that simply eat into the business capital. This will culminate in stress and frustration. However, a thorough inspection could save you the negation. You could consider hiring a professional inspector, who can check out tenant problems and structural damage on your behalf. This will save you from making some costly mistakes in the long run.
Remember that investment property always brings along liability in different forms. Hence, an insurance coverage is indispensable to protect your hard earned assets. Go through the documentation personally, with a professional. In the case of offshore real estate investment there are building permits, zoning laws, lease applications, health licenses, by-laws and title policies amidst a myriad of other documents that have to be looked into and maintained.
Take the time to check references and insist on Estoppel letters. Offshore real estate investment can be very rewarding with a little care and professional handling. It can enhance your existent financial portfolio. But, ensure that you play by the rules pertaining to offshore real estate investments. Conduct thorough research and do not hesitate to call in the professionals. There are a number of online and offline resources available to guide you through the nuances of offshore real estate investment; all you need to do is look!

Real estate is dead as an investment in 2008 isn’t it? Real estate markets are plunging, prices plummeting, people losing their homes, foreclosures and bankruptcies are up and the credit crunch is upon us, so we can’t get a loan.Time to forget real estate investing and move into something else.Or is it? Lets have a look.Real estate investing is really a simple business. You need to find a property that is in demand by buyers so that over time the price goes up, you’ve got to make sure that your property is well tenanted, and that preferably the rental return you get from your property adds up to a good return on investment so that you have to top up the mortgage with your own funds as little as possible, if at all.That’s real estate investing in a nutshell. There are of course variations on the theme, and all sorts of schemes and tricks, but when it comes down to it that’s the basics of real estate investing, and it’s the basics that make you money.So lets examine that. Firstly, finding a property that is in demand by buyers. Now there’s no doubt that many properties aren’t in demand by buyers at the moment. Look at those Florida condos that have gone on eBay for a minimum bid of $1 lately. All that news about those McMansions that no one seems to be able to sell. However that’s SOME properties, not all of them.When the real estate market erupts on a bubble like it has over the last decade some properties take off in value, like those described above, and if you get in right you can do very well. But when it all start crumbling they fall out of favor very fast. However there are other properties that don’t take off in value, but when it all starts crumbling they stay in demand.Which properties? Those bread and butter main street properties that millions and millions of Americans live in in those suburbs that surround the countless cities that make up mainstream America. Not all the suburbs mind you, but many.Because those properties most in demand are those that most people need to rent, or buy, to live in. Not the condos or the McMansions, but your average 2 or 3 bedroom home that your average mom and dad and 2 kids live in across America.Believe it or not there are heaps of people needing to buy or rent properties like that right now, and they have been for years. Those types of properties are STILL in demand. Both by purchasers, and by tenants. As long as you buy in the right place, you’ve got to be extremely selective and know what you’re doing.And as those types of properties are typically $100,000 or less, the return on investment is good from the rental return you receive.However it’s a tough market, you really know what to buy, where, and get a deal. And get the loan.Can you do all this yourself? Of course, if you know what you’re doing. But if you don’t you can get burned. However there ARE ways to invest in good quality homes in areas in demand, with good rental returns, and buy at good prices, with a loan, a guaranteed tenant and rent guaranteed for 2 years. And usually you buy in at prices below market. No cash down.Whether it’s a private investment or through your IRA or 401k, it works the same.Sound like it’s too good to be true? It isn’t.It’s available right now through a publicly listed US company run by one of Americas most respected businessmen. Real estate investing in 2008 is alive and well, for those who know where to go to access some of the best real estate investments.

All good things carry with them some degree of risk. The same holds true with real estate investing. Despite the promise of high rewards you should temper those goals with the reality that the risks involved are more often than not just as high as the potential rewards. For this reason you need to take every possible precaution in order to insure that you minimize your exposure to risk whenever possible. At the very least be prepared, financially and mentally, to accept the consequences of those risks if the time comes.
The most obvious risk when it comes to real estate investing is the direct risk of losing your investment. This risk can be a huge blow depending on how large your initial investment was. While I’m certainly not trying to talk you out of investing in real estate all together it is a good idea to have a realistic view of the risks and the potential rewards.
If you are flipping houses as your real estate investment, you have the possibility to loose a little more if you become injured during the course of your work. The sad truth is, many who make an effort to break into the business of flipping houses have neither adequate insurance coverage (this is true of themselves, the property in general, and others that may be working on the property), the money, nor the time that a serious injury might entail.
Another risk common to real estate investing is the fact that things happen. Market trends tumble, companies go out of business or leaving town, the local real estate market fall in a rut, accidents happen during the course of the work, natural disasters occur, and buyers change their minds and pull out at the last minute. Each of these things can have devastating consequences and are almost always events that are completely beyond your control as a real estate investor.
If that isn’t enough to ponder, many investors fail to have a proper inspection and find out when it is too late that there are serious structural problems or other serious things wrong with the property. These things cost money to mend and cut into profits, occasionally resulting in a loss. Once you find out something is wrong with the property you are honor-bound (and in some states, legally bound) to either reveal the problem to potential buyers or repair the problems before selling the house. In the case of a flip, many major problems will undo the work that has already been done. If this doesn’t remind you of the importance of a thorough inspection, nothing will. Property inspections are important for numerous reasons and can save a lot of time and money if you have one done ahead of time.
Do not let the risks of real estate investing prevent you from taking the plunge. They are spelled out here to remind you that prudence and caution are wise when investing in real estate, not to talk you out of this potentially lucrative field of investing. If you are interested in real estate investing, there is no reason you shouldn’t take the time and make the effort to know more about its huge potential. Copyright 2008 Promotions Unlimited – websitetrafficbuilders.com. All rights reserved