Buying cash flow real estate to hold is one of the best strategies in many areas in today's market. However, there are many challenges and mistakes that can be made especially with beginners. Here are 4 things to avoid when buying cash flow real estate.
1. Leave out management, vacancy and maintenance in calculating cash flow - I see it all the time. Rent - PITI is used to calculate positive cash flow. If you do not have room for at least 10% property management, 10% vacancy and 10% maintenance then you could end up losing money over time. It is much more accurate to take 70% of Rent - PITI to calculate positive cash flow.
2. Owner manage and/or get crummy managers - Many do it yourselfers choose to manage properties themselves and they have no idea what they are doing. Tenants walk all over them, do not pay rent, trash the place and it can all be avoided by obtaining good property managers. Do not be afraid to pay your managers well, they will allow you to sit back and generate passive income and look for more profitable deals.
3. Too many upgrades - Do not over do it with upgrades for rentals. You are not living in the home or flipping the home. Only do upgrades that will increase rent, get tenants faster and stay longer or prevent more costly upgrades. I see it all the time though when people say "I just wanted to make the upgrade so I don't have to worry about it". Well, they just threw money down the toilet. Do those upgrades right before you sell, not before you rent.
4. Buy something they would live in or right near their home - This one is awesome. I have friends call me all the time and say "There is a foreclosure right down the street that would be an awesome rental". I try not to laugh and ask them about the property, rent and details. Usually the numbers are terrible for rentals but most people are more comfortable investing in their neighborhood so I understand why they do it. But I do not agree with it. Buy a cash flow deal because the numbers make sense and you have multiple exit strategies, not because you are comfortable and do not involve emotions. If you say you like it, you better be talking about the numbers and exits.
Real Return Real Estate™ for years has bought property at extreme discounts, sells and rents with tremendous cash flow. We also provide FREE tips, articles, guides and Educational Webinars. Visit our site http://www.realreturnrealestate.com for all the helpful resources.
http://www.realreturnrealestate.com
Real Estate Investing Book: Flipping a house in today's market with No Money and No Credit!
Think now is a bad time to buy real estate? Think again. The media reports that the economy is in the dump. People are earning less, and thousands are out of work. The one thing they aren’t reporting is how thousands of everyday people have found a way to not only thrive in the current economy, but even get wealthy! And the most unbelievable thing is that they are doing it by reading one book. It’s the fastest selling book in America right now!
What book are they reading? Find out here.
If you have ever been fooled by one of those get rich quick schemes, you’re not alone! It’s pretty common to wish for overnight riches, most of us imagine it at one time or another. But short of winning the lottery, or marrying well, it never happens, but that doesn’t mean people don’t get rich quick!
In fact, what if I told you there was a new best selling book that showed you, step-by-step how you could do it over the span of only 18 months? Does that sound unrealistic to you? Well before you answer, check it out to see the results that real people just like you are experiencing, and make your own judgment.
If you have been looking for a business opportunity that is easy to get started, has little to no risk and will deliver big profits in a hurry, you have to read this new book that gives you the fool proof recipe. No money needed to start, work as much or as little as you want, and make thousands in as little as 14 days from now? Sound crazy? Maybe so, but hundreds of people a week are taking advantage of a little known method that is allowing them to bring in “crazy” profits. Frankly, it would be crazy for you not to take a look.
- Complete step by step guide to go from zero to profits, with no risk and no money, in 30 days or less.
- You don’t need cash, and you don’t need credit –There is a strategy for you.
- Looking to make real estate part of your investment or retirement portfolio? It's laid out like a road map.
- Proven recipes to bring in more money in this down economy, than when the economy was stable!
On top of all that, throw in a bunch of great bonuses from some of the planet's brightest people like David Bach, Sir Richard Branson, Montel Williams, Anthony Robbins and many more…ALL BACKED by a no-strings money guarantee. Imagine it! A book that is guaranteed to show you how to make money, in real estate, RIGHT NOW!
You have nothing to lose and everything to gain.
Click Here For America's #1 Real Estate Investing Book!
Thursday, July 8, 2010
Sunday, June 27, 2010
Real Estate Investment Clubs
Real estate investing clubs can be a great resource. By joining your local club you can network with others for financing, support, property locating, investors, and many other valuable tools. You never know what you'll come across when you start networking with like minded investors.
Monday, June 7, 2010
Flipping is Back!
When the real estate sector plunged to historic lows two years ago, everyone was awaiting for its possible upturn. Have we arrived at the bottom of the cycle yet? Are brokers and agents slowly recovering their once lucrative jobs? Are good signals on the way?
One sign that analysts take notice of is house flipping. In a nutshell, flipping is purchasing a property, making significant renovation and then selling it for a profit. Most houses that are flipped are distressed properties that are very cheap yet they possess the potential for very high profits. Investors who engage in such strategy may strike big time if their timing is right but if not, then they'd have houses that would be in the market for months and even years.
So when a mafor publication reported that house flippers are back into action, I must say I'm pretty impressed. The article states, "All around the country, but especially in some of the regions hit hardest by the housing slump, investors are swooping in on distressed properties and banging them into shape for sale to first-time home buyers, vacation-home seekers, and people looking for rental income. In Phoenix last year, the number of foreclosed homes that changed hands within six months of being purchased-the best statistical measure of flipping activity-increased 81% from the previous year, to 4,661, which compiles foreclosure data. Las Vegas flips rose 38%, to 8,042, in 2009; in Riverside and San Bernardino counties in California, they climbed 45%, to 17,203; in the Cape Coral (Fla.) area, flips almost tripled."
Now this is a welcome opportunity for investors who still can't rely on the market. I'm looking forward to seeing foreclosed homes turn into successful deals. Add to that another report that can encourage the momentum. According to the report, "Pending home sales rose in February, potentially signaling a second surge of home sales in response to the home buyer tax credit...The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in February, rose 8.2 percent to 97.6 from a downwardly revised 90.2 in January, and remains 17.3 percent above February 2009 when it was 83.2. The data reflects contracts and not closings, which usually occur with a lag time of one or two months."
Although critics might call it a seasonal increase, I believe it's still the best time to take advantage of the situation. After all, that's when big profits are made.
Andy Denton of Realty.com
Article Source: http://EzineArticles.com/?expert=Andy_Denton
One sign that analysts take notice of is house flipping. In a nutshell, flipping is purchasing a property, making significant renovation and then selling it for a profit. Most houses that are flipped are distressed properties that are very cheap yet they possess the potential for very high profits. Investors who engage in such strategy may strike big time if their timing is right but if not, then they'd have houses that would be in the market for months and even years.
So when a mafor publication reported that house flippers are back into action, I must say I'm pretty impressed. The article states, "All around the country, but especially in some of the regions hit hardest by the housing slump, investors are swooping in on distressed properties and banging them into shape for sale to first-time home buyers, vacation-home seekers, and people looking for rental income. In Phoenix last year, the number of foreclosed homes that changed hands within six months of being purchased-the best statistical measure of flipping activity-increased 81% from the previous year, to 4,661, which compiles foreclosure data. Las Vegas flips rose 38%, to 8,042, in 2009; in Riverside and San Bernardino counties in California, they climbed 45%, to 17,203; in the Cape Coral (Fla.) area, flips almost tripled."
Now this is a welcome opportunity for investors who still can't rely on the market. I'm looking forward to seeing foreclosed homes turn into successful deals. Add to that another report that can encourage the momentum. According to the report, "Pending home sales rose in February, potentially signaling a second surge of home sales in response to the home buyer tax credit...The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in February, rose 8.2 percent to 97.6 from a downwardly revised 90.2 in January, and remains 17.3 percent above February 2009 when it was 83.2. The data reflects contracts and not closings, which usually occur with a lag time of one or two months."
Although critics might call it a seasonal increase, I believe it's still the best time to take advantage of the situation. After all, that's when big profits are made.
Andy Denton of Realty.com
Article Source: http://EzineArticles.com/?expert=Andy_Denton
Sunday, May 30, 2010
The Intelligent Investor Can Succeed in Flipping Homes By Stefan Hyross
Real estate investors quickly learn that selling houses is very much like putting money in the stock market, you have to be certain you don't get into a situation which ends up losing your funds. A popular way to earn a good amount of cash on property holdings, referred to as real estate flipping, can possibly produce a monetary tragedy if it fails start returning money on the investment because its market value drops too quickly. In fact, real estate flipping can morph into a terrible situation if you are unable to reliably sustain a high rate of return on the properties by selling them fast for a substantial gain and fail to secure future funds from the financial institutions.
Homes that have 'issues' are usually ripe for real estate flipping. If the home being sold needs repairs before it can fetch a decent price on the sale, it is frequently offered at a very tempting price. Looking in places such as Toronto you could be paying attention to phrases in the Toronto MLS listings information, like fixer-upper to find these kinds of homes. These homes are perfect for property investors who have the skills to deal with the repairs themselves so the cost of improvements does not chip away at their end profits.
As the number of power of sales keeps on rising, real estate investors use these 'motivated sellers' as another method of quickly flipping a home for profit. As a policy, these kinds of houses do not need that much renovation as a distressed property, but it is key to have a purchaser in the background in advance of purchase to assure that the venture does not become a hinderance to your holdings if it sits on the market too long. If a distressed property is speedily repaired and put up for sale for a profit, however, this may be very impressive to lending institutions who will be more willing to granting new funds in the future.
For the more daring, the area real estate auction can present superb opportunities for picking up homes at a reduced price. Amateurs need to be watch out for internet real estate auction sites, the wide open makeup of the bidding can elevate prices up very fast. But there is also the potential of finding an exceptional non-local house through an online auction. You may not have initially thought about houses for sale in Milton, for example, but it is possible neither has anyone else.
Naturally, any savvy real estate investor will not consign to flipping any property that is going to put a strain on their resources, and more often than not a short-term mortgage is the best way to insure that the purchase has a fall back. Be aware that the interest rates on such mortgages are very high, so it is only a feasible choice if you have buyers waiting who are ready to make a quick transaction. It might cost extra but hiring a realtor for their real estate agent marketing plans could make you more money than the commission you will need to pay them.
Of course, all real estate is a gamble to a level, but property flipping creates the biggest chance for putting money in a money pit instead of a gold mine. Intelligent investors only deal with properties that have a compelling record of economic returns for their previous owners. It is important to take the time to do thorough analysis on any house that is being bought to flip to find out if it has any likelihood to turn into an financial calamity.
Stefan Hyross follows and writes about various real estate issues and topics such as real estate agent marketing and administers several websites where you can search for Toronto MLS Listings as well as hunt for houses for sale in Milton and other areas.
Article Source: http://EzineArticles.com/?expert=Stefan_Hyross
Homes that have 'issues' are usually ripe for real estate flipping. If the home being sold needs repairs before it can fetch a decent price on the sale, it is frequently offered at a very tempting price. Looking in places such as Toronto you could be paying attention to phrases in the Toronto MLS listings information, like fixer-upper to find these kinds of homes. These homes are perfect for property investors who have the skills to deal with the repairs themselves so the cost of improvements does not chip away at their end profits.
As the number of power of sales keeps on rising, real estate investors use these 'motivated sellers' as another method of quickly flipping a home for profit. As a policy, these kinds of houses do not need that much renovation as a distressed property, but it is key to have a purchaser in the background in advance of purchase to assure that the venture does not become a hinderance to your holdings if it sits on the market too long. If a distressed property is speedily repaired and put up for sale for a profit, however, this may be very impressive to lending institutions who will be more willing to granting new funds in the future.
For the more daring, the area real estate auction can present superb opportunities for picking up homes at a reduced price. Amateurs need to be watch out for internet real estate auction sites, the wide open makeup of the bidding can elevate prices up very fast. But there is also the potential of finding an exceptional non-local house through an online auction. You may not have initially thought about houses for sale in Milton, for example, but it is possible neither has anyone else.
Naturally, any savvy real estate investor will not consign to flipping any property that is going to put a strain on their resources, and more often than not a short-term mortgage is the best way to insure that the purchase has a fall back. Be aware that the interest rates on such mortgages are very high, so it is only a feasible choice if you have buyers waiting who are ready to make a quick transaction. It might cost extra but hiring a realtor for their real estate agent marketing plans could make you more money than the commission you will need to pay them.
Of course, all real estate is a gamble to a level, but property flipping creates the biggest chance for putting money in a money pit instead of a gold mine. Intelligent investors only deal with properties that have a compelling record of economic returns for their previous owners. It is important to take the time to do thorough analysis on any house that is being bought to flip to find out if it has any likelihood to turn into an financial calamity.
Stefan Hyross follows and writes about various real estate issues and topics such as real estate agent marketing and administers several websites where you can search for Toronto MLS Listings as well as hunt for houses for sale in Milton and other areas.
Article Source: http://EzineArticles.com/?expert=Stefan_Hyross
Wednesday, May 5, 2010
What is the most easiest way to get into real estate investing?
What are some ways to begin in real estate investing with litttle or no money? Can you start in real esate investing with no money?
Dean Graziosi and His New Book - Profit From Real Estate Right Now By Dan Oliver
Who is Dean Graziosi you may ask, well I would like to tell you that although Dean is a multi-millionaire today, he was not always that well off. Dean grew up poor as a child. He lived with his single mother who had to work her tail off at two different jobs to earn a mere $90 a week just to make ends meet. Dean's childhood latter proved to be of great motivation for him early on in his life.
As a teenager, Dean made his first real estate investment (with no money down I might add) by purchasing and fixing up a run down apartment building in his home town. This story of Dean's first investment can be found in his new book "Profit From Real Estate Right Now."
With today's poor economy and slumping real estate market in mind Dean Graziosi wrote his new book 'Profit From Real Estate Right Now'. A lot of people are under the impression that this would be a bad time to invest in the market. Dean wants to make it very clear to everyone that even in a bad economy and a down market there can be tons of money to be made. When you read this book you can truly see why Dean wrote this book with these hard times in mind.
Anyone who has an interest in investing in the market or possibly just purchasing their first home might want to consider buying Dean Graziosi's new book 'Profit From Real Estate Right Now'. I purchased this hard cover book and it's packed full of valuable information and powerful strategies on how to invest in today's market. Here are some of the informative topics that I found most impressive:
Although I only purchased his book because I have an interest in the market and also wanted to do this review on Dean, he also has some other programs available if someone is interested in pursuing this as an investment opportunity. For mere price tag of only $35.95 he has a program called "Think A Little Different In Real Estate", and also for $197.00 you can get the "Automated Foreclosure Finder" program. Dean loves Foreclosures.
In summary I would like to say that Dean Graziosi is not like some of the other so called gurus that are just out to scam everyone. In all my research on Dean I have not found any bad press on him what so ever. In my eyes he's the real deal and prides himself in sharing his deepest secrets on how to make money in real estate. I highly recommend Deans new book to those looking to find expert advice on investing in today's down market. Excellent job Dean!
As a teenager, Dean made his first real estate investment (with no money down I might add) by purchasing and fixing up a run down apartment building in his home town. This story of Dean's first investment can be found in his new book "Profit From Real Estate Right Now."
With today's poor economy and slumping real estate market in mind Dean Graziosi wrote his new book 'Profit From Real Estate Right Now'. A lot of people are under the impression that this would be a bad time to invest in the market. Dean wants to make it very clear to everyone that even in a bad economy and a down market there can be tons of money to be made. When you read this book you can truly see why Dean wrote this book with these hard times in mind.
Anyone who has an interest in investing in the market or possibly just purchasing their first home might want to consider buying Dean Graziosi's new book 'Profit From Real Estate Right Now'. I purchased this hard cover book and it's packed full of valuable information and powerful strategies on how to invest in today's market. Here are some of the informative topics that I found most impressive:
- Cash Big Checks By Using Automation
- How to Pick Your Own Path for a Quick Start
- Profit in a Down Real Estate Market Today
- How to Identify Killer Deals
- Getting a Ton of Very Motivated Buyers To Find You
- Finding That Perfect Real Estate Agent = Huge Profits
- Tips On How To Sell Your House In Seven Days
Although I only purchased his book because I have an interest in the market and also wanted to do this review on Dean, he also has some other programs available if someone is interested in pursuing this as an investment opportunity. For mere price tag of only $35.95 he has a program called "Think A Little Different In Real Estate", and also for $197.00 you can get the "Automated Foreclosure Finder" program. Dean loves Foreclosures.
In summary I would like to say that Dean Graziosi is not like some of the other so called gurus that are just out to scam everyone. In all my research on Dean I have not found any bad press on him what so ever. In my eyes he's the real deal and prides himself in sharing his deepest secrets on how to make money in real estate. I highly recommend Deans new book to those looking to find expert advice on investing in today's down market. Excellent job Dean!
Dan Oliver would like to offer those of you who would like to purchase Dean's new book- Profit From Real Estate Now, for the same price as Dean offers it for on his infomercials. If you choose to purchase this book you will also get his previous book- Be A Real Estate Millionaire for free. To cash in on this great offer see the link near the bottom of my business review website at http://internationalbizreviews.com/Dean_Graziosi.html
If you have an interest in checking out a Business Model that's been producing awesome results for me click here: http://LaserLeadSystem.com
If you have an interest in checking out a Business Model that's been producing awesome results for me click here: http://LaserLeadSystem.com
Article Source: http://EzineArticles.com/?expert=Dan_Oliver
Do you want to make money in today's market with no money and no credit?
Think now is a bad time to buy real estate? Think again. The media reports that the economy is in the dump. People are earning less, and thousands are out of work. The one thing they aren’t reporting is how thousands of everyday people have found a way to not only thrive in the current economy, but even get wealthy! And the most unbelievable thing is that they are doing it by reading one book. It’s the fastest selling book in America right now!
What book are they reading? Find out here.
If you have ever been fooled by one of those get rich quick schemes, you’re not alone! It’s pretty common to wish for overnight riches, most of us imagine it at one time or another. But short of winning the lottery, or marrying well, it never happens, but that doesn’t mean people don’t get rich quick!
In fact, what if I told you there was a new bestselling book that showed you, step-by-step how you could do it over the span of only 18 months? Does that sound unrealistic to you? Well before you answer, check it out to see the results that real people just like you are experiencing, and make your own judgment.
If you have been looking for a business opportunity that is easy to get started, has little to no risk and will deliver big profits in a hurry, you have to read this new book that gives you the fool proof recipe. No money needed to start, work as much or as little as you want, and make thousands in as little as 14 days from now? Sound crazy? Maybe so, but hundreds of people a week are taking advantage of a little known method that is allowing them to bring in “crazy” profits. Frankly, it would be crazy for you not to take a look.
- Complete step by step guide to go from zero to profits, with no risk and no money, in 30 days or less.
- You don’t need cash, and you don’t need credit –There is a strategy for you.
- Looking to make real estate part of your investment or retirement portfolio? It's laid out like a road map.
- Proven recipes to bring in more money in this down economy, than when the economy was stable!
On top of all that, throw in a bunch of great bonuses from some of the planet's brightest people like David Bach, Sir Richard Branson, Montel Williams, Anthony Robbins and many more…ALL BACKED by a no-strings money guarantee. Imagine it! A book that is guaranteed to show you how to make money, in real estate, RIGHT NOW!
You have nothing to lose and everything to gain.
Click Here For America's #1 Real Estate Investing Book!
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