Real Estate Investing Palooza » Real Estate http://realestateinvestingpalooza.com All your real estate investing needs Thu, 17 Feb 2011 14:39:41 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 10 Common Real Estate Myths You Must Forget http://realestateinvestingpalooza.com/10-common-real-estate-myths-you-must-forget/ http://realestateinvestingpalooza.com/10-common-real-estate-myths-you-must-forget/#comments Thu, 17 Feb 2011 14:39:41 +0000 http://realestateinvestingpalooza.com/?p=118 Real Estate investing is a game in which fortunes are made and lost, it is also a fertile ground for myths. Here are 10 common real estate myths and the realities of the modern market.

Excuse #1: I don’t any capital

The Reality: Remember the old adage build it and they will come. Well [...]]]> Real Estate investing is a game in which fortunes are made and lost, it is also a fertile ground for myths. Here are 10 common real estate myths and the realities of the modern market.

Excuse #1: I don’t any capital

The Reality: Remember the old adage build it and they will come. Well that applies to real estate too. Find a good deal and the money will follow. If it doesn’t you aren’t looking hard enough. You may have to beat the street looking for partners but the truth is that there are always people looking for good deals, if you do the hard work people will rush to give you money. The deal may not look like you had originally envisioned but that fine, be creative.

Excuse #2: I’m too busy

The Reality: Everyone has the same amount of time yet some people manage to paint the ceiling of the Sistine Chapel while others just squander valuable time. Turn off your television, wake up early, give up video games, stop spending 2 hours per day on Facebook. If you don’t have the time you simply don’t want it bad enough.

Take your kids with you on a house hunting tour and stop to look at cool open houses. Kids love this and it will help you build up goals for the future. Let your children know that every ugly house you look at gets you one step closer to living in a really cool model home.

Excuse #3: People say that Real Estate doesn’t work anymore

The Reality: For some people real estate doesn’t work precisely for the reason just mentioned, if you don’t think it will work it won’t. Be too busy to worry about what other people think.

You will run into dream killers your whole life. If you listen to them too much you will become one of them and ruin the future for other people. Don’t be a dream killer. The truth is that real estate is a tough game and it comes with inherent risk but it is calculated risk and the odds are a lot better than Vegas.

Real estate has been a fabulous vehicle for wealth since wealthy monarchs collected empires. It worked then and it will work for many many generations to come. People will always need a place to live.

Excuse #4: There’s too much competition

The Reality: As a whole people are lazy, why do you think that TV is so successful?For every one person out there beating the street there are two dozen if not more stuck on the couch. Lots of people talk few people take action.

For those that take action and actively seek out opportunities they often have more opportunities than they can handle. Those that sit on the sidelines waiting for something to happen will most likely still be sitting there in 10 years waiting for a bone.

Excuse #5: I don’t live in a good area

The Reality: There are opportunities and strategies in every market. Part of learning the business is figuring out which market cycle presents which opportunities. Real Estate has a relatively low barrier to entry and for this reason when the going is easy many people flow into the market. When the going gets tough many of these people jump ship. If the number of deals falls by 50% but 80% of the investors have abandon ship there are more opportunities per capita in the bad market.

Excuse #6: There is a recession

The Reality: Keep your eyes open in the next couple of years for the real estate monarchs that made their fortune durning the recession. Fortunes are always made during recessions for those that are nimble enough to find the opportunities and savvy enough to figure out how to take advantage of them.

Recessions mean that you may need to get more creative. They also mean that the companies that emerge from the other side will be much more dynamic, flexible, and proficient. Some industries do dry up but people will always need places to live and work.

Excuse #7: I can’t find a realtor to work with

The Reality: Not all real estate agents will work with investors because they don’t understand the market. The truth is that most agents are in the game for the easy retail sale. They make more money and have to do less work. Like I said earlier, the barriers to entry into the real estate market are low, they are even lower in the sales market. Many real estate agents don’t have a clue.

The truth is that a good agent can be a god send. An agent that is actually in the business because they like the business will be much more effective than one that is in it for quick buck. Good agents can take time to find but when you do find them they are worth their weight in gold.

Excuse #8: My credit is shot

The Reality: Good credit makes things easier but many a real estate tycoon has made their fortune after learning some hard lessons that cost them their credit. Credit is a measure of your worthiness if you plan to subscribe to the culture of indoctrination. If you want to color outside of the lines there are plenty of ways to do it.

There are numerous no credit required techniques like flipping, owner financing, lease options or simply finding a partner. Having bad credit could actually force you to have to use your head a little more and prevent you from putting too much of your own money on the line.

Excuse #9: I don’t want to put my savings at risk

The Reality: Everything is risky. If you are invested in real estate you actually own something material. Talk to stock market investors that saw their fortunes dry up over night. Investment is risky but you are taking a calculated risk. Those that are willing to risk will be rewarded.

Excuse #10: I don’t know how

The Reality: On the job training is the best way to learn. Get your hands dirty and start actually looking for a deal you will be amazed by what you learn. Books can only teach you so much. At some point you must take the plunge.

After you have learned a few real life lessons come back to your books and you will be able to read between the lines. You will learn something that you missed before and be able to use your new knowledge to be more successful.

This is also where a team of intelligent people come into play. You can’t know everything but having a team of experts in your court that are a phone call away will allow you to take fast action on potential deals.

Take action on your real estate investing career, don’t let people stand in your way or tell you how things are when they themselves observe life from an armchair. As long as people walk the earth real estate will be a fabulous tool for wealth

]]> http://realestateinvestingpalooza.com/10-common-real-estate-myths-you-must-forget//feed 0 Introducing Central America As A Real Estate Destination http://realestateinvestingpalooza.com/introducing-central-america-as-a-real-estate-destination/ http://realestateinvestingpalooza.com/introducing-central-america-as-a-real-estate-destination/#comments Fri, 09 Jul 2010 22:32:49 +0000 Real Estate Investing Expert http://realestateinvestingpalooza.com/?p=93 A number of smart property developers and investors have discovered a good place for potential profit in Nicaragua. The country boasts world class surf, white sand beaches to rival any in Central America, dramatic headlands and secret coves. Nicaragua benefits from a rich biodiversity and a warm welcoming culture. The hospitality industry is [...]]]> A number of smart property developers and investors have discovered a good place for potential profit in Nicaragua. The country boasts world class surf, white sand beaches to rival any in Central America, dramatic headlands and secret coves. Nicaragua benefits from a rich biodiversity and a warm welcoming culture. The hospitality industry is developing fast and Nicaragua is evolving into an extremely desirable vacation destination. And one thing savvy real estate investors are aware of is that wherever tourists go, real estate interest tends to follow. Its exciting times for real estate in Nicaragua with buyers sitting firmly in the driving seat. Top picks are beach and ocean view residences in San Juan del Sur, colonial homes in Granada and property around the stunning blue waters of Laguna de Apoyo.

As the only English language speaking country in Central America, Belize is a place where you can settle in quickly with little culture shock. It has a status as a top diving spot and the classic Caribbean landscapes with miles of palm fringed beaches make Belize well worth evaluating as a property spot. Real estate prices are lower than more mature parts of the Caribbean but you’ll still find a full range of services and amenities on offer in places like Ambergris Caye and Placencia Peninsula. The legal system in Belize is based on British law, it is a member of the commonwealth and has a currently pegged to the dollar. Three points that add to the sense of stability and security that investors here appreciate.

Close to the equator, the Central American country of Costa Rica, sandwiched between Nicaragua and Panama, has been an incredible area for property investment for the last decade. The country combines a vibrant tourism industry with a strong ‘eco’ culture that fits well with its tourism slogan: “No artificial ingredients”. In the 2009 New Economics Foundation Happy Planet index Costa Rica boasted the highest life satisfaction of anywhere in the world. If you’re a surfer head to Playa Hermosa and Jaco Beach for world class waves. You’ll notice a vibrant property market in these areas following in the footsteps of places like Playa Tamarindo Costa Rica and Playa Flamingo further north.

Panama has exploded onto the real estate scene as a top spot for secure investments and the promise of capital appreciation. Its progressive retirement program offers a whole host of benefits and is successfully attracting ever increasing numbers of retirees to its shores. Many are heading to areas such as Boquete in the western highlands, Bocas del Toro on the Caribbean and of course Panama City the pulsating capital city. The entire nation is half the size of the state of Florida but the property ownership options seem endless, bolstered by a growing economy, well respected government and investment friendly policies.

]]> http://realestateinvestingpalooza.com/introducing-central-america-as-a-real-estate-destination//feed 0 Properties That Double As Investments http://realestateinvestingpalooza.com/properties-that-double-as-investments/ http://realestateinvestingpalooza.com/properties-that-double-as-investments/#comments Tue, 25 May 2010 02:40:53 +0000 Real Estate Investing Expert http://realestateinvestingpalooza.com/?p=44 There are many reasons why someone may consider buying investment property. If you take the time to think about it then you may see that it really is a smart move on anyone’s part. When you have an investment property you will have the final say about who can rent from you and who [...]]]> There are many reasons why someone may consider buying investment property. If you take the time to think about it then you may see that it really is a smart move on anyone’s part. When you have an investment property you will have the final say about who can rent from you and who can not rent from you. This gives you total control and it makes it really nice. You will also have someone else basically paying the mortgage for you, through their rent so you really are not losing anything when you do this.

There are a few sketchy things that you will want to keep in mind though. First of all, you want to make sure that you can find someone that will rent the place from you. This will help to ensure that you can actually rent the location out. Next, you need to think about any repairs and such that will need to be taken care of. Are you going to be required to take care of that or will you be paying others to do it for you? These are all things that you need to determine early on.

Before you make any decisions about property investment you will want to be certain that you can be a landlord. Are you strong enough to enforce all of the rules? You need to be able to tell someone what you expect and what will and will not be tolerated while they are living with you. If you can not do that then you might not want to purchase property like this.

You can consider using a rental company to help you with this endeavor. They will be able to act as the landlord for you but you will have to pay them for that role. This can be a good idea if your property is not close to you.

Consider the length of time that you want to keep this property. You may get more out of it if you keep it for a long time but you will be completing more repairs if you have it for a long period of time. Think about things like the roof and the furnace. All of that could need repaired.

This article should help you decide if this is the best thing for you do to.

]]> http://realestateinvestingpalooza.com/properties-that-double-as-investments//feed 0 Why You Need a Buyer’s Real Estate Agent http://realestateinvestingpalooza.com/why-you-need-a-buyers-real-estate-agent/ http://realestateinvestingpalooza.com/why-you-need-a-buyers-real-estate-agent/#comments Mon, 24 May 2010 16:49:04 +0000 Real Estate Investing Expert http://realestateinvestingpalooza.com/?p=43 It goes without saying that buying a home is a large purchase.  One that many homeowners do only every 5-10 years.  Yet despite this infrequent, but large purchase, many choose to venture out and do it alone.  Many buyers just figure that if they have access to the MLS, they have everything they need.  I [...]]]> It goes without saying that buying a home is a large purchase.  One that many homeowners do only every 5-10 years.  Yet despite this infrequent, but large purchase, many choose to venture out and do it alone.  Many buyers just figure that if they have access to the MLS, they have everything they need.  I think that you are putting your purchase at risk by not using a buyer’s agent.  Here is why:

  • In most areas, the buyer’s agent is paid a portion of the listing agent’s commission.  Consequently, it is FREE to use a buyer’s agent.  Why not let them do the work for you, help you get the best deal and have someone else pay them?   What other purchases let you do that?
  • Any real estate agent should be familiar with the all of the legal, ethical, and customs of their local market.  This can help you not only navigate the process easier when you do find a house you want, but it can also help you put together the strongest offer possible to help you get that new dream home.
  • Using a buyer’s agent that specializes in a specific area, such as Lake Minnetonka Homes for sale, may give you some inside knowledge on what to pay for a home once you find one you like.  The agent should know how this home compares to others that have sold in the area.  He can also tell you where the nearest shopping is, how the schools are, and any other items about the community.
  • Every real estate agent has list of other reputable housing resources that they can refer you to such as inspectors, painters, movers, and such.  These referrals can be an invaluable resource to insure you are using a vendor you can trust.

Using a buyer’s real estate agent is one of the smartest investments you can make when looking to buy a home.  And it is free!

]]> http://realestateinvestingpalooza.com/why-you-need-a-buyers-real-estate-agent//feed 0 What’s The Deal With We Buy Houses Ads? http://realestateinvestingpalooza.com/whats-the-deal-with-we-buy-houses-ads/ http://realestateinvestingpalooza.com/whats-the-deal-with-we-buy-houses-ads/#comments Sat, 22 May 2010 15:26:59 +0000 Real Estate Investing Expert http://realestateinvestingpalooza.com/?p=42 When you see a We Buy Houses sign, doesn’t it make you curious? You want to know what the deal is: how they buy, what they buy, will they buy just any house? And how do they make money? Many people just think We Buy Houses is a scam. [...]]]> When you see a We Buy Houses sign, doesn’t it make you curious? You want to know what the deal is: how they buy, what they buy, will they buy just any house? And how do they make money? Many people just think We Buy Houses is a scam. It all depends on your perspective.

There are real estate investors who focus primarily on residential homes. Often, these investors buy houses by putting up signs in target areas, and those are the we buy houses signs you see at street corners and so on. These home buyers are seeking out homeowners who want to get rid of their home – not just those who want to sell, but those who NEED to sell. If a homeowner is not in dire need, and is looking for full price, they can use a real estate agent. The investors are not going to want to work with a seller who wants full price. As investors, they need to buy low, so they can later sell high.

Generally, a buyer who is also investing in real estate is looking to buy a home well below market rate. As a result, they are looking for homes that have some kind of defect, or homes whose owners need to sell a house fast, or need to get out from under a desperate situation. Investors call these homeowners “don’t wanters”, because they just don’t want the home any more, and need to get rid of it fast. In comes the investor. How they buy is they offer to solve the homeowner’s problem by taking the home off their hands. The homeowners usually do wind up happy, because they can’t see any way out of a financial mess, until the investor comes along and offers a solution that works for everyone. The homeowner rids themselves of a problem property, and the investor gets a piece of real estate they can improve and then either sell or rent. Everyone’s happy in this win-win situation.

If you are selling a home, you should call a We Buy Houses advertisement only if you are prepared to take a haircut of at least 30% off the market price of the house. If you are under water in your mortgage, they might work with your bank to get a short sale, where they offer the bank less than is owed. If your house needs a lot of work, they will take that into account when making an offer. But if you want full price, or close to full price, these investors are not going to work with you. They have to build in not only the costs of turning the property around, but also a profit. They don’t want to live in your house, just sell it.

]]> http://realestateinvestingpalooza.com/whats-the-deal-with-we-buy-houses-ads//feed 0 Your Home Failed to Sell? http://realestateinvestingpalooza.com/your-home-failed-to-sell/ http://realestateinvestingpalooza.com/your-home-failed-to-sell/#comments Fri, 07 May 2010 23:00:57 +0000 Real Estate Investing Expert http://realestateinvestingpalooza.com/?p=32 Currently, we are in a very challenging real estate market. Have you recently tried to sell your home but it failed to sell? Here are 4 tips to getting your home sold.

1) It’s all about price

I deal with buyers daily and right now they will only make a purchase if they feel they are getting [...]]]> Currently, we are in a very challenging real estate market. Have you recently tried to sell your home but it failed to sell? Here are 4 tips to getting your home sold.

1) It’s all about price

I deal with buyers daily and right now they will only make a purchase if they feel they are getting some sort of deal. They don’t necessarily have to steal (they prefer that) it but buyers need to feel like they got a good value. They simply won’t buy otherwise. Value and price are the most important factors in selling a home. If three similar homes in your neighborhood recently sold for $300,000, $305,000 and $310,000 then don’t figure that you are going to get $350,000 or more for your home. For most of the country real estate prices are falling. If a home very similar to yours sold 6 to 12 months ago for $400,000 then you probably need to adjust that sales price since values have probably declined. Remember, the market dictates what your home is worth, you just get to decide if that value is enough for you to sell.

2) Hire a good Realtor

There are differences between Realtors. Some have the experience and professionalism to get your home sold at fair price with little headache for you. On the other hand there are a bunch of agents out there that can mess up a transaction. Find someone reputable who works as a Realtor full time. This may be your largest transaction ever so put it in the hands of someone good.

3) Fix Your Home Up

No one wants to buy a house with a long “to-do” list. That is no fun. People generally want to buy a place, move in, hang their pictures and then enjoy life. They usually don’t want to buy a home a go through a remodeling job. If they do then the price you get for the home will be less because of the potential headaches.

4) Size Up Your Competion

It is important to see what other homes you are competing against. Have your Realtor email you photos and a virtual tour or better yet go visit them in person. Put your objective hat on and really ask yourself which home would you buy if you were in the buyers shoes. Buyers are looking for the best home at the best price. Be that home and it will sell

Marc Rasmussen sells Sarasota real estate

]]> http://realestateinvestingpalooza.com/your-home-failed-to-sell//feed 0 Real Estate Investing http://realestateinvestingpalooza.com/real-estate-investing/ http://realestateinvestingpalooza.com/real-estate-investing/#comments Sat, 24 Apr 2010 16:53:08 +0000 http://realestateinvestingpalooza.com/?p=22 Real estate investing is a career that can take many directions. It can start out small and work its way up to the status of a Trump empire or it can even remain a hobby. The great thing about it is that it has many aspects and can suit nearly any personality [...]]]> Real estate investing is a career that can take many directions. It can start out small and work its way up to the status of a Trump empire or it can even remain a hobby. The great thing about it is that it has many aspects and can suit nearly any personality type. If you are interested in real estate investing but don’t really know where to start here is a quick list of directions that you could take your empire.

  • I am going to work from the beginning here and assume that you are just getting your start in the real estate investing world. In this case you probably won’t have too much capital to start out with. An excellent option in the situation is to start as a bird dog. This simply means that you get good at finding deals and bringing them to the attention of investors. For this you collect a commission. There is no special training or licensing requirement. All you need is some contacts and the willingness to get out there and learn.
  • Property management is also a great place to start. Many real estate investors hate property management because it can be hard work and it can call at mid night or on Saturday. But this great thing is that you can start managing property for others and collect a monthly commission, usually 8 – 10% of the rental price. This doesn’t start out as much but when you get 10 properties renting for $1000 per monty you are looking at making $1000 per month and you are effectively handling the hard part of the real estate game. You are learning how to manage on the dime of other investors and you are passing along any cost to them. An added bonus is that you network with many real estate investors and often have access to deals before they even hit the market.
  • Starting small, is another great way to get into the real estate investing market. Many fail to ever take action because the perceived cost of entry is so high. But the truth is that there are homes for sale in many areas of the country for less than $30,000. Saving or finding a family member to loan you the $6,000 down payment should not be that difficult. After that we are talking a payment of less than $300 per month on a ten year note and around $150 per month on a 30 year note. If this does not sound manageable to you then this may not be the business for you.
  • Once you have found an in to the market you can take a real estate investing career in hundreds of different directions. You could specialize in development, urban renewal, trailer parks, flipping, 4 plexes, duplexes, college housing, housing for the elderly, vacation rentals, foreclosure, the list goes on and on. The truth of the matter is that there is someone making a lot of money in almost all areas of the real estate market.

Find a niche that interest you and start your real estate investing career. Keep the big picture in mind but realize that you will have to take many steps in order to reach you goals. Never stop learning about new aspects and opportunities in real estate investing and be prepared to take advantage of any opportunities that come your way.

]]> http://realestateinvestingpalooza.com/real-estate-investing//feed 0 Property http://realestateinvestingpalooza.com/property/ http://realestateinvestingpalooza.com/property/#comments Sat, 24 Apr 2010 16:41:05 +0000 http://realestateinvestingpalooza.com/?p=16 My thoughts on property and real estate investing in my local area have lead me to some interesting discussions and realizations about the real estate market.

First a little bit of back story. I live in an area that is about half and hour away from Austin Tx in a small town that is relatively [...]]]> My thoughts on property and real estate investing in my local area have lead me to some interesting discussions and realizations about the real estate market.

First a little bit of back story. I live in an area that is about half and hour away from Austin Tx in a small town that is relatively economically depressed when compared to many of the other surrounding areas. The powers that be are in control and don’t want a whole lot of change, but they are also old. The demographics of the area are old and young, without too many people in the middle. Only about 40% of people in town own their own property. There is not much of an employment base in town and most people that make any money work in Austin or from home.

That said I was kind of scared to invest in local property because of the lack of employment in the area. This lead to a discussion with a successful local investor that has no problem buying lower income housing and financing on a 10 year note. He pays 20% down and gets many of his properties for less than $60,000. Having a relationship with a local banker is essential to the success of his business because it allows him to be able to close quickly.

I like this approach for a couple of reasons. First, it keeps the property close to home and keeps the cost down. Second, we are talking about payments as low as $400 per month, even on a short term loan. There is a minimum rental price for single family homes and this monthly payment is well below the minimum. It is also not a stretch to say that if I had to pay carrying cost I could afford $400 a month for a few months.

Another consideration that I had not taken into account was that when you are dealing with families looking to rent out a home in the $600 – $800 range you are dealing with renters that are either on their way up and out as most people will be at some point in their life, or you are dealing with people who will never leave. Either way you have the potential to have a winning situation.

I have reevaluated my real estate investing strategy and will be apply the strategy to buying local property.

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