Every decade some analysts say there will be a real estate crash. Smart investors realize there will always be money to be made in real estate investing.
One of a human's basic needs is shelter. There will always be a constant need for shelter and therein lies the reason why real estate investing will always remain profitable.
You might see a local real estate market decline due to a disaster but real estate investors can profit in those areas as well if they are well trained in investing.
Don't listen to the naysayers. As long as there are people, there will be a need for shelter and you will want to be there to fulfill that need.
Wednesday, December 10, 2008
Thursday, December 4, 2008
HELOC Loans
A lot of people don't really know what a HELOC is. It is a home equity line of credit where the homeowner can use the equity built in their home to get a second mortgage.
The HELOC works somewhat like a credit card. You are given at closing a specific credit limit that you may borrow up to.
In most cases you will make interest only payments unless you wish to reduce the principle.
A HELOC can be used for whatever you want to do with the money. Some people use it to make home improvements and some people use it to invest in real estate.
In real estate investing if you have a HELOC that will cover the cost of the property you want to buy, then you can probably get a better price because it will be a cash deal. Plus there will be no 6 to 8 week mortgage approval so you can have a quick closing.
A HELOC can be very useful but remember that it is a second mortgage against your home so use it wisely. Talk to your mortgage company or banker about HELOCs to find the right one for you. You can also shop around for better interest rates.
The HELOC works somewhat like a credit card. You are given at closing a specific credit limit that you may borrow up to.
In most cases you will make interest only payments unless you wish to reduce the principle.
A HELOC can be used for whatever you want to do with the money. Some people use it to make home improvements and some people use it to invest in real estate.
In real estate investing if you have a HELOC that will cover the cost of the property you want to buy, then you can probably get a better price because it will be a cash deal. Plus there will be no 6 to 8 week mortgage approval so you can have a quick closing.
A HELOC can be very useful but remember that it is a second mortgage against your home so use it wisely. Talk to your mortgage company or banker about HELOCs to find the right one for you. You can also shop around for better interest rates.
Thursday, July 24, 2008
Real Estate Investing For Beginners
You don't have to have thousands of dollars to begin real estate investing and to begin making a living from it. In fact, real estate could help you get those thousands of dollars. You can work your way into a passive or residual income from real estate by following a few specific rules that can help you make your investing into your fortune.
When you start thinking of beginning real estate investing, you can start by finding a property that only needs a little fixing up and can be used for other purposes. There are foreclosures and pre-foreclosures and other types of investing vehicles, such as rent to own opportunities. This will give you the ability to make a small investment in order to get a large profit.
If you make the right type of real estate investment, it is only a matter of time before you begin to profit off of the investment. Any source will tell you that real estate will naturally build wealth over time. Because the economy and market continues to change and increase, real estate will also continue to increase.
Residual or passive real estate can allow you to make money simply by owning property in a variety of places without having to do the work that is involved with the property. Things such as rental properties can help you to put money in your pocket. You could slowly grow your rental property portfolio and have multiple streams of income flowing in each month like clockwork.
Real estate investing is a great way to begin putting income in your bank account without having to work long hours and labor at a job that doesn't offer as many financial benefits as the real estate business.
When you start thinking of beginning real estate investing, you can start by finding a property that only needs a little fixing up and can be used for other purposes. There are foreclosures and pre-foreclosures and other types of investing vehicles, such as rent to own opportunities. This will give you the ability to make a small investment in order to get a large profit.
If you make the right type of real estate investment, it is only a matter of time before you begin to profit off of the investment. Any source will tell you that real estate will naturally build wealth over time. Because the economy and market continues to change and increase, real estate will also continue to increase.
Residual or passive real estate can allow you to make money simply by owning property in a variety of places without having to do the work that is involved with the property. Things such as rental properties can help you to put money in your pocket. You could slowly grow your rental property portfolio and have multiple streams of income flowing in each month like clockwork.
Real estate investing is a great way to begin putting income in your bank account without having to work long hours and labor at a job that doesn't offer as many financial benefits as the real estate business.
Wednesday, July 23, 2008
Some Tips For Flipping Houses
There is money to be made in flipping houses, but there can also be drawbacks. Weigh each deal carefully to avoid some house flipping mistakes.
The condition of the property plays a big part when considering flipping it. How extensive will the repairs be? Will it be cost effective? A broken slab or other damage to the foundation can lead to a large outlay of money to repair.
Make sure you have a written plan for the profit potential of each flip. You have to take into consideration that there will be expenses that you were not counting on. Always pad your repair budget for any of the extra expenses. If you end up not needing it, then that's great but you want to make sure it is there, just in case.
Consider the neighborhood when looking at a possible flip. Is this a rental neighborhood? If so, you might have a hard time selling right away.
These were just a few of the things you need to consider when contemplating a flip. It's not as easy as you see on TV, so study everything very carefully and if everything checks out, go for it!
The condition of the property plays a big part when considering flipping it. How extensive will the repairs be? Will it be cost effective? A broken slab or other damage to the foundation can lead to a large outlay of money to repair.
Make sure you have a written plan for the profit potential of each flip. You have to take into consideration that there will be expenses that you were not counting on. Always pad your repair budget for any of the extra expenses. If you end up not needing it, then that's great but you want to make sure it is there, just in case.
Consider the neighborhood when looking at a possible flip. Is this a rental neighborhood? If so, you might have a hard time selling right away.
These were just a few of the things you need to consider when contemplating a flip. It's not as easy as you see on TV, so study everything very carefully and if everything checks out, go for it!
Sunday, July 20, 2008
Vacation Rental Properties For Real Estate Investing
Have you ever considered making some money from vacation rental properties? If you already own a vacation property that you go to several times a year, then you are all set to make some extra money.
During the times when you are not there you can rent it out to pay the mortgage, insurance and taxes on it. If it is paid for you can use the rental income to pay the taxes and insurance and pocket the rest. It's always nice to have a little more income coming in.
If you don't own any vacation property it might benefit you to consider buying some. Then, as above, you can rent it out for the mortgage payment or just pocket the money.
One of the drawbacks to vacation rental properties is the upkeep from a distance. It is best to have someone in the area to maintain the grounds on a regular basis and have a contact to someome you can call for emergency repairs, such as a pipe bursting, etc.
If you've ever wanted to get into real estate investing but just weren't sure it was for you, then this could be a good place to start. This is especially true if you already own a vacation property.
During the times when you are not there you can rent it out to pay the mortgage, insurance and taxes on it. If it is paid for you can use the rental income to pay the taxes and insurance and pocket the rest. It's always nice to have a little more income coming in.
If you don't own any vacation property it might benefit you to consider buying some. Then, as above, you can rent it out for the mortgage payment or just pocket the money.
One of the drawbacks to vacation rental properties is the upkeep from a distance. It is best to have someone in the area to maintain the grounds on a regular basis and have a contact to someome you can call for emergency repairs, such as a pipe bursting, etc.
If you've ever wanted to get into real estate investing but just weren't sure it was for you, then this could be a good place to start. This is especially true if you already own a vacation property.
Friday, June 6, 2008
Real Estate Investing Using Your 401K
Most people do not think of their 401K as a personal investment vehicle. This is your retirement fund and you do not want to risk it. Real estate investing can be risky if you are inexperienced, so you need to have a thorough knowledge and first hand experience in real estate investing before thinking about using your retirement fund for investing.
The way a lot of people are using their 401K to invest in real estate is by taking out a loan against their 401K to invest in real estate. Once you have completed your real estate transaction and hopefully made a good profit, you can then pay off your 401K loan and pocket the profits.
There is a limit to how much you can borrow against your 401K. You can only borrow a certain percentage of your 401K balance. This is a good thing because you cannot be tempted to deplete your retirement fund with real estate investing.
One down side to using this method of financing real estate is that there are no tax benefits when you use your 401K as an investment vehicle. It will not be eligible for the tax deduction for mortgage interest.
You can also roll over your 401K into a self-directed IRA and your profits are tax free until you draw them out.
It is best to speak with a retirement specialist to get all of the details involved if you are considering using your 401K for real estate investing. Remember, this is your retirement fund and although it is attractive to be able to use a portion of this money for your own investing, you need to weigh carefully all of the different ways this can be done to protect your savings for the future.
Marilyn Roberts
The way a lot of people are using their 401K to invest in real estate is by taking out a loan against their 401K to invest in real estate. Once you have completed your real estate transaction and hopefully made a good profit, you can then pay off your 401K loan and pocket the profits.
There is a limit to how much you can borrow against your 401K. You can only borrow a certain percentage of your 401K balance. This is a good thing because you cannot be tempted to deplete your retirement fund with real estate investing.
One down side to using this method of financing real estate is that there are no tax benefits when you use your 401K as an investment vehicle. It will not be eligible for the tax deduction for mortgage interest.
You can also roll over your 401K into a self-directed IRA and your profits are tax free until you draw them out.
It is best to speak with a retirement specialist to get all of the details involved if you are considering using your 401K for real estate investing. Remember, this is your retirement fund and although it is attractive to be able to use a portion of this money for your own investing, you need to weigh carefully all of the different ways this can be done to protect your savings for the future.
Marilyn Roberts
Friday, September 28, 2007
Real Estate Appraisal
A property valuation or real estate appraisal is a system for determining a property's value using fair market value guidelines. A real estate appraiser or property surveyor are the ones who usually perform this. There can be different values placed on the appraisal or fair market value using various methods of determination.
There may be two different values on a particular property which could be vacant value and improved value. A property in a residential zone would be valued differently than one in a commercial zone.
As a real estate investor you would not necessarily go by the appraised value that you would get from a real estate appraiser.
A real estate investor would also evaluate on the basis of what developments were going on in the area. Investors might also want to evaluate based on the value in 2 years or 4 years, etc.
Repair value is also included when a real estate investor is evaluating for possible profit potential. Sometimes minor repairs such as landscaping and painting can raise the property's value. Large improvements such as a new roof, new flooring, new appliances, etc., can greatly increase a property's value.
Therefore, a real estate investor considers property on a different scale than a real estate appraiser. This is not to say that a real estate appraisal by a professional is not accurate but an investor includes many other factors when coming to a market valuation price.
Using an appraiser's estimation and your own, as an investor, will give you a good determination of a property's fair market value. Do your own homework on your potential investments and you will have a good chance of making the profit you are looking for.
Marilyn Roberts
There may be two different values on a particular property which could be vacant value and improved value. A property in a residential zone would be valued differently than one in a commercial zone.
As a real estate investor you would not necessarily go by the appraised value that you would get from a real estate appraiser.
A real estate investor would also evaluate on the basis of what developments were going on in the area. Investors might also want to evaluate based on the value in 2 years or 4 years, etc.
Repair value is also included when a real estate investor is evaluating for possible profit potential. Sometimes minor repairs such as landscaping and painting can raise the property's value. Large improvements such as a new roof, new flooring, new appliances, etc., can greatly increase a property's value.
Therefore, a real estate investor considers property on a different scale than a real estate appraiser. This is not to say that a real estate appraisal by a professional is not accurate but an investor includes many other factors when coming to a market valuation price.
Using an appraiser's estimation and your own, as an investor, will give you a good determination of a property's fair market value. Do your own homework on your potential investments and you will have a good chance of making the profit you are looking for.
Marilyn Roberts
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