Archive for July, 2009

Real Estate Rental Investments: Know the Costs

Tuesday, July 28th, 2009

It is easy to assume you will make money on an investment property such as an apartment complex, store/mall building, or business complex and in most cases you will. What makes the difference between making a few dollars and making maximum profits is to know what the costs are going in. Your first step is to learn how to understand a cash flow statement.
A complete cash flow statement will include, not only the upfront costs of operating an investment property i.e.: cost vs. rental unit’s value but also underlying expenses such as utilities, taxes, insurance.
You should also find out the turnover in your proposed rental. If your renters are already in place, if there are vacant spaces, typical lengths of stay are all a part of knowing how reliable your investment will be. These figures are less solid than the above expenses and you should always take into account that the possibility you will have less income than the building is capable of but your fixed expenses will remain constant and save accordingly for times when rentals are under-performing.
Once you have taken all of these figures into consideration and feel a property is a good investment you are still not ready to take the plunge. Figures look good on paper but the property itself needs to look good in person. Make sure everything is in operating order unless you know ahead of time you are going to be putting money into repairs. If you are open to fixing up a property the price should definitely reflect the costs you will be putting into a building before it is up to your standards.
Now you are ready to make that jump into the rental world. When you close on your property and hold the keys, you are a landlord in an exciting new world of real estate investments knowing you’ve made all the right moves to insure security and profit.

You can become a Millionaire Guaranteed

Thursday, July 23rd, 2009


Get-rich-quick schemes that purport to make you a millionaire without having to involve yourself in any sort of activity or investment are deserving of the criticism tossed their way. This

is obviously a hook designed to reel in people who are inclined to believe that they can get something for nothing.  There are, however, real strategies for investing money that show how, with a little work, you can earn a good return on your dollar. 

 

A sound strategy for making money should not be blindly slandered without first articulating how the investment strategy failed and following it up with counter points for making improvements.  Simply stating that you won’t become a millionaire this way, but ‘buy our book and we guarantee you will become a millionaire using our secret formula’, does not prove that one method is wrong and another one is better.  No one becomes a millionaire over night. 

 

Dean Grasiozi’s investment strategy for building your savings to a millionaire’s size is based in realistic, provable steps that you can verify for yourself.  He does not claim that you will become a millionaire over night; just that it is possible to invest in real estate, using the steps he outlines, to make money.

Staging a Home Before Putting it on the Market is Important

Monday, July 13th, 2009


Most people, who enter the real estate investing field, always approach the purchase of a home from a business angle, or at least try to. Actually according to real estate investing experts like Dean Graziosi, this is a good thing, but he also states that a property investment should be seen as more than just an investment.

If we want to make a profit and eventually sell that piece of real estate, we need to see it through the eyes of the buyer. One of the issues that investors struggle with when trying to sell a property for profit is the “Home Appeal.” By home appeal I mean making the home seem more comfortable and happy.

So, when you have bought a real estate investment, and want to furnish it or add greenery, or curb appeal you always want to think about making it more appealing for resale. Let’s talk about the interior furnishings for a moment.

When you buy or rent  furniture to stage your home for resale, you need to stage the furniture so it seems more appealing and will make potential buyers more interested in the property.  Here are a few tips that I have come across here and there on the Internet and on twitter. I guess I have added a few suggestions from my woman’s point of view.

Buy Smaller Furniture

It is easier to stage sofas and chairs than sectional furniture. You want everything to look like a conversation can easily and comfortably take place here.

 

Don’t Purchase Flower or Plaid Prints

Try to keep your furniture in solid colors and neutrals are better. This way everyone will like the home furnishings. It will always be in style and everyone will find it pleasing.

 

Don’t Get the Set

Every woman knows that a home has a more elegant feel, and has a designer look when the furniture is not a set, but each piece is carefully chosen to go with the next.

 

Make Sure you Leave Room to Walk

People who are looking at homes need room to walk around and to see every room, so make sure you stage the rooms for walking through.

As you can see there is more to selling a home profitably than just putting it on the market. You need to pay attention to detail and to aesthetics, and these are the things that Pro real estate investors like Dean Graziosi show us.

The Most Important Things to Look at When Buying Foreclosures

Monday, July 6th, 2009


It was a little over a year ago when I started my own business. I had decided, after careful consideration to go into real estate investing. You see the problem is that many people go into real estate investing without really thinking things through, and without investing the initial time to make things work. I didn’t do this! I did a lot of research, reading, investigating over the Internet. I read different twitter comments etc. Among many of the things I found that came in handy were the seminars, and information I got from Dean Graziosi.

After reading Dean Graziosi´s books I decided to look for foreclosure property. After all I was investing in a time when many other people were facing foreclosure. I had also learned that  foreclosures were caused by many different reasons, and not just because of a lack of funds to pay the mortgage payments, some because of loss of job, others because of a death in the family, a divorce, or illness.

From all my studies I realized that I needed to choose a foreclosure carefully, because most of these properties got into foreclosure for a lack of money or because of negligence, so it was highly likely that the house would need some maintenance attention. After all, if there isn’t money to pay the mortgage then there isn’t money to pay for home repairs.

There are several things I always check for when I am thinking about buying a foreclosure property and especially if you want to profit from that real estate right now, and these are items I learned to check for from Dean Graziosi. Of course, I learned many other things but these are the basics I always tell and write everyone I know to look for. These are such basic items that I continually twitter about it, put it on my wiki, and still people forget.

Check the Physical Condition of the Property

Always…always physically inspect the property. Seeing it through pictures is just not enough. If you don’t see the property you don’t know what you are buying. Its sort of like buying a car, clothes or anything else. If you don’t physically see what you are buying, you are bound to have problems.

Make Sure the Foreclosure is all Legal

Be sure you go through all the legal documents especially if you plan to profit from that real estate right now. You don’t want to get caught in legal complications, so have a professional make sure the documents are in order.

Make Sure You Know the Real Worth of the Property

Just because you are buying a foreclosure doesn’t necessarily mean you are getting a great deal. Before getting to investor happy and trying to make a profit from that real estate right now find out what the real current market value of that property is. Don’t buy a foreclosure that isn’t going to save you a nice amount of money.

These are just a few basic rules I learned from Dean Graziosi and believe me this information has saved me many a time, and put me on the path to becoming a real millionaire.