Archive for the ‘Colville Real Estate’ Category
How to Sell Your Real Estate More Effectively in Just 90 Days
Why is it that the real estate industry is so self-centered and resistant to change? In times like these, couldn’t you argue that this is the most critical time to embrace change? You can’t seriously expect that practices of old will work equally as well when the market tips. The value proposition changes. Values change. So why aren’t we changing with it? Time is money right? Lately, time has put many out of business.
Lets look at the big picture. Traditional brokerages are starting to lose market share nationally. Deals are falling through. There is more market stagnation, and property values are still declining significantly. There is more urgency to sell as a result of rising foreclosure rates, bankruptcies, less leveraging potential…and buyers are still holding back waiting for the market to continue to fall. According to the Urban Land Institute, there were 80% fewer real estate transaction in 2008 than there were in 2007! If you are a broker or agent…I wish you luck and bid you well. I also suggest you change your perspective.
Take a look at history. I find it interesting to see that auction marketing trends are becoming far more common. Real estate auctions have grown by 30% over the last 5 years in the U.S. The National Association of Realtors, and the National Auctioneering Association, both concur that 1 out of every 3 real estate transactions will be sold through an auction by 2010/2011. In comparison, 20% of all real estate transaction in this country are already being transferred via the auction method today.
We are already seeing the shift. Real estate auction marketing has historically become the method of choice during times of economic stress. Some of the most well established niche based auction companies grew most successful when times were tough. That is how many started out.
Wondering why you know very little about auction methodology? Maybe you know a lot, but If you’re from the West Coast…you wouldn’t. It is far more common in the Midwest and on the East Coast, but that is changing. The Auction Method of marketing is perhaps the oldest and fastest method of converting hard assets into cash. It has been adopted and used by all Federal, State and Local Courts and Governments as the acceptable methodology of hard asset conversion. Here are the top 5 reasons auctions are gaining so much popularity:
1. Auctions create a strong sense of urgency. Why wait months for buyers to make up their minds? The seller sets the deadlines and forces the market to respond through a carefully planned and aggressive marketing campaign.
2. Auctions set the seller apart from other competitive sellers. There is no haggling or negotiating and everything is sold as-is, contingency free – reducing frustration.
3. Auctions create increased competition between & among buyers- why place yourself at the mercy of a single buyer who not only determines price: but may also demand unusual or stringent demands prior to actually closing the transaction?
4. Auction transactions are accelerated, intense campaigns, that often result in selling the property much faster than through traditional methods. The savings in carrying costs alone can make a big impact on the bottom line for a seller.
5. Auctions do away with a list price. Determining value today is tough. If an asset is under-priced, the asset may be sold quickly and there may be money left on the table. If it is priced too high, the result is time delays, loss of money to maintain, frustration by the seller and no offers of any type or size from potential buyers. When price reductions occur, it negatively motivates potential buyers to wait and see how low will they go. Meanwhile, nothing has happened to the asset except that it is stale on the market and potential buyers begin to think that something is wrong with it.
At the end of the day, the asset will be sold to the largest audience of ready, willing and able buyers. Auctions are arguably the best barometers for fair market value. If you are a property owner, bank or institution that needs to sell – you might be thinking it’s time to talk to your real estate broker about auctions. I am here to urge you to avoid doing this without speaking to a qualified auctioneer first. Your broker or agent is very likely unfamiliar with how an auction works and will be extremely under qualified to conduct one…so he or she will not support it. If you think about it, your broker would have suggested an auction as a potential solution if it were understood and familiar to your broker. The broker would also lose commission potential. Even still, if your broker hires an auctioneer – make sure your broker allows you to speak with the auctioneer freely. If you cannot, then your broker does not have your best interests at hand.
If you are a broker or an agent, I suggest you open yourselves to the opportunity of collaborating with an experienced auctioneer (please note that the word experienced is highlighted) to get your properties sold. You’re purpose is to sell property, not to just get the listing and have it sit for 6 months, a year or more as the properties drop in value. Focus on the Net and not the Gross – you’ll do better and save your client the pain of market stagnation and carrying costs. You are not a full service broker if you don’t offer the service, and I am willing to bet you are sitting on some listings that will likely expire or already have. Co-listing property with an auctioneer might just be your ticket to selling those stubborn properties that are unique or tough to value. It’s time to learn something new and evolve with the market.
Michael Stein, CEO, SageListings. http://www.sagelistings.com
Michael is a seasoned, consummate executive with over 10 years of experience in commercial real estate, business development, strategy and entrepreneurship. He is characterized by peers as an innovative and motivational leader with a vision of changing the way the world does business.
For the last 8 years, Michael was part of the strategic development and growth of two privately held commercial real estate firms, Randall Realty and Weidner Investment Services. There, he worked with value-added commercial real estate investors and played a crucial role in repositioning several multifamily developments into profitable and valuable community additions in Seattle, Sacramento and Portland markets. Michael’s experience includes the direction of over 4,750 multifamily units ($670+ million), and the deployment of several successfully endorsed company programs designed to train, retain and develop the best talent the market has to offer.
Most recently, Michael’s endeavors include building real world solutions that compliment business, our environment and its inhabitants. He co-developed a patent-pending automated valuation model (AVM) for commercial real estate, and is committed to making “Green Building” and “Green Conscious” thinking our new standard moving forward, investing his time and money towards these pursuits.
Michael also maintains involvement with the Real Estate Finance Investment Society, holds a bachelors degree in public relations from Washington State University, and carries a Washington State Real Estate license.
His other interests include playing with his two children, relaxing with a glass of wine, advising new and emerging companies and playing chess.
Article Source: http://EzineArticles.com/?expert=Michael_A_Stein
Investing in Home Rentals
One of the ways wherein you can invest some money and anticipate a good return of investment is to rent out your properties like homes and houses to families. This is a very good option, especially since the real estate industry has been affected so much by the recession, and the number of people who purchase homes for sale has been reduced by this financially difficult time. The real estate industry not only in Washington but elsewhere in the country as well is still recovering, albeit slowly.
Now, if you own properties and are having a hard time selling it, then you can most certainly look into having it rented out to families. However, there are some things that you have to consider before entering this kind of venture, especially since not all has the skills and the abilities to become a landlord.
The first thing that you have to understand is that you are going to shell out some money for the repairs and the maintenance of your properties. This is very important especially since you would naturally want to get the attention of potential clients. You should know that your expenses for the repairs and maintenance depend upon the number of years that you are willing to have the property rented out. Do not invest a lot of money for the repairs and the improvements if you are only going to rent it out for a few years, but if you are going to rent it out for, say, 20 years, then be sure to save some money for more maintenance costs like roof repairs, et cetera.
To be a successful landlord and have a flourishing renal property business, you have to understand that keeping your clients happy is the key to your success. To keep your clients happy, be sure to at least give the walls a new coat of paint and have someone clean the property thoroughly to attract future occupants. This also includes replacing broken hinges and broken glass on the windows or doors as well as fixing leaking pipes and clogged drains.
When it comes to setting the price for the property, it would not hurt you to know your competitor’s prices. You have to remember though that the cost of your rental property should not only be enough to give you a good profit but should also be enough to give you some money set aside for future repairs and maintenance.
Washington Real Estate – A Green Paradise
Washington is a state known for its green trees, rain and ocean climates. But its more than that; holding more areas for new growth than many other states in the US. Washington real estate is one of the fastest growing regions on the market because of this, allowing smaller cities to thrive with new economy. Washington offers many real estate opportunities; from the big city life in places such as Seattle and Olympia, or the small townships and villages that dot the states vast forest areas.
Washington home owners hoping for the big city life, but still want that feeling of suburban comfort and safety, can find ample real estate opportunities outside Seattle, which is one of the fastest growing cities in Washington or Olympia, the capital. But don’t think that Washington real estate is just about the large cities; many of its small towns and cities scattered throughout Washington bring that urban lifestyle to those who seek a slower and family-friendly environment.
Check out the market. Spend some time looking at the real estate market in smaller Washington cities. You’ll find that there are some areas that are selling better than others, some that have a lot more activities than others, and some that are a better fit for your family. Are you looking for a home within easy commute, or within walking distance to schools? Take a look at some of the houses for sale in these neighborhoods and check out the average price. Are these homes in your price range?
There is an abundant selection of homes for sale in Washington, waiting for the right person to come along and make it their own. Use our Washington MLS services to search for a Washington home with your favorite Washington real estate agent.
Reg Gustin is owner operator of the website http://www.proonlineagent.com
Go to Pro Online Agent to search the MLS in Washington. View homes for sale with photos, virtual tours and more. Customize your Washington MLS search at http://www.proonlineagent.com
Article Source: http://EzineArticles.com/?expert=Reg_Gustin
Should You Buy Or Should You Lease Your Property
If you decide to buy or to sell your property you need to find a real estate agent to do the work that is needed. Don’t just use the first estate agent around the corner. Do some market research first as different agents can charge you different percentages.
Always ask them for a quote which they are obliged to give you without you being tied in to a contract. Prior to that you need to know what you want or need when you are moving with the investment.
No matter whether the market is a good one or a bad one, there are always different moves that you can make in order to get the right person moved in to your property. And if you buy a property always remember the number 1 rule: location, location, location.
One of the several ways that you can move into a real estate investment is with Leasing. If you are having difficulty selling your home or property, then you can consider leasing as an option instead of selling it. If you decide to use the lease option for the property, then it means that you will become the landlord for a period of at least one year.
The tenant will have a contract that is signed for this amount of time that says to take care of the property and pay rent. After the time period is up, the tenant will have the option of buying the property from you.
If you are considering buying a home, this is a good first step to get into. You will have lower payments, will be able to build your credit, and will have the option of trying out the property before you buy it.
If you are selling the property, it can also be beneficial, as it allows you to demand a higher price and move into a better market when it is time to sell. Usually, by the time you are ready to sell, you will be able to offer a price that is ten to twenty percent higher than it would have been a year before.
If the market is not a sellers market and you find it hard to sell your home and you have not found any interest regarding your property, then leasing is a second option that you can consider. Leasing the property gives you the ability to profit from both sides.
Leokadia Angela
http://www.articlesbase.com/non-fiction-articles/should-you-buy-or-should-you-lease-your-property-108658.html
Short Term Bridging Loan: a Good Option to Purchase Property
You might be interested in purchasing a property and do not want to let go the chance. But the only thing that concerns you is that of finance, which is not available to you at this moment. You can arrange the funds by selling your existing property but that will definitely take some time. It is here that you can rely upon short term bridging loan. Through this loan, you can access the funds to purchase the property without facing too many hassles.
The loan is meant to bridge the cash gap that arises prior to the purchasing of a new property and selling the existing one. This is why this loan is known as short term bridging loan. With the aid of this loan, you can purchase commercial property, business development sites, and residential property.
This loan is partly secured in nature, as you have the existing property or the property you intend to buy as collateral. As per your need and requirement, you are free to borrow any amount in the range of £100,000-£400,000. This amount has to be repaid over a period of 1 year – 10 months. You can easily pay back the amount by selling your existing property within the stipulated time period.
Irrespective of credit status, this loan is also made available to applicants with a history of adverse credit due to CCJs, IVA, arrears, defaults. This is because the loan amount is insured against an asset. However, the interest rates charged are marginally high , as the repayment term is short.
You must know that the loan is a interest only loan, which means that you are required to pay only the interest during the repayment tenure. So, it would be optimal for you to look for a loan that carries a relatively low interest rate. This way, you will be able to save a lot of money on interest rates. This loan is especially beneficial for bad credit borrowers, as by making timely repayment, they have a chance to improve the credit score.
Before availing short term bridging loan, you can undertake a proper research of the loan market. You can also use the online mode to compare and contrast the rate quotes. This way, you can get a better idea on how to get access the best deal.
Eva Baldwyn
http://www.articlesbase.com/loans-articles/short-term-bridging-loan-a-good-option-to-purchase-property-713308.html
The Forgotten Secret To Selling Property – Simple, Quick And Cheap
Why spend big dollars trying to get people to drive a long way to see your house, when your best prospects are already driving right by your door?
It’s a fact that the people who are intending to buy property in an area go driving around to look. Why wouldn’t they – when this is one of the biggest purchases of their lives, and they’re actually going to live there?
And that’s why so many people list their properties with the most local of real estate agents, and why the greatest number of properties are sold by local agents. After all, where do you go looking when you’re searching for a new place to live?
It’s tempting to go advertising a property in the national papers to reach a wide audience, or even in the regional paper that has a ‘property section’, but these are both dominated by real estate groups that make part of their income from persuading clients to spend advertising dollars in this manner.
(Ironic, isn’t it, that the very people who should already have buyers waiting, actually want you to spend your own money to attract buyers that you then pay them to bring to you. Uh?)
Ok, so you know that the person most likely to buy your property is going to drive right past it – at least once . . .
How do you get them?
You need to stop them right there in their car, and get them to either come and view your property right now, or call you. In the case of either, all you’re seeking to achieve is to find out their contact details.
If you’re still living in the property, invite them in to view. Do you really want them to go away and maybe find some other home?
And if there’s not always someone home, then get them to call you so you can take their contact details and invite them to walk around the garden for a look.
The little real estate sign stuck at the front gate won’t do the job – it’s there to advertise the real estate down the road, using your property as a draw card so he can gain a new customer.
What you need is your own way to ‘flag down’ potential buyers, and a nice big, bright, flapping ‘outdoor banner’ draped across your property is the way to really get attention.
One of the quickest, easiest and cheapest ways to get an ‘Outdoor Banner’ is to design and order it online.
A group of websites catering for buyers in New Zealand, Australia, the UK and USA has an easy interactive ‘custom outdoor banner’ design page – with banners from 3 to 8 metres length starting from far less than $100 delivered free. The websites are www.NZbanners.co.nz for NZ buyers, www.Printshop.com.au for Australian buyers, www.BritishBannerCompany.co.uk for UK buyers, and www.AmericanBannerCompany.com for USA buyers.
Successful real estate advertising is all about ‘location location location’, and there’s no better location for an advertisement than the very place where potential buyers are looking.
David Kenward
http://www.articlesbase.com/real-estate-articles/the-forgotten-secret-to-selling-property-simple-quick-and-cheap-96088.html
Bridging Loans – Buy Property Instantly Without Selling Old One
You are thinking of buying a residential or commercial property but you have no sufficient funds. Well, you want to sell old house or any asset to have required funds to buy new property. However, selling old property at desired prices may take time and you do not want to sell it in a hurry. To help you combat a scenario such as this, lenders have designed especial loans called bridging loans.
Bridging Loans are interim financial short term arrangements for the borrower to allow him buying a property just in time. These loans bridge the gap in selling old property and buying the new one. Clearly the borrower has sufficient loan amount to own a property instantly without having to sell old one.
Bridging loans are secured loans, provided against the borrower’s home or any valued asset. The loan amount depends on the value of the property given as collateral. Lenders usually approve bridging loan amount that is up to a certain percentage of total value of collateral. Each lender has a different loan to value ratio in determining the loan amount.
One characteristic of all bridging loans is that lenders charge interest at high rate. High rate of interest is because bridging loans have risks for the lenders despite being secured one. For instant the project funded from the loan may not take off successfully. Another reason for high rate of interest is short term.
All bridging loans are approved for few weeks to 3-4 years as suits to your ability to sell old property or have finance to repay bridging loan from any other source. What is more, you have the option of repaying the loan amounts in one go at a time when you have sold old property. Till then you can only pay interest per month to the lender. So bridging loan is seldom a repayment burden.
One advantage of bridging loans is its easy approval for bad credit people as lenders do not take into account the borrower’s bad credit. So, the short term loan is useful also in improving your credit score shortly as you pay off the loan in time. You can locate numbers of bridging loan lenders on internet. Search for the suitable lender before applying to one.
Peter Taylor
http://www.articlesbase.com/loans-articles/bridging-loans-buy-property-instantly-without-selling-old-one-216116.html
Tips for Selling Commercial Property
Popularity of commercial real estate is reaching new heights with so many options available for a customer it sometimes becomes almost impossible to venture into the correct form of real estate and be satisfied by the investment done. Every deal relating to property business is presented in the best form to attract more customer traffic towards a property and thereby earning profits from it. Those who are concerned with selling the commercial real estate have to actually to put in a lot of hard work along with skilled marketing tactics to sell their respective property in total profit deal. There is always an advantage of selling a commercial real estate than buying because the job is to just convince the customer about the property to make a venture.
Commercial property can include homes, flats, and offices, plots etc. many waste a lot of money by hiring the wrong person as there property agent to advertise and marketwise one’s property. Free classified are available to help people for listing their real estate and save a considerable amount of money in hiring do nothing agents. There are many successful tips given by various experts of property to help people resolving their doubts in selling commercial property. These tips are a global guide which tells various simple yet efficient tactics of making a successful venture thereby earning profit. These tips serve as ultimate methods which can advertise one’s real estate without costing anybody a fortune.
Many methods include numerous steps for publicizing a commercial real estate but the basic include mere three steps to crack down a successful venture. First being listing the real estate on free classified available online. These free classified are offered by various networking sites hence not even a penny is wasted in advertising the concern property. Since the details are available online anybody who is interested can contact undersign for further development in the deal. Investing in a quality property or commercial real estate is very important many good real estate deals are sometimes surround people but they don’t look around, hence one should also consult the nearby property deals as well. Third option can be advertising one’s property in real estate publications where people can refer to various details about the property and the concerned owner. These simple tips will always result in numerous gains if implemented accurately thereby leading in an successful venture.
Roberto Luongo
http://www.articlesbase.com/real-estate-articles/tips-for-selling-commercial-property-747182.html
Property Market Update and the Consequences for Selling Property
Firstly let’s briefly look at what’s happened to the property market. In the summer of 2007 property prices reached their peak and mortgages up to then, had been easily agreed with 100% mortgages readily available. At this time 40% of the money that the banks lent to companies and consumers came from big financial institutions, often overseas and known as wholesale sources. According to BBC’s Robert Peston, the ratio of our borrowings in the UK (including consumer, corporate and public-sector debt) to our annual economic output rose to just over a record-breaking 300% (or over £4000billion) which is similar to the US’s ratio of debt to GDP. In August 2007 the wholesale sources became aware that much of their money had been invested in the US housing market which had already collapsed and saw that their investments had turned seriously sour. Unsurprisingly, they wanted their money back and didn’t want to lend more. When the banks paid the money back, some banks almost collapsed and were only saved by bails out of billions of pounds of taxpayer’s money. And at the same time, the sources of funds for borrowing dried up. It’s a time of unprecedented change in the global economy.
So now the UK banks have less money to lend to businesses and consumers, in the way of mortgages, and only customers considered risk-free are approved. With far fewer mortgages being made available there are less buyers. With less buyers, the property prices drop and when the price drops buyers who can secure a mortgage want to wait until the prices have bottomed out, and with the property prices still falling banks are not keen to invest in them…. and so the downward spiral continues. A global recession is nearly upon us and more companies are likely to need government bailouts. Unemployment will rise and tax revenues will shrink. It’s a gloomy outlook.
So with this backdrop it is not a good climate to sell a house.
As a seller, do you really need to sell your house now? Check your reasoning – do you need to sell your house or do you want to sell your house or is it a mixture of the two? Sit down and carefully go through the reasons why you are selling. Can you delay selling your house until the economy and property prices have turned around? Although lending will not return to the heyday of the previous years, stability will come, and those buyers currently waiting to buy property will then buy and prices will begin to rise again. In addition, because prices have dropped homes are becoming more affordable with the average house price to earnings ratio being 4.56 in November 2008 compared to 5.84 in July 2007. This will support the housing market when it returns.
But when will it return? According to the pre-budget report credit conditions will stabilise “beyond 2009″ so that may mean early 2010 (though predictions vary). The worst time to sell could be in about 6 – 9 months time which will be when house prices have fallen further, sellers will be afraid of how much further they will go and the country is likely to be in the midst of recession. If the market begins to recover from 2010 house prices will then slowly go up from a peak to trough fall of around 20 – 25% (though again, predictions vary widely). How long will it take to recover to 2007 prices? Well, this can’t be answered as it’s simply an unknown but it is likely to be a number of years.
If you have to sell now, be aware that buyers are waiting to snap up a bargain and offers will be low. Be realistic from the outset about what you are prepared to accept and have a time line of when you need to sell by. Neither of these can be guaranteed of course but by thinking through them you will be better prepared to price your property accordingly. This may save you months of waiting and gradually lowering your price. Obviously you don’t want to do this especially is that would mean getting into negative equity. But if you need to sell then you need to consider that you could be better off taking a low offer before the market bottoms out. You need to work out your figures and price accordingly. Speak to your estate agent (and others) and ask what other properties in your area are going for. Gather as much information as you can to make a decision.
Selling and moving house is a very personal decision and many areas of your life are affected. Decisions may include wanting to downsize to lessen the pressure of outgoings, or to emigrate, or start afresh elsewhere. Moving house often signals a new chapter in your life and it’s worth remembering that the reasons for wanting to move may outweigh the reasons for needing to move.
Selling and pricing your property to sell may be a difficult decision to make in the current market but a low priced property will attract the buyers that do, after all, exist and who are watching and waiting for the right opportunity.
Susy Copus
http://www.articlesbase.com/real-estate-articles/property-market-update-and-the-consequences-for-selling-property-681693.html
Successful Real Estate Investing
One of the best roads to wealth in America has always been the acclimation and development of good, solid, income-producing real estate. Real estate ownership is one of the best ways to achieve financial independence for the average person. But in order to be a successful real estate investor, you are must become above-average in your knowledge and understanding of how the real estate market works.
There are five basic requirements that you must follow to succeed in real estate.
1. Write out clear and specific goals that have time lines on them. Set a goal for the exact type of property you are looking for. Do want a single family property? A duplex? A four-unit property. You must be specific. Set a goal for getting the money you’ll need to purchase the property. Always make sure your goal has a time line for when you will acquire the property. Will it be six months or a year? Set goals for the amount of real estate you intend to purchase in the next three, five, and ten years. The very act of writing out set goals for yourself in real estate will make it much more likely that you’ll have the success you are aiming for.
2. Write out a detailed plan of action, listing everything you are going to do, organized by priority. The combination of goals plus detailed plans will give you a blueprint for real estate accumulation that you can begin to follow on a day to day basis.
3. Make a plan to learn every detail of the real estate business. Because the potential rewards are so high in real estate, they will go to those who have done their homework and paid their dues. It’s very important for you to become an expert at real estate before you begin investing your time and savings in real estate acquisition.
4. Be prepared to back your plans with hard work, sacrifice, and persistence. Going into real estate is very much like starting a business. There is a tremendous amount that you have to learn and you can only learn by experience. There will be ups and downs, successes and failures, and you must be willing to persist patiently throughout, knowing that you will be successful in the end.
5. If you are really serious about building something lasting and worthwhile in real estate, resolve to get into real estate for the long term, for a minimum of ten to twenty years. Real estate investment is not something that you jump into and out of. It is something that you step into very carefully, and should be prepared to hold onto for a long time.
Many people who purchase real estate, hold it for a long time and then sell it just before it starts to rise rapidly in value. They become impatient when they hear about other people making quick or easy money by flipping real estate properties.
The definition of investment real estate in its simplest term is: “Real estate is its future earning power.” Let me put this another way: “Real estate is nothing more and nothing less than its future earning power, its value at some future date.” In other words, the value of any piece of real estate is determined by the income that can be generated by that property when it is at its highest and best use, from today and on into the indefinite future.
An important question that you should always ask when you are considering any real estate investment is, “When and how will income or wealth be generated on or by this piece of property, and in what amount?” The correct answer to that question tells you how much the property is worth today and how much it is likely to be worth in the future.
Even though interest rates are at all time lows and property values are increasing at record levels, there are still foreclosures happening at record levels today, because of so many people losing their jobs. Having said this as a warning, there are many things that you can learn and do, starting with very little money, to begin building your financial independence in real estate.
If you do not have much money but have lots of time, and you sincerely desire to enter into the real estate field, the simplest way for you to start is to buy homes that need work and fix them up, thereby increasing their value. This is where many successful real estate investors and entrepreneurs begin their careers.
Here are six basic steps you need to follow if you are going to buy properties and fix them up.
1. Do your market research thoroughly and look at houses until you find one that is under priced relative to the neighborhood, because it is run down and needs a lot of work. A house that is under priced is one that is selling for 20% or more below what similar houses are selling for in the same area, based on the cost or sales price per square foot. For you, this type of home could be what is called a “Sleeper.” It can be more valuable than it appears on the outside.
2. Purchase the house at the lowest possible cash down-payment and get the seller to carry back a second mortgage or deed of trust for the property. Your ideal purchase of investment real estate is always to get the very best price and terms. Price and terms are often more important than any other single factor. If you can get a low enough price and generous terms you can make almost any property into a successful investment.
3. Move into the house and begin working on it on the weekends to renovate and refurbish it, doing all or most of the work yourself. Many husbands and wives have launched themselves toward financial independence by working as a team to buy and fix up houses, approaching this as a family project.
4. When you have fixed up the house and yard so that it is attractive again, you can then do one of three things. You can sell the house for more than you paid and take the profit from the sale and buy another house to renovate. You can rent out the house at a rate that covers your mortgage payment and hopefully gives you extra cash flow. Or you can rent out the renovated house and then refinance the property, often for as much as you paid for it, based on the higher earning power of the property when you rented it.
5. You can then repeat this process with another house, again doing the renovations yourself until you have fixed it up and you are ready to sell, rent, or refinance the second house as well.
6. As you increase your assets, your cash flow, and your experience, you move up to buying and fixing duplexes and eventually apartment buildings.
There are two main advantages to buying properties and then fixing them up yourself: First, you can do it while you keep your full-time job, continuing to generate cash flow from your job for repairs and renovation. Second, you can start small, with little or no money, little or no risk, and expand your activities as you gain more knowledge and experience.
Making money in anything, especially real estate, is hard work and requires persistence. Everyone with a property for sale wants to get as much of your money for it as he or she possibly can. Your job is to see that they don’t. So, if you are willing to do your homework and take your time, you can make prudent and profitable real estate purchases and sales.
You make your money when you buy real estate, not when you sell. You make your profit in real estate by buying right, by buying the right property at the right price and at the right terms. When you sell, you simply realize the profit that you made at the time of the purchase. Another important rule for investing in real estate is this: don’t become emotional about a property that you are purchasing for investment. Always look at the property from the viewpoint of a critical purchaser.
Purchasing real estate of any kind requires careful thought and analysis. Just remember that you are buying the long-term future earning power of a piece of property. You are purchasing the property as an asset and nothing more. Always remember, real estate is only an asset if it puts money into your pocket.
These rules are all food for thought if your are planning to become a real estate investor. These are some basics that you need to know to get started in the field of real estate. Read books and attend seminars on a regular basis in the field of real estate. Go out and look at properties every week that are for sale, even if you are not ready to buy. By doing this you will be gaining valuable experience. Nothing can take the place of knowledge and experience, especially in the field of real estate.
Millions of men and women have become financially independent by investing in real estate, and with the proper knowledge and experience, there is no reason why you cannot do it as well.
Copyright© 2005 by Joe Love & JLM & Associates, Inc. All rights reserved worldwide.
Joe Love draws on his 25 years of experience helping both individuals and companies build their businesses, increase profits, and achieve total success. He is the founder and CEO of JLM & Associates, a consulting and training organization, specializing in personal and business development. Through his seminars and lectures, Joe Love addresses thousands of men and women each year, including the executives and staffs of many of America’s largest corporations, on the subjects of leadership, self-esteem, goals, achievement, and success psychology.
Reach Joe at: joe@jlmandassociates.com
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