You could say the economy is not in goor condition, and that it would take a million chance of luck that you could make it through the real estate industry successfully. Butin actuality, real estate investment is as profitble as always.

There are two aspects in retailing properties. First, the class of your property. Is it an apartment, a land, a house or a house for lease? Second is the worth of what you are selling. Is it pricey or only for the regular family? The second is one of the larger aspects among the two. For it’s then that you trim down your buyer’s categorization and assess what target market you want to reach. Indeed, selling real estate indeed is quite unreliable and hard now, for most of the outcome of the economical failure has targeted average to above-middle level income earners.

But the affluent and the prominent are still wealthy. They may have lost some money but it’s not enough to draw them down to poverty. In truth, one of the trends these wealthy individuals do, as time immemorial has made known it, is to have a real estate investment that would profit once the economy has fully improved. Also, property developers are still building and planning exclusive urbanized homes and properties for they know that although the economy might have been damaging to low-income people, the wealthy in countries like India, Dubai, or even in Las Vegas and Grand Cayman are still willing to use money and live in a luxurious life.

There are three factors of assessing which investment is good or bad. The liquidity, the safety and the assurance of good return. A lot of individuals may have been dispirited with the real estate courses and lconferences that may have promised to make them millionaires in a year. In fact, real estate can be the solution to all your troubles, or may have become one of your burdens if you do and go for the wrong decisions. If you extremely want to know how to make a good investment like say in luxury home investment, consider these three factors:

Liquidity. It might take time to re-sell and liquidate real estate properties. It may also less stable compared to for example investing in stocks. But this status of being less volatile can be an edge in terms of recession times.

Safety. Earning fortune is not all the time quick and simple. In times of economic downturn most fatefully, investing in a real estate property is a safe resolve since although you cannot earn money right away, you can have a stable flow of earnings per month.

Will it have good return? The main reason you are investing is to double your investment. Real estate investment for buyers is very rewarding due to the reduced tax levies, the lower maintenance cost and convenience of the lifestyle. It’s through this reason that real estate properties are hot-sells.

And lastly, when making an investment, make sure you are well-informed with the latest trends. Go to courses and conferences that may give you more tips on how to outlast the economic breakdown and how to make your properties interesting to buyers.

Gary Keller’s best-selling Real Estate book for Agents is a gold-mine of real estate business ideas. Guest Speaker: John Poole, Team Leader Keller Williams Referred Realty 156 Duncan Mill Rd Toronto, Ontario, Canada 416-445-8855 www.kwreferred.com Filmed and Edited by: Mary Ann Gutierrez, BComm www.imaginproperties.com For: KW Referred Realty Career Development Committee

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Project 365: Day 13 (013/365)


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(8-26-10)

This evening I traveled to Harkers Island to do a property shoot. It was my first visit to the area, and it is beautiful! I am trying to get into more real estate photography and am glad that this seller contacted me. This is the first processed image (quick edit to share) from the shoot. To see them all, check by my Uprooted Photographer fan page.

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©2010 Zach Frailey

Real estate investment presents optimistic cash flow along with tax benefits. However, much like any other investment niche, real estate is dependent on intricate market trends that must not be overlooked, in case the investor may undergo a major loss. Surprisingly, many of the newbie investors are keen to part with their hard earned money, devoid of carrying out a preliminary research of their investment. They also bank on intuitions and traditional trends instead of relying on a meticulous analysis. But before you risk your investment, do heed the following real estate investing advice, in order to make certain some momentous returns on your property investment.

a) Verify the seller’s credentials – Newbie investors find a lucrative property but don’t find any inconvenience while verifying the seller’s credentials, since they are in a scurry to bag the property. They should also confirm some definite aspects as well, together with rent payment records, taxes, and other possible expenses.

b) Avoid negative cash flow – This is an additional real estate investing advice for selecting a property that does not eat away your working capital on a standard basis and there is no point in buying a property that necessitates more money for its upkeep relative to the revenue it generates. You might also be forced to sell such a worthy asset former to the realization of any remunerations of ownership.

c) Original tenants can afford the much required information – Ask the tenants if they are troubled by pest infestation, lack of basic amenities, or some other recurring problem. Of course you don’t want to buy a property that requires an awful lot of repair, and even if you do, you must know the problems outspoken.

d) Look for an insurance cover – A decisive real estate investing advice is that you must have sufficient insurance coverage for your property bought recently and insurance will also offer the much needed shroud to guard your personal assets against legal actions.

e) You must charge fair rents – No expense hurts more than what’s acquired in the upkeep of a vacant property and so arraign fair rents to make certain that your tenants affix with you for as long as you wish for. Moreover, you must also ensure that the chosen tenants are not defaulters. Verify their credentials, talk to their previous landlords, and also check their credit history.

f) Sustain a certain degree of stinginess until and unless you have a healthy source of income – Once you have closed a profitable deal, you must ward off from going on a profligate shopping spree. Instead re-invest your profit towards another property payment on a normal basis until you conquer a significant affirmative cash flow.

On the whole, real estate investing can be an extremely profitable investment niche. But you must have a good grip of what the procedure entails, and must not leave any stone unturned. Just stick on to the real estate investing advices, and you shall be on your way to develop into a professional real estate investor. Now let us see how to value any piece of real estate. When considering real estate VALUE, whether it’s a real estate stock or a property, there are two value rules that are to be applied:

• Don’t pay too much for the earth.

• Don’t pay too much for the business.

As a good real estate investment rule of thumb, net rents in real estate have averaged about 1% above Treasury bonds. Once you’ve figured your P/E, it may be very different from the current nationwide fair value P/E guess of 16. If your P/E is low, you may have gotten a good deal, or you could collect high rents from your place. If your P/E is twice as high as 16, my advice is that you ought to consider selling. The tricky thing about selling real estate is that real estate is not liquid. Unlike stocks, where we have the luxury of being able to sell whenever we want and the luxury of trailing stops to get us out exactly when we want out, in real estate, it’s not so easy. You unfortunately need to be a good guesser, because you actually need to sell into an “up” market, and buy in a down market.

D. Webster Bostwick


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Co. G, 133rd IND. Infantry
Pages 482-484, from History of Allen and Woodson Counties, Kansas: embellished with portraits of well known people of these counties, with biographies of our representative citizens, cuts of public buildings and a map of each county / Edited and Compiled by L. Wallace Duncan and Chas. F. Scott. Iola Registers, Printers and Binders, Iola, Kan.: 1901; 894 p., [36] leaves of plates: ill., ports.; includes index.

D. WEBSTER BOSTWICK.
D. WEBSTER BOSTWICK, of Iola, has been one of the conspicuous characters in the settlement and development of Allen county. To him is due in a great measure the credit for the actual work done in the location of a large per cent of the country population of the county and to his ingenuity as an immigration promoter is due the credit for the settlement of much of our eastern domain in Allen county. His name went from tongue to tongue through the east and his fame followed closely in its wake. No man who makes real estate his business in Allen county is as widely known as Web Bostwick and, in the olden time, no combination of dealers in the county possessed a wider or more universal confidence of the homeseeker from the east than Bowlus & Bostwick.
Web Bostwick came to Allen county November 11, 1866, and the following year located upon his brother’s, H. C. Bostwick’s, farm on Deer creek. Some three years later William Davis came along from Colorado and offered him his price for the place and he moved down to the Anderson and Finley ranch (that now is). What is now the Allendale Stock Farm was then an unbroken prairie and Web went onto it, broke a portion of it out, as any farmer would have done, began its improvement and in seven years sold it. This concluded his career as a farmer. He moved into Iola at once and entered the real estate business with Bowlus & Richards. The railroad lands of the county were just coming onto the market then and this agency handled almost the entire holdings adjacent to Iola. For eight years this firm remained intact and undisturbed in its enjoyment of a mammoth and lucrative business. Investors poured into the county from all directions and speculators and settlers vied with each other in the acquirement of tracts suitable for farms, for ranches and for investment. Retiring from this noted firm Mr. Bostwick joined D. B. D. Smeltzer in a loan and real estate business for some years and later was a partner with Judge H. W. Talcott in the same business. In 1895 he joined the well known townsman, Nels Acers, with whom he is yet a leader in the matter of handling city and country property.
The selling of real estate in Allen county was, in itself, an easy and pleasant business but to do so in defiance of an element of our citizens whose edict had gone out against it and whose threats were upon the lips of all was an undertaking involving munch hazard, with possible loss of life. From 1875 to 1885 the settlers on the disputed lands in the east part of our county determined not to have any more of the land sold by the agents of the railroad companies, desiring to have it entered as public domain and by persons whose interests would, from the start, be identical with their own. They even provided a penalty, or rather, suggested as a penalty for any agent violating this ukase, a bit of inch rope. It is stated that the rope was bought with which to square accounts with our subject but he never abandoned a trip nor lost a meal on account of it.
D. W. Bostwick was born in Portage county, Ohio, October 21, 1840. His father, Daniel Bostwick, was a millwright, foundryman and manufacturer of woolen goods. The latter was born in New York went into Ohio early and settled in Portage county. From this latter place he located in Park county, Indiana, and was in business there during, and for some time, after the war. He married Sophia Fondersmith, originally DeFondersmith, a Pennsylvania German lady. Late in life this venerable couple came to Allen county and passed their remaining years here. Mr. Bostwick died in 1876 at the age of seventy-six years, and his wife died in 1881 aged seventy-nine years. Their children were: Clarentine, deceased, who married Lewis Hine; Dr. Henry C. Bostwick, of Tacoma, Washington, surgeon of Ninth Kansas and now a Representative to the Washington Legislature; Leveues E. was killed in the Civil war as Captain of Company A, One Hundred and Fourteenth Indiana Volunteers, while in his seventeenth engagement; D. Webster; Maria, deceased, wife of Andrew Jackson Clark, of Tacoma, Washington; and Amfield S., deceased, who married Samuel Doren.
D. W. Bostwick grew up at Rockville, Indiana. He enlisted in Company G, One Hundred and Thirty-third Infantry and served in the western department. He took part in the Chickamauga and Nashville campaigns and, at the close of his service, was in the Independent sharpshooters.
Mr. Bostwick was married in Allen county in Iola, 1869, to Clementine C., a daughter of Dr. M. DeMoss, who was born and educated in Oxford, Ohio, and was one of the characters of Iola for many years. His wife was Miss Margaret C. Kennedy who was born and principally raised in the city of Washington. Their children were ten in number.
Mr. and Mrs. Bostwick’s children are: Hattie B., a stenographer and type-writer in Tacoma, Washington; Misses Grace F. and Ella M.. teachers in the Iola city schools; Leveues H., a printer of Iola, and Pearl M., wife of R. E. Donaldson, of Seattle, Washington.
The early Bostwicks were Whigs and their posterity dropped naturally into the Republican party, following the issues of the war.

Real Estate Investment in 2007

The real estate market is not what it was a few years ago. The fact that the real estate bubble has burst means tragedy for some, but a golden opportunity for smart investors. Here is how you can profit in the new real estate market in 2007 and onwards.

The real estate mania of the past few years was characterized by frenzied buying and flipping of properties by developers and other investors. It was the golden opportunity to sell real estate and capitalize on your property’s appreciated value. Some people also saw it as an opportunity to ride the wave by buying properties, renovating them, and selling them shortly after. Although some people see those exciting days as long gone, now is the time to really make money from real estate.

Since real estate prices are coming down, it is time to hunt for bargains and start buying. Do not make the same mistake that stock market investors have made by selling when the prices are down. It is time to buy. Although it is harder to sell houses in the currently deflated real estate market, you can profit by buying houses, renting them out to tenants, buying more real estate, and slowly renovating them as the market improves. Then, when the market is hot again, you sell.

Here is how you can profit in the next few years:

1. Buy smaller properties. Smaller properties in emerging neighborhoods hold the most potential to appreciate in value. They are always popular because there are always people seeking a small place to rent as they start out.

2. Set your rent so that it covers your monthly mortgage, property taxes, and other fees. It can be tricky getting tenants that will pay rent that covers your mortgage, but, if you work hard and present them with quality, they will pay. Be realistic when determining the rent. Get a few real estate agents to determine what they think is the right rental price. Then, considering their suggestions, choose the price.

3. Think logically when you receive your rent income each month. Put it aside and build up a capital reserve that you can later use to buy more real estate and/or renovate properties.

This is rough idea of how you can profit in the new property market. Be bold, read up on the market, learn from others, and prepare for huge profits in the coming years.

The type of probate property involved can affect the duration of probate. For example, estates consisting of real estate, business assets, or valuable property typically require more time to settle than estates without valuable assets.

The probate process can vary depending on if the estate is testate or intestate. When a person executes a last Will, it is known as testate, while intestate means no Will exists. Intestate estates require additional steps be taken to abide by state probate laws. These can include determining rightful heirs and appointing an estate administrator.

Administrators are designated within the last Will and responsible for all facets of estate management. When necessary, estate executors can obtain assistance from probate lawyers. Attorneys can be particularly beneficial when estates consist of valuable property or when family members disagree over inheritance distribution.

Estate administrators are responsible for securing and maintaining probate property. If real estate is secured by a mortgage note, the estate is financially responsible for making payments until the property transfers to heirs or is sold. Selling probate real estate generally requires court authorization.

Estate executors can petition the court to sell real estate or other valuable property when it is in the best interest of the estate. When multiple heirs are entitled to probate property, they must all agree to sell the asset unless the sale is court ordered.

Probate real estate can be a good option for real estate investors. Locating properties requires a bit of investigative research, but can be well worth the time and effort. Probated estates are a matter of public record and anyone can view the last Will.

Investors review probate records to locate potential properties for sale. The Will contains the physical address of real estate, along with contact information for the probate personal representative.

Investors then review property records to find out details such as age, square footage, purchase price, property taxes, and if mortgage notes, creditor judgments, or tax liens are attached. Property records also include the name of the lien holder and appraised property value.

Investors create a list of potential probate properties and contact the estate administrator or representing attorney to discuss a sale. When estates are financially strapped, heirs are often willing to sell real estate below market value to eliminate estate expenses.

Buying probate real estate normally involves submitting bids through the court. It is not uncommon for several investors to submit bids on the same property. Once bids are accepted, investors undergo court confirmation and transfer property within 30 to 45 days.

Probate real estate often makes for exceptional investment property. Houses are usually in good condition and require few repairs. It is important for investors to conduct due diligence prior to submitting bids. It is also a good idea to work with a real estate attorney to ensure a smooth transaction when buying houses held in probate.

Thinking of selling your house? To sell for top dollar, it’s critical that you get the right agent to help you! “Jim the Realtor” works the North San Diego County Coastal region, from La Jolla to Carlsbad CA – if you’re thinking of selling around here, contact Jim. He’ll answer these questions and more. Also take a look at his website for current market conditions and statistics that will help you see exactly where the market is in North San Diego County. www.bubbleinfo.com His email address is jim@jimklinge.com
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Many people have been asking me “Mark, why would I buy a brand new pre construction investment condo when I can buy an older one and fix it up and sell it?” This is a good question. Some people do very well buying old fixer uppers and throwing in some new carpet and new paint and making a few bucks but this is defiantly not for serious investors. In this article I will go over the pros and cons of the “We Buy Ugly Houses” that has gained in popularity over the last few years with the help of some charismatic real estate “Gurus”.
Avoid the Hype

First let’s analyze exactly what these “Gurus” want you to do. They tell you that you don’t need ANY money and if you use their system they can make you a millionaire in just a few short months. If this was true I would have retired a billionaire a long time ago, the truth is the opportunities they talk about are VERY few and far between and you add in the factor that every major city has at least 15-20 people trying the same technique as you.

(They may even have the same 9 CD set!) And you’ll see the odds are stacked against you. Now these CDs are not all bad, they do educate many amateur investors. But just remember, these “Gurus” do exaggerate the market and do spread a lot of false hope to impressionable new comers. When you listen to the CD’s sets in your car always keep this little fact in the back of your head “They made it rich off selling the CD sets, not from selling real estate” Why would someone who made it rich from real estate want to start selling CDs? It’s like that age old quote says “Those who can’t do, teach”

Now let’s go over the pros and cons of real estate investing. Although I don’t believe there are many drawbacks in investing in pre construction real estate there are some points that scare people out of the market.

I think it will be easier just to bullet the points and explain. This way all the people looking for a quick answer can just browse to the points of Investment real estate – pros and cons.

Pros in Pre Construction Real Estate Investing

It’s the Easiest Form of Real Estate Investing – Investing in pre construction real estate is the easiest form of real estate investing, all you need to do is buy a property wait a few months for it to get into a higher phase of construction then sell it for a profit.

No Head Aches – Pre construction real estate doesn’t have nearly the number of problems/headaches as traditional fixer upper real estate investments. With fixer upper real estate you have to worry about a furnace going, re-paving a driveway, insect infestation, or a whole world of other problems. Pre construction investment real estate is brand new out of the box housing, there are no major problems that commonly accompany older houses.

Free Vacations – Buying pre construction investment real estate in Florida or Las Vegas means you have a free vacation house when the family goes on vacation. Fixer uppers are usually close to your home for easily access and typically not a place your family wants to vacation too. Most people do not have the luxury of buying a fixer upper house halfway across the country and flying down every weekend to work on it.

Rental Income – Rental income is a huge factor for many pre construction real estate investors. The fact that once the condo or townhouse is built and they can rent it out for more money then they pay a month is very appealing. Think about it, if you receive 00 a month in rental income and you only pay 00 for your mortgage and upkeep AND your house is skyrocketing in value… Is that a good investment?

Cons in Pre Construction Real Estate Investing

* You Need Money to Make Money – Because pre construction investment real estate is so sought after developers are demanding a higher percent for down payment. Often times developers want 10-20% of the property sale price as a down payment, also just to hold your spot (a reservation) often requires between 00-5000.

Not Every Project is a Winner – The biggest downside to investing in pre construction real estate is with so many projects popping up it’s hard to find the most profitable investment. Although at the current time most pre construction investments will make you money it’s important to do your due diligence and research the developer AND the management company. Make sure your real estate brokerage has your best intentions at heart, many investment brokerages only focus on a handful of projects where they make the biggest commission.

Money for Nothing – One reason that some people stray from pre construction investment real estate is the simple fact that they do not feel comfortable buying a property that they can not see the finished product. Remember, when you’re going to buy pre construction investment real estate it usually hasn’t even been started yet. This tends to scare amateur investors because spending that much money for them is usually an emotional buy, the seasoned investor understands that the reason they are getting the price they are is because it’s in the pre development stage. If the property was already finished the price would be more. I hope these basic Pre Construction Investment Real Estate Pros and Cons help you to make smart investments in the future..

Start out by working with a real estate agent to find out where apartments for sale in Santa Barbara are located within the region. Finding Santa Barbara commercial real estate for sale is not difficult, but an agent can narrow down your search results to fall within your price range, location needs, amenities and more. An agent can also get you a comparative analysis report that gives you an indication of apartments that are up for sale. Prices are based on location as well; for instance, if you want to purchase commercial property near the State Street district, you may end up paying a little more for the property than you would in other areas.

Next, you should look at how you will handle your investment. Do you plan to invest in properties for the purpose of offering commercial leases? Or are you purchasing apartments for the purpose of offering residential leases? Either way, you need to work with someone who is knowledgeable with both the residential and commercial leasing process to be sure that you have all of the information you need — both financially and legally — to make it work.

If price is a consideration, you may consider looking for apartments or properties just outside of the city limits, in regions such as San Luis Obispo and The Mesa. Both places have great properties for less the cost you would pay within the State Street area or other communities within Santa Barbara.

If it is residential property you are considering, amenities for the apartments for sale in Santa Barbara should also be a consideration. Are you purchasing property with a pool? Will you offer additional laundry services washer and dryers in each apartment? Would you rather offer hardwood floors or carpet? All of these will affect the price of your apartment, so be sure to keep these things in mind when you are meeting with your agent.

Whether you are looking at apartments, or commercial property for sale in Santa Barbara, the financial aspects should be a consideration. Figure out the monthly mortgage payments you can afford to make on your investment. Be sure to set up your commercial leases to make the financial burden easier.

No matter which you decide to purchase — be it apartments or properties — real estate remains a sound financial investment. Just be sure to do your research and make informed decisions to ensure success.

Jamaica Real Estate is a Solid Investment despite World Economic Crisis

“Uncertainty in global financial markets has created a surge for more solid investments” says Edwin Wint, President of the Realtors Association of Jamaica. Mr. Wint goes on to say in a recent press release that, “real estate is a stable and concrete investment, and the global economic fallout is increasing demand for property in Jamaica.” The Association recently staged its First Annual Expo under the theme, “Secure Your Future with Real Estate”. The publishers of the Jamaica Real Estate Guide were there providing their valuable resource for all homebuyers and investors of Jamaican Real Estate.

Over on the North Coast of the Island, developments are abound with Solis The Palmyra Resort & Spa offering 277 apartments and 11 villas at prices ranging from US0,000 for a studio to US.5 million for a beachfront villa. There is also the Colony at Half Moon with plans for development of 30 private villas. Richmond Development in St. Ann offers a World Class Residential Community with units starting at US5,000. These developments have been marketing heavily to overseas clients who are looking for a tropical getaway that is in close proximity to the U.S. There are more than 300 International flights coming into Sangster International Airport in Montego Bay weekly and there are no restrictions to foreign ownership of Real Estate in Jamaica. In addition to easier access to beachfront property in Jamaica than in the U.S., Jamaica Real Estate is quite an attractive investment.

On the financial side of things, latest numbers from the Planning Institute of Jamaica in their report of Mortgages issued in Jamaica from NHT, NHDC, Building Societies, Life Insurance Companies and Credit Unions indicate that the volume and value of mortgages disbursed declined.  The total number of mortgages disbursed fell by 8.2% to 8,553 during January –September 2008 compared with January – September 2007.  This is a turnaround compared with the continued annual increases recorded in volume and value of mortgages disbursed.  The number of mortgages disbursed went from 10, 556 year ending December 2006 to 12, 469 year ending December 2007 according to the report.   The value of disbursed mortgages amounted to ,595 million for the year ending December 2007, this compared with the ,563.9 million disbursed for the year ending December 2006.

INFORMATION, INFORMATION, INFORMATION

In order to make an educated decision when investing in any commodity, you need information. It is no different for Jamaica Real Estate. The Jamaica Real Estate Guide aims to be a friendly and informative partner for prospective homebuyers and investors. The latest issue which was featured at the Realtors Association Expo 2008 at the Hilton Kingston Hotel on November 23rd has an article about Mortgage basics, a handy mortgage worksheet and a checklist of items for a loan application. Additionally, readers will find the usual delivery of full colour listings by Real Estate brokers and developers who promote their listings actively in this handy resource guide.

The Jamaica Real Estate Guide which was first published in 2006 started with the mandate of being a partner to the Jamaican Homebuyer, arming them with information about local real estate trends and the home buying process. With the demand increasing for Jamaica Real Estate from the local population and the Diaspora, so has the readership of the guide. The publishers of the Jamaica Real Estate Guide responded to demand by increasing the distribution of the magazine from 3,000 to 20,000 copies in print per issue. In addition, the website was redesigned to allow for free online viewing of the magazine. Response to the new website feature has been great with downloads coming from Countries like Australia, Bermuda, Canada, Denmark and of course the USA, Canada, our very own Jamaica and other neighbouring islands.

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Four letter word


Image by Justin Shearer
It is amazing how 4 letters can take 1000 pounds off your shoulders. It has been a tough month thus far. This is a huge milestone but we are only a fraction of the way to a resting point. Now we have to clean Jeremy’s place and get to digging the foundation.

The thing that people dread the most about making an investment in real estate is perhaps financial capital. You’ll need tens or hundreds of thousands of dollars to purchase typical single family homes. While you can always search for a loan, a lot of people wish they can actually start investing in real estate without having to inject too much money into the venture. But is that really possible?

If you ask real estate wholesalers, they’ll tell you that it is very possible to invest in real estate without needing the huge capital associated with buying properties. Wholesalers are investors simply “buy and sell” real estate quick. But how do they sell real estate without having to buy it first? The secret of this real estate investing method lies in a piece of paper called an assignable contract.

The contract is used in flipping, or buying real estate properties at wholesale prices. The contract gives the holder the right to purchase the property as long as the contract is valid. However, it does not oblige the holder to purchase the house; it only gives him the exclusive right to purchase it. Therefore, this investment in real estate does not require the investor to come up with the huge financial capital.

To make money from this contract, the wholesaler simply assigns the contract to the actual buyer. That end-buyer is the one who will pay for the property since he’s the one who is actually buying it. The real estate flipper will get the difference of the price he and the seller agreed and the price he and the buyer agreed. For example, the seller agrees to sell the house to the wholesaler for 0,000. The end-buyer, meanwhile, agrees to buy it for 0,000. That means the ,000 will go to the house flipper. That’s basically how this real estate investing method works.

The question is, does this investment in real estate really work? Why would a homeowner agree to sell their house at a wholesale price? That’s because an assignable contract promises to end their suffering. Remember, the contract has a deadline. If it is only valid for two weeks, that gives the seller the hope that his property will be sold within that period. For motivated sellers, it is more important to sell fast than sell high. They are suffering and the only key to their problem is selling the house. By placing it under contract, the wholesaler is moving that key one step closer to reality.

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Real Life, NYC


Image by 24gotham
Admittedly a little embarrassed by the untidiness, but this is my kitchen. It is perhaps a step down from my previous kitchen. I find it very difficult to keep this space clutter free.

And outsiders wonder why people move to NYC… It isn’t for the living accommodations. It can be a harsh reality when a person with above average earnings can only afford this.

This may sound bazaar, but since I have a stabilized lease, I am considering spending a small chunk of change on new cabinets, new sink, faucet, stone counter (not granite) and new stove. Even though I don’t own my home, the investment feels worth it because I plan to be here for a long time, I may as well enjoy my home…. And I could never afford a place that came with a nice kitchen.
Update 2010: I no longer want to dump any more money into my place… it’s just not worth it.

Buying income producing apartment buildings is one of the greatest wealth building strategies for real estate investors. Real estate offers investors the ability to acquire ownership with minimal cash down and benefit from the massive leverage effect which increases profits by using OPM (other people’s money). Apartment buildings are on the one most viable investment vehicles and should be considered as an effective strategy to build real estate wealth.

In this article, we will discuss several steps included in the process of buying an apartment building. Let’s roll up the sleeves and have some fun!

Step 1 – Master the Basic Formulas

Before you set out to buy your first apartment building, it’s extremely important for you to have a solid understanding of the basic terminology, mathematical formulas, and financing strategies used in the apartment investment industry. Having a firm foundation in place will greatly improve your chances for success. Visit your local book store and browse the real estate section for books on apartment investing.

Step 2 – Locate Multiple Properties

Probably the most challenging task with apartment investing is locating the right property that offers solid financial benefits. These sound investments are sought by many active real estate investors. Assuming you’re a novice investor seeking to buy your first apartment building, it’s wise if you conduct your search within your local community and/or nearby neighborhood. Keeping your search within close proximity of your home base will allow you to monitor your investment more closely. Start the search by browsing the local newspapers under the classified section. This is one of best sources for active apartment listings, but it also captures the most eyes and leads to more competition. Nonetheless, it’s a great start. In addition, search other online ads such as LoopNet.com and cityfeet.com that offer a great selection of apartment buildings for sale. Contact a local real estate broker to assist you with your search. If you decide to go this route, look to work with a well respected and experienced “buyer’s” broker. Moreover, browse through your list of contacts and begin asking friends and family members if they know of any accountants, attorneys, bankers, etc. who may know of local apartment building owners. The goal is to start expanding your network and quickly informing others that you’re actively looking to buy apartment buildings. You will be surprised at just how many contacts this strategy will generate. Post an ad in the local newspapers classified section under titled “Wanted – Apartment Buildings.”

Perhaps the best and most profitable search strategy is locating “off-market” properties owned by motivated sellers. “Off Market” properties are not officially on the market for sale. This strategy is generally implemented by the more experienced investors. It commands the most time, energy and effort, but also is one of the most profitable strategies if executed correctly. The major benefit of this search strategy is that you will be dealing directly with the owner and bypassing the brokerage community which will show the same property to 100 other active investors. Just imagine, 100 investors bidding on the same property that you want to buy! A mass marketed property generates a hyper competitive bidding environment (as it should) which leads to higher offer prices. High prices translate to lower returns because you will be forced to invest much more equity.  

Stay focused and work hard and smart at becoming an expert at locating “off-market” deals because its one of the quickest ways to build real estate wealth. 

Step 3 – Conduct a Detailed Market Survey

Now that you have located several apartment buildings for sale, its time to conduct an in-depth market analysis in order to fully understand the market rental rates, occupancy rates and each property’s position in the marketplace. The first step will be for you to locate the top 3 to 5 competing apartment properties in the neighborhood that are of similar size (total units) and vintage (year built). Once you have identified the rent comparables, contact each property directly and conduct a market survey. Ask each property the following questions:  

What is the age of the property? What year was the property built? How many units does the property contain? What is the current occupancy rate? What has the occupancy rate averaged over the last 12 months? What is the monthly rent for each different floor plan? Are you offering any rental concessions (free rent)? If so, what type of concessions are you offering for each floor? Do the individual units offer full size washer and dryer sets in the unit? Stackable sets? Or, washer and dryer connections? Does the community offer any outdoor amenities? If so, what are they?

Survey the properties, collect the information, enter the data into an excel spreadsheet, and analyze it thoroughly.

It’s very important that you pay particular attention to the “net effective” rents vs. “quoted market” rents. For example, if you survey rental comparable #1 and they quote a market rent of 0 per month for a one-bedroom/one-bathroom floor plan, but they offer a potential resident one-month free on a signed 12-month lease; the real “net effective” rent is 8 per month not 0 per month. The formula for determining the net effective rent is as follows: 0 per month divided by a 12 month lease equals .67 in discounts per month that the new resident receives over the length of their lease term. Another way to calculate this is to simply take one month free over a 12 month lease as follows (1 month/12 months=8.33%X0=8). Basically a tenant will be paying for 11 months but that cost is spread over a 12 month lease term. You got the idea now, right? Excellent!

Complete the net effective rent exercise for each individual floor plan at each property surveyed. This will take a little time getting use to, but as you call more properties and complete more exercises it will become second nature. The most important thing to remember is that you are now performing a more sophisticated level of analysis and this will give you a competitive advantage in the marketplace. It will also greatly benefit you once you start your underwriting process as you will be able to more accurately forecast cash flows and investment returns. The last thing you want to do as a serious investor is to overpay for a property based on inflated numbers.

Study the competition’s product, site layout, interior and exterior amenity package, asking rental rates, specials/concessions (free rent offered), and net effective rental rates, and occupancy rates in order to “fully understand” your subject’s position in the marketplace.

Step 4 – Analyze Operating Statements

After you have completed your market study, start analyzing the subject property’s operating statements and rent rolls. It’s best if you are able to obtain several years of historical data. This will allow you to properly evaluate the historical financial performance and stability of the income stream you will be buying. If you’re talking directly with an owner of the apartment building, request operating statements in a trailing 12 month (called T-12) format. One of the main benefits of this format is that it provides you with “detailed monthly” figures so that you can analyze each month’s operations in further detail.

A T-12 format will also allow you to detect any “one-time anomalies” either in revenue collected or expenses incurred. For example, let’s assume you are analyzing a 30-unit apartment building and the listing broker provided you with a year-to-date (YTD) operating statement ending June 2007 (six months of operating data). Many novice investors would annualize the operating statement’s data and capitalize the net operating income to determine a purchase price. Let’s analyze this scenario one step further. “WHAT IF” the other income line item was reported at ,000? If you were to annualize that amount, you would be valuing the property on the basis that it generates ,000 per year in other income (cable revenue sharing, late fee, non-sufficient fund fees, month-to-month fees, carport rent, storage rent, etc.).

Now, let’s assume that you requested operating statements in a trailing 12 month format vs. a year-to-date format. Because of the monthly breakdown, you were able to identify that in the month of April, the owner reported revenue of ,000 which was solely attributed to a “one-time event” for renewing a 10 year cable contract. It’s very common practice for cable providers to provide apartment landlords an upfront bonus for renewing long term contracts. If an investor were to pay the seller for this ,000 one-time event revenue stream using an 8.0% cap rate, the implied value would be 5,000. Basically, an investor would have overpaid by 5,000!

Don’t be fooled into believing just because a year-to-date operating statement reports a specific amount of revenue the property actually generates that amount each year. Be certain to request operating statements in a trailing 12 month format so you can easily analyze operations on month-by-month basis. This is an absolute must do!

Smart apartment investing requires patience, thoroughness, and a very detailed oriented mindset when analyzing the rental competition and operating statements. Make it a fundamental rule to ask the important questions and never invest a penny until you fully understand the complete story for each investment under consideration.

Traditional design and a contemporary lifestyle – The Pavilions Apartment Homes brings you the best of both in a distinctive apartment community with recreational flair. Two villages combine to offer twice the opportunities. Improve your backhand on the tennis courts, swim a few laps, join a yoga class, or work out in our fitness centers. Feeling leisurely? Enjoy the clubhouse library or soak up some rays by the pool! Quality surrounds you the moment you pass through our gates. Our professional on-site management provides you with legendary service, graciously meeting your needs from your first leasing inquiry to the continuous efficient maintenance of buildings and grounds. Above all, The Pavilions Apartment Homes offers exceptional apartment living. Choose from one, two, and three bedroom apartment homes, all featuring spacious bedrooms with large closets, well designed energy-efficient kitchens and the comfort of individually controlled heating systems. Some optional special features include woodburning fireplaces and vaulted ceilings. Washer and dryer rentals are also available. Location is an amenity in itself. Just east of Hartford, midway between Boston and New York City, The Pavilions Apartment Homes offers easy access via Routes 84, 91, and 291. It’s just minutes to Bradley International Airport, for the long distance commuter. Manchester, part of the largest retail area in the Northeast, offers you the ultimate in shopping convenience. Visit www.forrent.com
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Probate real estate investing refers to buying properties from probated estates. Probate is the legal process used to validate a decedent’s last will, pay outstanding debts, and distribute remaining assets. Probate can extend from three months to three years. During the probate process the estate executor is responsible for paying all expenses associated with the property.

Probate real estate investing provides the opportunity for estate executors to sell real estate held in probate. This is especially helpful for estates with inadequate funds to pay mortgage loans or maintain upkeep on the property while held in probate.

Investing in probate properties requires visiting local courthouses where probate cases are handled. When estates are placed in probate, the decedent’s last will becomes a matter of public record. Pertinent information about the estate can be found within the Will including contact information for the estate executor and address of probate real estate.

When decedents die intestate (without executing a Will), probate records will provide the name of the individual assigned to administer the estate. Most often this is the surviving spouse or direct lineage relative. If the decedent had no living relatives or none accept the position of probate administrator, the court will assign an outsider to manage the estate.

The second step of probate real estate investing requires a search of deed records. Records of Deed reveal if the property has a mortgage loan or if it is owned outright. If a mortgage exists, the estate is required to continue making payments throughout probate. Otherwise, the property could fall into foreclosure.

If a second mortgage exists, chances increase for the need to sell the property to pay off outstanding debts. If the probate administrator has obtained court confirmation they can make the decision to sell the property without court approval. In some instances, the administrator may require permission from the judge to sell real estate holdings. If multiple heirs are entitled to the real estate, they must all agree to sell the property unless ordered by the court.

After locating court records, investors will need to contact the probate executor. This can be done by mail, phone, or in person. When making contact it is crucial that investors be respectful and offer sincere condolences.

The majority of probate executors and heirs are unaware they can sell real estate during the probate process. By offering to purchase probate property, investors can alleviate financial challenges for the estate while purchasing properties below market value. Often, probate real estate can be purchased for pennies on the dollar if the estate is in need of immediate cash.

Probate real estate investing does not require special training. However, investors who participate in buying probate real estate should possess strong communication and negotiating skills, along with a sense of compassion.

Investing in probated real estate offers a variety of opportunities to locate profitable deals. Although this type of investing requires some detective skills and the ability to negotiate with grieving heirs, when conducted properly probate real estate transactions provide a win-win for all parties involved.

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