Posts Tagged ‘investors’

You may hear a lot of good things about real estate investing, that as you enter such world you can earn a lot. That’s true, but entering the world of real estate is not that simple.

Indeed, investing in real estate such as Sarasota real estate can make you earn so much. But you have to know that investing in Sarasota real estate is quite tough, in order to be successful in such world, you have to be prepared and armed with valuable information.

It also requires time, understanding, comprehension, knowledge, strategy and action. So if you plan to go on in investing at Sarasota real estate, you have to do research, this can help you out to know and learn about real estate investing. Internet is the best source of gaining information and knowledge about real estate investing.

There are plenty of ways to obtain knowledge about real estate investing. You can look for websites that offers tips and guides on investing at real estate. You can also look for testimonials and experiences of investors who became successful in real estate investing, you can learn by reading such. You can also look at your yellow pages, and search for the investors who are selling and buying properties, take time to call them and ask about their experiences, do not be ashamed to talk to them, you do not have to worry because they will definitely answer your call and be happy to share their experiences, you can learn through their experiences.

You can read a lot of books about how real estate investing works. Enrolling to universities that offering how real estate investing works can be a good way to gain knowledge and information as well.

Indeed, there are plenty of way to gain knowledge and information about Sarasota real estate. But as soon as you have the knowledge and information that are important in Sarasota real estate investing, you have to move on and take all of these into action.

Hiring a real estate agent is helpful especially if it’s your first time to make an investment in Sarasota real estate. But make sure you will work with a professional and the best one. As a piece of advice, you can ask recommendations from family and friends, then try to call atlas three real estate agent and make a schedule in order to interview the real estate agent each, but make sure to do schedules separately to avoid uncomfortable situations.

The real estate agent will definitely present themselves to you, so give them time to talk, as soon as they are done, that is the time for you to ask questions. As soon as it is done, tell them to call them back for your decision. Weigh things out and come up with the best decision.

Soon the real estate agent that you finally hire will help you out with your quest to purchase the best property in Sarasota real estate. The agent will help you out in finding the property that fits your criteria. Take time to visits the properties. Conduct home inspection.

As soon as things run properly, you and your real estate agent can make an offer. Then close the deal. Soon you will find yourself happily made your first investment in Sarasota real estate.

Eliza Maledevic
http://www.srqmls.com

When you work with an agent Bulgarian property can be found more easily. The reason working with an agent Bulgarian property works better is that an agent simply knows the market better than you could, even if you live in Bulgaria. Agent Bulgarian property listings can really help you find what you are looking for as they often have information that is not available to the general public. Agent Bulgarian property listings will allow your agent to ask you some simple questions to get an idea of what you want and then they can check out the agent Bulgarian property listings to give you an idea of what is out there. Often times you can access agent Bulgarian property listings yourself which will allow you to view everything that is on the market. When you view agent Bulgarian property listings you can sift through all of the properties on your own and when you find that one property you can move on it quickly.

Searching agent Bulgarian property listings has helped many individuals as well as investors find their dream property in less time than it would have taken if they would have visited homes one by one. Agent Bulgarian property listings simply streamline the property selection process. If you are able to look at an online agent Bulgarian property listing or database you can save time by passing by the properties that you just know will not work for you. You can page through the agent Bulgarian property listings either on your own or with the help of your agent usually in less than a day. You can spend weeks viewing homes without an agent Bulgarian property database or you can spend just a couple of days with a good agent Bulgarian property listing. Hands down using an agent Bulgarian property listing can help you find a property in very little time, which is important in the fast moving market of Bulgaria.

Many times when you use an agent Bulgarian property listing you can input your specifications so that all of your results will match your need. An agent Bulgarian property listing such as this basically limits the number of properties that you have to look at, allowing you to find a property even faster than you would otherwise. If you are currently working with a real estate agent and you have not had access to an agent Bulgarian property database yet, you might want to ask your agent if they have an agent Bulgarian property database that you can view. Many agents will not give away the information but will allow you to take a look at their agent Bulgarian property service in their office. It really doesn’t matter where you view the agent Bulgarian property service as long as you get to utilize this very handy tool! If your agent is not receptive to the idea of sharing their agent Bulgarian property listing with you, you might ask them to input your specifications for you and print all of the results so that you can purchase a home more quickly even though you do not have a direct access to the agent Bulgarian property.

Most people want to find ways in order to gain profit. Usually, some people are being caught by the television shows that say good things about investing in real estate.

Yes, real estate investing like in Sarasota real estate can make you gain a lot of profits but you have to know that investing in Sarasota real estate requires a lot such as time, effort, understanding, determination, knowledge, hard work, new set of skills and abilities. So if you truly want to go to Sarasota real estate, you have to prepare yourself with this kind of field.

As a piece of advice, never enter real estate investing unarmed, you will just have a high risk of losing your money and end up frustrated. So you have to be prepared with all the requirements before investing in Sarasota real estate.

You have a lot of ways to do in order to obtain the knowledge you need about Sarasota real estate investing. This article will give you few ways in order to have the knowledge you need in Sarasota real estate.

Look for books about on how real estate investing works; there are a lot of books that you can read in order to learn. You can surf the internet and visits some websites that offers guides, tips and ways about real estate investing. It would be wiser to read the experiences of successful investors, since you can learn a lot about their experiences.

There are universities that offer about real estate investing, so you can enroll and gain knowledge through the university. Looking at your yellow pages is another way t gain knowledge, search for the investors who sells or buy properties, then contact them and ask about their experiences in Sarasota real estate definitely, you can learn through their experiences.

Another way is to know the different types of investing, you have to know all them and learn how each works. Weigh each type and decide which type you are willing to focus and do in Sarasota real estate.

You also have to know and learn about the market, this is also very important.

Having the knowledge about how Sarasota real estate works is very important, but you have to put all the knowledge you gain into action. As soon as you obtain the necessary knowledge and information about Sarasota real estate, you have to move on to the next step.

You can hire a realtor or real estate agent to help you out in finding the right property that you can invest. But you have to be careful in picking the right and professional realtor for you. You can ask recommendation from family, friends or even to other investors you know. Call up few real estate agents, interview them and decide which one you prefer to work with for some months.

The professional real estate agent will help you look for the right property that you can invest in Sarasota real estate. Visit few properties, look which one you prefer to invest. Conduct home inspection. Make an offer. If things go well, you can close the deal.

Now, you know how important being prepared is in Sarasota real estate. So if you plan to enter Sarasota real estate investing, start gaining the necessary knowledge now.

Eliza Maledevic
http://www.srqmls.com

Sarasota real estate is one of the most sought after piece of real estate. A lot of investors sees it as a sound investment, and is very attractive to them, especially since buying real estate properties in Sarasota offers them a whole lot than just the property that they are purchasing.

Its proximity to different pristine beaches, as well as the lifestyle and the diversity in its culture, makes Sarasota real estate properties so appealing to its potential owners, which includes not just those people who wish to vacation in such a spot, but also those who intends to make it their permanent place of residence, such as retirees.

Although investing in Sarasota real estate seems to be such a sure thing since it can be very rewarding, it is not without its weaknesses. Sarasota real estate properties are some of the most sought after in the real estate market nowadays, which is why its population is booming due to the increase in the number of people who are residing there, making Sarasota one of the fastest growing areas in Florida. This increase in population means that there is less and less of Sarasota real estate to go around. This is not necessarily a bad thing, especially for those people who already have invested in this particular piece of real estate. However, people fail to realize that this could eventually result in the over population of Sarasota, especially at the rate of how its real estate properties are selling. The downside of its popularity is that it makes it too sought after that people would continually try to find ways to own a piece of real estate in Sarasota regardless of how over populated the area already is.

Another downside to Sarasota real estate industry is that the real estate properties being sold in the area are very expensive. This is evidenced by the steady sales of homes in the Sarasota real estate market, some of which could even reach up to a few million dollars on a single piece of property. Even if the cost of these homes and real estate properties are high, people still continue to purchase them still. This continuous purchasing of real estate properties in Sarasota is one of the key elements on why the Sarasota real estate market is still going strong regardless of the high prices of homes in the area. If there is a continuous demand for it, then the high cost will not decrease not unless people would stop investing in them due to the price. Unfortunately, due to the appeal of Sarasota real estate properties, the cost of homes will continue to rise, or at the very least remain as it is.

Another weakness of Sarasota real estate industry is that their real estate properties are situated in an area where there are hurricanes and other natural calamities. The intensity of the problem can be supported by the high rates of insurances on houses and other real estate properties in the area. If you plan on purchasing a real estate property in Sarasota, then you better be prepared to shell out a considerable amount of money for your home’s insurance. You will need to do this if you want to protect your investment, especially since the area is visited at times by hurricanes.

Nonetheless, a lot of people still invest in Sarasota real estate properties regardless of the downsides of owning one.

Vanessa Arellano Doctor
http://siestakeyrealestate.com

Property options are one of the best ways for investors to make a significant amount of money without investing a lot and definitely without risking too much. That combination of reducing risk and increasing profitability is essential in the investment world. Property options may be the ideal way for you to see your highest return on investment. Property investments are not always the best solution for everyone, of course, but for many, they are a solid way to building wealth. Regardless of where you are in the process of wealth creation, consider property options is a stepping-stone.

What Are Property Options?

Property options are a type of property investment where you do not necessarily own the property but do own the control of that property. You will make an agreement with the owner of the property. This agreement provides you with the ability to buy the property during a certain amount of time as decided in the agreement. You only need to purchase the property if you would like to. The agreement is made with a small deposit of your money, usually about $1000 or so. The only risk that you have, at this point, is this deposit of your funds.

The agreement gives you the right to purchase the property if you decide to. You do not have any obligation to do so, though. The benefit here is the time that you gain by using the property option instead of outright purchasing the property. During this time, you can see added value to the property that you create when you use the property in some way to gain better use of or value from it.

The Benefits

There are many great benefits to a property investment like this. First, consider how easy it is for you to get into this type of investment. You do not have to have a large sum of money to make the purchase. This opens doors for many people. You also do not have to deal with the bank and being approved for a loan for the purchase of the property. In fact, this is one of the easiest ways to get into property ownership. Additionally, you do not have to deal with a real estate agent or haggle with your lender about interest rates.

While purchasing through a property option offers benefits, owning property in this way is always quite lucrative and beneficial to you. For example, if you own property like this, you do not have to worry about the tenants that live there or the many repairs that need to be done. You do not have to worry about the day-to-day running of the property. From a financial standpoint, you also do not have to pay a mortgage payment or handle the risk of purchasing a property and losing money on it (and therefore destroying your credit.)

As you can see, property options allow you to enter into property investment safely; something more people need to have to be comfortable enough to make an investment. With property options, more options are opened for you and more success is likely to be around the corner.

Real estate is something which is flourishing in India and simultaneously attracting more and more investors. But with the increasing number of investors many people are looking for experts who can advice them wisely in this property related issue. And this is when real estate property consultant in India marks its presence. In recent years there is a significant growth in companies offering real estate property consultancy in India but among all only few are able to make a mark.

Choosing the best real estate property consultant in India makes sure that you will be getting the right piece of advice and also the right direction so that you don’t suffer any loss. In today’s cut throat competitive world, everyone needs to race ahead of their competitors and if that field is real estate then you are ought to hire the professional services of real estate property consultant in India. The biggest advantage of hiring real estate property consultant is that it will be doing all the research on your behalf and based on that research you will be provided with latest and updated information.

Apart from that real estate property consultant in India also gathers the latest news and based on that it creates an assumption predicting the future of Indian real estate market and scenario. Since post independence there is significant growth in the number of consultants as now they have grown in number and also have become more professional related to the provided services. In short, in case you are confused and don’t know which way to head in Indian real estate then simply contact the best real estate property consultant in India. Prior selecting any real estate property consultant in India makes sure that it carries the required experience along with the latest information on real estate research India and above all it is able to help or bail you out during the crunch situation.

If you are looking for the best and experienced real estate property consultant in India then Realty Plus should be the chosen destination. Realty Plus is a magazine carrying most up-to-date news and information from the field of real estate. Thus, if you wish to make maximum profits in the field of real estate and property then simply contact the best and experienced real estate property experts in India.

For more information on real estate property consultant India, Indian real estate companies, real estate studies India, land for sale in India, Indian real estate research and real estate business magazine India please visit www.realtyplusmag.com.

Real estate investment can hardly be called a common transaction. Even to those who do it regularly, real estate investing can still be a complex commercial transaction, especially considering how profitable such a venture can be. Everyone who has ever been involved in real estate investment knows that it can come with considerable risks, but, more often than not, the potential rewards are worth taking those risks. Each investor should set some clear investment goals and be consistent with them, staying aware of the risks engaged in real estate investment.

What real estate investing comes down to is purchasing real estate with the definite purpose of making profit. Although there are many people out there who claim that losing money over real estate investment is virtually impossible, things are not exactly that black and white. However, real estate investing does come with a series of advantages, of which the most notable one has to be the fact that the profit potential is proportional with the amount of money involved in each transaction, and real estate is definitely not what you would call an inexpensive product. Another important advantage of real estate investment is generated by real estate being considerable easier to finance than most other products. Therefore, the value of the property that an investor is about to buy is an excellent basis for obtaining a loan. The down payment required in real estate investing is normally under twenty percent of the value of the property in question, unlike many other products, whose purchase requires full payment immediately. In conclusion, real estate investment is more widely available, in spite of the huge amounts of money that it usually engages.

The most notable disadvantage related to real estate investing is the prospect of losses when the property is resold, as a consequence of the unforeseeable fluctuations of this market.

Fortunately, real estate investors can now benefit from online tools that can assist them in this complex process of investing in real estate. Signing up on a web site where your business can be promoted and where you can share your successes and failures and learn from those of other people is now possible. Useful online tools, such as videos and articles about real estate investing, real estate contracts, the basics of investing in real estate, etc, are now only one click away. All you have to do is make the most of everything you have at your disposal, so that you can become a truly successful real estate investor.

Everything you need to know about real estate investment is available online. From financing and property valuation to credit services and business formation, all the resources necessary for your success in real estate investing are available online. You can even find resources for home improvement, such as contractor search, finishings, or watch do-it-yourself videos.

All in all, these new online tools will definitely come in handy to beginner and expert investors alike, because the real estate market has so many twists and turns that no one can really master it.

For more resources about Real estate investment or especially about real estate investing please review this link http://www.realestateinvestor.com

Property has 2 private coves with white sandy beaches. Sub division approval granted for townhouses, residential lots, condos, commercial plaza, and a sports complex. Land has self reliant water supply. Adjacent property has 200 acres for possible development into a golf course with surrounding homes. Has a private chip and spray runway of 850m, with drawings for a 1700 m runway. A perfect property for the right developer. Price: US$22 million for long closing (ie 1 year payment plan offer), US$16 million cash offer. Must see to appreciate. Serious investors only please. Contact agent Richard Lee at 1-876-855-2884, or email: islandproperties@yahoo.com Website: www.CoconutEstates.com

If you are trying to invest in real estate and need to start finding undervalued and discounted investment property, then you will need to know where to look so that you can find the deals before the next guy does. Investment real estate is a very competitive field and those that are not quick will have a hard time finding a good discount investment property. The worst thing you can do as an investor is to pay full price for a home and think that you can fix it up or flip it. Here is a guide to finding undervalued real estate and other forms of real estate investment.

The first option you have is to join a local real estate investment club and start networking with other investors. Networking is a great way to finding discounted fixer uppers because often many of these investors will have their hands full, but won’t want to just leave a good deal alone. If they know you are actively looking for discount investment property, then they will call you instead of someone else, this means that you’ll have your phone ringing telling you about deals before you can find them, which makes your job easy.

Another option you can use to finding undervalued properties, is to start paying for bird dogs to look through property listings and help find you fixer uppers. Many times, if you have a list of several people that know you are looking for property, then you can get your phone ringing off the hook by offering to pay them a couple hundred dollars per lead. You have to make sure they know what price and value you are looking for in an investment property, but once they do you won’t have to spend any time finding good deals.

Lastly, you can go through the property listings on your own and try to find the deals yourself. You can look through all of the newspapers, classified ads, and FSBO websites to try and find good deals if you feel you have the time. This can be a difficult process if you don’t know what you are doing, however if you become good at this then you will soon shave tons of time off of the process. Once you’ve created a system of how and where to find undervalued property and good fixer uppers, then you can keep repeating the process until you’ve got enough houses to keep your hands full, at which point you can help others out by passing good deals on to them.

Having a network of allies is a great way to stay abreast of the latest in the investment property scene in the area you operate. Although you can do everything on your own, you will soon realize that you hardly have enough time to perfect one area of the process, let alone all of them. Having a team at your side can make flipping houses or investing in investment property a much more profitable and successful venture than doing it alone.

More people than ever are looking at overseas property investment as a way to make money.

Properties are cheaper and there are some big gains to be made, but a large amount of investors when buying overseas property investment fail to balance the risk reward correctly and lose.

Here we will outline some basic overseas property guidelines to ensure that you have the best chance possible of making a solid gain on your investment.

Track record

Would you buy any investment without a track record? Probably not, but many investors do this when they buy overseas property investment.

They simply want cheap property and the biggest gain possible but this more often than not ends up in big losses.

They are tempted to buy new markets that could take off.

The big variable here is “could” Sure, if it takes off then big gains could be made but why take the risk?

1. Buy a property market with a track record

You want to know the overseas property market you are buying has a track record of solid gains and low downside risk. Property trends go on for a long time and the fact you missed the start doesn’t matter.

Buying into the trend will mean you are buying a POPULAR area and chances are it will get more popular.

2. Looking for future potential

When buying an overseas property as an investment look for solid reasons why the investment will rise in the coming years, so look for:

1. Rising foreign capital and migration to the country
2. A general consensus that the country is accepted as safe and a good location
3. There is a solid reason for the trend to continue

For example, the baby boomer generation in the US has its eyes on Central America it’s close, safe and encourages foreign investment. With high prices in the US and the baby boomer generation looking to get a better lifestyle at lower cost, the trend will likely continue.

4. An established foreign community

Gives others confidence to invest, so more tend to follow as a result. People like to be around people from their own country and a large well established foreign community will do this.

5. Getting the right location

When buying an overseas property investment look for the up and coming areas. As a market develops so do new areas and these are the ones to buy chances are they will become established areas and yield similar gains

When looking at your overseas property investment look for the above and try and buy near new significant changes in the infrastructure such as marinas, hotels, roads etc.

6. Property trends last for years!

A popular market can take a long time to run out of steam. As it develops there will always be opportunities for profit and you have the comfort of having a track record of gains and these are a guide for what future gains will be.

If we look at Central America again the Costa Rica property boom is now over 10 years old, yet savvy investors are still making triple digit gains in just a few years by buying into the rising trend.

7. Balancing the risk – reward

With the above strategy you won’t buy the cheapest overseas investment property, but you will buy competitively priced property and have the best upside potential, to lowest downside risk and that’s what most investors want.

8. Be a pioneer if you wish

If you want to buy overseas property investments and be the first in fair enough, but keep in mind the risk. Your market may never take off, or you could wait a long time.

The pioneers made big money but most fell to arrows!

If you want a solid return with low risk on your investment, then buy an established market, which is rising in popularity.

Pick your locations in up and coming areas and you will have low risk and the potential for solid or spectacular gains ahead.

To increase the value of your commercial property, it is necessary to first establish where your property sits in the market place relative to other similar properties, and how it could be elevated in the ranking of quality, efficiency and convenience.

A ‘switched on’ commercial property owners/investors will submit his property to a regular ‘value audit’ process which the owner can conduct himself or, preferably, with the assistance of the property professionals in his team.

Here are some of the factors which could form the basis of such regular value audits or reviews:

1. Highest And Best Legal Use. There are a number of factors that can influence highest and best legal use. These include movements in population density, changes in zoning, new developments in your locality, and changes in transport infrastructure, etc.

2. Maximize Gross Building Area. The original construction may not have encompassed the full potential of the site or changes in council policy may have increased the potential of the site.

3. Maximize Net Lettable Area. Design and construction techniques are constantly improving and some firms specialize in these areas. There is an initial cost, but any additional net lettable area gained will continue to yield additional income on into the future.

4. Suite Amalgamations. In a multi-tenant property, well planned suite amalgamations can provide larger spaces for larger, quality tenants. Such moves can result in higher customer flow to the locality, with subsequent greater demand for rental space and increased rentals.

5. Highest Quality Tenants. Tenants are in constant competition with one another for customers and new, aggressive leaders emerge constantly. ‘Switched on’ property owners and/or managers identify and target such operators constantly.

6. Lowest Operating Costs. Many commercial tenants pay base rent plus operating costs and the total of these costs are governed by the market. Less operating costs can mean more rent to the landlord/building owner.

7. Maximum Use Of Signage. Tenants need to have high profile and visibility for their business operations – potential customers need to be guided to the tenant business. High customer throughput supports higher rent potential.

8. Best Access For Both Road And Pedestrian Traffic. A commercial property owner has a vital interest in planning decisions that can result in improving or hindering smooth movement of potential customers to and around commercial premises.

9. Marketing And Promotion. This is particularly relevant if your property is part of a

multi-property complex such as a homemaker centre where there may be a common interest in drawing customer traffic through the complex. This raises the profile of your premises in the eyes of potential quality tenants.

10. Quality External Appearance. As with virtually any property, a smart external appearance will enhance value.

11. Legal Use Of Public Space. Good examples of profitable use of public space can be seen in virtually any café precinct where council permission has been granted (for a negotiated fee) for tenant tables and chairs to be placed in public areas allowing for an expanded trading area for the tenant. This can be reflected in an increased level of rent.

12. Low Cost Additional Tenant Facilities. An example frequently seen is the provision of metal storage facilities at the rear of trading premises. This is a low cost item for a landlord, but can be a valuable item for a tenant if it frees up internal trading space which is reflected in increased rental.

13. Top Quality Management. The quality of management of a property is a big step towards contented tenants – and contented tenants pay better rents.

14. Lobby For Beneficial Changes. Councils can be influenced by well researched and well presented representations. Beneficial changes can include changes to local zonings, building height and density, improved traffic flow and street beautification projects.

Not all real estate property types may be appropriate for new real estate investors. There are many factors to consider when making the decision to add real estate to an investment portfolio.

When deciding on a residential real estate investment strategy, some options for new investors to consider include:

Rental units

Rental units can be considered both long term and short term investments. Types of properties that may be considered for this category would include:

* Detached single family homes

* Attached single family homes

* Multi-Unit properties

* Condos/Townhomes

Being a Landlord

Not everyone has either the desire or inclination to be a landlord. Dealing with tenant and property issues can be very stressful and time consuming. One way to minimize the impact of being a landlord is to hire a professional property management company.

Hiring a professional property management company has several advantages:

* Allows owners of rental properties to be ‘shielded’ from dealing with tenant and property issues directly.

* Provides a buffer allowing the owners to maintain a hands off approach to managing their properties.

* May provide a less stressful experience

* Offers the ability to purchase real estate investments not immediately local to the investor.

* Provides a single contact point for all issues regarding the investment property.

Professional property managers are well versed and prepared to manage tenant and property issues as they arise. They will typically take care of all issues relating to the property.

Many offer their services at reasonable prices and rates while others can be quite expensive depending on additional services being offered. You may expect property managers to provide the following services:

* Advertise properties available

* Receive applications for tenancy

* Perform Credit and Background checks for applicants

* Recommend rental pricing

* Pay maintenance and/or repair bills for the owner

* Send monthly statements and rental income (Less any outstanding bills.

Typically these are deducted and itemized from the rental income and will appear on monthly statements)

Flipping or The Bane of New Investors

Often times, new investors in real estate are overly anxious to ‘flip’ properties and make a significant profit. Rumors of how friends or acquaintances have made allot of money is often the incentive for ‘flipping’.

The real estate market fluctuates greatly. Yesterdays great ‘flipping’ market may be (recent market trends as an example) tomorrows ‘Hold on to it’ market. While this is certainly a desirable quality of an investment property, it is and should not be the primary consideration for new real estate investors. The competition for this type of real estate investment is fierce and occupied by seasoned, experienced professional builders and investors

Property Types

Let’s discuss the various property type which may be considered by new real estate investors.

The selectionof the type of real estate property for investment purposes may be based on several factors.

These factors include:

* Financial considerations – How much can you afford?

* Availability of properties – What types of properties are available?

* Location – You’ve heard this one a thousand times – Location…Location…Location…

* Income potential – Does the property in question match your real estate investment strategy?

Detached and attached single family homes Single family homes whether attached or detached are often the first real estate property type new investors seek. In many areas, they offer the most availability of any property type.

Prices obviously vary greatly with these property types as well.

Multifamily Properties

Apartment units such as duplexes and triplexes should be considered as a viable option for new real estate investors.

Many investors and real estate professionals use apartment buildings as a point of entry to a portfolio of commercial real estate holdings and to build their equity before moving on to larger commercial real estate investments.

Duplexes, triplexes and fourplexes are two, three and four-unit buildings that may or may not be owner occupied.

Summary

Selecting an appropriate type of real estate property in which to invest is a primary consideration for all serious real estate investors.

Real estate investment strategies include the decision of whether or not to become actively involved in the management of the property. Professional property managers offer alternatives to assist in a “hands off” approach to owning residential income property.

Knowing there are options on the various types of properties to purchase as investment may provide new real estate investors the information needed to make that final decision to become a real estate investor.

End of Part 2

© Copyright 2008 Jennifer MacKay. All Rights Reserved.

One real estate school of thought talks about doing a lot of analysis. This real estate school of thought advocates studying a lot of factors which are generally linked to economic indicators. This real estate school of thought evaluates the economic indicators in many different ways. It takes its cues from a number of financial indices and how they are expected to perform in the near future. This real estate school of thought evaluates various socio-economic indicators at all levels – Global, national and local. This real estate school of thought evaluates inflation and things like value of money today and value of money next year etc.

It uses all these evaluations in order to come up with predictions on how real estate industry is expected to fare in the next few years. So, this real estate school of thought tries to determine the buying power of people in order to determine the course of real estate prices. When it comes to evaluating the real estate trend with regards to a particular place (i.e. locally), this real estate school of thought takes into account various local factors like the unemployment rate, the industrial development in the region, the change in tax policies and any events that might affect the real estate prices in the area. It also takes into consideration the surrounding areas and the real estate trend in those areas.

So, this real estate school of thought is really followed by arch real estate consultants/investors who know a lot about finance and put all that knowledge to use in determining the trends for real estate industry. However, that is just one real estate school of thought.

The other real estate school of thought doesn’t consider those factors at all. According to this real estate school of thought, real estate is always lucrative at all times and at all places. This real estate school of thought advocates looking for great deals. It’s this real estate school of thought that asks you to go to public auctions, look for distress sales and foreclosures, find motivated seller, rehab and sell, etc. So, this real estate school of thought focuses on getting the information about the best deals in town and taking advantage of them to make good profits.

So, those are the two real estate schools of thought and following either or both calls for time and effort (if you are to make any profits out of real estate investments).

It has been very interesting to see the different reactions from investors to the credit crunch and subsequent reduction in available finance available to property buyers – which has had a knock on effect on house prices.

We are seeing investors generally falling into two camps – those that see this very positively – the Can do-ers, and those that have decided it is a good time to sit back and do very little – the Can’t do-ers.

The investors with clear goals and “Can Do” attitudes are getting on with it and seeing things in a very positive light.  It is well acknowledged that in the UK it is a buyers’ market – and this is offering some terrific opportunities.  The key is understanding what makes a good deal – whether it is offering a high rental yield, low money down, undervalue, or in area showing strong capital growth – and what fits in with your personal strategy.

It is important to remember not all property deals will suit all investors ie one may be most interested in rental return, whereas someone else may be more interested in low money down.  However all investors will want to buy a property that over the mid term is going to go up in value – and so it is important to choose property that has a good chance of doing this.

While some investors have seen their local areas slow down – they have then realised there are some fantastic opportunities worldwide – and some economies such as Czech Republic or Albania growing far quicker, and property markets at a completely different stage of the cycle offering huge returns.
I am pretty clear on my thoughts on the UK market – based on current interest rates, and current salaries in the UK – with an average salary of around £21,000 – house prices up to £100,000 have a very good chance of rising in value over the next 5 years – as they are very affordable – so for me these are the logical markets to target – and they have done very well over the last 5 years, and will do over the next 5 years.  With the average house price in the UK being over £190,000, then I would have thought most of the UK is over valued – and so the average property may well drop or at least be fairly flat for the next few years – which is why it is important not to target the average property!

The key though is my viewpoint hasn’t changed all of a sudden – and has been based on the same economic principles that have done me well over the last 7 years.  This is apparent with most investors who continue to do very well – they have not varied their viewpoints too much, but have been able to adapt with the times and changes.  For instance when borrowing rates went up recently, and more than expected – you had to adapt accordingly either by increasing rents, which has happened in many areas of the country – or by looking for higher yielding properties in the first place when buying, or putting in a lower bid to cover increased borrowing costs.

What has been very good for investors in the right areas is that the sellers, who may well have a very good value property in the first place ie under £80,000 also read the same papers, watch the same news and listen to estate agents – and have felt under pressure to also reduce their asking prices!  This has been very good for buyers – as even though these properties are already undervalued – the sellers have been influenced by the media and are willing to take reductions in price – this can be used to our advantage!  As I have said in the past – securing a £200,000 property at 15% below the asking price is hugely different to securing a £80,000 property 15% below the asking price – as with the lower priced property you will see a far stronger %age return on investment over the next 5 years.

So there are so many good reasons to ramp up your investments at this stage – and many investors are.  It will depend on your own personal belief levels, and confidence.  It is no surprise when we do our workshops that those with clear, written goals are the ones who are achieving the most.  At our most recent one in Manchester, was a lady who has bought 30 properties this year – she has a strong Can Do attitude and has gone out there and done it. 

Most investors are naturally Can Do people – which is what separates them from everyone else in the first place – but beware you do not become a Can’t Do-er if you want to achieve your goals!

Cant do-ers

What makes a Can’t do-er?  Usually it will be someone who has got into investing as it sounded good at the time – but probably was not mentally prepared, or had all the skills and knowledge required initially to invest successfully, or has a poor peer group, who are very negative.

At the first sign of trouble, they have used this as an excuse to get out of property, or scale back their initial plans.  Unfortunately most people have a lot of negative influences around them – family and friends are usually the worst! Partly they want to protect you (although they are unclear what they are protecting you from), and partly they are scared you are going to go and do something outside the norm and be successful – and leave them behind.
Many potential investors, or actual investors, go into investing without a clear focus, mindset and strategy – and then get put off immediately something goes wrong, or something unexpected happens.

It is like running any business, you must be prepared to deal with different consequences – both good and bad.  In buy to let, you will at times have an issue with a tenant, or a managing agent – and you will see some properties perform less well as expected, just as you will see some properties perform brilliantly – this is no different to every day life and business.

It is always frustrating to see people give up in life too easily when they set goals eg getting fit, losing weight, or buying 10 investment properties – but then again for the rest of us it means there is more opportunity!

In life to get the rewards of success it will always take hard work but it will be well worth it – it amuses to me to see resentment of film or sports stars earning a lot of money – why resent that?  These talented individuals are at the top of their game and bring pleasure to millions – and so are worth every penny.  Likewise in property – those that are doing the best will be the investors working the hardest on their strategy, and staying focussed to hit their investing goals.

Fortunately the vast majority of property investors are Can do’ers, and this has always been a big attraction for me – ie investors can bounce off each other, and encourage each other.  Generally investors know why they are investing and why property investing is the best way to build up mid term wealth for almost all individuals.  That is why every year in the Sunday Times rich list in the UK – the biggest %age of people in there will have made their money in property and this will continue year on year – as investors will continue to look for new opportunities.

Yes at times, you need to tweak your strategy ie look outside your home town, and consider Overseas, fast moving property markets – but the key is to remember whatever the newspapers tell you this year successful property investors will again do very well – and property markets around the world will continue to rise in value with double digit growth – which when leveraged will give phenomenal returns.

If you would like to discuss your strategy, or need to re-focus on what are trying to achieve, why not have a chat with one of our Portfolio Development Managers – and see how they have helped investors go from 0-10 properties in a very short space of time, or helped investors re-align their strategy with the current market conditions.

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