Building Wealth and Creating Opportunities in Real Estate

Real estate investors enjoy access to many tools and options that aren’t often available in other fields of investment, including buying notes, IRS tax advantages, real estate mentors, and marketing opportunities for fixing up and reselling property.

Rehabbing is only one example of a wealth-building opportunity in real estate. In fact, flipping houses has become a pop-culture phenomenon, as witnessed by the success of TV shows like “Flip The House,” on A&E. Savvy rehabbers can secure financing to purchase a house and improve it, then sell it for a profit that not only pays back the original loan, but returns a profit that allows them to invest in another property — a strategy that amounts to risk-free investing.

Other real estate investment opportunities include buying properties in foreclosure, and in tax and estate auctions. Once the property is obtained, ownership itself offers additional wealth-building opportunities. Rentals, pre-construction work, landlording, and investing in apartments or self-storage properties are just a few real estate strategies that provide investors with several choices on how — and how much — they want to be involved with their property. Moreover, motivated sellers can use infomercials and the Internet to market their investments and all but guarantee handy returns. At the same time, a real estate investor can choose to buy and hold property, buy and sell notes, or buy into a Real Estate Investment Trust, and then let the investment itself do the money-making work, much like a stock- or bondholder, who simply owns a portfolio and watches it grow.

Real estate offers multiple tax incentives and advantages, too. The IRS’s 1031 Exchange rule allows the exchange of certain types of property in order to defer capital gains (or losses). In addition, mortgages, lease options, rentals, and numerous other transactions almost always give accountants tools to help their investing clients.

While real estate offers so many tools, many people are learning that they don’t have to be a realtor or real estate attorney to use them. Moreover, banks and other conventional lenders provide multiple and often creative resources for mortgages, loan modification programs, and asset protection, to name a few. In addition, with foreclosed properties and with REO Bank Owned Property, banks list properties that are available for purchase far below market value and, with a some improvement, can be turned to a handsome — and relatively quick — profit with often nominal risk.

In short, the long-reliable world of real estate provides an astonishing array of tools and strategies for investors to build credit, reduce or defer taxes and create wealth. To read more on this topic, visit Peter Harris‘ blog and Freedom Mentor.…

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Take A Look At The Following Considerations Before You Purchase A Home

If someone is eager to sell their property, they may keep a few defects hidden. It is unfortunate that if you were to hire a professional inspector for each viewing, it would get incredibly expensive. Therefore, here are some things that are obvious even to a novice which can tell you not to buy the home.

First and foremost, think hard before you buy a “fixer up.” It is certainly true that these properties seem very interesting because they are so affordable. Many of us believe that we have sufficient DIY skills to fix up such a property. In reality, however, they are often things that must be done by qualified professionals. Qualified professionals are incredibly expensive and you may not have sufficient budget for that. Secondly, be very careful of properties that have clearly had DIY adjustments. With all the best intentions, things that have been done without professional help can look great, but are often full of problems.

Next, make sure you know if the property has been foreclosed on or is going through a short sale. Although it is true that these are the cheapest properties, they are also often in poor condition and in bad neighborhoods.

In truth, you are the only person who can really make a decision in terms of whether or not to buy a home. It is also true that if you are looking for a true bargain, then a house with problems is what you are looking for. However, you must also be very careful that you aren’t buying into a money pit, or a property that you will never be able to sell again. A home is a place where someone, either you or a tenant, will have to live and this means it does have to be an enjoyable property to seem extent. It goes without saying that checking the condition of the property itself is very important, but the area it is in must be focused on as well. To check on the actual property, all you really need to do is hire the services of a property inspector. When it comes to the neighborhood, however, you need to have a personal feel, something that cannot be achieved by a check box list.…


3 Things To Consider Before Home Buying

The moment we buy a home is a momentous occasion. However, because we are eager to make the purchase, we sometimes fail to notice see the various defects of a property. As much as you may feel that a certain property has stolen your heart, if it exhibits a number of red flags, you should leave it behind. Let’s take a look at a few of these red flags.

The first is the neighborhood. This is of absolute vital importance. Look into whether the community is growing and thriving, or whether it is declining. Signs of decline include numerous boarded up businesses and foreclosed homes. Make sure you visit the area on two different occasions. This is also a great way to find out what traffic is like. Do also come at least once at night, so you can see whether the streets are safe and quiet at night or not. Speak to the police and ask for statistics on local crimes.

There are also a number of things that can cause a lot of damage to a property that are almost irreparable. Make sure you check for signs of the presence of water damage, pest damage, asbestos, mold and faulty wiring. The issue is that identifying these types of problems can be very difficult. It is very much possible that the sellers don’t know these problems exist. In the cases where they do know that these issues are present, they may take steps to hide them. It is incredibly easy to hide these significant issues through simple things such as cleaning and switching the power off. To find out, you can arrange for a home inspection, but do also make sure you speak to members of the community. They can tell you about the history of various properties in the area. It is safe to say that most major problems like pests, water damage and mold will occur in more than one home.

The reality is that you are the only one who can decide whether or not to buy a property. Additionally, if you find that there are certain problems, you could use this as a negotiating point to drive the price down. However, you must also be very careful that you aren’t buying into a money pit, or a property that you will never be able to sell again. Homes, whether purchased as an investment or not, are places for people to live in, which means they have to be inhabitable. Although it is certainly true that you should look into the condition of the actual property, focusing on the neighborhood is equally important. A property inspector is all you really need in order to look into the condition of the actual property after all. In terms of checking out a neighborhood, there is no data available to do this right, only your own personal feelings.…


3 Red Flags To Look Out For When Buying A Home

Buying a home is a joyful period in a person’s life. The only problem is that you have to make sure your excitement doesn’t make you stop from seeing any issues that a property may have. Although we do sometimes fall in love with a property, we should never purchase it without running a few necessary checks. Let’s take a look at a few of these red flags.

Always look through the neighborhood. Are people seemingly leaving in a mass exodus? Ask people who live in the area whether it is a good place to live. Look at the land as well. If the land slopes downwards towards the property, there is a chance that the foundations have been or will be damaged by flowing rain water. Use your nose: bad smells in or out the property are a bad sign. Look into whether there are pests. This is also something to ask others in the neighborhood about as they are likely to know all about past insect, rodent or other pests problems.

Then, you need to look into things that may have caused damage to the property that are very hard to fix. Make sure you check for signs of the presence of water damage, pest damage, asbestos, mold and faulty wiring. But it often takes a professional eye to actually spot these problems. It is very much possible that the sellers don’t know these problems exist. In the cases where they do know that these issues are present, they may take steps to hide them. By simply ensuring the property is very clean and no sockets are used unnecessarily, you are not able to see the problems are there. To find out, you can arrange for a home inspection, but do also make sure you speak to members of the community. They will be happy to tell you about any historical issues that have occurred in the area. Usually, problems like pests, water damage and mold don’t occur in just one home.

At the end of the day, you are the only one who an decide whether you will buy a property or not. But do make sure to exercise due diligence. Always make sure a professional inspector has looked over the property first. If some serious issues are identified, you can then decide whether this means the property is not for you, or whether you want to try and have the current owner reduce the selling price. Do be careful with this, however, as you don’t want to end up purchasing a money pit.…


Top Things To Be Careful About Prior To Home Purchasing

When someone tries to sell their home, they do not always tell the whole truth. Sadly, most of us cannot afford hiring a professional inspector for each property that we view. Therefore, here are some things that are obvious even to a novice which can tell you not to buy the home.

Always look through the neighborhood. Are people seemingly leaving in a mass exodus? Make sure that you speak to some of the residents and ask about what the community is like. Look at the land as well. If you notice that the yard is on a downwards slope towards the property, the foundations could be affected by rain water. You should also look into whether there are any weird smells in and out of the property. Look into whether there are pests. If there have been bugs or insects, people in the street are likely to know about it, so ask them.

Secondly, you need to know whether the property you are buying is a regular sale, a short sale or a foreclosure sale. Yes, you can get an amazing deal on this. However, many of these properties are in terrible condition and it can also be a sign of trouble in the neighborhood itself.

The bottom line is very simply that a home should never be bought unless a professional inspector has given you the green light. With the information above, you should be able to find out whether you should walk away, or whether hiring an inspector is a good idea. If any problems are present, you can choose to walk away from the property, or you can request a huge discount on the purchase price so you can arrange the necessary repairs. Do also make sure you listen to professional inspectors’ advice. The goal of professional home inspectors is to make sure that you can truly get your dream home, and not some sort of money pit disaster.…


Run A Few Simple Checks Before Home Buying

A home purchase is both exciting and fun. The only problem is that you have to make sure your excitement doesn’t make you stop from seeing any issues that a property may have. Yes, some properties seem to just call to us, but if they have certain issues, you should still walk away. Hopefully, the information below will show you some of the things to be aware of.

Always look through the neighborhood. Does it look like everybody is leaving? Make sure that you speak to some of the residents and ask about what the community is like. Look at the land as well. If you find that the yard slopes downward towards the property, it is possible that rainwater would run down it and damage the foundations. Use your nose: bad smells in or out the property are a bad sign. Also look for bugs and insects. Ask community members of this, as everybody always knows when someone else has pests.

Now, you need to see how the property was looked after. You should be able to tell whether it was maintained regularly. If it looks run down from the outside, it is likely that the inside isn’t in a much better condition either. Also, look at the wiring. Although you probably won’t be able to identify all of the problems yourself, some red flags are easy to spot. If you spot that outlets are warm or that lights flicker, there is likely to be a wiring problem. Check whether it looks like some of the walls have been repainted recently, which could be a sign of them trying to hide something. Check the windows. Look at whether the windows have mold or condensation or are hard to open; this could be a sign of expensive problems.Naturally, never view a property that you are not allowed to see in full. If any structural work has been done on the property, you need to make sure that it was done by someone who was fully qualified to do this.

After all is said and done, only you can truly decide whether or not you want to purchase a home. However, make sure you exert due diligence at all times. Do only purchase a property once you have had it inspected by a professional inspector. If any issues are found, it is up to you to decide whether you then want to step away from the property, or whether you want to use it as a bargaining tool to bring down the price. However, always be careful that you do not get tied into a money pit.…


Interested In Investing In Real Estate? Try These Tips And Tricks

Investing in real estate can be scary for some people. You should be educated with the right information. After you get your bearings, you’ll find it very lucrative. Take a look at the suggestions offered here to set you on the right path. Once you know what you’re doing, you’ll be comfortable making decisions.

Find other investors and talk to them. It is essential that you connect with those who have more experience in order to get good advice. A few friends knowledgeable about real estate investment can be handy. The Internet makes discovering new friends and contacts quite easy. Join forums to learn as much as you can.

Do not purchase anything that has not been inspected by an unbiased professional. If a seller offers to pay for the inspection, know someone could be lying for them. Make sure your report is neutral.

Always get an inspection before buying a house. A seller may offer to have the inspection done, but he may use someone who is biased. The inspector should be a completely neutral party.

Do not invest in any property before having it properly inspected. Sellers may use professionals that are biased towards them. Make sure the inspector used is a neutral party.

Location is definitely the most important aspect of real estate investing. Things such as the condition of a given property can always be improved. Neighborhoods with dropping property values are generally not a sound investment. When buying real estate, make sure you check out the property value and area.

Avoid buying real estate if it ends up eating into your bank account or cash that you keep aside for emergencies. Make sure that you always budget to the best of your ability when it comes to your real estate investment property. Make sure daily life doesn’t get negatively affected by this.

You don’t want to take the approach of just buying more properties to increase your number. It’s not smart to purchase properties just to have them. You have a better chance at investment success when you focus on making the most out of fewer investment properties. You want to make sure you are protecting the integrity of your investments.

It is wise to have a capable handyman who charges reasonable prices available if you’re buying investment property. If you don’t, your profits may be sucked up by repair costs. A trustworthy handyman who is available after hours, is essential in case of emergency issues that may arise.

Buy local properties. If you know the neighborhood well, you’ll be able to sell it faster. You won’t need to think about what’s happening in the neighborhood as much since you’ll be close to it. You should be close to your property, so you can have more control.

Look for a property that is going to increase in value. Something by the shore or located in a highly trafficked city is bound to increase in value. Try to consider long-term price and project how much it is expected to go up, thereby improving your investment prospects.

When you are figuring out how much the property is worth, you have to account for possible rental income. This can help you make thousands during the year from others who live in it. Then after some time, the home could be resold for even more money.

Think about taking your business further by getting properties for businesses instead of getting only residential places. Properties that are businesses can help you get rentals in the long term, and you can make a lot off of them. You can even get a small strip mall or a complex for a business, and this presents a lot of options when you decide to invest in properties.

Try avoiding being emotional when negotiating. You are investing in this property and will probably not be living there. Emotional buying can cause you to overpay on an investment property. You can only profit by applying this advice.

Never invest in properties that you can’t afford. If your property is a rental, you should make sure that you can still meet your monthly mortgage payments even if one or two units sit empty. It is not smart to depend on rental income to pay your mortgage only.

Do your research about local regulations and laws in the area you plan to invest in. These laws will have an effect on your purchase, so you should know them ahead of time. Contact officials in order to be completely compliant and aware of important information before you lay down any money.

You must make sacrifices in order for your bottom line to be met. You may have a dream for a renovation of the house you want to flip, but prices can get out of hand quick. At some point, it is inevitable that you will have to make sacrifices in order to reach your investment goals. Be ready and willing to give something up.

Don’t go for properties that have prices that are too low or high. This will generally not be a good investment. If you want to buy cheap property, you’ll probably spend a lot on renovations. Your best bet is to look for moderately priced, solid properties that are neither too fancy nor too run down.

One great way to think about if neighborhoods are worth buying into is to search near them to see if there are any vacancies. Should you find that there is an abundance of empty businesses as well as home and apartment rentals in the area, this should be a caution to you that your own property could end up with the same fate.

Understand whether you are investing short or long term. How much money you need will be influenced by this. If you’re buying a house that needs fixing up, you need to ascertain whether or not you can afford to do so. On the other hand, if you don’t need to flip the house right away, you might be able to spend a bit more on the initial purchase.

As with any investment, real estate comes with responsibilities. It is good to start while you’re young, but not if you are not financially stable yet. Establish yourself in a community and begin saving money and making connections. This is a great foundation for becoming a successful investor in real estate.

You can try predicting when you will sell a house, but you will not be right all the time. Be aware of this when assessing your risk when purchasing a property. Will there be an initial cash layout or will it be financed? What interest rate will you have to pay? Will you be renting before you sell?

Investing in real estate is a wonderful way to make an income nowadays. The thing to remember is how important understanding the tricks of the trade is to any beginning. By using the advice written in this article, you can start making money in real estate.…