Property Investment Checklist

Choosing New Home Checklist
If you want to make a successful and highly profitable real estate investment, there are some key factors that you should consider before choosing an investment property. We have compiled this Property Investment Checklist to provide you with a short but essential summary of key factors you should pay attention to.
1. Have you chosen a reliable and professional property investment agency? If you are investing through a property investment company or property agents, you will have to make sure that you can fully trust them. Check the company’s track record, ask to see client testimonials, and try to contact former clients. Ensuring that you are using the right property investment company will give you peace of mind and is essential for a successful property investment.
2. Do you understand the basics of property investment and current market conditions? While you should use professionals, solicitors, or real estate agents during the investment process, you cannot entirely rely on them. Make sure that you understand the basics of property investment and all financial details involved. This will enable you to spot any potential risks ahead of time and to find a profitable investment opportunity and a good location.
3. Do you have a clear picture of what type of investment property to buy? There are a variety of investment properties, such as buy to let properties, BMV properties, off-plan properties or overseas properties. The type of real estate will also determine your investment strategy, so make sure that you know what kind of property and investment strategy you are looking for to achieve your desired profits.
4. Is the property in good condition and is it in a good location? These should be crucial considerations, as you will either want to let the property, or sell it to another property investor or home-buyer. A property that is in good condition might be more expensive, but buying a relatively cheap property in a bad condition will always incur significant additional repair costs. Whether you want to find tenants, or resell the property, the location will be crucial, and a property in a bad neighbourhood or in an economically unstable location will rarely turn out to be a good investment.
5. Will you find tenants for your property? When investing in a buy to let rental property, the tenants will form the basis of your investment bringing you profit, so it is essential to make sure that you can find tenants for your property. This will depend on the location, property condition, the rent, and many other factors. Some property investment companies will even help place tenants in the investment property.
6. Do you understand how to maximise your returns? Achieving a positive cash flow will make your property investment successful. While it is obvious that every investor wants to maximise returns, you will have to understand how to make this happen. Finding a property possibly below market value but in a good location and good condition will be crucial for the success of your investment. You will also have to understand how to minimise the costs, including repairs, and taxes, and you should also make sure that the property remains let for most of the year.
7. Do you understand the risks? Property investment will never be without its risks, and you will thus need to understand all the risks involved. Economic growth might not be as expected, or you might not find tenants for a longer period. By understanding these risks, and developing an effective risk-mitigation strategy, you will find it easier to turn your property into a successful investment.
If you need more information about how to earn huge return from property investment, read about “Earn Huge Return from Property Investment” book, which you can get it now at http://hugepropertyroi.leadgenbuilder.com 

3 Things You Must Do to Succeed at Real Estate Investing

Here are three simple guidelines that must be followed if you plan to succeed at real estate investing. It’s not everything, of course, but at the very least, you must be willing to commit to these things if you want to become a successful real estate investor.

Shall we get started?

Acknowledge the Basics

Real estate investing involves acquisition, holding, and sale of rights in real property with the expectation of using cash inflows for potential future cash outflows and thereby generating a favorable rate of return on that investment.

More advantageous then stock investments (which usually require more investor equity) real estate investments offer the advantage to leverage a real estate property heavily. In other words, with an investment in real estate, you can use other people’s money to magnify your rate of return and control a much larger investment than would be possible otherwise. Moreover, with rental property, you can virtually use other people’s money to pay off your loan.

But aside from leverage, real estate investing provides other benefits to investors such as yields from annual after-tax cash flows, equity buildup through appreciation of the asset, and cash flow after tax upon sale. Plus, non-monetary returns such as pride of ownership, the security that you control ownership, and portfolio diversification.

Of course, capital is required, there are risks associated with investing in real estate, and real estate investment property can be management-intensive. Nonetheless, real estate investing is a source of wealth, and that should be enough motivation for us to want to get better at it.

Understand the Elements of Return

Real estate is not purchased, held, or sold on emotion. Real estate investing is not a love affair; it’s about a return on investment. As such, prudent real estate investors always consider these four basic elements of return to determine the potential benefits of purchasing, holding on to, or selling an income property investment.

  1. Cash Flow – The amount of money that comes in from rents and other income less what goes out for operating expenses and debt service (loan payment) determines a property’s cash flow. Furthermore, real estate investing is all about the investment property’s cash flow. You’re purchasing a rental property’s income stream, so be sure that the numbers you rely on later to calculate cash flow are truthful and correct.
  1. Appreciation – This is the growth in value of a property over time, or future selling price minus original purchase price. The fundamental truth to understand about appreciation, however, is that real estate investors buy the income stream of investment property. It stands to reason, therefore, that the more income you can sell, the more you can expect your property to be worth. In other words, make a determination about the likelihood of an increase in income and throw it into your decision-making.
  1. Loan Amortization – This means a periodic reduction of the loan over time leading to increased equity. Because lenders evaluate rental property based on income stream, when buying multifamily property, present lenders with clear and concise cash flow reports. Properties with income and expenses represented accurately to the lender increase the chances the investor will obtain a favorable financing.
  1. Tax Shelter – This signifies a legal way to use real estate investment property to reduce annual or ultimate income taxes. No one-size-fits-all, though, and the prudent real estate investor should check with a tax expert to be sure what the current tax laws are for the investor in any particular year.

Do Your Homework

  1. Form the correct attitude. Dispel the thought that investing in rental properties is like buying a home and develop the attitude that real estate investing is business. Look beyond curb appeal, exciting amenities, and desirable floor plans unless they contribute to the income. Focus on the numbers. “Only women are beautiful,” an investor once told me. “What are the numbers?”
  1. Develop a real estate investment goal with meaningful objectives. Have a plan with stated goals that best frames your investment strategy; it’s one of the most important elements of successful investing. What do you want to achieve? By when do you want to achieve it? How much cash are you willing to invest comfortably, and what rate of return are you hoping to generate?
  1. Research your market. Understanding as much as possible about the conditions of the real estate market surrounding the rental property you want to purchase is a necessary and prudent approach to real estate investing. Learn about property values, rents, and occupancy rates in your local area. You can turn to a qualified real estate professional or speak with the county tax assessor.
  1. Learn the terms and returns and how to compute them. Get familiar with the nuances of real estate investing and learn the terms, formulas, and calculations. There are sites online that provide free information.
  1. Consider investing in real estate investment software. Having the ability to create your own rental property analysis gives you more control about how the cash flow numbers are presented and a better understanding about a property’s profitability. There are software providers online.
  1. Create a relationship with a real estate professional that knows the local real estate market and understands rental property. It won’t advance your investment objectives to spend time with an agent unless that person knows about investment property and is adequately prepared to help you correctly procure it. Work with a real estate investment specialist.

There you have it. As concise an insight into real estate investing as I could provide without boring you to death. Just take them to heart with a dash of common sense and you’ll do just fine. Here’s to your investing success.

To know more about real estate investment, just go to http://hugepropertyroi.leadgenbuilder.com and get access to the book of “Earn Huge Returns from Property Investments

Article Source: http://EzineArticles.com/1303880

Why Real Estate Investing is Better Now Rather Than Later?

I consider why you should start real estate investing now rather than later and then follow it up with a few suggestions to help you get started.

The proverbial saying “time is money” is true in real estate investing. Due to a phenomenon known as compounding, money grows faster and faster as time goes by. So the sooner you put your money to work in a real estate investment, over time the more money you will accumulate.

Say, for example, that you start investing $1,000 a year into real estate for the next forty years. At a 9% annual rate of return, your $40,000 cash investment (thanks to compounding) will grow to over $369,000. Whereas, if you wait ten years before you make that investment, that same amount only grows to about $150,000.

In the same way, the longer you wait to get started real estate investing, the less time you have to combine the factors of time and compounding interest, and hence (assuming all things equal) the less wealth you can expect to accumulate as a result.

Say your goal is to retire at age sixty-five. Because of compounding, you stand a far better chance of achieving more wealth by retirement if you start investing at age twenty-five rather then at thirty-five, or forty-five, and so on.

How to Get Started Real Estate Investing?

Develop a plan – How much can you invest comfortably? Are you expecting cash flow or merely looking to make your money when the property is resold? How long do you plan to own the property? What amount of your own effort can you afford to contribute? What amount of wealth do you plan to accumulate, and by when?

Acquaint yourself with the local rental market – Read the local newspapers and see what types of income property have the highest demand for tenants. If there are tons of classifieds seeking apartment tenants, perhaps retail space is more in demand, and vice versa. In other words, learn what product would be best for you to invest in.

Acquaint yourself with the rates of return – At the very least understand the difference between cash and cash return, return on equity, and cap rate. Whereas cash on cash might show what your cash investment might achieve in one year, and return on equity over future years, cap rate helps you choose a property at a fair market value.

Invest in real estate investment software – It is never a good idea to rely on someone else’s numbers. It’s your money. Always run your own numbers on potential investment opportunities. Having the ability to create your own rental property analysis gives you more control about how the cash flow numbers are presented and a better understanding about a property’s profitability.

Create a relationship with a real estate professional that knows the local real estate market and understands rental property. A qualified real estate professional acquainted with your market can be a real plus. It will not advance your investment objectives to spend time with the agent of the year unless that person knows about investment property and is adequately prepared to help you correctly procure it.

Avoid buying into real estate investing “trade secrets”. Tons of real estate investing gurus out there repackage and sell the exact same material as the next guru. The sizzle in the business of real estate investing, however, is about owning a piece of ground that, if unduly researched and purchased sensibly by impartial numbers, with careful management, will likely be more valuable tomorrow than it is today.

How Much Do You Need to Get Started?
There’s no set amount to start real estate investing. You could start out very small and then as you begin to earn more, start contributing more. Start perhaps with 2% of your income and then add a percentage point more each year to your contribution.

The important thing is to start real estate investing now, while “time is on your side” and you can in fact take advantage of a favorable real estate market and compounding interest over the passage of time to achieve your retirement goal.

Here’s to your real estate investing success.

To know more about real estate investment, just go to http://hugepropertyroi.leadgenbuilder.com and get access to the book of “Earn Huge Returns from Property Investments

Article Source: http://EzineArticles.com/2093268

Real Estate Investing For Beginners – What Every New Investor Wishes He’d Been Told Before

As a new real estate investor, when you begin researching information on real estate investing for beginners, you’ll find that there are a lot of gurus and mentors out there looking to sell you high priced information. You’ll also find plenty of chatter-boxes at local real estate investing forums and other watering holes that will share (brag?) all day long about their investing trials and tribulations, especially if they have tenants or rehabs. (Those types of projects tend to be fraught with problems, something that can scare beginner real estate investors off – when maybe it should be attracting them!) You can also find some excellent offline resources at the library, bookstore and your local investor club. Maybe you’ll even find someone who’s out in the trenches on a regular basis and is willing to take you out on the streets to show you some of his properties.
What you won’t find as often, especially for free, is a coherent, executable business plan detailing what it takes to get going with real estate investing as a beginner.
What you really need is a handbook entitled: Real Estate Investing For Beginners that lays everything out for you A to Z, with what to do at every step along the way.
Unfortunately, putting together a super and useful reference like that is time consuming and you have to consider that a) If someone is already making money investing in real estate, her time is valuable, and b) if she’s going to invest her valuable time in putting together a real estate investing guide for beginners, she’s got to have an angle.
That’s an excellent thing to keep in mind – everyone in the real estate investing education industry seems to have an angle. They are directly incentivized to make you feel that real estate investing is easy, you can do it, and if you just part with some money, they will give you the handbook with all the answers.
BEWARE: If you can’t figure out how they’re getting paid, you’re missing something… Everyone wants to get paid in this business.
Well, I hate to tell you… I don’t have that comprehensive handbook for you either.
That’s the bad news.
The good news is that I can give you some very important words of wisdom that helped me when I was getting started in real estate investing as a beginner. (And I started right out of college without a good job or anything, so don’t think it can’t be done.)
Real Estate Investing Observations – What Every Real Estate Investing Beginner Needs To Know:
1) You will have to trade time or money to get what you want in real estate. You can’t get something for nothing, so even if you buy an expensive course to get someone else’s experience and shave years off your learning curve, you’ll still HAVE a learning curve. Plus, you’ll need to find leads, and that type of marketing takes (you guessed it) time and/or money.
2) Leverage cuts both ways. When the market is going up, leverage can be a great ally in helping you acquire more property with less of your own money. However, when the market is soft or declining, as also happens with real estate market cycles, having a lot of leverage can put you “upside down” on your equity and cash flow – a very risky situation. Protect yourself by “making your money when you buy” and passing up those “skinny” deals.
3) It’s all about NEGOTIATING with the motivated sellers. A lot of courses make you believe that if you find the motivated sellers, you can just pluck up the deals like daisies in the orchard. That’s almost true. Whether you’re working in commercial or residential real estate, you’ll get much better deals when you negotiate with a motivated seller. However, the key is that you must NEGOTIATE. You have to make offers that will work for you and engage the sellers in conversation. Very rarely will the buildings be lying these listed for 50 cents on the dollar (if they are, they’ll be snapped up by other investors). You have to find sellers that you think may be motivated and offer them your low cash offer or terms offer in order to see if they’re willing to work with you. Engage them in the conversation by making lots of offers, and NEGOTIATING with the ones that are motivated.
4) Figure out your rate of return. Sometimes, when you don’t have a deal, it’s easy to think “any” deal would be good. However, sometimes the best deals are the ones you PASS on – you “make” your money by saving yourself from some expensive mistakes. Don’t waste time on property that doesn’t make sense when you run the numbers. Don’t get emotionally attached just because someone says they’re motivated or willing to work out terms with you. Run the numbers. Always focus on the numbers.
5) You get paid for solving problems. This is a business with a lot of problems. Sellers can get very emotional, or have a lot of financial trouble, at the time that you’ll be working with them. That’s stressful for anyone, especially when the transfer of a large asset like a house, apartment building or office/retail center is involved. Realize that you may go through some challenging emotions of your own. That’s natural. If you can hold it together and survive the up-and-down roller coaster, you should do okay.
No one says real estate is easy unless they have a course to sell you. It can offer some great returns, but there’s a reason not everyone goes after them. Not every property is a winner and finding and acquiring the winners can be a challenge. However, if you are committed to making your real estate investments work for you, then focus on getting yourself educated and staying in for the long run.

In order to learn more effective strategies to make more profits from your property investment, I strongly recommend you to download this book of “Earn Huge Returns from Property Investments” by clicking here at http://amzn.to/29k0ddR

Article Source: http://EzineArticles.com/2108639

Introduction of The Book of “Earn Huge Returns from Property Investments”

 Read Earn Huge Returns from Property Investments

 Read Earn Huge Returns from Property Investments

Tips to Earn Maximum Rent. Buying Real Estate Properties with Little Cash. Tips on Choosing the Best … Opportunities That Will Make You Rich.

This book is about A Comprehensive Guide on how to Earn Huge Returns from Property Investments irrespective of the size of your bank account and irrespective of whether you have any experience in this field. This book is dedicated to all the people who want to invest in Real Estate for a minimum of 10% Return on Investment (ROI). From this book, you will find out the reasons to get in the Real Estate Business, Types of properties you can buy, Importance of inspecting the property and property management, Costs involved in real estate investments, Taking a loan to buy investment properties, Buying properties on lease, Why investing in foreclosed properties is a good option, Investing to sell or rent-out, Benefits of buying investment properties, Real estate investor tax implications and tax deductions for landlords on rental properties, Different ways you can earn ROI on your investment property, Tips to make your investment property look perfect and to lower land lording risks, Mistakes every real estate investor should avoid, Earning great returns through effective marketing and Managing real estate risks.