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July 5, 2016
by Sharon Allen
Comments Off on Choosing The Right Investment Property

Choosing The Right Investment Property

Rental properties can make for a very lucrative investment. However, you do have to know what you are doing if you want to be successful. It is strange that so few people consider rental properties as an investment, even though the returns can be so high.

First, you need something with a good return. To invest in the illiquid asset that is real estate, you will have to take money out of your liquid assets. What you should look for is to get the same or similar rate of return. This means that you should find a true cash flow property, and not a money pit.

Investing in real estate, therefore, shouldn’t be about the appreciation, but rather about the cash flow. Your cash flow is how much you end up with at the end of the month after all your obligations have been met. You can save up your cash flow and see a really fantastic pot of money building up. As rent prices go up, your cash flow will rise too. This is particularly true if your mortgage payments stay the same. A good cash flow is at least 20% of the money you get in overall. There are some great online resources in terms of calculating your cash flow.

These are the things to look for in good real estate investments. The ideal property is one that doesn’t require too much maintenance or management. Unfortunately, this isn’t always as easy as it may seem. You need to be able to invest a lot of time in order to find these properties. You will need to take the time to analyze and research any and all options that come your way. Most of us who are ready to invest in real estate want to do so immediately. Even if you have been searching the market for a long time, you should never invest in a property that you are not sure about. Unfortunately, a poor investment decision in the world of real estate can be incredibly costly and it will be hard, if not impossible, to ever see a positive return.

February 2, 2017
by Sharon Allen
Comments Off on What You Need To Know About Investing In Real Estate

What You Need To Know About Investing In Real Estate

Many people see making money through real estate as an easy thing. But once they start, they realize the amount of knowledge that is needed. Knowing how to navigate the market properly is going to do you well just like with any market. You could not control what happens in the market, however you could certainly make the right moves.

You should take the time to learn as much as you can before you begin a career as a real estate investor. You are going to learn many techniques and strategies that can help you when investing in real estate. Buy many different DVDs and go to the library to read books on real estate to put yourself in the best position possible.

Do not invest in real estate without having a professional inspect the property for damage. If a seller offers to pay for the inspection, know someone could be lying for them. The inspector should be a completely neutral party.

When drafting your business strategy, know that the initial costs will go beyond the selling price of the property. When thinking about your bottom line, don’t forget things like closing and staging costs, as well as legal fees. When figuring out your margins, include these expenses and add them to your list of line items.

You should make sure you take the time to learn about real estate investing. If you want to make money, you might have to cut something out of your life. Shove the poker night or softball league aside to become a successful investor.

While negotiating, open your ears and keep quiet. By dominating the negotiations with your own talking, you might miss out on a great opportunity. As well, by listening, you’ll be more apt to catch the exact right positioning that you need to get the price that you want.

Rising property values are not always a given. Danger awaits those who take that approach. The most reliable investments are the ones that will give you a cash flow almost immediately. You can boost your income with any property value that is appreciated.

While negotiating, open your ears and keep quiet. You’ll be amazed at how often people negotiate against themselves simply by letting them do all the talking. Actively listening will help to ensure that you get the greatest deal possible.

It is important that the properties you purchase are ones that are in your area. When you do this, you already know what the neighborhood is like. Plus, if you’re renting, you can be more secure in the fact that you know what’s going on in the place. The true way to control the investment is through self-management because it is nearby.

Consider business properties as well as residential ones when you are considering new buildings to buy. Commercial properties can amount to rentals for the long term, which can be very lucrative. 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.

Don’t purchase real estate that is in a less than desirable neighborhood. Pay close attention to where a property you are interested in is located. Make sure to do research. A good deal on a beautiful house may mean that it’s in a bad place. This can lead to problems down the road when trying to sell the property.

As a real estate investor, you are going to experience both good times and bad times. Do not be discouraged by the bad times you may encounter. Persistence is key to finding success in the real estate market. Continue to expand your knowledge, do not give up, and good things will happen for you.

Buy locally. Since you already know the neighborhood, you aren’t taking a leap of faith that may not pay off. Additionally, you will be able to keep an eye on your investment property if you live close to it. You will have total control of this investment if you live close enough to handle it yourself.

Keep your negotiations cool and businesslike. This property is an investment, not your home. Never get too emotional over a property because you could end up making less money in profits. This tip will lead to more money.

Work well and play will with other people. Instead of seeing fellow real estate investors and buyers as competition, try working together. Share resources and clients among yourselves so that all can profit. You’ll keep your customers satisfied and build up a larger clientele by cooperating with one another. By doing so, you eliminate a few headaches and build positive relationships with others.

When you want to get some tenants, be sure you screen them in the right way. All too often, irresponsible and unreliable tenants do extensive damage to the property and are always behind in rent. So do a credit check, get references and always get a deposit and first month’s rent before they move in. You can find dependable tenants through due diligence.

You may have loved ones or co-workers trying to convince you to avoid investing in real estate. Tune these people out, educate yourself, and be smart. However, you may want to listen to those with successful experience in the market.

Ensure that your real estate properties don’t eat up your time with their management needs. Wasted time is wasted money and you should value both. Avoid rentals in the college market, vacation market and depressed neighborhoods. Buy properties that have a history of long-term tenants.

Don’t go for properties that have prices that are too low or high. Too high a price, and it’s likely you won’t make any money. If you want to buy cheap property, you’ll probably spend a lot on renovations. It is best to target mid-range priced properties that are a solid investment without too much glitz or work involved.

Consider whether your real estate purchase will be a long-term purchase or a short-term purchase. How much money you need will be influenced by this. Be certain you can afford all necessary repairs before investing in a fixer. If you plan to purchase the home and keep it for awhile, this will give you the time you need to spend more money and time fixing it up.

Learn the market’s lingo. You should always sound like you are a professional. If your seller thinks you are new to this, then they may try to take you for a ride on the price. Your expertise and how you talk can work out well for you. Sounding professional will help you in negotiations.

Getting involved with real estate investing is a powerful tool to help you succeed with your money. You can choose the best properties and focus on what makes the best business sense. Remember everything you learned here and get started with your investments as soon as you can.

December 27, 2016
by Sharon Allen
Comments Off on Answering All Of Your Questions About Real Estate Investing Is Our Job

Answering All Of Your Questions About Real Estate Investing Is Our Job

Anybody can profit from real estate. That is however, if they are knowledgeable about the whole process and can differentiate themselves from their competitors. The information you are about to read is a great resource for finding success with real estate.

Be certain you spend enough time on the endeavor to really understand it. This may mean cutting some of your work time to learn, but the long-term dividends will be greater. Put your time in and reduce the leisurely activities that you have on the side.

If you are comparing industrial or retail properties, consider these two guidelines. First, you shouldn’t overpay for where you buy things. Next you never want to pay more than it is worth. Think seriously about the “as is” value of the property and what rental income could be ascertained. Both numbers need to be good for you to buy this property.

Connect with fellow investors and learn everything possible. There are many people interested in real estate investing. So many people, in fact, that there are many community business groups that focus solely on this passion. Real estate investors can also be found on real estate forums and on social media sites. Take advantage of the knowledge others in the field have.

When investing in real estate , you’ll recoup your initial investment, plus a profit. If your investment only pays back the investment, you have wasted time on the property. Make improvements to the property and list it at a substantial markup.

Learn all of the essentials involving investing in real estate before you throw down a ton of money to buy a piece of property. If you make a mistake when it comes to real estate, you could lose out on a lot of money when you’re not being careful. Being professionally trained is the best way you can protect yourself.

Always evaluate the neighborhood as a whole before you invest in any property there. Some neighborhoods are obviously a better value than others. Location is always a high priority, even higher than the properties themselves.

When renting out your investment property, take great care in selecting tenants. The person should have first and last month’s rent ahead of time, as well as a deposit. If the renter is struggling with coming up with these things, it’s a good bet that they will struggle with paying for their monthly rent, too. Look for a different tenant.

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.

When you first start out you should have some patience. Understand that real estate deals may take a long time. You might initially have trouble finding the right property to buy. Never let it get to you and invest out of frustration. You will inevitably lose money if you do. Stand firm and wait for the right opportunity.

Think about the possibility of getting rental income from any property you plan on purchasing. This can bring in a lot of money for you. Then, you can resell it later fort a huge gross profit.

When you consider buying rental properties, consider a strong property manager that can find good tenants. Since these tenants are what essentially pays your mortgage, it is important that these people have a good credit standing. If not, you will start to lose money on your investments.

Learn to get along with others. Rather than viewing other real estate investors as competition, try to work together. This way you can share your resources with each other, such as client lists, and you can pool collections of properties. When you work as a team, you can reap team-size rewards. This will definitely help improve your reputation.

Don’t spend every last dime you have in order to get a particular piece of property. You need to make smart business decisions which leaves you with reserve cash within your portfolio so that you can handle any unexpected expenses. If you don’t, you will eventually get yourself in trouble.

Remember that both gains and losses are inevitable when you invest in real estate. The keys to your success come about when you don’t get too down during the low times. Success will be yours, just stay persistent. You will find success if you don’t give up.

Family or friends may try keeping you away from investing in real estate. Tune these people out, educate yourself, and be smart. Don’t let people bring you down, that is unless someone you know has knowledge in the real estate market.

Keep emotions out of play while you are negotiating. Keep in mind that homes you buy as investments are not places where you are going to live. Emotional buying can cause you to overpay on an investment property. This advice will help you make money!

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.

If you don’t mind keeping a property for a long time, buy properties in heavily foreclosed areas. There will always be a bounce-back in the market eventually. If you bought low, you could really cash in. Remember that it may take quite some time before it is possible for you to recoup your money.

Make sure to keep money saved to pay mortgage when there is a vacancy on your properties. Having funds designated for this purpose allows you to rest easy in the knowledge that you can pay the mortgage while searching for a new tenant.

Avoid making a costly mistake due to your lack of knowledge. For that reason, it pays to hire a professional. You’ll need to pay for this, but it beats entering the market blindly.

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?

As you have read, investing in real estate can serve you well if you follow good advice. Read these tips again, as needed, so you can make the most money. Pass the information along to others, so they too can join in on being successful real estate investors.

March 5, 2016
by Sharon Allen
Comments Off on Some Of The Things To Learn Before Making Real Estate Investments

Some Of The Things To Learn Before Making Real Estate Investments

If you want to invest in real estate, you probably want to make money as quickly as possible, with as little risk as possible. You can only achieve this if you know how to make smart choices. The following three things make for an excellent real estate investment to help you get started.

You can easily compare rental properties to stock markets. This is because most of us understand these and know that we need to spend money to make money. However, there are no guarantees at all that stocks will actually perform well. Similarly, retirement calculators work on a guess of when we will actually die. This means that you could end up broke if your life lasts longer than the estimate that was made.

Applying this to real estate investment, what you are looking for is not appreciation, but rather cash flow. Your cash flow is how much you end up with at the end of the month after all your obligations have been met. You can save up your cash flow and see a really fantastic pot of money building up. Plus, your cash flow can increase as rent prices go up over time. Best of all, your mortgage payments should stay the same. A good cash flow is at least 20% of the money you get in overall. Spend some time using the internet to work out exactly how much your cash flow is.

In order to make a good real estate investment, these are the things you should be looking for. The ideal investment property is one that doesn’t require too much maintenance or management. Unfortunately, this isn’t always as easy as it may seem. You need to have the time available to actually find these properties. You need to research and analyze and look into the available options. Generally speaking, when someone wants to invest in real estate, they just want to get started straight away. You should never invest in something that isn’t as secure as it can be, even if you have been waiting for a long time. Unfortunately, a poor investment decision in the world of real estate can be incredibly costly and it will be hard, if not impossible, to ever see a positive return.

December 5, 2015
by Sharon Allen
Comments Off on The Importance Of Working With A Good Realtors

The Importance Of Working With A Good Realtors

Buying or selling a home requires a lot of forward thinking. Yes, we can do most things online now, but it is still recommended to work with a real and good realtor. Let’s explore some of the things you should and shouldn’t do when picking a realtor.

First of all, always ask for recommendations. However, you need to look for more as well. Hence, you need to do your research. You must ensure that you find a realtor that specializes in your field of interest. You shouldn’t look for someone that sells apartment blocks if you are looking for a beach house. Do make sure you actually speak to a realtor you are considering. Make sure that you ask things such as how they will represent you and work for you, how much they cost, what their experience is and more. You need to make sure your realtor understands your expectations. It is important that they understand your needs. Last but not least, make sure that your realtor is someone you like. You cannot trust someone you don’t like, after all. Last but not least, try to work with the realtor with the most experience. There is something to be said for working with new people and giving them a chance, but buying or selling homes are incredibly important financial decisions and you need someone that actually knows what they are doing.

You must also avoid a few things. Don’t choose a realtor that you know as a friend or a relative. This would represent a huge conflict of interest and it could also mean that you struggle to be honest with each other. Also, your relationship could be tainted if things don’t work out. Also don’t work with a realtor who is also representing the other party. If things go wrong, then don’t be afraid to walk away and find a different realtor. If you find you do want to leave your current realtor, do so respectfully. Don’t tell your realtors that you will definitely sign up with them unless you actually intend to do so. You need to be honest with them and tell them at which stage you are. Honesty is the best policy and you expect honesty from them, so you need to return that courtesy.

It is hoped that the information above will assist you in finding the best possible realtor. Whether you want to buy or sell, you should always work with a realtor. One of the most important things they will be able to help you with is identifying the best time to buy or sell, and this information could save or make you a lot of money.

October 5, 2015
by Sharon Allen
Comments Off on Why You Need To Use A Realtor

Why You Need To Use A Realtor

It is always a good idea to enlist the services of a realtor, whether you are buying or selling. Many of us know people who work in real estate, but they may not be the best ones to represent your needs. Let’s take a look at two important things to ask in order to find out which realtor is best for you.

Your realtor’s experience is one of the most important things to look into. Usually, those with the most experience tend to deliver the best service. The best ones are the ones who started working before the economic crisis and are still going strong. However, you also have to make sure that they have experience pertinent to your own needs. For instance, the needs of a first time buyer are very different from the needs of a national property developer. The second thing you need to know if how much of an expert they are in terms of the geography and demographics you require. For instance, if you were to purchase a farm, you need to work with a realtor that is very different from one that only works with apartments in major cities, as your requirements will be very different. If, however, your interests lie in historic or listed buildings, you will need a very different type of realtor.

If you want to buy a property, do not work with the realtor whom the seller has employed. This is because that realtor would be legally obligated to tell their other client your highest budget and other information that could damage your negotiation position. Similarly, if you want to sell, you also need a different realtor. You need a professional that represents you and only you. To start your search, ask people you know whether they have any recommendations. Alternatively, contact the NAR (National Association of Realtors) to find a realtor. Finding a NAR realtor means that you are guaranteed to be represented ethically and professionally. Don’t choose the first and only realtor you speak to, however, but look around at a few different ones first. Make sure they have a great understanding of your needs, so they an start making suggestions too. These conversations can help you determine just how much a realtor knows about a specific neighborhood, house prices and so on. If you want to sell a property, you must find out how well the realtor has performed in the past. Do they usually sell under, on or over the original asking price?

As you can see, with a bit of forward thinking, you should be able to find the right realtor for your needs. It is their goal to ensure you are able to find the home you are looking for. Make sure, therefore, you pick someone that you can trust in that job.