Real Estate Investing for Beginners and Experienced Investors

Making money in Real Estate requires expertise. The Real Estate market is dynamic, what worked before might not work now and vice versa.
Knowing when and where to invest requires entrepreneurial sense and in dept knowledge of the local market. None of the Real Estate courses will teach you all of that.

Take this very simple entrepreneurial quiz to make sure you are well suited for real estate investing career.

1. Am I an optimist and a risk taker entrepreneur?

2. Do I have the self-starter willpower to get this thing going and the discipline to keep it on track?

3. Do I work hard?

4. Am I a good problem solver?

5. Am I well organized?

6. Do I have the mental and physical stamina to work long hours?

7. Am I willing to work weekends and evenings–the times when most home sellers will be available?

8. Do I have enough savings to finance this business myself (fixer
upper expenses, down payments etc.) and to pay all my bills for at
least six months?

9. Will my family be supportive of my entrepreneurial efforts?

10. Do I have the basic skills required to start and successfully run my real estate investing business, or do I have access to a mentor who can help me through those critical early stages?

If you answered yes to more than half of the questions, consider
yourself a good candidate for a real estate investing career. If you answered no to five or more questions, don’t despair. You may simply need to change your approach to work, your mind-set, and your way of managing tasks, challenges, and problems. There are always experienced mentors, colleagues, and real estate investing courses to turn to for education on the fine points of running your real estate investing business; you can even learn a lot for free from the internet.

Just as a builder won’t begin construction without a blueprint, eager real estate investors shouldn’t rush into new ventures without a plan.

Ask yourself these four questions:

1. What service will you be providing and what needs will it fill?

2. Who are the potential customers for your service, and why will they sell their property to you?

3. How will you reach your potential sellers?

4. Where will you get the financial resources to start your real estate investing business?

These four core components are critical to your business success.

WE ALL HAVE DIFFERING ABILITIES

For example some real estate investors suggest knocking on doors asking if a house is for sale, talk to owners etc. This technique may suit some investors, but others won’t like getting at somebody’s door without an appointment. Also knocking on doors won’t work well in all areas. I would do that in a homogeneous Midwest City if I can present myself well, express myself in good English and give people good vibes.
On the other hand, if I look strange, can’t express myself to
strangers, and make people feel creepy that wouldn’t be a good
approach. And I certainly wouldn’t do that in NYC at the risk of even being shot in some neighborhoods or worst.

REAL ESTATE MARKETS CHANGE

About a year ago the NY Times had an article named “The two Real
Markets”, published, and its central thesis was “there was one market
till the late 70’s in the USA”, where prices and appreciation were
uniform throughout the country. After that, the bi-coastal markets
soared in value while most of the Midwest continued its normal course,
resulting in a vast gulf in prices.

REAL ESTATE MARKETS DIFFER

So in an area where it take months to sell something close to
market, one can make offers to close in days at a greatly reduced
price, and someone going through a job loss, divorce, relocation has no choice. But what if you’re in a hot market where a house is sold over asking price in days? Can you buy it at 30% below market? The savvy investors make money in the hot markets too, but use different techniques. They may buy a property at 10% below market in a good location offering quick closing, rent it out for a year and then sell it at market value when the market appreciates 20% or more and make a good profit.

For the successful people learning is a never ending lifetime journey.

Copyright © D. S. Peter is a successful real estate investor for over 14 years.

This article can be published by anyone as long as the reference box remains intact and all links are kept live.

Posted in Uncategorized | Comments Off on Real Estate Investing for Beginners and Experienced Investors

Luxury Real Estate Marketing – Make More Money Faster by Showing Your True Colors

Personal branding for luxury real estate marketing professionals is all about consistently showing your true colors to your ideal target market. By clearly articulating your true colors, that is, who you are and what you stand for, through your brand identity, you will accelerate the pace of attracting more ideal clients. The more matches you make the more money you make. It is that simple!

Your ideal clients are looking for you just as much as you are looking for them! But, how will they recognize you if your website and your collateral material look the same as many others? Do your colors simply blend in when you need to blend out! If so, it is time for you to do the personal branding “two-step”

Step One
The first step in accelerating the matchmaking process between you and your ideal clients is to identity your own true colors for yourself. You may know yourself well, implicitly. But, you are invisible to your ideal clients unless you express yourself explicitly. Most luxury real estate marketing professionals have a vague idea of their own unique promise of value. This represents a tremendous competitive advantage for those who not only are certain of themselves but who also can express their true colors clearly to others.

Step Two
The second step is defining, with crystal clarity, exactly who your ideal clients are? This step is extremely important. You need to know what kind of people you like to work from a personality standpoint and also a business perspective, i.e., how they behave in the process of buying or selling luxury real estate. You also need to understand their needs, their biggest challenges and what is most pressing on their minds.

Once you have done the personal branding two step process, you need to express your authentic brand identity. This includes communicating your marketing message in such a way that they quickly grasp that you represent the answers to their prayers. Show your true colors to your ideal clients often and your will not only experience more matches, but you will also make more money, faster.

Posted in Uncategorized | Comments Off on Luxury Real Estate Marketing – Make More Money Faster by Showing Your True Colors

Going Neutral on Miami Real Estate Investing

Well going back to the topic, we should keep in mind that there are emotions associated with color our senses are heightened and we react to certain hues and certain feelings come out with certain colors. That also applies on analyzing real estate. Unfortunately, we cannot generalize that red will make you angry, blue will sooth you and yellow will make you indecisive. It is also known that the psychology of color is a lot more complicated than that and different colors affect different people in different and unpredictable ways. Basically the truth about it is that Miami real estate is something that people should really consider and analyze as well.

Judging on what the value of the colors about the real estate expression, you need to be at least knowledgeable about the analysis of it. I’m not going to go into details about the colors that were finally chosen, but the whole point of this is that as a Miami real estate seller, you have the ability to control certain aspects of how people will feel when they walk into your home. There are actually some important analyses on it because most of the time the general thought on it is that Miami real estate value everything that can be related to the market. Although going at it with a general knowledge can always give you the basic steps on it.

Other known things about real estate can always be known about progress in it. Keeping colors in the off-whites and light beige color scheme is not only the best way to feature elements within a property, but the best way for people to be unbiased when viewing your Miami real estate. When you are competing against so many other properties for sale, wouldn’t it make sense for you to try to make that first visit as pleasant as possible, without instilling feelings that are out of your control? That’s the reason for neutral in the Miami real estate.

Posted in Uncategorized | Comments Off on Going Neutral on Miami Real Estate Investing

Net Leased Real Estate As an Alternative Investment

On Wall Street there is a renewed interest and enthusiasm for conservative investing. One asset class that is getting noticed is Net Leased Real Estate.

Net leased real estate can be everything from buying a Walgreen Drug Store to one of the many dollar stores that have proliferated in the past few years such as Family Dollar and Dollar General. Other typical property types offered are automotive service and parts suppliers such as a building leased to Bridgestone/Firestone or an Advance Auto. Also worth noting are some highly sought after FedEx Ground distribution properties or bank branches.

These properties are usually built on contract by a developer for the user/tenant with the tenant signing a long term lease, 10 to 25 years. Because the developer has committed to building several locations for the user/tenant he offers the assets for sale to the investing public. The investor buys the real estate fee simple, i.e. the investor is not buying a stock but the building along with the lease.

Most of the leases are triple net or double net. Triple Net is a term that refers to the tenant paying all costs of the lease such as taxes, insurance and common area maintenance (CAM) and in many cases responsibility for roof and parking lot replacement along with integrity of the structure. Double Net has the owner/landlord ultimately responsible for the roof, structure and parking lot replacement. The term single Net can have varying meanings and a close reading of the lease in all cases will determine who is responsible for what.

Who Should Purchase Net Leased Real Estate?

The investor that does not wish to purchase shares in a real estate fund such as a stock in a REIT or a TIC, is a candidate for fee simple owned net-leased property. The most often mentioned drawback to fee simple real estate investing is the illiquidity factor. For this reason, net-leased investment real estate should be considered only for the “Qualified Purchasers”, those with at least $5M to invest or the “Accredited Investors”, those with $1M of net-worth or income greater than $200,000. Many professionals form partnerships to purchase such assets and meet the above criteria and spread risk.

How are Net Leased Properties Valued?

Investment real estate values are expressed in terms of Capitalization Rates commonly referred to as “Cap Rates”. By definition, a Capitalization Rate is “any divisor (usually expressed as a percentage) used to convert anticipated economic benefits of a single period into value.” Many times, this divisor is computed by accumulating differentials of risk associated with the stream of economic benefits being analyzed. Generally speaking, with respect to the economic benefit stream of a real estate investment, a pretax cap rate is the Net Operating Income (NOI, net income less all expenses before debt service), divided by the purchase price. Or conversely, the NOI divided by the cap rate will be the purchase or selling price.

For example:
NOI = $100,000; Purchase Price = $1,000,000; Cap rate is 10%
NOI = $100,000; Cap Rate 9% (.09); Purchase Price = $1,111,111
NOI = $100,000; Cap Rate 11% (.11); Purchase Price = $909,090

How is a Cap Rate determined? Cap rates, the divisor, associated with a real estate investment are a measure of several determining factors:

a. the credit rating of the tenant;
b. terms of the lease such as triple-, double- or single-net, length of the lease tenure, increases in rent during initial term;
c. cost of financing;
d. location;
e. age and condition of property upon purchase; and
f. long-term viability of location and building.

A property with strong measures of the above will trade (sell) for a low relative cap rate reflecting the strength of the overall investment, conversely, the higher the cap rate the greater the risk.

The good news at this time is that cap rates for all offerings are rising making it more affordable for those looking to make a purchase in the near future. Financing a net leased property with a credit tenant is surprisingly easy for qualified individuals or partners.

Ned Coyle, CCIM, is an Investment Specialist with concentrated emphasis in the practice of representing buyers of single tenant, net leased properties. These assets are located throughout the U.S. He has three decades of commercial real estate experience and has extensive understanding of valuation analysis and enhancement and has worked on behalf of local, regional and national corporations and banks as well as high net worth individuals and REIT’s.

Posted in Uncategorized | Comments Off on Net Leased Real Estate As an Alternative Investment