By Jeffrey Hauser Platinum Quality Author
It was over twenty years ago that I attended a seminar presented by noted speaker Robert Allen. He had written a book called, “Nothing Down,” that explained how you could amass a fortune in real estate with virtually no money. I joined about fifty other wannabe millionaires in a motel meeting room as he described the mystical world of real estate investing. The syllabus outlined the basic steps of finding properties that were at, or below, value, making low-ball offers and obtaining 100% mortgages. Then one would simply rent the property for a sum large enough to cover the payment and move on to the next property to repeat the process, Eventually, you might have millions of dollars worth of real estate increasing in value every year and costing you nothing. You even got to write off the maintenance fees and other property improvements, along with the mortgage interest, he stated gleefully.
Somewhere along the line, I didn’t realize I would be paying taxes on the rent as income, but that’s a minor point. In addition, unless you had great credit and a steady job, you might have a problem finding a lender. And you most likely needed a real estate agent to help you find the qualifying property at the right price and in the right location. You also had to have enough extra savings to cover the closing costs, but I’m sure all this was spelled out in the seminar. It just wasn’t the primary focus, I surmise. Instead, we were treated to a wonderful pep rally full of cheers and applause as Mr. Allen rolled out the program and told us we could, should, and probably would, all be living the good life in a few, short years.
I left feeling happy, optimistic, and ready to seize that first piece of real estate. We had very little savings and therefore, had to be realistic in our beginning purchase. After excluding all the available houses that would have cost too much to close, we found a small condo in a decent area with a reasonable asking price. It was in fair shape and needed the basic repainting and window treatments. We got it a tad below the asking price and did the math. We could just about break even on the rent versus the mortgage payment. After the closing, we discovered our math was faulty. We had forgotten the pesky taxes and insurance, but, what the heck? We were on our way to riches beyond our imagination.
The weekend after the deal was consummated, we got busy repainting and putting up some cheap mini-blinds. After cleaning the place and trimming the minimal landscaping around the front patio, we were ready. We placed an ad in the paper and waited for the crowds to rush over to rent the condo. And waited and waited. We had a few couples through and, after, four weeks and a few hundred dollars worth of ads later, we found a renter. We used the basic agreement recommended in the seminar and secured a deposit. They lasted one year and we had to repaint once again because of the mess they left behind.
The next renter was there four months before we discovered they had large dogs, which was a direct violation of the contract. It took two months to get them out and, by then, the dogs had destroyed the carpet. The whole unit had to be recarpeted at a considerable cost. The next couple left after six months and stiffed us for the final payment, leaving in the dark one night. Another renter stole our toilet. That’s right, for some unknown reason, they actually stole the downstairs toilet! Vandalism, lost rent and other absurd behavior continued for five years. During that period, we had to raise the rent to cover the escalating insurance and tax rates. We could never recoup the cost of repainting, carpeting, and replacing various appliances and fixtures.
We didn’t have the money or inclination to obtain any other rental properties as this loser property sapped most of our time and energy. We watched the comps in the area and the price of the condos hadn’t increased in value a single dime over the course of five years. Mercifully, we got a letter from the city one day, explaining they were taking the entire complex by eminent domain to construct a freeway. We happily got back our original investment (without any profit, mind you) and left the world of investing behind us forever.
My advice to would-be investors is to have realistic expectations. Not everyone makes money in real estate. Do your homework, make sure you have deep pockets, and consider how much time, effort, and savings you’ll be using up.
And, Mr. Allen, if you’re reading this article, you are a terrific salesman and you taught me a valuable lesson. Albeit not the one you probably described in your book.
Jeffrey Hauser’s latest book is, "Inside the Yellow Pages,” which can be viewed at http://www.poweradbook.com
He was a sales consultant for the Bell System Yellow Pages for nearly 25 years. He graduated from Pratt Institute with a BFA in Advertising and has a Master's Degree in teaching. He had his own advertising agency in Scottsdale, Arizona and ran a consulting and design firm, ABC Advertising. Currently, he is the Marketing Director for thenurseschoice.com, a Health Information and Doctor Referral site.
Article Source: http://EzineArticles.com/?expert=Jeffrey_Hauser
Saturday, May 19, 2007
Wednesday, April 25, 2007
Avoid the SCAMS!!
Top Seven Tips For Avoiding Real Estate Investment Scams
By Eric Bramlett Platinum Quality Author
Every industry has its scam artists, and real estate is no exception. While most of the professionals who work in real estate are ethical and honest, there are people in the industry who want to take your money and run. Worse, there are scam artists who use real estate as a cover. These fraudsters may know nothing about real estate but simply use properties to extract money from victims. Sadly, properties mean large amounts of cash and this can attract criminals. You don’t have to be a victim, though. Whether you are investing in real estate or buying your own home, there are a few things you can do to stay safe:
1) Get it in writing.
The simplest and most effective way to stay safe is to assume that nothing is concrete until it is in writing and signed. Any verbal promised made simply does not count unless it is in a legally binding contract, so never assume anything until you have a contract in hand. Never assume that someone will follow through on a promise of any kind unless there is a viable contract.
2) Get professional advice.
An experienced real estate attorney should be looking at any property contracts you sign. If you are interested in investing, join a real estate club so that you can get advice and help from professional investors. If you are buying a home, get the help and input of a professional assessor and inspector. Interested in learning about real estate investing? Make sure that your instructor is an experienced and qualified investor themselves. Aim to work with the best professionals you can find. Whether you need to find the value of a home or the loopholes in a contract, turn to the appropriate professionals. They will help you uncover shady deals.
3) Keep abreast of common real estate schemes.
Thank goodness real estate scam artists (like other fraudsters) are not too original. In many cases, criminals will use the same scams again and again. If you are buying a home, refinancing, selling, or investing, find out from the media and from the IRS about common scams. That way, you can watch out for red flags.
4) Deal only with professionals.
Make sure that anyone you are dealing with – from a real estate agent to a real estate attorney – has the right qualifications for their job. If you are dealing with a buyer, make sure that they are honest about their employment and credit history. Scam artists will often invent elaborate backgrounds in order to gain your trust. If you detect the lie, you can detect the fraudster, so do your research.
5) Ask lots of questions.
Be willing to trust yourself to walk away if an offer is too good to be true or if your questions are not answered to your complete satisfaction. Any real estate deal you make should have a benefit for you and a benefit for the other party. If the deal seems to favor you, find out what the other party is getting.
6) Keep an eye out on your credit scores and accounts.
In many cases, real estate fraud ends with identity theft. Fraudsters may take your property under false pretenses or use your personal information to open accounts in your name. You are entitled to one free credit report per year from credit bureaus. This shows you how much you officially owe and which accounts you have open. Keeping tabs on your finances ensures that you don’t become a victim.
7) Don’t pay more than you can afford for real estate.
If you are buying, don’t pay more than you have to. Fraudsters will often try to have you spend too much or sell for too little so that they can pocket the difference. A classic scam in real estate involves a con artist with charm or an urgency encouraging you to sell your home for nothing or encouraging buying a property for far more than it is worth. Always know the value of real estate you are dealing with and budget accordingly.
These simple tips can prove helpful when doing business in real estate. These basic tips cover most types of real estate fraud and help you avoid the real estate scams that are out there. Good business common sense can help you stay safe.
Eric Bramlett currently manages his Austin Realtor website, his Tulsa OK Real Estate company’s website, & his Austin Apartments Guide.
Article Source: http://EzineArticles.com/?expert=Eric_Bramlett
By Eric Bramlett Platinum Quality Author
Every industry has its scam artists, and real estate is no exception. While most of the professionals who work in real estate are ethical and honest, there are people in the industry who want to take your money and run. Worse, there are scam artists who use real estate as a cover. These fraudsters may know nothing about real estate but simply use properties to extract money from victims. Sadly, properties mean large amounts of cash and this can attract criminals. You don’t have to be a victim, though. Whether you are investing in real estate or buying your own home, there are a few things you can do to stay safe:
1) Get it in writing.
The simplest and most effective way to stay safe is to assume that nothing is concrete until it is in writing and signed. Any verbal promised made simply does not count unless it is in a legally binding contract, so never assume anything until you have a contract in hand. Never assume that someone will follow through on a promise of any kind unless there is a viable contract.
2) Get professional advice.
An experienced real estate attorney should be looking at any property contracts you sign. If you are interested in investing, join a real estate club so that you can get advice and help from professional investors. If you are buying a home, get the help and input of a professional assessor and inspector. Interested in learning about real estate investing? Make sure that your instructor is an experienced and qualified investor themselves. Aim to work with the best professionals you can find. Whether you need to find the value of a home or the loopholes in a contract, turn to the appropriate professionals. They will help you uncover shady deals.
3) Keep abreast of common real estate schemes.
Thank goodness real estate scam artists (like other fraudsters) are not too original. In many cases, criminals will use the same scams again and again. If you are buying a home, refinancing, selling, or investing, find out from the media and from the IRS about common scams. That way, you can watch out for red flags.
4) Deal only with professionals.
Make sure that anyone you are dealing with – from a real estate agent to a real estate attorney – has the right qualifications for their job. If you are dealing with a buyer, make sure that they are honest about their employment and credit history. Scam artists will often invent elaborate backgrounds in order to gain your trust. If you detect the lie, you can detect the fraudster, so do your research.
5) Ask lots of questions.
Be willing to trust yourself to walk away if an offer is too good to be true or if your questions are not answered to your complete satisfaction. Any real estate deal you make should have a benefit for you and a benefit for the other party. If the deal seems to favor you, find out what the other party is getting.
6) Keep an eye out on your credit scores and accounts.
In many cases, real estate fraud ends with identity theft. Fraudsters may take your property under false pretenses or use your personal information to open accounts in your name. You are entitled to one free credit report per year from credit bureaus. This shows you how much you officially owe and which accounts you have open. Keeping tabs on your finances ensures that you don’t become a victim.
7) Don’t pay more than you can afford for real estate.
If you are buying, don’t pay more than you have to. Fraudsters will often try to have you spend too much or sell for too little so that they can pocket the difference. A classic scam in real estate involves a con artist with charm or an urgency encouraging you to sell your home for nothing or encouraging buying a property for far more than it is worth. Always know the value of real estate you are dealing with and budget accordingly.
These simple tips can prove helpful when doing business in real estate. These basic tips cover most types of real estate fraud and help you avoid the real estate scams that are out there. Good business common sense can help you stay safe.
Eric Bramlett currently manages his Austin Realtor website, his Tulsa OK Real Estate company’s website, & his Austin Apartments Guide.
Article Source: http://EzineArticles.com/?expert=Eric_Bramlett
Do Your Research
Property Investment Advice
By Moutushi Banerjee
As we are looking for ways to secure our financial future instead of relying on stocks and shares or the government to secure us during old age, property investment has gradually been accepted as the best way.
Investments made in stocks or funds often fail to perform whereas rarely has careful investments into property left you a loser. No wonder why more and more people are interested in building a profitable property portfolio.
Property investors generally follow the following rules when looking for property to resell or rent out for profit.
Talk to agents and never forget to do your own research. Get an idea of the rent you possibly will earn from the property. Buy to let mortgages are usually based on the rent accounting for 125-130% of the monthly mortgage payment, so it pays to make sure of your figures.
Never commit your full personal wealth to invest. Instead look for loans, mortgages, and credits to invest in that property. Keep your wealth with you.
If you have an area whose future is expected to be bright, look for an area, which is already potential, the property already profitable. Better to invest in property, which is already certain to yield results rather than speculate and invest in yet to be potential ones.
Do not get emotionally attached with the property. Your investment is business for you.
Let property unfurnished. That will keep you free to fixing the furnished items. Only pay for property upkeep and nothing else.
If you plan to renovate or refurbish, do it only if you can sell the property for profit. Unless you know people in the trade who can help you with it, consider rental to make money.
Learn all you can from the published documents, books, and magazines and gather the knowledge. You can profit from the wisdom of the property investors and real estate millionaires who publish the books.
Get all information hands on. Visit letting agents; look at property prices, rentals, and the area. Invest only when you are certain that the property of your choice and the location can earn you profits.
Do your own homework, keep track of the changes and do not be swayed by others who say your investment might not work. Dreams come true, but you need to take the calculated risk. Profits are hard to come, but never unachievable. Keep yourself away from negativity of others.
With your financials always undervalue your returns and overvalue your investment. Your practical and careful budgeting will be rewarded.
http://www.midasestates.com/property_investment_advice.php
Article Source: http://EzineArticles.com/?expert=Moutushi_Banerjee
By Moutushi Banerjee
As we are looking for ways to secure our financial future instead of relying on stocks and shares or the government to secure us during old age, property investment has gradually been accepted as the best way.
Investments made in stocks or funds often fail to perform whereas rarely has careful investments into property left you a loser. No wonder why more and more people are interested in building a profitable property portfolio.
Property investors generally follow the following rules when looking for property to resell or rent out for profit.
Talk to agents and never forget to do your own research. Get an idea of the rent you possibly will earn from the property. Buy to let mortgages are usually based on the rent accounting for 125-130% of the monthly mortgage payment, so it pays to make sure of your figures.
Never commit your full personal wealth to invest. Instead look for loans, mortgages, and credits to invest in that property. Keep your wealth with you.
If you have an area whose future is expected to be bright, look for an area, which is already potential, the property already profitable. Better to invest in property, which is already certain to yield results rather than speculate and invest in yet to be potential ones.
Do not get emotionally attached with the property. Your investment is business for you.
Let property unfurnished. That will keep you free to fixing the furnished items. Only pay for property upkeep and nothing else.
If you plan to renovate or refurbish, do it only if you can sell the property for profit. Unless you know people in the trade who can help you with it, consider rental to make money.
Learn all you can from the published documents, books, and magazines and gather the knowledge. You can profit from the wisdom of the property investors and real estate millionaires who publish the books.
Get all information hands on. Visit letting agents; look at property prices, rentals, and the area. Invest only when you are certain that the property of your choice and the location can earn you profits.
Do your own homework, keep track of the changes and do not be swayed by others who say your investment might not work. Dreams come true, but you need to take the calculated risk. Profits are hard to come, but never unachievable. Keep yourself away from negativity of others.
With your financials always undervalue your returns and overvalue your investment. Your practical and careful budgeting will be rewarded.
http://www.midasestates.com/property_investment_advice.php
Article Source: http://EzineArticles.com/?expert=Moutushi_Banerjee
Saturday, March 10, 2007
Tips for finding the Perfect Rental Property Investment
By Nicky Price
Article Word Count: 475
Word is out: One of the most rewarding and safest forms of investment is in Property Investments. Although no investment out there comes with a 100% guarantee Investing in Property is considered one of the safest due to the fact that in almost all cases property appreciates in value. Provided you keep up to date with any repairs and appearance issues that may arise you are well on your way to having future financial security. This could also be attained in a few short years if you do your research and invest in that perfect property that will make the money you need.
Finding the Perfect Property
Before you go chasing that too-good-to-be-true bargain do your research. You will find that on a monthly basis the Real estate market rises and falls all around the country. You need to continually check your local market and see which way it is headed. During your research you will see definite inclines and declines in the Property Market. Therefore before you purchase an Investment Property ascertain whether you are in an area which will still be on the incline in five years time.
Building Inspections
You must always have the property inspected by a qualified builder before you buy. This is very important as the inspectors report may be the difference between you purchasing the property or not. Properties can have many problems that are unseen to the buyers and could cost them much more than they were prepared for in time, money and stress. Some financial institutions insist on a Building Inspectors Report before any approval for a Home Loan is approved. Having the property inspected is a definite safeguard for any buyer.
Know Your Area
You need to be able to trust the people you are renting your property too. This is your property and your future so you need to protect it. Know your area and the people who live in your area. It does not matter if your area is red hot in five years if your renters do mot treat your property with respect so try to buy in and area where you wont attract the wrong kind of renters.
A Final Tip
Try to see if you and find out why the current owner of the property you are interested in is selling. In most cases the reason is to move up in the market or they are just like you in the sense they are eager real estate investor who are trying to turn a profit, but you never know. This tip is just another safeguard for yourself so you do not find yourself having to sell your investment property sooner rather than later
Article Word Count: 475
Word is out: One of the most rewarding and safest forms of investment is in Property Investments. Although no investment out there comes with a 100% guarantee Investing in Property is considered one of the safest due to the fact that in almost all cases property appreciates in value. Provided you keep up to date with any repairs and appearance issues that may arise you are well on your way to having future financial security. This could also be attained in a few short years if you do your research and invest in that perfect property that will make the money you need.
Finding the Perfect Property
Before you go chasing that too-good-to-be-true bargain do your research. You will find that on a monthly basis the Real estate market rises and falls all around the country. You need to continually check your local market and see which way it is headed. During your research you will see definite inclines and declines in the Property Market. Therefore before you purchase an Investment Property ascertain whether you are in an area which will still be on the incline in five years time.
Building Inspections
You must always have the property inspected by a qualified builder before you buy. This is very important as the inspectors report may be the difference between you purchasing the property or not. Properties can have many problems that are unseen to the buyers and could cost them much more than they were prepared for in time, money and stress. Some financial institutions insist on a Building Inspectors Report before any approval for a Home Loan is approved. Having the property inspected is a definite safeguard for any buyer.
Know Your Area
You need to be able to trust the people you are renting your property too. This is your property and your future so you need to protect it. Know your area and the people who live in your area. It does not matter if your area is red hot in five years if your renters do mot treat your property with respect so try to buy in and area where you wont attract the wrong kind of renters.
A Final Tip
Try to see if you and find out why the current owner of the property you are interested in is selling. In most cases the reason is to move up in the market or they are just like you in the sense they are eager real estate investor who are trying to turn a profit, but you never know. This tip is just another safeguard for yourself so you do not find yourself having to sell your investment property sooner rather than later
Buying Your First Rental Property And Becoming A Landlord
By Ki Gray
Article Word Count: 803
When you are buying your first rental property and becoming a landlord, there is lots to learn. How do I find tenants? What should I charge for rent? Should I update the places to get more rent? How do I tell the tenants they are late on rent?
I have read a lot about how you have rule with an iron fist to keep your tenants in line. Our philosophy is much more laid back, and it has worked out amazingly well for us. Every property is different, but this was our experience.
Our first rental investment property was somewhere we would move into ourselves, and in retrospect, that was an aspect more important than I would have guessed. There are many decisions along the way, and being a potential tenant yourself makes those decisions much clearer.
First off, when it comes time to market your place, you are part of the target audience, so it is easy to find the right place to advertise. Just ask yourself... how would we go about looking for a place? We actually mistakenly put costly newspaper ads out initially, bringing in the completely wrong renters who were completely not interested. Once we switched to advertising in places we would look, 90% of the people who came were actually interested, the place would rent faster, and the tenants were happy to be in our place.
That leads to the next reason why buying something you would live in as your first rental property makes the landlord learning process so much easier. The tenants! These will be people that you basically get along with because they like what you like, and if you meet them, they will most likely like you, or they would not be renting it. You will make sense to them, and they will make sense to you. When you are at odds with your tenants, the whole interaction and experience can be painful, so getting along helps tremendously.
Why, you say, should I care if my tenants are happy? Because everything is easier. They will more likely pay rent on time, respect & keep your place in shape, and stay longer. Believe me, there is nothing like a completely wrecked apartment by a short-term tenant. Sure you can charge money for damages, but it will still take time and be a hassle to get it back up to a rent-able state. And dealing the whole time with bitter, angry tenants is no fun either.
How do you make your tenants happy? There are a couple of things we do. One is that we allow tenants some flexibility with painting and decorating. 95% of the time, our tenants actually do wonders with our apartments and leave them with a better style than we could have done ourselves. Many times, we even get good ideas to carry over to the other apartments to make them more marketable, like some basic drapes & mounted wine racks. We even had a tenant call us to ask if she could plant some flowers by her porch. We welcomed it. It was an indication that she felt invested in the place and felt at home. Of course, I am not advising you let someone remodel your kitchens... I am talking small things that are easily undone, but make the tenant feel invested and at home.
Another thing to do to have happy tenants is to give them a sizable re-signing bonus when their leases end. And unless it is painfully needed, do not raise the rent, especially if the tenant is someone who pays on time and is easy to deal with. We offer a $500 re-signing bonus each year with rents at $800. It is almost a free month and about the cost it would be for us to do a make-ready, so it is good for us and them.
Also, we do not rent our places at the maximum. We make them a somewhat good deal so that many people will inquire, and so we have a better chance of a good fit that will be happy and stay long. We also do not overcharge because feeling ripped off is one main reason a tenant will leave.
We also treat our tenants with a lot of respect. We call them every time we enter their units, and if repairs take an extensive amount of time or hassle on their behalf, we give them some rent back. We also maintain the property and do pest control. And we always answer their issues within a day, at least with a phone call.
Becoming a landlord was definitely a learning experience. Everyone has their own style, and even different properties may prescribe a different style. Just be open to handling your rental property business (which is basically your tenants) with respect rather than the stereotypical overbearing attitude.
Ki Gray is a realtor with Escapeso Austin Real Estate and Homes
Article Source: http://EzineArticles.com/?expert=Ki_Gray
Article Word Count: 803
When you are buying your first rental property and becoming a landlord, there is lots to learn. How do I find tenants? What should I charge for rent? Should I update the places to get more rent? How do I tell the tenants they are late on rent?
I have read a lot about how you have rule with an iron fist to keep your tenants in line. Our philosophy is much more laid back, and it has worked out amazingly well for us. Every property is different, but this was our experience.
Our first rental investment property was somewhere we would move into ourselves, and in retrospect, that was an aspect more important than I would have guessed. There are many decisions along the way, and being a potential tenant yourself makes those decisions much clearer.
First off, when it comes time to market your place, you are part of the target audience, so it is easy to find the right place to advertise. Just ask yourself... how would we go about looking for a place? We actually mistakenly put costly newspaper ads out initially, bringing in the completely wrong renters who were completely not interested. Once we switched to advertising in places we would look, 90% of the people who came were actually interested, the place would rent faster, and the tenants were happy to be in our place.
That leads to the next reason why buying something you would live in as your first rental property makes the landlord learning process so much easier. The tenants! These will be people that you basically get along with because they like what you like, and if you meet them, they will most likely like you, or they would not be renting it. You will make sense to them, and they will make sense to you. When you are at odds with your tenants, the whole interaction and experience can be painful, so getting along helps tremendously.
Why, you say, should I care if my tenants are happy? Because everything is easier. They will more likely pay rent on time, respect & keep your place in shape, and stay longer. Believe me, there is nothing like a completely wrecked apartment by a short-term tenant. Sure you can charge money for damages, but it will still take time and be a hassle to get it back up to a rent-able state. And dealing the whole time with bitter, angry tenants is no fun either.
How do you make your tenants happy? There are a couple of things we do. One is that we allow tenants some flexibility with painting and decorating. 95% of the time, our tenants actually do wonders with our apartments and leave them with a better style than we could have done ourselves. Many times, we even get good ideas to carry over to the other apartments to make them more marketable, like some basic drapes & mounted wine racks. We even had a tenant call us to ask if she could plant some flowers by her porch. We welcomed it. It was an indication that she felt invested in the place and felt at home. Of course, I am not advising you let someone remodel your kitchens... I am talking small things that are easily undone, but make the tenant feel invested and at home.
Another thing to do to have happy tenants is to give them a sizable re-signing bonus when their leases end. And unless it is painfully needed, do not raise the rent, especially if the tenant is someone who pays on time and is easy to deal with. We offer a $500 re-signing bonus each year with rents at $800. It is almost a free month and about the cost it would be for us to do a make-ready, so it is good for us and them.
Also, we do not rent our places at the maximum. We make them a somewhat good deal so that many people will inquire, and so we have a better chance of a good fit that will be happy and stay long. We also do not overcharge because feeling ripped off is one main reason a tenant will leave.
We also treat our tenants with a lot of respect. We call them every time we enter their units, and if repairs take an extensive amount of time or hassle on their behalf, we give them some rent back. We also maintain the property and do pest control. And we always answer their issues within a day, at least with a phone call.
Becoming a landlord was definitely a learning experience. Everyone has their own style, and even different properties may prescribe a different style. Just be open to handling your rental property business (which is basically your tenants) with respect rather than the stereotypical overbearing attitude.
Ki Gray is a realtor with Escapeso Austin Real Estate and Homes
Article Source: http://EzineArticles.com/?expert=Ki_Gray
Saturday, February 17, 2007
Investment Property - Should You Buy and Flip?
By Alex Anderson
Article Word Count: 533
I run into all kinds of people whom are less than charitable when they find out I own rental property, and that I also flip houses and mobile homes. I frequently find myself disagreeing with those same people about just what socially responsible real estate investing means. For some strange reason, many people are predisposed to look down on those who engage in such capitalistic endeavors. Often, these are the same people who take advantage one or more of the many government programs that my tax dollars support.
Here’s what I mean when I talk about socially responsible real estate investing.
I am a man of my word, so when I say I’m going to do something, I make every effort to do it. This applies to offers I make on properties, promises I make to tenants, and agreements I make with contractors and service providers. In my mind, there is no more powerful way to engage in socially responsible real estate investing.
Being a landlord and property investor makes me a productive member of my local economic community. I strongly support and add to the tax base, and help provide a healthy living to several Realtors, contractors, and service providers. I also bank locally, and contribute to my local Real Estate Investor club. These are all great ways.
Though “flipping” real estate has become a popular practice, it is also pretty controversial. This is mainly because people have gotten into it without considering the ramifications of their actions and, consequently, engage in some very bad practices. The clumsy flipper can anger both the buyer and the seller—not to mention get themselves into some very awkward and costly situations—by flipping real estate. However, that doesn't mean it can't be done.
Flipping is simply the quick selling of a property that one has just purchased. The sale may take place that very day, or even at that very closing. The idea behind this practice is, if a property appreciates and I'm just going to turn around and resell it at a profit anyway, why wait? Why not buy up a whole bunch of properties, sell them quickly and make a ton of money?
See the allure? It can be done, but it is a tricky business. You cannot be a successful flipper without using some finesse. For instance, many people think they are being hugely clever by working the seller and the buyer against each other. The flipper, who sets himself up as a middleman without the knowledge of either party, actually gets the seller to agree to sell to him, then runs to the buyer for the cash, from which he pays the seller. Using this method, he makes the purchase without even using any of his own cash. Afterward, he simply pockets the difference.
But if he has sold a property to the buyer that isn't actually his, and the seller learns what is going on, there could be trouble. The seller, aware that the flipper is in dire straits, will probably up his price. The seller now knows the buyer is expecting that property. It is even possible that the flipper has sold the property to the buyer and is then turned down by the seller. This puts the flipper in the position of having just sold something he can't deliver.
According to Ken McElroy, author of “The ABCs of Real Estate Investing,” there are, however, companies that flip very successfully. This is because they follow a few simple rules, such as never selling something they haven't actually purchased. On the surface, that sounds like such a basic idea, it is not necessary to mention it. However, you would be surprised if you knew the number of people who try to get away with not following this simple rule.
The companies who flip will resell a property that very day if at all possible, but they don't sell at the very closing where they purchased the property. Instead, thy use mailing lists they have built over time to send out bulletins that they have a property for sale. It can cost hundreds of dollars to get the word out and arrange meetings. It can also require an entire staff to do it quickly enough to make it pay off.
Because of those particular limitations, it is often not lucrative for an individual to attempt flipping properties, although, conceivably, a particularly savvy individual could indeed make it pay off. The question is, is it a good approach for you?
Alex Anderson Helps People Who Are Interested In Getting Started In Real Estate Investing. Visit Her Website To Learn More About How To Start Investing In Real Estate and To See Some Great Investment Properties!
Article Source: http://EzineArticles.com/?expert=Alex_Anderson
www.realestateinvestmentadvice.blogspot.com
Article Word Count: 533
I run into all kinds of people whom are less than charitable when they find out I own rental property, and that I also flip houses and mobile homes. I frequently find myself disagreeing with those same people about just what socially responsible real estate investing means. For some strange reason, many people are predisposed to look down on those who engage in such capitalistic endeavors. Often, these are the same people who take advantage one or more of the many government programs that my tax dollars support.
Here’s what I mean when I talk about socially responsible real estate investing.
I am a man of my word, so when I say I’m going to do something, I make every effort to do it. This applies to offers I make on properties, promises I make to tenants, and agreements I make with contractors and service providers. In my mind, there is no more powerful way to engage in socially responsible real estate investing.
Being a landlord and property investor makes me a productive member of my local economic community. I strongly support and add to the tax base, and help provide a healthy living to several Realtors, contractors, and service providers. I also bank locally, and contribute to my local Real Estate Investor club. These are all great ways.
Though “flipping” real estate has become a popular practice, it is also pretty controversial. This is mainly because people have gotten into it without considering the ramifications of their actions and, consequently, engage in some very bad practices. The clumsy flipper can anger both the buyer and the seller—not to mention get themselves into some very awkward and costly situations—by flipping real estate. However, that doesn't mean it can't be done.
Flipping is simply the quick selling of a property that one has just purchased. The sale may take place that very day, or even at that very closing. The idea behind this practice is, if a property appreciates and I'm just going to turn around and resell it at a profit anyway, why wait? Why not buy up a whole bunch of properties, sell them quickly and make a ton of money?
See the allure? It can be done, but it is a tricky business. You cannot be a successful flipper without using some finesse. For instance, many people think they are being hugely clever by working the seller and the buyer against each other. The flipper, who sets himself up as a middleman without the knowledge of either party, actually gets the seller to agree to sell to him, then runs to the buyer for the cash, from which he pays the seller. Using this method, he makes the purchase without even using any of his own cash. Afterward, he simply pockets the difference.
But if he has sold a property to the buyer that isn't actually his, and the seller learns what is going on, there could be trouble. The seller, aware that the flipper is in dire straits, will probably up his price. The seller now knows the buyer is expecting that property. It is even possible that the flipper has sold the property to the buyer and is then turned down by the seller. This puts the flipper in the position of having just sold something he can't deliver.
According to Ken McElroy, author of “The ABCs of Real Estate Investing,” there are, however, companies that flip very successfully. This is because they follow a few simple rules, such as never selling something they haven't actually purchased. On the surface, that sounds like such a basic idea, it is not necessary to mention it. However, you would be surprised if you knew the number of people who try to get away with not following this simple rule.
The companies who flip will resell a property that very day if at all possible, but they don't sell at the very closing where they purchased the property. Instead, thy use mailing lists they have built over time to send out bulletins that they have a property for sale. It can cost hundreds of dollars to get the word out and arrange meetings. It can also require an entire staff to do it quickly enough to make it pay off.
Because of those particular limitations, it is often not lucrative for an individual to attempt flipping properties, although, conceivably, a particularly savvy individual could indeed make it pay off. The question is, is it a good approach for you?
Alex Anderson Helps People Who Are Interested In Getting Started In Real Estate Investing. Visit Her Website To Learn More About How To Start Investing In Real Estate and To See Some Great Investment Properties!
Article Source: http://EzineArticles.com/?expert=Alex_Anderson
www.realestateinvestmentadvice.blogspot.com
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