Great Alternative Ideas in Real Estate Investing

Investing is a difficult subject and it requires experience to judge the pros and cons of the topic for making a viable decision. The field is suitable for the people who are already involved in the work for a long time and hence, real estate investing is a critical decision, which requires attention on many aspects of the matter. It is acquiring responsibility of looking after the property once it is purchased. People make investments on properties on many grounds, which can be for the earning from rental of the property, reselling of the property for optimum gain on the investment and so on. It is concluded that the role of investing in real estate should be seen as an effort to gain several benefits, which you should understand. Many investors use the platform as a medium to save on tax, which is achieved by the property owner as tax deduction benefits.

However, you need to consider certain important factors before you decide to buy a property. There are certain basics in reaching a profitable decision whether you are aiming to earn through rental or from resale of the property. Neighborhood is a significant aspect for the favorable status of the property. If you find the neighborhood conducive to good living, you can get desired profits from the investment on the property. You have to choose the property by keeping the specific factors in mind so that you can finally make profits from the real estate investment. It requires physical effort on your part and you have to visit several properties to find the right one so that you can expect positive results in future and can also avoid disappointments on the neighborhood ground. The entire activity requires patience, which is the key of success in the real estate investing.

The fresher in this line should take up the task by doing relevant market research. If you do not give appropriate importance to the task of market research, you may end in losing money in the deal. Many citizens prefer the real estate investment for earning profits on the long run through the rental business. It is true that the specific prospect through rental income is a potential side of the business, but you should be extremely cautious about the environment of the property so that you get suitable clients for the rental business. Choice of tenants is also an incriminating task, which should also be carefully managed. It can be a great alternative for making profit from the real estate investing. Alternatively, you can consult the real estate book for more information to achieve success in the matter.

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The Need For Capital in Real Estate Investing

Many people would like to get started in real estate investing, but the one thing that holds back many potential investors is lack of capital. After all, you need a great deal of cash to purchase a property, and with most mortgages you are expected to put down about 20% of the total purchase price. So is it true that you need money to make money? Well, when it comes to our experience in real estate investing, this old saying is unfortunately true most of the time.

If you read any number of books on the subject, they will probably assume one of two things about your financial situation. First of all, the author of the real estate book may simply assume that you have a large bank account and only need to learn the mechanics of purchasing a property, being a good landlord, selling for profit, etc. The other assumption is that you are broke but want to get started in real estate using no money down scenarios. Unfortunately, this way of purchasing properties, made popular in the 1980s and 90s by infomercial gurus, is unrealistic because it is extremely difficult to find sellers desperate enough to sell for no money down and pay you cash at closing.

So what should you do if you don’t have a huge five figure or six-figure balance in the bank and don’t want to spend all of your time looking for desperate sellers and dilapidated properties? Unfortunately, you’ll have to follow some of the time-tested principles of creating wealth: namely patience and vision for the long-term. It may be as simple as starting a savings plan (ideally an accelerated one) in order to have enough money for the down payment.

You may simply need to adjust your spending and increase your income, though we realize both of these recommendations are usually easier said than done. Still, you can’t expect to do significant investing in real estate (or perhaps any purchases of property at all) without having your financial house in order. If you’re simply not ready at this time, you may have to wait until raising the capital is more realistic.

There are also lower cost, more passive forms of investing in real estate. These include real estate investment trusts, which in its most common form simply means that you would buy stock in a company which owns and manages various properties. In order to spread your risk and own a piece of a number of companies, you can invest in mutual funds specializing in property investing.

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Selling Your Real Estate Book Of Business

When most people first become real estate agents they are probably not thinking about how they are going to get out of the business. They are thinking about how much money they are going to make once they get started and not how much they are going to make when it is time to get out. However, if you are not thinking about where you are going, will you ever get there? Probably not. You will most likely wander this way and that and then when it comes time, you will realize that because you did not plan ahead, you don’t have a plan for making your exit.

Regardless of where you are at right now in your real estate career, whether you are in your first year or a 20 year veteran, now is the time to plan your exit strategy. How many people do you know that have been able to retire from real estate and actually sell their business for any substantial amount of money? I would guess very few, if any. Why is that? A successful real estate professional should be able to sell their list of clients and business just like any other professional.

Anyone that has been in this business for at least 3 years should have a list of clients that they have worked with. This is a salable asset. However, there is no guarantee that your clients are going to be willing to work with whoever it is that buys your business. So what you will most likely do is sell your list of clients for a minimal amount of money or someone will give you a referral fee for anyone that does decide to do business with them. That is not an exit strategy.

Now, what if instead of just being able to show them a list of every client that you ever had, you could also show them how you got those clients? What if you could show them your “book of business”? What if you could show them how much money you made each year and exactly how you made it?

Now you would have something to sell. Now you would have something worth more than a 20% referral fee.

Your book of business should include your list of clients, your marketing strategies and materials, the results from those ads and therefore should show how your success can be duplicated. The key to creating your book of business is tracking everything you do.

One of the best ways to do this is with ad tracking technology like a call capture hotline. This is one of the hidden benefits of these systems that are generally just used for lead generation. With a call capture hotline that also includes ad tracking you can easily track all of your ads that you run and the responses that they elicited. The system will capture each caller that comes in, record their name, address and phone number, follow them through your system, tell you which extension they came to (and therefore the ad that elicited the response), and many times record whether or not they left a message or asked to speak to you.

This is powerful stuff. Now you can have reports that show how many leads each of your successful ads generated, how many of those leads turned into clients, and the name and phone number of every person that responded to those ads. Combine that with the actual marketing materials you used and your list of clients and now you have something.

You have your book of business. This can be duplicated. This is a salable asset. This is an exit strategy.

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The Best Real Estate Books For Rental Property Investment

There are lots of lists of best real estate books or rental property investment books. If you do a web search you often find a guru interested in selling you an expensive real course. If you search for ways to invest in rental property you often find yourself on a “squeeze page” where you feel compelled to “buy now” or you will “lose out” on millions of dollars in real estate riches.

Unfortunately, these types of sales pages do not really give you a full picture of what you are buying and often mislead people into paying a very high price for something that they don’t need. You don’t need to spend thousands of dollars to become an expert in rental property investing. Buying real estate books is a much more cost effective way of increasing your knowledge.

Investing in rental property takes a lot of different areas of expertise. You need to become good at budgeting, negotiating, marketing, loans, contracting and home improvements, legal issues, rental property management, etc.

So, where do you start? I have a few recommendations to help you find the best real estate books:

Buy any book by John T. Reed. Reed has written a library of books on real estate investing. He covers just about every topic in real estate that you can imagine. His books on buying 20% below market value are excellent. You can find some used Reed books at Amazon but he only sells through his own website. His books are all reasonably priced and you won’t go wrong buying any of them. Reed pulls no punches when discussing the pro’s and con’s of real estate investing. He also has some choice reviews of so-called “guru’s”.
“Real Estate Loop-Holes” by Diane Kennedy is an excellent short book about some the tax aspects you should be aware of when investing in rental property. You can learn about 1031 property exchanges so that you can sell your property without paying capital gains taxes.
“Means Residential Repair and Remodeling Costs” is the bible of home repair estimating. Before you buy any rental property, you really need to know how much it will cost to update the property. Probably the biggest mistake new investors make when starting rental property investment is to under-estimate the costs to fix the property up.

There is one gem of a real estate book that can transform your ideas about real estate investing. Priced under $30 it can provide you with a strategy that will change the way you think about rental property investment forever.

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What to Look for In a Real Estate Book

Are you interested in learning more about how you can make money with the real estate market? If you are, you are advised to look into buying a real estate book, particularly one that has a focus on real estate investing. In fact, it may even be worth your while to invest in a number of real estate investing book, as they can provide you great insight in the world of real estate investing.

When it comes time to buy a real estate book, you are advised not to just pick any ole book off of the shelf. The popularity of making money with real estate has increased over the past few years. That is what has led to an increase in the number of resource guides, including real estate books, available for purchase. Of course, any helpful real estate book is better than no real estate book at all, but you may want to take the time to thoroughly examine each real estate book that you are interested in purchasing before actually making your purchase. This will help to ensure that you choose a real estate book that can actually offer you assistance or answer any questions that you may have.

One of the most commonly asked questions, concerning real estate investing, is exactly how can money be made. You will want to make sure that you purchase a real estate book that answers that question. If this is your first time trying to make money with the real estate market, you may be unsure exactly how the process works. That is why it is important that you find a real estate book that outlines everything for you in print. Although you may want to automatically jump in with the advanced information, you are advised against doing so. For the best chance of success, especially if you are beginner, you are advised to start with a simple real estate book and then work your way up to more advanced investing books.

It is also advised that you try and find real estate books that give you tips on how to be a successful real estate investor. These tips may be a list of dos and don’ts. It is not uncommon for many just breaking into the real estate investing industry to make a few costly mistakes, mistakes that are quite common. Familiarizing yourself with some of the dos and don’ts of real estate investing is the perfect way to up your chances of seeing success, even right away. Research is what can prevent your from making common, yet costly mistakes.

If you are planning on buying your real estate book from one of your local book stores, you are advised to flip through each book and examine the contents, to ensure that the information inside is what you were looking for. If you are interested in buying your real estate book from an online retailer, you will want to try and find any online reviews, if possible. Examining a real estate book, whether it is done so in person or online, will only take a few minutes of your time, put choosing the perfect book that can actually be used as a guide for years to come, is something that is immeasurable.

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