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Commercial Real Estate

How to Start Real Estate Investing

Many are turning to real estate investing with the hope establishing a new way to make money. Some invest because they are tired of their current career and have set their sights on becoming a full-time investor and CEO of their own real estate investing company; others just want to supplement their income, perhaps in anticipation of retirement.
Whatever the reason, thousands of people have become real estate investors in the past several years and are achieving their goals. If you want to take advantage of this industry, you should consider getting started today.
Real estate investing success is not guaranteed, but at the same time, becoming an investor is not difficult to do if you develop a plan and stick to it. Obviously, you must decide on how money you’re willing to risk on any investment, what types of properties you want to invest in, what rates of return you desire, is your plan to fix and flip property or are seeking to hold them as rentals, and so on. Moreover, consider carefully whether you will be able to devote the time to it along with handling the added stress.
If all systems are “go” and you are adequately prepared with a reasonable plan to start real estate investing, begin with caution. Do everything in your power to minimize the risk for the first property you purchase. Getting off to a good start is a great way to get your feet wet and helps ensure that your investing career is on track. Don’t expect to make a ton of money on your first investment, but be sure you crunch the numbers before you purchase and are certain you can make a profit.
Along these lines, it is highly recommended that you purchase a good real estate investor software solution to help you crunch the numbers. If you are proficient with spreadsheets, you can develop your own solution, but given the affordability and depth of rental property analysis provided in some investment software solutions, you would be wiser to purchase the software and to invest your time into finding profitable properties.
Becoming an estate investor may be the best move that you ever make because there is money to be made in the real estate industry. But you must determine what type of investor you are going to be, understand what it is you hope to accomplish, consider all the risks, and then act. At the end of the day, real estate investing can indeed become the rewarding experience you desire.…

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Home

Palm Beach Luxury Real Estate as Investment

There are several reasons why people buy real estate and one of it is to find a good investment for their money. For obvious reasons, the return of investment in real property is far more superior than those in stocks or bonds. In short real property investment increase in value and provide good cash flow as well.

If you own a luxury condo and have it rented, for instance, you have a steady stream of income through rental payments which has a potential to exceed your income and allows to get your money’s worth in a shorter period of time, considering that rental income from real property is unaffected by changes in market prices. This means rental payments do not decrease despite downturns in real property prices and this gives real estate investors more control over the risks in their cash flow.

Investment in luxury real property is a sure way to earn profit as the value of it appreciate through the years. In places like Palm Beach where luxury real estate is highly priced and desired, owning a luxury condo or real estate is a potential source of income.

Though prices of real property fluctuates, the improvement and upgrades you make in your property can significantly increase its market value. Hence when you decide to eventually sell it, you can offer it at a better price that you are sure to earn profitably. In addition to this, improvement to appearance and functionality can also drive up the rent to your property.

The money that you earn from your luxury real estate can also you pay for mortgage and the increase in equity will allow you to use it for other purposes and investments. Owning a luxury real property is also a good way to increase your net worth and the value of your investment.

An investment in real property, especially in places like Palm Beach, will allow you to earn money as well as profit and provide you with opportunities to invest and buy some more Beach is an ideal place to find investment in real property. Its good location and accessibility are major factors for the increase demand in real estate business in the area. In addition to this, the place is also one of the major entertainment hub in the state.

Hence if you are planning to buy Palm Beach luxury real estate as investment, you have to find a good priced property which you think has the potential for increase value in the future. To be able to do this, you have to find a credible and experienced real estate broker who can give you information about the market and the availability of investment in real property in the area.…

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Business Contractor

Who Controls the Real Estate Process?

Let’s narrow that definition down a bit by taking a look at the components. Real Estate markets usually segment into commercial, industrial, new home construction, residential resale, leasing, vacation destinations and time share. These broad categories identify specific market segments with each having a unique group of participants. Conceptually, when we talk about the real estate market in the broadest sense, it includes all of these and other uniquely identifiable business models that support and enable the process.
Parallel business models that take part in the process are: Mortgage & Financing, Title and Escrow services and a broad category of additional providers called Ancillary Services. Ancillary Services include: homeowner insurance products, flood insurance, tax certification, home owners warranty (HOW), legal services and documentation, home improvement and repair, painting, heating and air conditioning (HVAC) landscaping, appliances, property and mechanical inspection, municipal utility districts (MUDS), home owners associations, notice to the public – I’m running out of breath. You get the idea. Improved real estate is a complex animal, and there are many participants that comprise the process by which real estate is bought, sold, financed, transferred and ultimately occupied.
In looking for the “who” or “what” that exercises control of the industry; we should consider the role of government regulatory or quasi-governmental entities. Fannie Mae and Freddie Mack were created to stimulate and control the flow of mortgage financing dollars and to provide stability within the mortgage industry. Oops! Ginny Mae guarantees the timely repayment to the investor on loans that it guarantees. These guarantees are provided through Mortgage Backed Securities (MBS) or pools of loans that contain VA and FHA originated mortgages. The Department of Housing and Urban Development (HUD) provides regulatory oversight, and the Treasury provides an occasional bail out. This group of entities is introduced because they have certain powers and influence over technical, legal and procedural aspects of the industry. They do not control the “how” things are done within the process. The private sector determines “how” things are done.
Any control or “ownership” of this market then will exist within the private sector. Identifying the “who” (forgive me Dr. Seuss) can be done intuitively. The components of the broad real estate industry fit more or less into four primary areas. Let’s call them:
1. New Construction
· Commercial
· Industrial
· Single Family Residential
· Multifamily
· Pre-fabricated Structures
2. Resale
· Existing Buildings
· Existing Homes
· Other
3. Mortgage and Financing
· Construction Financing
· Mortgage Financing
· Refinancing
4. Title, Escrow and Ancillary Services
· Title Insurance Companies
· Title Insurance and Escrow Agents
· Legal and Documentation
· Recordation or Registration
· All Ancillary Services
These four categories are industries or business models within the real estate game. The major companies that operate within these categories would have insight and knowledge as to how to connect the dots and to accomplish the transaction. Each of them, in turn, exercises certain control or influence over their part of the process. There are multiple large players in each of these arenas, and they compete aggressively. There exists no such thing as an industry accepted solution that defines “how” the component business models integrate, but there should be. The level of redundancies and inefficiencies keep the process paper bound, disparate and errors are often time consuming to correct. The labor intensity of the process alone makes it more expensive and requires more management. A seamlessly integrated solution can change all that, and as a byproduct can achieve what others cannot – a commoditization of the real estate market.
The terms “transaction coordination,” “transaction facilitation,” and “transaction integration” were coined along with an effort to streamline and to integrate this process. This was an ill fated attempt to gain some level of control over the process. Working to gain an edge, each player offers partial solutions toward an industry standard. These solutions are often tied to their specific software architecture with bridges that invite their customers and agents to participate. They are not comprehensive, do not reach a large enough cross section of the market, and they do not provide an acceptable global solution.
Homebuilders are focused on competing with other home builders; realtors compete with other realtors; mortgage lenders compete with other mortgage lenders and competition is intense between the title and escrow providers. Should one player come up with a solution that improves the process, they would want it to be proprietary. Competitors would be reluctant to adopt it, and would not constitute a solution.
Fannie, Freddie, Ginny, HUD and any governmental entity has a different mission. A concept age visionary will be the one to combine the attributes that provide a more global solution, and in the doing of it, ownership of the thread and commoditization of real estate can be created. The right platform will benefit all participants. The idea is to facilitate the process to the level that its use will be natural, almost viral. By not using it, you are opting out. Soft Sell has the concept, vision, and the knowledge to create this platform.
With the right development partner, this platform and solution can be brought to market in real time. As the real estate and financial markets make a sustained recovery, Soft Sells solution would be in place to provide the structure for revolutionary change. As a side note, Fannie, Freddie and virtually every large bank has a portfolio of short sales and foreclosures that will continue to grow. It will be several years before these are recycled. Soft Sell would be an ideal platform for managing these assets through the process.…

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For Sale by Owner

Foreign Real Estate Investor Activity On The Florida Real Estate Market From June 2011 To June 2012

Foreign real estate investors are certainly making their presence felt on the Florida real estate market as their tremendous boost in sales has accounted for as much as 19 percent of the $58 billion worth of home sales made within the state over the period from June 2011 to June 2012.
According to reports, a total of $10.7 billion was spent by foreign real estate investors who have chosen to engage in the Florida real estate market for all of their investment needs. Most of the transactions were carried out in cash.
Top Locations
Out of the many locations found within the state of Florida, the top locations for most foreign real estate investors include Miami-Dade County where 32 percent of all sales were made, Broward County were 12 percent of all sales were made, and Palm Beach County where 7 percent of all sales were made.
Florida has always been a major tourist destination within the United States. With so many different settings and communities to choose from, there is really no surprise in finding the foreign population growing, especially since the region has been known to have such broad cultural diversity in the first place.
Prime Reasons
Aside from the opportunity to be able to own their very own home within one of the most beautiful states within the United States where the best lifestyles are provided, foreigners have also been eager about the many bargain opportunities that have been available on the Florida real estate market, especially in the case of those whose local currency provides them with the chance to acquire higher value for their money.
Likewise, foreigners coming in from nations that are faced with economic trials tend to seek out stable investment opportunities such as the ones available within Florida which enable them to keep their wealth in a safe place with the possibility to gaining profit over time.
Needless to say, the luxury sector of the market has been gaining a lot of attention as wealthy property buyers from around the world are looking to take advantage of great discounts which are currently being offered on the most illustrious homes and condos available within the region, particularly those within exclusive communities in Miami Beach such as the South of Fifth neighborhood, South Beach, Millionaire’s Row, Bal Harbour, and Sunny Isles Beach.
If you are interested in the different types of options that are currently being offered to foreign real estate investors on the property market, you should make it a point to get in touch with a professional agent that can provide you with complete details on your available options.…

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Real Estate For Sale

Lake Geneva Real Estate Spring 2010 Update

I am often asked about the current Lake Geneva real estate market conditions, in fact I would guess that I have the question asked of me at least once a day by prospective Buyers, Sellers or just about anyone new that I meet when they learn that I’m in real estate.
Having worked in the Lake Geneva real estate market for over 30 years, I feel like I’ve learned many valuable lessons about the market and what makes our market different than many others. In fact there is a saying in our business that there really is no such thing as a “National Real Estate Market” but rather many individual markets that combined together make up the National Market. The point being that how good or bad the market may be doing is determined by many considerations including jobs and job growth, general business strength, foreclosures, the weather and lots of other things. More than any other factor when it comes to real estate is a healthy balance between supply and demand. The total number of all property for sale at any given time is referred to as the inventory.
The number of qualified Buyers actively in the market looking at any given time is referred to as the demand. A high amount of inventory and low demand is obviously not a good thing. It tends to make for more competition when it comes to pricing and can limit the potential for appreciation. A high amount of demand and low inventory can tend to drive up prices and increase appreciation. What caused a lot of problems in many markets was mortgage lending practices that allowed for low or no down payments and little or no documentation of the Buyers ability to be able to afford a mortgage and most importantly pay the money back. The fact is that for a variety of reasons, many loans were made to people that just shouldn’t have been made. The other factor in play was that in many markets there was an unusually high amount of new construction taking place that was being artificially driven by these large number of potential Buyers in the market. When the number of Buyers began to decline as a result of stricter loan qualification guidelines, in some markets the inventory grew out of control.
When it comes to the Lake Geneva market there are a number of things going in our favor that has helped us weather the storm. First, they’re not making any more lakes like Lake Geneva. Second, many people don’t want to drive more than 2 hours from home so the days of going to central or northern Wisconsin for many is not an option. Third, there just aren’t many other options for other areas for people to go to. Many don’t want to fight the traffic nightmare going south and around the lake over to Michigan.
When you factor in the number of families in Chicago and the suburbs who have the financial means the desire to find a getaway home within a couple of hours of home, we are fortunate to have somewhat of a captive audience and as close as one can come to an assurance of Buyers who will just naturally come to the Lake Geneva area to find that ideal concept of the “On Golden Pond” vacation home.
So the answer to the question of “How’s the market” will depend on the time of year and which specific type of property and price range is in question. But the general answer to the question, when it comes to Lake Geneva, is “better than many other markets” and just because Florida or California or Las Vegas is struggling, that doesn’t mean those same factors affecting those markets are applicable here.…

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Business Contractor

What Are the Secrets of Door Knocking in Real Estate Investing?

Door knocking for real estate investors is either an experience akin to a severe sunburn or a primary source of deals. The difference between investors’ sentiments about door knocking is the ones who hate it aren’t doing it properly or at all, and the ones who love it do it regularly. Learning a few basic secrets of this time-honored prospecting technique can be very profitable.
Door knocking is the actual process of going into a targeted neighborhood and one-by-one knocking on each resident’s door. Not only should the neighborhood be targeted for the type and price home you want to purchase, the homeowners can be targeted by finding out beforehand if they are in pre-foreclosure, divorce, bankruptcy or any other situation that would make them motivated sellers.
With a little pre-planning and basic development of a “script” of what to say to each type of targeted homeowner, this method of prospecting can be an investor’s most cost-effective and efficient format. I recommend that the door-knocker be dressed for success. This means no sloppy jeans and casual shirt, but preferably a logoed short with your company name and a neat and tidy appearance. You’ll only have 10 – 20 seconds to get out enough of a tickler sentence to get the seller’s attention so practicing what you will say is very important.
Most successful investors who use this method, will hire door-knockers to pre-screen the perspective sellers for them. The targeted prospects are kept for the investor training the crew, as these are much higher probability prospects. College and mature high school students are viable candidates for this job.
When a homeowner answers the door, the following strategies should be used:
1. Always take at least one step back to give the person answering the door a comfort zone.
2. Make sure you stick to your script! As an example, for people in foreclosure you might say, “Mr. Homeowner, I saw in the public record that your bank is trying to take your home and I wanted to see if we could help.”
3. If the person answering the door says they have it taken care of, just explain that you understand and that you will continue to follow their progress in the public record.
4. Give them a handout, even if it is a one page flyer, which explains what you do and why they should work with you. Short sales are always popular for foreclosure victims if they understand the process. Your brochure should convey these important benefits to them. Even if they don’t answer the door, you should leave your flyer.
5. Follow-up on the prospect’s progress, including going back to door knock if the property isn’t sold at auction or otherwise disposed of.
If you are invited into a property, always be careful. Use good judgment as one deal is not worth your life. Door knocking can work equally well in upper income neighborhoods as long as you don’t have to contend with gated or guarded communities. You should not be alone when you door knock for safety reasons.
In summary, door knocking can be humiliating or wonderful depending on your results. Never be intimidated or argue with rude people, it is not worth your time. Door knocking is possibly the single best source of getting deals quickly and at little or no cost. You’ll need persistence and fortitude to make it happen but the more you become experienced, the better and more effective your knocking will become.…

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Property Search

Real Estate Finders Fees – The Way to Make $100,000 a Year From Home With Unclaimed Property

Heard of the “found money” business? Working as a money finder is becoming more and more lucrative due to the global economic situation. Most money finders work the State Unclaimed Funds Division’s unclaimed property, and are able to charge up to 15% per transaction. If that sounds good, you’re going to love this: some real estate finders fees can be up to 50% (or more), and few money finders know about them.
Real estate finders fees, in this case, come from (logically) real estate created overages. These stem from things like tax foreclosure and mortgage foreclosure, as well as from missing pieces of probate cases and the like. Real estate overages generally are the funds that were overbid when foreclosed properties were sold at auction. Depending on the state, these overages are held for the former owners to collect. But as you can imagine, these folks become good at ignoring notices from the government regarding their delinquent property and generally miss the notice informing them of the overage.
If you can find these funds, and find their owners, you’re legally able to charge 50% or more in real estate finders fees. This is because these funds aren’t held by the state, and thus aren’t subject to state laws. Overages typically range from $2,000-100,000 or more. That means you have the potential of making a $50,000+ paycheck from one transaction.
And from an altruistic vantage point, you’re also helping these former owners not lose the equity they had in their home when it was sold at tax or sheriff’s sale. Most have no idea where they could be due money from, and will lose all of it if someone doesn’t step in. 50% of something is better than 100% of nothing, so don’t have too much of a moral dilemma when considering pursuing this as a career choice. 9 times out of 10 owners are nothing but grateful for your assistance.…