This article was written on behalf of Bob Nachman. Bob is consistently ranked as one of the top agents in the Phoenix Arizona real estate area. To find the Gilbert AZ home right for you, visit Bob at www.MoveToArizonaHomes.com.
Archive for real estate investing
Jan
19
Guide To Buying Forclosure Real Estate
Posted by: | CommentsOne man’s trash is another man’s treasure. While home foreclosure can be a tragedy it can also be a blessing for others. Gas prices are not the only prices that continue to rise. Residential properties are also expensive. Their prices also vary from one place to another. Due to this other people take advantage of foreclosure auctions.
Repo homes are a great opportunity for those who simply cannot afford a new house. Often these houses are sold far below the market value.
Unfortunately most repossessed houses are those which require a lot of repairs. Previous homeowners do hot have the means to maintain the house or just didn’t take care of them. Some of these houses have also been abandoned by their previous homeowners and mortgage lenders have no choice but to get rid of them immediately.
Study up on the process
Before you buy a repossessed home you need to make sure that you’re going to get a good deal. You may have to do a little bit of research first to be able to see how much you will have to spend in buying and repairing the property.
If you are short on cash, you can get a loan. ( in some cases you can get an assumable loan) Talk first to loan officer or mortgage broker to see if you are qualified. If you are qualified gather the information you need.
You will be able to find a list of foreclosure homes on the internet. The list will also be published in local newspapers. You can also find information for auctions online. After you have gathered enough information visit the houses to stake out possible properties that you can buy.
Work out your budget. What are you willing to pay for the foreclosed house along with the repairs? If you’re planning to “flip” the house,ask your agent to calculate the property’s “after repair value”. If you’re planning to rent it after buying the property, calculate the monthly rate and compare to prices in the local paper for the same type of property.
Once you have finished all the research, make a bid on the property. After you have purchased the house have it inspected and appraised. Then look for a title company to research the history of the house. Once the house is yours and, any repairs you need to make are done, you have the option to live in it or rent it out.
Doc Schmyz has invested all over the US and Mexico. His free website shares Real estate investing information for all over the US. Find real estate information by state
Dec
13
Investing in Real Estate – the Scoop!
Posted by: | CommentsSafe High Return Investments DFW
Well, the scoop on real estate investment came about accidentally; no-one kindly put together a market projection simply for investors. Luckily though, a private mortgage insurance company has had to research and project the future risks in the realty market for their own insurance purposes.
This week PMI published their national ‘risk list’, which ranks cities of America by the relative riskiness of owning a property in those main realty markets. The company needs this kind of information – albeit guesswork and projected analysis – before they decide whether or not to underwrite a home loan.
However, for real estate investors, and those wondering if they should buy and where, it is another little tidbit to throw into the formula of where might be a good place to buy realty.
The table starts with a one per cent reckoning that an area will not de-value in the next two years and moves all the way up to as high as a ninety-four per cent chance that it will!
If you are an active investor, one who likes to keep a close eye on the financial situations and ‘pounce’ when the chips are at their lowest, you will probably want to earmark the cities who are on the falling list. This way, when prices are rock bottom, you can clean up. Sounds heartless – but it is also good business.
In these falling areas, sellers may be already motivated as some of them took a beating in the 2007 drop, but the forecast projects that within the next two years, they will be even more ‘motivated’.
Of course, often the places near the bottom were the ones that had inflationary prices in the mini-boom, and they now have to drop down again. The top ten riskiest markets were all high flyers during the crazy boom – some cities in California, Arizona, Nevada and Florida.
The riskiest place in the nation right now, according to PMI is in California. Riverside-Bernadino is given a 94% chance of suffering declining prices. Las Vegas is a surprising close second on the table, with an 89% chance of declining prices. Los Angeles has a 79% ranking and Fort Lauderdale is at 78%.
Moving over slightly Arizona is next up, with Phoenix and Mesa coming in at 83%; as both these areas are prime retirement spots, there could be a bargain to pick up there soon.
These are the nation’s top possibilities for decline in house prices in the opinion of PMI. It is probably not too surprising to anyone that the Lone Star state is carrying a lot of the success stories on the real estate chart.
If you are a more conservative investor, and you look for steady markets with solid employment and cash-flow backgrounds, you may be interested in PMI’s ’safe’ investment areas.
Five of the Texan towns are in the top ten. Reasons for so many may be partly because Texas’s economy is growing and it has maintained moderate residential prices, but also it never did get caught up in the crazy boom of the last few years.
Among good steady investment towns are Dallas, Fort Worth, Austin, Houston and San Antonio. However, Texas does not hold the only top honors; the east coast also gets a good rating.
Other cities with a less than one percent chance of realty price decline are listed as: Pittsburgh, Pennsylvania, Charlotte, North Carolina and Kansas City, Missouri.
Well, that’s the scoop, it’s up to you what you do with it!
Safe High Return Investments Dallas
Dec
11
Starting Out As A RE Investor
Posted by: | CommentsSo you have decided to increase your personal wealth, and you looking at real estate a means to get there…good for you! Sometimes people get over whelmed by the amount of information that is out there on the subject. Dont let this get to you. If you invest well, you will be rewarded with returns for years.
How does one start with the business of real estate investing? Let’s look at plans to get started buying and selling real estate property:
Plug into your local real estate investors association. Most medium to large communities have a real estate club where other real estate investors attend regular meetings. These are other investors with the same goals and dreams as you.
Most of these clubs are very open with new members or any one interested in investing. So show up and mingle. Most investors love to share war stories or exchange information on purchases they have mad or services they have used.
Now dont buy anything just yet. You need to map out your “battle plan”. What type of real estate are you interested in? What are you willing to do with it? And what is your exit strategy with it?
At first you need to decide on what type of property to start with. If your goal is to find distressed houses then focus on those. If you want to deal with the condo market…then thats where you look. Keep in mind when you focus on one area you will become more understanding of what those types of property can be sold for, not to mention how much it cost to get them sale ready.
Begin to get together a group of contractors and sub-contractors who you can trust to work within your new system and according to your business plans and your budget.
Lets say you choose a “fixer” for your first project. Be ready to put on your team a contractor, an electrician, heating and AC guy…and of course a plumber. Now a word to the wise. IF you can find one…a GREAT handyman will be able to do all the above mentioned and normally at a far cheaper cost.
Find a good agent. This is harder than you might think. You see most agents dont work well with investors. Why? Investors want the agent to do tons of work the normal buyer doesnt. Offers counter offers…spread sheets to show profits and losses…not to mention all the surrounding research on the sales in the area in the last 6-12 months. A good agent will do this. A good agent understands that they may sell you more than one house in a years time…and that means repeat business for the agent.
Have an exit tactic in mind. This is a critical element of investing in real estate. How are you planning on selling this house once it is fixed and ready for market? How much room do you have on price so you sell it and still make a profit?
Every beginning real estate investor will make mistakes that cut into potential profits. It is imperative to recognize these mistakes and correct them before they can cripple the business.
Be efficient, and resourceful. Keep your eye on your bottom line and you will grow a nice little investment business.
Doc Schmyz has worked with investors all over the US and Canada. He owns a free website that shares Real estate investing information for all over the US. Find real estate information by state
Dec
08
Is The Future Of Real Estate Investment In Megapolitan Areas
Posted by: | CommentsSafe High Return Investments DFW
Experts believe that real estate development and building will produce some $25 trillion in revenue between now and the year 2030. Most also agree that most of that revenue will be filtered into and through the top ten megapolitan areas in the United States. This amount of revenue will completely eclipse the building boom that followed World War II and means an unprecedented amount of growth and opportunity for investor.
Megapolitan is defined as two or more existing metropolitan areas that have grown together to become one huge area and the community boundaries have become blurred. An example of one such area is from San Diego through Santa Barbara. When driving from San Diego you will pass through Oceanside, Newport Beach, Long Beach, Los Angeles, Thousand Oaks, Oxnard, Ventura and Santa Barbara. It is very difficult to tell when you leave one city and enter another. Robert Lang of Virginia Tech urban studies has theorized that two-thirds of the population will live in 10 of these Megapolitan areas by the year 2040.
Atlantic Seaboard – extends from Boston through New York, Philadelphia and Washington.
Gulf Cost Belt – Brownsville, Corpus Christi, Huston, New Orleans to Mobile.
I 85 Corridor – Birmingham, Atlanta, Charlotte, Raleigh to Durham.
Valley of the Sun – Phoenix to Tucson.
Southern – Florida Miami, Tampa to Orlando.
Southland – Los Angeles to Las Vegas.
Great Lakes Area Detroit, Chicago to Pittsburg.
North California – San Francisco to Sacramento.
I 35 Corridor – San Antonio, Austin, Dallas, Ardmore, Okalahoma City to Kansas City.
Cascadian – Eugene, Portland to Seattle.
Megapolitan Areas will have certain characteristics in common. They will combine at least two existing metropolitan areas together. Each will total more than 10 million residents by 2040. They will have similar physical environment. Have very good transportation and supporting infrastructure. Goods and services flows freely from one urban area to another. They will also require a large geographical area that is suitable for large scale regional planning.
It’s true that some of these megapolitan areas have been hit by economic troubles, but even CNN’s Money Magazine agrees that these areas are some of the best for real estate development and investment. Just why is that, and what should you look for when trying to protect your investment in these areas?
Being careful about the industries that are supporting these megapolitan areas is of course very important. Investing in areas that have relied on the automotive industry or manufacturing may not be wise. However, megapolitan areas of New York and Charlotte, North Carolina, have done very well in the past few years because their dominant industries of advertising, banking, and investing have better track records than these other industries that are not as reliable. Absolutely nothing is completely secure or 100% reliable when it comes to business and industry, but obviously one can use some common sense when it comes to investing in certain areas.
Megapolitan areas are typically more desirable for industry and new business because they already have a ready workforce and developed real estate. A company looking to build a large factory or set up an administrative office is probably not going to choose a desolate area, even though the real estate may be more affordable. There is no population in this immediate area to support their business by way of personnel, vendors, and sometimes even roads and available homes. This is one of the reasons that megapolitan areas seem to consistently and constantly appeal to established industries and companies and startup businesses as well.
If you’re looking for a solid real estate investment area, you may be attracted to more sparse areas because they are more affordable, but remember that sometimes you get what you pay for. Consider instead investing what you can in these already established megapolitan areas. By using some common sense and doing your homework, you’re sure to find that it’s the right choice.
David Cowley has created numerous articles on real estate investing. He has also created a Web Site dedicated to real estate investing. Visit Real Estate Investing
Safe High Return Investments Dallas
Dec
08
Real Estate Investing During The Down Turn
Posted by: | CommentsOK let’s establish a few ground rules for this article first.
1) The market has had a down turn before and people still made money.
2) Not every deal will fall into a cookie cutter format keep your eyes open.
3) Not every tactic or idea works in EVERY state/province. ALWAYS check local laws pertaining to real estate transactions.
Ok..now that we understand the rules…lets move forward.
Just because a drop in the market has taken place doesn’t mean that you, as a real estate investor/professional, are out of luck. It only means you need to add new tricks and tools to your tool box. (Be warned I use “tool box” a lot.)
Finding Deals and Marketing property
Besides the normal channels of RE agents and brokers (still the best way to find good investments in my opinion) you have a huge amount or resources at your fingertip with the Internet.
You can join website communities for investors, follow blogs, get in on group discussion etc. You can even start your own website for investors and network. All of these things can lead to new and interesting deals.
Several investments have come to me via the web. I also have gotten many tips from other investors on investments and financing issues. Never over look the value of belonging to an “investor community website.”
I honestly feel that in the upcoming years the majority of investing will shift to being web related. Not just in finding investment projects but in doing the research for them as well as the funding process and the majority of the marketing/exit strategy as well.
Finding financing
Currently we are hearing about how the current market and credit crisis is making getting loans harder This is true. No way around it. The loan process has changed. So what options are left?? The answer is several.
Lease options. Assumable loans. Seller financing.
The above mentioned will become the big trends in the next couple of years. I am waiting to see the lenders change the loan guidelines in the next few months to “re introduce” the assumable loan. We are already seeing a HUGE trend in short sales. (This was a practice that was used only in limited capacity in the last 10 years by most lenders now it seems like every other distressed listing is a short sale in some cities.)
Please don’t let the current market conditions scare you in to sitting this investment period out. Take the time to do the research on finance options, look into building a LLC perhaps. Find out about buying real estate with your IRA. Etc, etc.
Buy books. Read investment strategies of the big names in investing. Use the time to educate yourself and above all be creative.
Don’t run for the hills when you should be shopping in the valleys.
Doc Schmyz has invested all over the US. He built a free website shares Real estate investing information for all over the US. Find real estate information by state