[10] [article1]
Categories of Real Estate Investment
By Steven Gillman
Below are ten categories of real estate, and different ways to invest in them. The best one for you is something only you can decide, according to your particular needs. To help you do that, I list a couple good points and bad points for each type.
1. Renting single family homes. Good points: An easier way to get started, and good long term return on investment. Bad points: Being a landlord isn't much fun, and you typically wait a long time for the big pay-off. You also lose all your income when a house is vacant.
2. Fixer-uppers. Good points: Fast return on your investment, and it can be more creative work. Bad points: More risk (many unpredictables), and you get taxed heavily on the gain.
3. Low income housing. Good points: Similar to any other rentals, but with higher cash flow. Bad points: Similar to any other rentals, but with more repairs and tenant problems.
4. Selling rent-to-own houses. Good points: If you buy, then sell on a rent-to-own arrangement, you get higher rent, and the buyer is usually responsible for maintenance. Bad points: Bookkeeping can be tricky, and most tenants don't complete the purchase (this can be an advantage too, but it does mean more work for you).
5. Commercial properties. Good points: Multi-year triple-net leases mean little management and high returns. Bad points: A tough market to break into, and you can lose income on vacant storefronts for a year at a time.
6. Land, split and resold. Good points: Simpler than some real estate investments, with the possibility of great profits. Bad points: It can be a slow process, and you have expenses, but no cash flow while you wait.
7. Boarding houses. Good points: You'll generate more cash flow renting a house by the room, especially in a college town. Bad points: You'll generate more headaches renting a house by the room, especially in a college town.
8. Invest cash, sell with terms. Good points: A high rate of return is possible by paying cash to get a good price, and selling on easy terms to get a high price AND high interest. Bad points: You need a lot of cash, and you tie up your capital for a long time.
9. Invest, live in it, sell it. Good points: The tax law lets you fix it up, and sell it for a big tax-free profit after two years (if you live in it), then start the process again. Bad points: You may become attached to your investment, and you'll have to move a lot.
10. Pure speculation. Good points: You can make large profits buying in the path of growth and holding until values rise, and it is a low-management investment. Bad points: Growth in value isn't always predictable, you have expenses with no income while you're waiting, and transaction costs can eat much of the profits.
There are many ways to invest in real estate. These ten are just to get you thinking about what is possible, and what type of investing suits your personality. Once you figure that out, you may want to look into other categories of real estate investment.
Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
Article Source: http://EzineArticles.com/?expert=Steven_Gillman
[/article1] [article2]Real Estate Investment Developments and Projects
By Mark Goldberg
So now you’ve learned about how much money is in investment real estate and you want a piece of the pie. You picked your city that you want to invest in (Orlando, Miami, Las Vegas, Ft. Lauderdale, Tampa, St. Petersburg) and then it hits you... What investment project or development should you buy, with so many out there how do you choose which project to invest you hard earned cash on? It can be tricky to find the right investment property because chances are after you heard about a project it’s way to late to invest in it. Sure your buddy may have made a killing on a pre construction project or development but the ship has already sailed. You need to find a similar project or development that is going to skyrocket in the same way. In this article I will teach you how to find these elusive pre construction investment developments and projects.
1. Contact a reputable investment brokerage and see what they have available. Many brokers like myself focus on preconstruction real estate and because of past dealing these brokerages will be well informed from the developers on new projects they are planning. This is by far the easiest way to learn about preconstruction developments because most of the time by the time you hear of a pre construction development or project via the grapevine it’s too late.
2. Ask other investors online. There are many real estate investment forums online where you can go in and ask other investors what they think about a certain project or development. You may learn that some developers are constantly changing the developments or projects or you may learn that management company is great at renting out your condo. Information I power and the more people you can meet and talk about investing the better.
***Beware*** Some developers will sign into these forums and act like a fellow investor only to promote their own projects or developments. Don’t just take the word of one person and remember to do your due diligence.
3. Drive around the area you want to invest. I know many investors don’t live by the area they are going to invest but if you can take a weekend and fly down to Orlando, Miami, Las Vegas, Ft. Lauderdale, Tampa, St. Petersburg or wherever you’re going to invest and look for signs for new developments. For example if you fly down to Orlando and drive down rt 27 you’ll see dozens of new projects opening up and all you have to do is call the developer for more information. Often time I will just stop in a gas station and ask if they know of any new real estate developments opening up and you’d be surprised how many times I hear there is one opening up right down the road.
Narrow your search by sticking to key investment cities such as Orlando, Miami, Las Vegas, Ft. Lauderdale, Tampa, or Petersburg. Don’t waste time by searching areas that are not going through a “boom”.
Like I said earlier you probably want to just find a trustworthy real estate brokerage that focuses on preconstruction projects and developments for the simple fact that these firms make their money from making their investors happy and the only way to do that is through making them money. However if you take the road less traveled who knows what kind of diamonds in the rough you’ll find. Also, you may learn more about the developments or projects by actually going out and researching them yourself. I know people that
For more information on real estate investment developments or projects in the Orlando, Miami, Las Vegas, Ft. Lauderdale, Tampa, or St. Petersburg area feel free to give me a call or visit my website http://www.investrealestate101.com.
Contact Us Today For Special Pricing
Goldberg Executive Realty Group
Mark Goldberg
Phone: 1-866-247-2259
E-mail: GoldbergRealtyGroup@cfl.rr.com
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[/article2] [article3]Creative Real Estate Investment
By Steven Gillman
An example of creative real estate investment? When I was young, I had a job that paid $3.40 an hour, and I somehow saved enough to buy my first piece of real estate - 2 acres near where I lived. It cost $3,500.
I spent a few hours removing brush, outlined a driveway with logs, and hand painted a sign. Two weeks after I bought it I sold the land for $4,750, with $250 down, $100 per month, at 11% interest. With the capital gain, my annual return on investment was over 20%. This was my first real estate investment.
Creative Real Estate Investment - The Key
I bought the land cheap, because the seller needed fast cash. I solved his problem. I sold the land higher than the market value because the buyer needed easy terms. Second problem solved. Solving problems is the key to creative real estate investment.
Cell phone companies, radio stations, police departments and others need hill tops for their towers. The problem is that they can't tie up their capital buying them. One creative investor found a way to solve their problem.
He got six month options on hill top properties for a few hundred dollars. Then, when he found those who needed them, he would get a long term lease signed. They built the tower themselves, of course. With a lease in hand, it was easy to get financing to exercise the option and buy the properties. He invested a few hundred dollars to create years of income.
Trees are needed by lumber mills. A friend of mine solved this problem by letting a company cut half the trees on his small property. They paid $4,500, and I couldn't see the difference when they were done. The property was worth as much the day after the cut as the day before. My friend lived there, but a creative investor could buy property like his, sell half the trees, maybe clay or gravel too, and then re-sell the land.
To solve problems, you have to figure out what they are. Do people need easy terms? Cleared lots? Lumber? Better access to a piece of property? Smaller pieces of land? Condos instead of apartments? The list could go on. Just remember that solving problems is the key to creative real estate investment.
Steve Gillman has invested in real estate for years. To learn more, go get your real estate investing course free at: http://www.MakeThatOffer.com
Article Source: http://EzineArticles.com/?expert=Steven_Gillman
[/article3] [article4]Where Are The Really Good Real Estate Investment Deals?
By Bruce Ford
In writing my last article about the neighborhoods where I find the most profitable rehab real estate investment deals, something occurred to me.
In that article I described investing from what I've found is typical in doing this business. I wrote about where I TYPICALLY find the deals. Well, what IS typical in this business?
No two deals are the same, that's for sure! Every rehab itself is different with different problems to solve. So, in describing a typical deal, I'm referring to the spread involved. The spread is the different between what I can buy the house for, and what it's value will be when it's brought back up to standards.
The next big question is, "What will the rehab going to cost."
For instance, if a property in my market has a $25,000 spread between what I can buy it for and what I can sell it for (the as-repaired appraised value), it's a "maybe" in my book depending on how much rehab it needs. If it needs much, I would probably pass unless some external factor makes it a good buy, like the neighborhood. In other words, if it needs much rehab, I'd have to be convinced enough to put some of my own money into it.
I typically look for houses with a $30,000 spread or better. You have to decide for yourself, based on values in your area and what is the minimum you want to make, what spread you'll be happy with.
So, what is a rehab real estate investor's "homerun? "
Homeruns occur at the outer edge of what is typical. My homerun deals have occurred one of several ways.
- The spread is stellar. Let's say the spread is $45,000 and the rehab is a manageable $5-10,000.
- The spread is good, but the rehab is very light. Wham-bam, I'm looking for tenants within days of closing.
- The cost is exceptionally low for a given area. Sometimes the spread on paper will not be anything to get excited about, but the property has a huge lot, extra bedrooms, or is located an area that is in serious demand.
- There is NO rehab, and the spread is sufficient that I can buy it with none of my own money.
True story - I've only had one NO rehab deal. Wow. This house had been recently rehabbed, clean and didn't need a thing! This was a homerun just due to the ease at which I added this property to my inventory! The spread wasn't great, in fact, I had a local hard money lender make up a story about being out of money because he thought the spread was too narrow and didn't want to lend on it. He wrongly assumed there was a significant rehab. (Being straight up with me was too hard, I guess.) I consider this a homerun because I bought this property, changed the locks, put out a sign and had it rented within two weeks. Mind you this is a beautiful well-built brick/block home in a great neighborhood. Cost to me…nothing. This house has one of my best cash flows month-to-month.
The point here is to give you an idea of what kinds of homeruns rehab real estate investors look for. But, here is a key point…
It's truly NOT worth my time, or yours, to wait around for the homeruns. I firmly believe that these kinds of homerun deals come about by being an active investor. Rehabbers that keep 1-2 projects going at all times, get calls from wholesaler with great deals. Personally, I make the best buying decisions decisions with what I have among the properties brought to me when I am in my "buy mode." Some of these turn out to be homeruns, some don't.
If I waited around for only the homeruns:
- I would waste precious learning time. Since there is no substitute for experience, I want all I can get!
- I would lose money over the long run as a buy-and-hold investor. If I'm buying and rehabbing with little or none of my own money anyway, it doesn't make sense to wait around for homeruns if I can add properties to my inventory that fits my investment criteria. If you're in the buy and hold business, the important thing is how much property can be controlled with as little money as possible.
Question: Is it better to have $1,000,000 worth of property appreciating or $200,000?
Hitting a homerun in rehab real estate, and anything else, requires these two ingredients:
- You've GOT to be "in the game." By this I mean you have to have prepared in advance for your turn at bat. In the rehab business, this means you have enough knowledge to get started, you have a decided investment criteria, you have your money source lined up, and you are looking for property.
- You are "swinging." In the rehab business, this mean you are buying property, rehabbing, learning and turning. It's not enough to merely stay on the sidelines.
Let me say that again…
IT'S NOT ENOUGH TO MERELY STAY ON THE SIDELINES.
Bruce W. Ford is the editor of Rehab-Real-Estate.com. Get his important Special Report entitled "12 Things Real Estate Investment Gurus Won't Tell You" at Rehab-Real-Estate.com.
Article Source: http://EzineArticles.com/?expert=Bruce_Ford
[/article4] [article5]If Real Estate Investment Is So Great, Why Doesn't Everyone Do It?
By Bruce Ford
Oh, that's an easy one. I can answer that in one word. FEAR.
Real estate investment is a great way to change just about everything in your life, but it's one of those things where doing it for the FIRST time is the toughest. In fact, the second is exponentially easier!
It's fear folks, plain and simple! And why doesn't make much sense to me. Consider that:
- "Everyone knows that the surest path from low income to millionaire is through real estate." This appears to be a well-documented truism. I've seen a similar statement in some of the most prestigious financial resources on the planet.
- I rarely hear of someone losing it all from real estate. I might be living in la-la land, but for the most part I only hear of folks prospering from real estate investing. Sure, occasionally I hear of deal going bad or growing complicated, but not to the point of ruining folks.
- There are a lot of properties available. Folks are still divorcing, dying, or just not paying the bills and getting foreclosed on. Much of the foreclosure activity is not SEEN by the public, but most of it is available to the public.
- There are a lot of properties available at below market prices. That's been my experience anyway. Of course, I have folks right here in my area that tell me they can't find properties. I just smile and nod my head.
- Rental demand is strong and rents never go down!
So with all this common knowledge and raw opportunity out there, why isn't everyone investing in real estate?
Here's my theory.
* Real estate transactions are more involved than going to Wal-mart for a pair of undies, so that scares people. You have to learn a little bit. Mind you, this isn't a lot of learning, but it is apparently enough to keep some on the sidelines.
* The numbers are big. I've seen folks nearly CEASE UP mentally talking about large amounts of money. Merely talking about a $100,000 mortgage causes some people break out in a sweat.
* Horror stories. Everyone's heard about some scam, sink hole, meteor or something else on the fringes of believability that has happened somewhere at sometime. I mean, there is SOME risk involved.
* Fear of taking action! It's hard to do something you've never done, and harder to do something you've never done before in a subject matter on which you aren't an expert! People fear something, which makes facing that fear hard. What I'm referring to is what I call, "IT'S EASIER NOT TO."
So what does one do to face fear and make a change in their life,
Ah, that's just as easy as the last question. I can also answer that in one word…KNOWLEDGE.
Once properly armed with the knowledge they need, most folks can overcome their fears to the point of taking action.
So if you are contemplating taking your financial future into your own hands by investing in real estate, FOCUS on one thing for the next 3-6 months. Buy books or courses, got to real estate investing club meetings, visit websites and get on discussion groups. Let those things be your action steps for awhile. I suspect you'll be ready to dive into the market with the knowledge you'll gain.
I have a motto.
"Knowledge Always Precedes the Money."
Bruce W. Ford is the editor of Rehab-Real-Estate.com. Get his important Special Report entitled "12 Things Real Estate Investment Gurus Won't Tell You" at Rehab-Real-Estate.com.
Article Source: http://EzineArticles.com/?expert=Bruce_Ford
[/article5] [article6]Pump Up The Value Of Your Rehab Real Estate Investment
By Bruce Ford
There are two legal ways to increase your wealth.
1. Keep more of what you have (e.g., tax strategies, rehab efficiencies, cost savings)
2. Add value to something (e.g., a real estate investment, stocks, bonds)
Let's focus on adding value to your rehab investments.
The most obvious is certainly bring it back up to standards. We HAVE to do the obvious things such as:
- Ensure there are no plumbing leaks and the entire plumbing system is in good working order, including potable water and sewage/septic and water heater.
- Ensure the electrical system is safe and working. This may require an upgrade. This includes all outlets, breakers, heat and AC.
- There can be no leaks in the roof! Obvious, but sometimes this is hard to determine if it isn't a rainy season. You might have to take a garden hose to the roof to be sure. Station someone in the attic with a flashlight.
- Get rid of any rotted wood or termite damage, repair walls, etc.
Those items I've listed and others like it are no-brainers. But how do we really add value to the eye? We make it pretty!
- We paint all walls and ceilings (usually bright white)
- We replace flooring, or if there is acceptable carpet or tile, we professionally clean and restore it.
- We hang mini blinds on the windows.
- We trim trees and bushes, paint the outside make the exterior look fresh.
Now, to get the sale, or to get it rented immediately we do some of these things that really make a difference (notice the emphasis on kitchen and bathrooms!):
- Replace or refinish the kitchen cabinets, sink and countertop.
- Replace the toilet, vanity, and resurface or replace the tub.
What if we want to really make OUR property stand out on the market? What if we want there to be NO question as to what a great house this is in the buyer's mind? What if want TOP DOLLAR? Try these inexpensive upgrades!
EXTERIOR
- Put a decorative fence in front. Plant some shrubs along the front of the house with attractive landscaping bark around it for color
- Replace the front windows with something more attractive.
- Install lighting along the walkway
- Plant a tree
- Install a new mailbox
- Build a deck in the back
- Increase the exterior lighting. Motion sensor lights are a nice touch.
INTERIOR
- Install a security system. Sometimes the system is installed free with a year's monitoring. Make the first year of free monitoring (prepaid by you) a selling point.
- Install a garage door opener
- Install a used hot tub. You might be surprised the amount of folks who no longer want their hot tub!
- Include a microwave.
- Buy new appliances. Kind of expensive, but a deal maker. Try making this an incentive for a full price offer.
- Lay ceramic tile instead of vinyl.
- Go with snap-and-lock hardwood flooring instead of carpet especially in a great or living room.
- Upgrade the faucet to something sleek and modern. There are hundreds to choose from. Go with an extra large sink.
- Replace the cabinet and drawer hardware to something extra fancy. This can make an average kitchen POP for little extra cost!
- Add ceiling fans instead of just new overhead lighting fixtures.
- Add chair rail molding in the dining and living rooms.
- Buy the attractive switch and outlet covers instead of the basic contractor grade covers.
We, as investors, need to make the rehab fit our strategies. If we want to rent the property, you probably won't add as many upgrades. If you are looking to sell, and you need to get that property noticed, you should add as many of the upgrades as possible within your budget, especially the visual upgrades.
I hope this list has got you thinking creatively about how to pump of the value of your next project!
Bruce W. Ford is the editor of Rehab-Real-Estate.com. Get his important Special Report entitled "12 Things Real Estate Investment Gurus Won't Tell You" at Rehab-Real-Estate.com.
Article Source: http://EzineArticles.com/?expert=Bruce_Ford
[/article6] [article7]Real Estate Investment - When, What and Where?
By Natalie Aranda
Like economy and stock market, real estate often runs in cycles of approximately 7-10 years. The value of real estate often goes up for a few years, tops out, keeps flat or goes down for 2-3 years. The availability of low interest rate mortgage and recovery of economy will eventually jump-start a new cycle of real estate growth. Novice investors tend to invest at the top of the market while wishing the market will go even higher to reap a quick profit. Smart money, however, buys real estate at, or near, the bottom of the market when most of investors are reluctantly and don't have the financial power to buy.
Beside the life cycle of real estate market, individual property has its own life cycle. Properties can be purchased at pre construction, as new home inventory or as owned properties.
What
Single family home has traditionally been the preferred option of real estate investment for many individuals. Instead of selling their first residential home and moving to a bigger house, some home owners choose to keep their first home and rent it out by using a property management company. The new trend in real estate investment is to own hotel condos or vacation homes. There're many advantages of owning hotel condos or vacation homes.
Where
Once your investment options are not limited to residential properties, the location of property isn't limited to the place where you live. Hotel condos and vacation are, of course, often located at well-known resorts, from Vail Colorado to Miami, Florida.
Real estate investment is a complex decision making process. Most investors will seek help from real estate professionals. Nowadays, with the vast amount of information freely available on the Internet, search engines are where people start doing their own homework. For instance, typing "Miami Pre Construction" in Google, Yahoo or MSN search engine, you'll see a list of pages where you can locate the information about buying real estate at pre construction at Miami, Florida.
Copyright @2005, 4th Media Corporation
You have permission to publish this article electronically free of charge, as long as the bylines and links in the body of the article and the bylines are included.
Natalie Aranda is a freelance writer. She writes about family, holidays, Christmas Gift Ideas and health in her Miami real estate - Miami Condos.
Article Source: http://EzineArticles.com/?expert=Natalie_Aranda
[/article7] [article8]Smart Strategies For Real Estate Investment
By Naomi Warne
If you’re deterred by the roller coaster rides of the stock market, then real estate is the best place to invest your hard earned money.
But real estate business is not an easy one. It calls upon concrete strategies to realize your goals and turn your business into a lucrative venture. If you’re an aspiring real estate entrepreneur, then have a look at the five strategies given below that will help you in having a successful real estate investment.
Buy and Hold strategy
Under this strategy, you buy a property and lend it on rent. Hence, this strategy is usually known as rental properties. Buy and hold strategy of real estate investment opens three paths of income for you:
amortization—you lower the amount of debt while paying your mortgage,
appreciation—you increase the value of your property over the years, and tax incentive—as a landlord you’ll get a chance to cover up your investment costs within a few years. Even if the rent doesn’t break even your entire mortgage payment, it’s not disheartening, as you still have a positive cash inflow.
But before entering into a contract with your tenant, you should make yourself aware of your rights and duties to avoid trouble later.
Flipping strategy
Flipping involves buying and selling real estate property without taking its ownership. You sign a contract with the buyer of your property and earn a commission for your services. There are no credit checks or down payments involved in flipping. And the bright side is that you don’t need to go for a mortgage, as you’re not the actual owner of the property that you are selling.
However, there are two conditions for successful flipping of a real estate property: the property should be able to attract buyers within no time and you shouldn’t keep hold of the property for a long time, i.e., not more than 15-20 days. Under this strategy, you simply buy the real estate property, flip it to a buyer, and collect your money as commission.
The strategy of Rehabs
Here, you buy a ramshackle property at a cheap rate with the expectation that your rehabilitation cost estimates will be highly rewarding at the end. This strategy looks good only on paper. The truth is that such kind of real estate investment involves a high amount of risk and usually end up in loss. This happens because you either fail to find a worn-out property that is cheap enough to give you a profit, or worse—the rehabilitation costs end up being higher than the cost of purchase.
Commercial Real Estate Investment strategy
Commercial real estate doesn’t always mean magnificent shopping malls or office complexes. Any building larger than a 4-unit apartment is regarded as a commercial one. The big advantage of commercial real estate investment is that your property value is calculated in terms of the income it generates through rent and not in terms of bidding on residential real estate.
New Construction strategy
This strategy involves selling your new home during its construction phase. Most of the investors find this strategy to be the most affordable and the easiest one. The important thing here is to keep yourself updated with the market trends. However, there’s a limit imposed by the construction companies on the number of homes you can buy.
A smart way to make an optimal use of this strategy is to have one or two homes under construction continuously. But this strategy brings profit only in a sellers’ market. If you find the local real estate market to be highly fluctuating or to be on the buyers’ side, then it’s better to avoid this strategy.
The above five strategies will help you to reap rich harvests in real estate investment provided that you select the most suitable one. The choice is yours.
This article is brought to you by http://www.mortgagemall.com.au
Naomi Warne of Around the Corner Real Estate Dealers, Sydney, has helped her clients with profitable property investments and numerous tax benefits. Having started as a Real Estate Agent, Naomi has established herself as an analyst and Property Consultant. She now works for Sydney based realestate firm http://www.mortgagemall.com.au Mortgage Mall.
Article Source: http://EzineArticles.com/?expert=Naomi_Warne
[/article8] [article9]Real Estate Investment Clubs Buying Carwash Properties
By Lance Winslow
Would it be wise for a real estate investment club to invest in carwashes securing their investment with carwash assets and real property? Could the revenue stream model of an average fixed site carwash, perhaps a new robotic high tech touch-less carwash, support such an investment? Many a real estate investor has thought here. Indeed even McDonalds is for the most part a real estate company, owning all their own properties right? So it stands to reason that a real estate investment club would ponder buying carwash properties.
Indeed this is being done, however not on a huge scale, but it could be done on a giant scale like McDonalds. Those investing should realize that the car wash equipment is not worth anything once it is used? And the Real estate if it was considered a separate investment and leased to the carwash might be a better long-term play. Two investment groups working together, could make this happen. Kind of like two-divisions of McDonalds, one specializes in the real estate the other make hamburgers and run a franchising company training at Hamburger University. If carwash does not work out, put self-storage on it, after all Public Storages strategy has made them an incredible success.
When the real estate appreciates and is worthy of the investment of a bunch of town homes, a Starbucks or McDonalds, scrape the property, move equipment re-set it up at another best guess for future appreciation location? We must also not forget too the seasonality of car washing and therefore the need to average over 1-2 year period, there are some issues with what you propose, so if the real estate investment club is not flush with cash flow, it could be problematic in slow months. Many a real estate investment club will go hog wild and buy more properties without regards to the absolute need for liquidity and cash flow. Cash flow after all is king and every thing else is BS and should walk.
There are perhaps better types of businesses for such a Real Estate model, however if done correctly, car washes could potentially be a worthy choice. There are a lot of things, which go on in a carwash business. In our country we do not have issues borrowing for equipment, fairly easy to get done thru vendors, so if a Real Estate Investment Club were to do this they may need to run the carwashes themselves in a separate division, as there may not be so many entrepreneurs so ready to sign up. Although the franchise model could also work as it has for McDonalds you see?
A real savvy group of billionaires or the Lloyds of London type group could use this strategy to rock the market and become the McDonalds or Starbucks of carwashes and there is definitely a demand for carwashes. This nation could take another 50,000 carwashes done correctly, convert all the competitors into units under one name and own this market. Sound like a plan? Think on it.
"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/
Article Source: http://EzineArticles.com/?expert=Lance_Winslow
[/article9] [article10]Should You Use a Property Management Company or Manage Your Real Estate Investment in Florida?
By Lisa Carson
When considering investment properties, first of all, it must be determined that it is profitable and a good idea to purchase rental properties. Let’s talk about this aspect. Owning rental property produces rental income which, if after expenses are deducted produces a profit, would be viewed as a good investment. Add to this the possibility that property has the potential to increase in value over time and you have some solid reasons to purchase investment properties.
If the rental income is paying more than the monthly mortgage amount leaving some excess for home repairs, it is possible the home could be paid off entirely by renters. At some point in the future, this same home can be sold with the seller receiving the full value of the property. Sounds like you can’t go wrong in owning rental properties. But is this true? It all depends on whether the investor has thoroughly completed their homework.
If you are presently considering an investment in rental properties, be sure you do some thorough research. It’s important for the property investor to gather adequate information before committing to rental property ownership. Searching the internet, reading real estate publications, attending seminars, and speaking personally with property investors is a great beginning that will place you on the road to making a wise, informed decision. Starting up a business is a little like real estate investment. Knowing the facts and putting time into the purchase gives you a much greater chance of success. Doing your homework can prevent disastrous property investment decisions. Why a Real Estate Investment in Florida? There are many issues that need careful consideration before making a final decision on property investment. These include the location of the property, Are you interested in an urban or rural location? What is the condition of the property, how much maintenance will be required to keep it in good working order? What are your financing options? What do taxes run on that particular piece of property in that location? How will you select tenants?
These are all vital questions that could determine the success or failure of your venture. Let’s refer to the first and probably most important of questions to ask regarding property investment. What location will you choose? In searching for the best possible location, it is important to look at trends among renters. The American population continues to grow with a gain of about one person every 14 seconds. Where are all these new people coming from? An increase in our own population and immigration account for this strong growth. With this in mind, it is safe to say there will be a continued need for housing in the future. Concerning the immigration population, California, New York and Florida lead the list, in that order, in new residents. What a potential pool of people to pull from! Looking at the cost of real estate purchase in these three states, a real estate investment in Florida ranks among the most reasonably priced. Along with the strong immigration growth, Florida is a hot tourist destination, making it an ideal location for the purchase of rental property.
Real Estate Investment in Florida – Where is a Good Choice?
Along with having the 3rd highest rate of population growth, the high tourism rate is definitely a great reason for a real estate investment in Florida. With its year-round temperate climate and vast array of attractions, both natural and created, it is the ideal location for family holiday vacations. Families and singles return again and again to enjoy the delightful holidays Florida offers. Deciding where to purchase your real estate investment in Florida may be a difficult decision. Tourists in Florida are searching for sun and fun. A real estate investment near the beach, from Key West in the south to Jacksonville in the north and east from Daytona Beach to Fort Myers would offer good returns on your investment. Beach lovers will pay top dollar for rentals near the ocean. Let’s consider Central Florida as a wise real estate investment. Walt Disney World has made Orlando the 3rd favorite tourist destination for overseas travelers. Only Los Angeles and New York City rank higher. With its resplendent and numerous lakes, tropical landscaping and modern, clean skyline, Orlando, the largest city in Central Florida, has aptly earned its title of “The City Beautiful”. Along with the biggest drawing card of all, Walt Disney World, theme parks such as Universal Studios and Sea World, have made Orlando one of the largest markets in the world for tourism. 2.6million international travelers flocked to Orlando in 2004, according to the Orlando/Orange County Convention & Visitors Bureau, a 12 percent increase from 2003.
Real Estate Investment in Florida – Where in Central Florida?
Having established the fact that Central Florida is a hot tourist market, it would stand to reason that a real estate investment in Florida, particularly the Central Florida area, would make good business sense. But how would one go about locating a desirable area and property for this investment? A beginning search would lead you to researching properties listed with the major real estate companies or visit craigslist.org in your area. Deciding which type of property is important. Do you prefer a single family residence, a townhouse or condo? Keep in mind that townhouse and condo purchases may offer onsite property management services. Will your real estate investment in Florida purchase be in a new development, or in an established, older area? Purchasing rental property in a new development often offers pre-construction prices which can be substantially lower than prices post construction. Are you available to manage the property, or do you wish to employ a property management company to take care of the details of property upkeep, record keeping and renter booking? Doing it yourself can save you 6 percent and more of the cost of rent, but can end up costing you if you don’t know what you are doing. If you do not plan on living in close proximity to your rental property, it would be wise to consider spending some extra dollars to employ a property management company. This will save you headaches and time, your own time for property maintenance and the time it takes to locate renters.
Real Estate Investment in Florida – Consider Davenport, Fl Considering a real estate investment in Florida, just 5 miles southwest of Disney you will discover the quiet, quaint town of Davenport, Fl. Its central location yet off the beaten track give it an appeal all its own. Davenport, Fl is only 2 square miles in size. With its small town appeal, it is an attractive rental option for tourists. Davenport, FL is under 30 minutes from Universal Studios, Sea World, Disney World and other Orlando attractions. It is just one and ¼ hours from Kennedy Space Center and within an hour’s drive to Tampa (home of Busch Gardens) and Cocoa Beach. After a hectic day at the major tourist attractions, what a welcome respite it would be for renters to lodge in this quiet location which is surrounded by orange groves. Convenience is another drawing card with a Super Wal-Mart, open 24 hours a day, just nine miles away. Kissimmee is just a short drive with its spectacular nightlife entertainment options such as Arabian Nights and Medieval Times. Family oriented Kissimmee attractions, Green Meadows Farm and the Silver Spurs Rodeo are also nearby. The small town environment of Davenport, Fl offers a quiet stay that is near all the most popular attractions, including theme parks, family spots and great shopping and dining, located not far from the Florida Mall, outlet malls and the Orlando Mall.
Bimini Bay, Davenport, Fl
Located in Davenport, Fl in close proximity to Walt Disney World, is a brand new development, Bimini Bay. On 80 acres, 360 three bedroom two bath townhouses are ready for purchase. The Davenport, Fl townhouses are turnkey ready with fully equipped kitchens, appliances and all that is needed to set up house including linens. There will also be 360 fully equipped one bedroom apartments. The planned amenities include a resort pool, two movie theatres with stadium seating, a major chain restaurant, a large Club House, a pool, lazy river, water slides, exercise room, tennis and volleyball courts along with many other features. The best part about an investment in a townhouse at Bimini Bay, Davenport, Fl is that the property maintenance aspect is taken care of for you. The investor reaps the benefits of ownership such as property appreciation and the ability to stay in the purchased property for a minimal fee without the headaches of property management. The onsite management team takes care of maintenance, markets the property and secures renters. The investor receives the same rental income each month, making this a low stress investment. At the beginning of this article, there was discussion on managing rental property yourself or obtaining a management company for this purpose. Purchasing property at Bimini Bay ensures the on-site management will handle all the issues of property management, while allowing the investor the advantage of a steady income along with the benefit of using the property.
Lisa Carson
Real Estate investment in Florida Expert
http://www.biminibayresortinvestment.com
Offering the only Guaranteed Monthly Rental Program in Orlando Florida for Florida investment Properties
Article Source: http://EzineArticles.com/?expert=Lisa_Carson
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