Real Estate Information |
|
Beat the Crowd when Investing in Real Estate
We all are thinking about it and some of us are actually taking action and getting their hands on real estate investment properties. The longer the NY Stock Exchanges doesn't produce desirable returns the more people are starting with real estate investments. For most of us the obvious choice of properties are single family homes. Although you can invest in real estate without owning a home, most people follow the experience they made while purchasing their own home. This is familiar ground and the learning curve for doing a real estate deal of this type is pretty slim. Of course there's a drawback with this approach. The competition is fierce and there are markets where investors are artificially driving up the cost of the properties while completely discouraging first time home buyers. If this is the case, the burst of the real estate bubble is just a matter of time. How do you avoid these situations and still successfully invest in real estate? How do you get ahead of the competition and be prepared for bad times in real estate investments as well? The only answer I have is commercial real estate. Why commercial real estate you might ask? Commercial real estate is a solid investment in good and bad times of the local real estate market. The commercial real estate I'm referring to are multi unit apartment buildings. Yes you will become a landlord and No you don't have to do the work by yourself. You are the owner and not the manager of the apartment building. The cost of owning and managing the building is part of your expenses and will be covered by the rent income. Apartment buildings are considered commercial real estate if there are 5 or more units. To make the numbers work you should consider to either own multiple small apartment buildings or you should opt for bigger buildings. This will keep the expense to income ratio at a positive cash flow. Owning rental properties is all about positive cash flow. With investing in single family homes it is easy to achieve positive cash flow. Even if your rent income doesn't cover your expenses 100%, the appreciation of the house will contribute to the positive cash flow. With commercial real estate the rules are different. While single family homes are appraised by the value of recent sales of similar homes in your neighborhood, commercial real estate doesn't care about the value appreciation of other buildings. The value of the property is solely based on the rent income. To increase the value of a commercial real estate you need to find a way to increase the rent income. The formula on how this is calculated would be too much for this short article. I listed a few very helpful books where you can find all the details. What's another advantage to invest in commercial real estate? Commercial real estate financing is completely different than financing a single family home. While financing a single family home you are at the mercy of lenders who want to make sure that you are in the position to pay for the house with your personal income. Commercial real estate financing is based in the properties ability to produce positive cash flow and to cover the financing cost. After reading all these information about commercial real estate you want to go out there and dive into the deals. Not so fast. First, you need to learn as much about real estate as possible. In commercial real estate you're dealing with professionals. If you come across too much as a newbie you will waste these guys's time and your commercial real estate career ended before it actually started. Second, no commercial real estate lender will lend you any money if you can't show at least a little bit of real estate investment experience. What's the solution to this? Go out there and do one or two single family home deals yourself. It doesn't matter if you make huge profits to start off with. Most newbie investors are loosing money on their first deal anyway. If you can manage to show positive cash flow with your single family home deals you are ahead of the pack. My advice, buy a small single family home in a decent neighborhood and rent it immediately. This will keep your out of the pocket expenses at a minimum and you will have rent income to cover for your monthly expenses. Bonus, you gain experience as an investor and as a landlord. Here's another observation I made during my real estate investment career. Most people like to analyze, learn, discuss and analyze some more. They never actually got to do a real estate deal. They love to talk about real estate investments, but never did it themselves. My approach to real estate investment was simple. - I bought some books about real estate investment. - I read every single one of them. - I put together a simple plan on how I want to get started. - I started looking for properties. - I bought my first investment property 30 days after I started reading my first book. - I made positive cash flow with all of my properties so far. What is my point? You have to go out there and practice what you've learned. The only valid credential in the real estate business is practical experience. Having a couple of deals under your belt, you can go out there and start looking at commercial real estate and even impress seasoned investors with your knowledge. Because you made this experience by yourself and you know what you're talking about. Book reference for commercial real estate investments: Gary W. Eldred, PhD: "Make Money with Small Income Properties" Jack Cummings: "Real Estate Financing and Investment Manual" You will find these books and many more on my real estate investment website at http://www.suncoastrenttoown.com/author_directory.htm Sincerely, Peter Dobler is a 20+ year veteran in the IT business. He is an active Real Estate Investor and a successful Internet business owner.Learn more about real estate investments at http://www.suncoastrenttoown.com or send a blank email to mailto:suncoastrenttoown@getresponse.com
MORE RESOURCES: Inside Bill Gates' real estate, from his Seattle to Florida houses Business Insider Low inventory forces D.C.-area buyers to get creative, consider condos The Washington Post Real-estate agent explains new fees to homebuyers, he's not worried Business Insider Dr. Phil left speechless after real estate agent claims that squatting is justified by colonization New York Post Real Estate Listings Are Going Green: 5 Eco-Friendly Sales Features on the Rise Right Now Realtor.com News The economy might be booming, but housing is in a recession: Top real estate CEO says he's never seen anything like ... Yahoo Finance Inside Chris Pratt and Katherine Schwarzenegger's Real Estate Portfolio Architectural Digest Banks Believe They Are Well-Prepared for Commercial Real Estate Fallout The Wall Street Journal Local man allegedly poses as real estate agent in '20, steals over $7K | Hot Springs Sentinel Record Hot Springs Sentinel Real Estate Sales Include Two Falconer Commercial Properties Jamestown Post Journal Hot Tips for Home Buyers and Sellers Right Now Kiplinger's Personal Finance Westmoreland County Real Estate Transfers | Real Estate | latrobebulletinnews.com latrobebulletinnews.com Real estate expert says several factors impact farmland prices brownfieldagnews.com The HYM Investment Group, Cathexis and National Real Estate Advisors Announce Pre-Leasing at Amaya Boston Real Estate Times The Michael Houck Real Estate Guide for April 20 and 21 Oil City News OT Real Estate Spotlight of the Week: 4218 Edgewood Court The Owensboro Times Real-Estate Agents, Investment Advisers Chafe at New Anti-Money-Laundering Rules The Wall Street Journal Big Tech Is Downsizing Workspace in Another Blow to Office Real Estate The Wall Street Journal LOCAL REAL ESTATE TODAY 4.19.24 – KQEN News Radio kqennewsradio.com Massachusetts real estate transactions for Hampden, Hampshire and Franklin counties April 21, 2024 edition MassLive.com A repurposed mill, church, and a library: 3 nontraditional homes for sale in Baltimore The Baltimore Banner East Bank Master Developer Agreement with The Fallon Company Approved Boston Real Estate Times EG Real Estate: Busy Spring Market – East Greenwich News East Greenwich News Nisa Investment Advisors LLC Grows Position in Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) Defense World Prologis Warns of Slowing Industrial Real-Estate Market The Wall Street Journal S.F. housing market: Still very few homes, selling even faster San Francisco Chronicle How environmental insurance diligence can shape commercial real estate transactions Insurance Business Nuveen Real Estate Income Fund (NYSE:JRS) Stock Crosses Below Fifty Day Moving Average of $7.63 Defense World Critical Survey: Wheeler Real Estate Investment Trust (NASDAQ:WHLR) and Cousins Properties (NYSE:CUZ) Defense World Cerity Partners LLC Purchases New Shares in Alexandria Real Estate Equities, Inc. (NYSE:ARE) Defense World Top 25 Columbus Residential Real Estate Deals for January 2024 Columbus Monthly Healey-Driscoll Administration Names Alison Brizius New Coastal Zone Management Director Boston Real Estate Times Nisa Investment Advisors LLC Sells 32123 Shares of Ares Commercial Real Estate Co. (NYSE:ACRE) Defense World An investigation into the University's controversial real estate holdings Johns Hopkins News-Letter How low inventory is affecting home sales in Peoria and the rest of Illinois Peoria Journal Star Q1 2026 EPS Estimates for Alexandria Real Estate Equities, Inc. (NYSE:ARE) Decreased by Zacks Research Defense World 21 Largest Real Estate Companies in the World Yahoo Finance How Real Estate Helped Taylor Swift Become A Billionaire Yahoo Finance Darien and Rowayton Real Estate Report: April 11 to 18 darienite.com TikTok’s Origin Story: Court Files Show Role of GOP Megadonor Jeff Yass The New York Times Ohio Department of Commerce Division of Real Estate and Professional Licensing offers tips – Daily Chief-Union Dailychiefunion Robert Bailey on Real Estate TPG Online Daily Dream Industrial Real Estate Invest Trst (TSE:DIR.UN) Stock Price Passes Below 200-Day Moving Average of $13.02 Defense World China home prices slumped in March as property crisis drags on Business Insider Robin Hunden of Hunden Partners honored with Jeffrey D. Fisher Real Estate Legacy Award from Indiana University's ... Daily Herald Downtime: Pairing wine and real estate RichmondBizSense Blackstone Earnings Rise as Investment Giant Projects Commercial Real Estate Recovery - CoStar Group Real Estate Broker Commission Settlement ClassAction.org Real estate mogul concerned how Americans will deal with squatters: ‘Something really bad is going to happen’ Fox Business Fannie Mae, Freddie Mac clarify real estate commission rules National Mortgage News See the latest Coles County real estate transactions Journal Gazette / Times-Courier Two Weichert real estate agents in Willmar recognized for work in 2023 West Central Tribune Former HGTV star from Los Gatos sentenced in $10M real estate fraud case CBS San Francisco SVN|J. Beard Real Estate adds chief investment officer to Houston office – REJournals REjournals.com Oregon Senate strengthens consumer protections in real estate transactions Curry Coastal Pilot |
RELATED ARTICLES
How To Negotiate A Higher Price For Your House Negotiation is where many FSBO home sellers really have problems. The wrong attitude or a slip of the tongue could cost you thousands. Staging Homes for Top-Dollar Sales Wouldn't it be nice to have Roger Hazard's design team from "Sell This House" come visit for a weekend?Many "redecorators" and designers offer "Staging Homes" services from $250 to $5,000. These services usually give good advice, some help with the actual work involved, and others even move in new furniture for you. Homes For Sell By Owner - FSBOs and Buyer Brokers You're selling your home as a FSBO (for sale by owner) and you get annoyed when real estate brokers call you, right? That's a reasonable response when you're doing all the work to market your property to save thousands of dollars in broker commissions. However, when a "buyer broker" calls, you might want to listen. Cutting Edge Real Estate: Is There Anything New? Part 1 The world of real estate has pretty much stayed the same for decades. It's no different today than it was 50 years ago. 10 Tips for Investing in Distressed or Foreclosed Properties 1. Search on the world wide web for distressed or foreclosed properties as a starting point. Buy to Let Property Investment In recent years buy to let has been a popular way of investing in residential property. Stock markets are out of favour with many investors who have seen the values of their portfolios, endowment policies and pension funds shrink, whereas property has generally continued to rise in value. The Secret to Maximum Real Estate Profits: Lighting Lighting is the most important detail of interior Design Psychology for selling houses. Lighting influences a prospective buyer's feelings within a space more than any other interior design element. To Buy or Not to Buy Purchasing a home is a major emotional and financial decision. Often times, people want to buy a home; however, emotionally cannot afford to commit to the home-buying process. Advantages to Buying or Owning a Condominium Condos have become an increasingly attractive home ownership option for singles, young couples, families and retired couples (that's just about everybody!). A condo is a viable option for anyone who wants to own a home without the worry of repairs, maintenance and dreaded chores like snow shoveling. Investor Banned From Offering Property For Rent Do you realize that you might be prevented from renting your investment home? Prohibiting property owners from leasing their properties is a trend that is growing increasingly popular with some developers and many Homeowners' Associations (HOA).It's rare that you can buy a new home in a development that does have a HOA. Selling by Owner = Saving by Owner? According to the National Association of Realtors, For Sale By Owner (FSBO) home sellers comprised nearly 14% of all home sales in the United States in 2003. The Boston Globe reported that nearly 25% of homes sold in that area during that same time period were FSBOs. Why Use a Property Manager? Most experienced property investors use property managers. Why? Because they make you money. Do You Speak Real Estate? Anyone interested in real estate should be able to talk the talk. Here is a list of common phrases and words with ashort explanation. Appraisal vs. Market Value: How to Avoid Pitfalls in the Sale of Your Home When you sell your home, appraisers use comps (comparable market sales) of local properties sold within the last six months to value your home. With today's rapidly rising seller's market, six-month-old information is ancient history. Odors Can Make or Break The Sale of Your Home It's amazing how important the sense of smell is to many people. If you're selling your home, and this applies across the board to houses, townhouses, condos, apartments, or whatever, you need to be aware of the power of odors. Finding Structural Problems During Escrow - Small Rural Home Example In rural home purchases, the transaction is often subject to a satisfactory home inspection being done. Any imperfections are usually corrected during escrow. Real Estate: Reasons and Priorities for Purchasing Property Real Estate: Reasons and Priorities for Purchasing Property. It's not just about Real Estate as an Investment. Get Rich With Mobile Homes Does the myth that mobile homes depreciate in value keep you from investing in them? Well, they do lose value in a park, on a rented lot. Mobile homes with real estate, however, are an entirely different investment. RESPA: The Real Estate Settlement Procedures Act The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute, first passed in 1974. One of its purposes is to help consumers become better shoppers for settlement services. How to Build a Real Estate Investing Power Team As you continue to read about real estate investing, you will no doubt come across the term 'power team'. What is this 'power team'? A power team is a group of people without whom successful real estate investing becomes very difficult, if not impossible. |
home | site map |
© 2006 TIGER MEDIA |