The Ultimate Real Estate Investing Program
What Type Of Real Estate Investing Program Fits You?
What type of real estate investing program is right for you? The right real estate investing program will make it simple to become a successful real estate investor. But let's be clear, the steps to becoming successful as a real estate investor are simple but simple does not always translate to easy. Choosing the right real estate investing program is one of the most important decisions you can make as a real estate investor.
The best known real estate investing program is the Carlton Sheets no down payment system that has been running as a TV infomercial for over twenty years. As fare as real estate investing programs go the Carlton Sheets No Down Payment system leaves much to be desired and I would not want to have to make a living based on that real estate investing program alone. But Carlton Sheets has introduced a lot of people to the wonderful world of real estate investing and for this he should be thanked.
Let's take a look at three real estate investing programs and the benefits of each.
Kick Ass Wholesaling. Learning How To Buy.
The single most important skill for real estate investors is learning how to buy properties significantly below market value. When you learn how to buy at 50-70% of market values profits are assured and exit strategies plentiful. Pay too much for a property and there is often little you can do other than take your losses or hang on for dear life hoping the market appreciates over time.
Another advantage of wholesaling is the ability to quickly generate profits without having to use your cash or credit. An example is you find a house worth $200,000 that a seller will sell to you for $130,000. You could in turn sell this to another investor for $140,000 and make yourself $10,000 quickly and never have to fund the purchase. For a complete system on wholesaling check out Kick Ass Wholesaling
Work For Equity. The Most Profitable Way To Sell Properties
This is an advanced real estate investing program not because it is hard to implement but because most investors never discover the system. Instead of buying ugly houses and either wholesaling or rehabbing there is a way to sell and make twice the profits and have a larger pool of buyers wanting your house.
Work For Equity is the real estate investing program where you sell the property with a special lease option agreement that requires the purchaser to repair the property at their expense. Later, typically after 12 months to maximize your tax gains the lease option buyer has the right to purchase the property (in the real world only about 30% of any lease option buyers exercise their option and purchase the property).
If the lease option buyer exercises their option and purchases the property you are cashed out and this is good news. If they lease option buyer does not exercise their option you have a property that has been improved at their expense and you are free to sell again using any method you choose.
The benefits to the real estate investor are too numerous to detail here but in the end work for equity can literally double an investors profits compared to rehabbing the property then selling the property for the full after repaired value.
Work For Equity is a real estate investing program that every investor should use. Why not make twice the profit on deals your currently rehabbing? All the details can be found in the Work For Equity Pro System.
Instant Real Estate Profit Pro - How To Buy Properties In 5 Minutes Or Less
For the serious investor there exists a real estate investing program designed to handle all of your buying needs - in 5 minutes or less.
Imagine being able to analyze a property, estimate profits, and print out all of the documents you need to give the seller a completely justified offer that includes a cover letter, repair cost estimates, how you arrived at your offered price, and two offers - one cash and one terms. Users of this system are so efficient they often put properties under contract after talking to the seller one time and without even looking at the property.
This real estate investing program also prepares complete get the deed (AKA "Subject To") packages which allow you to take over existing loans. Note: Banks do not like this practice so you must understand the risks involved. All the documents you need including disclosures, authorization to real information, power of attorneys, and so much more. It even creates a land trust for you which should be part of your asset protection plan.
Or how about buying pre-foreclosures or doing short sales? Automatically prepare short sale packages in less than 5 minutes. This section is for advanced investors but so easy to use you'll feel like a pro in no time.
There simply is no real estate investing program like Instant Real Estate Profit Pro. Just take a look at what the program has done for investors around the country.
Real estate investing is a lot like being a specialized heart surgeon. Can you imagine needing open heart surgery and the doctor not having all the tools he needs to complete the surgery? Having the right real estate investing programs is what makes successful investors!
Gerald Romine is a nationally recognized real estate expert that has been featured across North America sharing the stage with political leaders, film stars, and business leaders. Since 1989, Gerald has been involved with real estate as a real estate agent, broker, rehabber, investor, and builder and has been involved with everything from houses to apartments. For more information about Gerald’s products or services visit http://www.kickassrealestate.com
Thursday, December 24, 2009
Commercial Real Estate and Retirement Planning
We often browse through newspapers, magazines, business journals and
the internet and regardless of how much we try; ignoring the vast array of
retirement planning ads is next to impossible. It seems as though the last
century has given birth to more investment vehicles than any one individual
will ever use in a lifetime. Everything from stocks and bonds to IRA's and
mutual funds are peddled in one form or another. And the number of securities
brokers and financial planners willing to help pave the way for our retirement
success are anything but scarce. What amazes me though is that of the
thousands of retirement planning professionals in the U.S., very few if any
actually recommend real estate to be included in their clients' retirement
portfolios.
Advantages
Let's begin with the advantages of owning what I believe to be the greatest
investment vehicle ever created; Commercial Real Estate. I want to clarify
two important points before proceeding; first, the term commercial real estate
and investment real estate will be used interchangably throughout this article
and second, even though our homes are a potential gold mine in terms of
equity and value, and make up what is more often than not our biggest asset,
it lacks one of the three characteristics that classify it as investment real
estate; Cash Flow (more on this in a moment and assuming that your principal
residence is a Single Family Home). For purposes of this article, I would like
for everyone to create a mindset that even though our home is indeed a very
valuable asset, for retirement purposes, it should be considered icing on the
cake rather than our largest contributor of net worth. The theory being that
should our home ever be sold, a large portion of the proceeds will eventually
have to be reallocated towards the purchase or leasehold of another home.
In other words, we'll still need a roof over our head and therefore the full
receipts of the sale may in many cases not remain fully liquid for retirement
purposes.
With that said, lets analyze the characteristics that make up investment real
estate and more importantly, the investment benefits they provide. There are
four characteristics to consider:
Cash Flow, Tax Shelter, Equity Build-Up, and Value Appreciation.
1.) Cash Flow. As I mentioned earlier, all of the characteristics of investment
real estate are in one form or another inherent in our primary residence
(our home) except for Cash Flow. Assuming that our primary residence is a
Single Family Home with no add-on apartments or studios or mineral rich land,
then for obvious reasons if we are the primary occupants, there is a slim
possibility of receiving cash flow from an additional source such as tenants
residing on the property or an energy company drilling in the back yard.
In investment real estate, Cash Flow refers to the property's periodic receipt
of gross income minus all of its operating expenses. Cash Flow is usually
measured in annual intervals and is classified as either Pre-Tax Cash Flow
or After Tax Cash Flow. The former, Pre-Tax Cash Flow; is the total cash
available after paying for expenses (i.e. management fees, utilities, repairs,
property taxes, insurance, etc.) and mortgage debt (i.e. principal plus interest).
After-Tax Cash Flow; is the total cash remaining after deducting income tax
liabilities from Pre-tax Cash Flow.
2.) Tax Shelter. Inherent in Investment Real Estate is the ability to keep
more of the periodic cash flow from operations through Property Depreciation
and provides a mechanism to build a tax deferred net worth via a 1031 Exchange.
Both of these are mere Tax Shelter examples of how Investment Real Estate can
contribute towards a solid retirement portfolio:
a. Property Depreciation. As a common practice recognized by the
IRS, Property Depreciation is an accounting concept that contributes
towards the deduction of taxable income by recovering the costs of
investment real estate thus improving cash flow. It's important to note
that land does not depreciate; the concept only applies to the value of
the improvements on the land. For example: say we had a multifamily
apartment building with a total assessed value of $500k and of that total
value, 40% would be allocated towards the land and 60% would be
allocated towards the actual building improvement. Based on this
example, only 60% of the value or $300k would be allowed for
depreciation. It's important to note that there are various forms of
depreciation and timelines that apply to each. For reasons of simplicity,
we will not get into the intricacies of each here, however, the important
point to understand is that investment real estate allows for depreciation
which in turn improves cash flow.
b. 1031 Exchange. Section 1031 of the IRS code allows for a seller to
exchange their investment property for another like kind property
without having to pay capital gains taxes on the transaction. The 1031
code in essence, does not exempt the taxes altogether but rather,
defers them. These are specialized transactions which require qualified
intermediaries who are well versed in the 1031 procedure. In the interest
of simplicity, we will not go into an in depth discussion of a 1031 as it
would require a lengthy explanation however, the important point once
again is to understand that investment real estate allows for the growth
of tax deferred net worth until and through retirement. Visit our section
on 1031 Exchanges for more information on this topic.
3.) Equity Build-Up. While investment real estate is sometimes purchased
all cash, more often than not, leverage is the tool of choice. Mortgage Debt
financing makes up the majority of investment real estate financing in the U.S.
A reduction in the mortgage debt occurs periodically, best measured annually
and is covered by a portion of the gross income received from the property's
operation. As the mortgage principal and interest is paid down, the property
begins to build equity; the difference between its accumulating market value
and any outstanding mortgage liabilities. As Equity builds on the property, this
provides an opportunity to re-leverage (or re-finance) and use the newly found
capital to acquire additional investment properties thus expanding the owner's
real estate portfolio.
4.) Value Appreciation. The fourth and probably the most compelling reason
for acquiring investment real estate is the increase in its market value through appreciation.
The economic forces of supply and demand coupled with inflationary trends and property improvements contribute to an everlasting growth in property market value. Real Estate
markets are local vs. regional therefore, an impact in one market may have little or no
effect in another market. This can have either a positive or negative connotation
depending on the type of impact. It's important to point out that historically,
real estate market appreciation has averaged between 3% and 6% growth annually.
the internet and regardless of how much we try; ignoring the vast array of
retirement planning ads is next to impossible. It seems as though the last
century has given birth to more investment vehicles than any one individual
will ever use in a lifetime. Everything from stocks and bonds to IRA's and
mutual funds are peddled in one form or another. And the number of securities
brokers and financial planners willing to help pave the way for our retirement
success are anything but scarce. What amazes me though is that of the
thousands of retirement planning professionals in the U.S., very few if any
actually recommend real estate to be included in their clients' retirement
portfolios.
Advantages
Let's begin with the advantages of owning what I believe to be the greatest
investment vehicle ever created; Commercial Real Estate. I want to clarify
two important points before proceeding; first, the term commercial real estate
and investment real estate will be used interchangably throughout this article
and second, even though our homes are a potential gold mine in terms of
equity and value, and make up what is more often than not our biggest asset,
it lacks one of the three characteristics that classify it as investment real
estate; Cash Flow (more on this in a moment and assuming that your principal
residence is a Single Family Home). For purposes of this article, I would like
for everyone to create a mindset that even though our home is indeed a very
valuable asset, for retirement purposes, it should be considered icing on the
cake rather than our largest contributor of net worth. The theory being that
should our home ever be sold, a large portion of the proceeds will eventually
have to be reallocated towards the purchase or leasehold of another home.
In other words, we'll still need a roof over our head and therefore the full
receipts of the sale may in many cases not remain fully liquid for retirement
purposes.
With that said, lets analyze the characteristics that make up investment real
estate and more importantly, the investment benefits they provide. There are
four characteristics to consider:
Cash Flow, Tax Shelter, Equity Build-Up, and Value Appreciation.
1.) Cash Flow. As I mentioned earlier, all of the characteristics of investment
real estate are in one form or another inherent in our primary residence
(our home) except for Cash Flow. Assuming that our primary residence is a
Single Family Home with no add-on apartments or studios or mineral rich land,
then for obvious reasons if we are the primary occupants, there is a slim
possibility of receiving cash flow from an additional source such as tenants
residing on the property or an energy company drilling in the back yard.
In investment real estate, Cash Flow refers to the property's periodic receipt
of gross income minus all of its operating expenses. Cash Flow is usually
measured in annual intervals and is classified as either Pre-Tax Cash Flow
or After Tax Cash Flow. The former, Pre-Tax Cash Flow; is the total cash
available after paying for expenses (i.e. management fees, utilities, repairs,
property taxes, insurance, etc.) and mortgage debt (i.e. principal plus interest).
After-Tax Cash Flow; is the total cash remaining after deducting income tax
liabilities from Pre-tax Cash Flow.
2.) Tax Shelter. Inherent in Investment Real Estate is the ability to keep
more of the periodic cash flow from operations through Property Depreciation
and provides a mechanism to build a tax deferred net worth via a 1031 Exchange.
Both of these are mere Tax Shelter examples of how Investment Real Estate can
contribute towards a solid retirement portfolio:
a. Property Depreciation. As a common practice recognized by the
IRS, Property Depreciation is an accounting concept that contributes
towards the deduction of taxable income by recovering the costs of
investment real estate thus improving cash flow. It's important to note
that land does not depreciate; the concept only applies to the value of
the improvements on the land. For example: say we had a multifamily
apartment building with a total assessed value of $500k and of that total
value, 40% would be allocated towards the land and 60% would be
allocated towards the actual building improvement. Based on this
example, only 60% of the value or $300k would be allowed for
depreciation. It's important to note that there are various forms of
depreciation and timelines that apply to each. For reasons of simplicity,
we will not get into the intricacies of each here, however, the important
point to understand is that investment real estate allows for depreciation
which in turn improves cash flow.
b. 1031 Exchange. Section 1031 of the IRS code allows for a seller to
exchange their investment property for another like kind property
without having to pay capital gains taxes on the transaction. The 1031
code in essence, does not exempt the taxes altogether but rather,
defers them. These are specialized transactions which require qualified
intermediaries who are well versed in the 1031 procedure. In the interest
of simplicity, we will not go into an in depth discussion of a 1031 as it
would require a lengthy explanation however, the important point once
again is to understand that investment real estate allows for the growth
of tax deferred net worth until and through retirement. Visit our section
on 1031 Exchanges for more information on this topic.
3.) Equity Build-Up. While investment real estate is sometimes purchased
all cash, more often than not, leverage is the tool of choice. Mortgage Debt
financing makes up the majority of investment real estate financing in the U.S.
A reduction in the mortgage debt occurs periodically, best measured annually
and is covered by a portion of the gross income received from the property's
operation. As the mortgage principal and interest is paid down, the property
begins to build equity; the difference between its accumulating market value
and any outstanding mortgage liabilities. As Equity builds on the property, this
provides an opportunity to re-leverage (or re-finance) and use the newly found
capital to acquire additional investment properties thus expanding the owner's
real estate portfolio.
4.) Value Appreciation. The fourth and probably the most compelling reason
for acquiring investment real estate is the increase in its market value through appreciation.
The economic forces of supply and demand coupled with inflationary trends and property improvements contribute to an everlasting growth in property market value. Real Estate
markets are local vs. regional therefore, an impact in one market may have little or no
effect in another market. This can have either a positive or negative connotation
depending on the type of impact. It's important to point out that historically,
real estate market appreciation has averaged between 3% and 6% growth annually.
Growth, Stability Of Commercial Real Estate Investing
Commercial real estate investing is a kind of investing which is used for business purpose. The commercial real estate investing property is different from other real estate investing like agriculture, residential and other industrial purpose. Commercial real estate investing property provides reasonable price consideration from the investment property and also provides income for long period. In real estate investing, real estate investors make investment on commercial real estate investing. Commercial real estate investing is made by most of the real estate investors, because it fetches more profit for the seller at the time of sale of real estate investment property.
The main purpose why people prefer to make their real estate investing is that commercial real estate investing provides stability and high return in the market. The other advantage we obtained from commercial real estate investing is that it provides investment securities for the real estate investment property purchased from the real market. Real estate investing market is said to be the stable market and it also carries high returns on investment for the property purchased. It is the obligation of the real estate investor to see that the real estate investing property fetch more profit among the customer and it realize more profit. Some of the standard features of commercial real estate investing are
High return
The main advantage of commercial real estate investing property is that it carries high return on investment. More number of people procures real estate property because of its returns provided. Real estate investor enjoys the benefits provided by the real estate property with high return and turnover during the period of sale of real estate investment property. Real estate sector is the wide sector where it carries huge number of properties required with desire prices.
Stability
The other unique feature of commercial real estate investing property is that its stability and consistency with the world market. When though more number of real properties are available in real estate investing market, still commercial estate investment obtains more demand among the customers for reasonable price consideration. Real estate investing benefits are provided more in real estate investing and it is due to the stability provided in the real market.
Commercial estate investment provides long term security of cash flow for the real estate investors who had made their real estate investing. Commercial real estate obtains more demand among the customer and they provides more return on investment with principal and interest. This kind of investment obtains more demand, growth, return and stability compared to other real estate investment property in the real estate market.
Kumaran is a seo copywriter having more than 3 years of experience in this field who is currently working for the site real-estate-investing-information.net. For further information on real estate investing information, real estate investing and real estate investing tips please visit http://www.real-estate-investing-information.net/ or contact me through mail: kumaran.reii@gmail.com
The main purpose why people prefer to make their real estate investing is that commercial real estate investing provides stability and high return in the market. The other advantage we obtained from commercial real estate investing is that it provides investment securities for the real estate investment property purchased from the real market. Real estate investing market is said to be the stable market and it also carries high returns on investment for the property purchased. It is the obligation of the real estate investor to see that the real estate investing property fetch more profit among the customer and it realize more profit. Some of the standard features of commercial real estate investing are
High return
The main advantage of commercial real estate investing property is that it carries high return on investment. More number of people procures real estate property because of its returns provided. Real estate investor enjoys the benefits provided by the real estate property with high return and turnover during the period of sale of real estate investment property. Real estate sector is the wide sector where it carries huge number of properties required with desire prices.
Stability
The other unique feature of commercial real estate investing property is that its stability and consistency with the world market. When though more number of real properties are available in real estate investing market, still commercial estate investment obtains more demand among the customers for reasonable price consideration. Real estate investing benefits are provided more in real estate investing and it is due to the stability provided in the real market.
Commercial estate investment provides long term security of cash flow for the real estate investors who had made their real estate investing. Commercial real estate obtains more demand among the customer and they provides more return on investment with principal and interest. This kind of investment obtains more demand, growth, return and stability compared to other real estate investment property in the real estate market.
Kumaran is a seo copywriter having more than 3 years of experience in this field who is currently working for the site real-estate-investing-information.net. For further information on real estate investing information, real estate investing and real estate investing tips please visit http://www.real-estate-investing-information.net/ or contact me through mail: kumaran.reii@gmail.com
Tuesday, May 26, 2009
Robert Kiyosaki's Teachings
Robert Kiyosaki is a well known author and successful businessman!
A large part of Kiyosaki's teachings focus on generating passive income by means of investment opportunities, such as real estate and small businesses, with the ultimate goal of being able to support oneself by such investments alone. Kiyosaki also defines "assets" as things that generate money, such as rental properties or businesses, and "liabilities" as things that cost money, such as house payments, cars and so on. Kiyosaki also proclaims financial leverage to be critically important in becoming rich.
He stresses what he calls "financial literacy" as the means to obtaining wealth. He says that life skills are often best learned through experience and that there are important lessons not taught in school. He says that formal education is primarily for those seeking to be employees or self-employed individuals, and that this is an "Industrial Age idea". And according to Kiyosaki, in order to obtain financial freedom, one must be either a business owner or an investor, generating passive income.
Kiyosaki uses the "rich dad, poor dad" series of books to illustrate his view that the majority of people are stuck in what he refers to as "the rat race"-living paycheck to paycheck and spending all of their time working to pay bills. In his books, Kiyosaki advocates tax-advantaged investment vehicles, such as real estate or businesses, rather than ownership of securities. This idea is further developed in his later books and "Rich Dad" became Kiyosaki's personal brand for various publishing ventures.
Although Kiyosaki recommends investing in real estate usually for rental income, there is one thing that he doesn't seem to teach...how to pay-off your rental property and even your house in one-third the time! If you would like to know how to rapidly pay-off your mortgage and other debts and supercharge your retirement account, visit my site for a free report at: www.financialadvantages.com
| My name is Steve Herman and 5 years ago I discovered a way to rapidly pay-off debt and rapidly fund a retirement account! my website is http://www.financialadvantages.com Article Source: http://EzineArticles.com/?expert=Steve_Herman |
Real Estate Investing - Should I Rent, Or Fix And Flip?
If you're just getting into real estate investing, chances are you are looking at two basic options for mid-range residential property. You can either own the property indefinitely and rent it out at a profit or you can own the property for a short period of time, fix it up, and sell it for a profit. While both can be great approaches to real estate, some properties are not equally suitable for both.
Renting It Out: Renting out your property can be a huge moneymaker, but not for every property. For instance, if you have just bought a property that is in serious disrepair, you may not want to rent it out. It might be better to fix it up and sell it, because nobody wants to rent a property that is in serious disrepair. Furthermore, if you fix it up and then try to rent it, you now have to recover the initial payment on the property as well as the cost of renovation. That can take awhile, and can be recovered faster by selling the property.
Likewise, if you have just bought an expensive property which is in great shape, you may be better served to make some market-specific improvements and sell the property. People who can afford to rent expensive residential property are probably not looking to rent; they're looking to buy.
Finally, consider the area the property is in. Is it in a transitional area, where people tend to stay for five years or less and move on? If so, renting it out can be extremely profitable. Do something with the property to set it apart from the average property in the market and then list it at 120% of the market value, trumpeting the aspect of the property that sets it apart. In a market where everyone is stuck renting basically the same property, a little bit of color or flair can add a lot of value to a property.
Fixing and Flipping: The key to the fix it and flip it philosophy is to renovate the property to the extent that it is now marketable to a wealthier buyer without spending so much in the renovation process that the increase in value is negligible. This can be more difficult than it seems. First, major renovations can sometimes snowball out of control. What started as a $30,000 project can turn into a $60,000 project before you even know what hit you. Second, you need to know your market very well. You need to know that by investing $30,000 in the renovation of a property you can turn around and sell that property for (significantly) more than $30,000 more than you paid for it. This can be risky.
However, if you are confident that you know your market and can keep the renovation project under control, fixing and flipping a property can involve much less risk. Because you can make your money back in a shorter period of time than renting the property, unforeseen changes in the market are less likely to cause you problems. A faster turnaround should make for higher profits in the long run.
| If you're considering buying http://www.automatedhomefinder.com/Denver-Northwest-Colorado-real-estate-for-sale.php |
Dubai Hotels - Dubai Hotel Apartment
If you look closer at the 5 star hotel segment the occupancy rates are even higher at 92%. This is even with the highest price per room at $232 US. These rates are even greater than the 5 star price per room night of cities such as New York and Paris.
The Dubai tourism boom is fueling these lofty numbers and are expected to increase their 5 million annual visitors to 15 million by 2012. Most of this boom is being driven by the city run airline Emirates. Emirates has 80 direct flights to destinations around the world and is expecting to add another 20 destinations over the next few years.
Dubai Hotel sector is set to add a Palazzo Versace and the first Trump International project outside of North America. It is no mistake that the Trump organization has spotted Dubai as its first step into the region to begin its international branding initiative.
The tourism boom spearheaded by Emirates has been strategically driven by acting initially as the stopover point for Europeans and Asian connecting through their respective continents.
The strategy has now expanded into Australia and North America with new destinations such as San Francisco and Chicago to be announced pending airline orders. Additionally given the initial demand for its Australian and its lone North American destination New York Emirates has added additional daily flights.
Much of its future focus will be on capturing the North American market similar to what they have done in Australia in addition too aggressively going after the China market. Initial destinations of Hong Kong and Shanghai and now Beijing show Emirates is committed to China.
| Browse Dubai hotels and book your Oasis Beach tower hotel in Dubai on line make it easy for you to find your holiday apartment and furnished rentals of your choice |
How to Use Comparable Sales to Determine the Current Market Value of a Property
When assessing the value of a property, many investors and other commercial property buyers look at comparable sales to determine the true current market value of a property. The comparable sales can show you exactly what properties are selling for, not just the asking price. If you know three or four properties of similar characteristics sold for about the same amount, then you can determine what the value of your property is. Don't ever just look at the asking price, as it can be as far off as the owner wishes. He or she may be dreaming in regards to what the property is really worth!
Comparable sales, or comps, are the properties that have sold around the subject property that are zoned identically, and are about the same amount of acreage. It also helps if the comparable sales are from properties that have similar uses.
Comparable sales may not always be the most accurate for your specific property. They could be from many years ago, may not be of similar use, many not have the same characteristics such as the availability of utilities, or may not have a comparable amount of road frontage, or could be a considerable distance from the subject property.
In order to get around this problem, you must use the closest properties that you can. You simply adjust the price according to the changes in the market or property characteristics.
For example, if a comparable sale was from 2001, and the current year is 2006, then you can adjust the price according to the appreciation the overall commercial market has experienced in a specific area.
Or, if the subject property has a total road frontage of 200 feet, and the comparable sale property has frontage of 1000 feet, you can adjust the price or value appropriately.
As you can see, finding the true current market value of a property can take some investigation and adjustment in relation to the properties that have sold in the past. The more recent and similar the comparable sale is, the easier and more accurately you can assess the true value of the property.
It is a good idea to collect as many comparable sales as possible and take inventory of each. What are the characteristics? What are the uses? Assess each one individually and then group them together to determine an overall consensus. You should be able to determine the current market value at this point. The more properties you have to pool from, the more accurate a number you will have.
Very often brokers or agents supply you with comps from the area of interest as part of the service of selling the subject property. If you are not familiar with the area, you must be leery of the comps that they send you.
I have received comps of properties in the most affluent areas for a subject property that was positioned in a lower to medium class area which completely misrepresented the true market value of the property. Unless I had investigated further and asked many questions, I could have easily taken this property as a true comparable sale, and would have expected a far greater return than what I really would have experienced.
Unfortunately, as much as you want to trust the information that you are given by a source, you must always perform your very own investigation because brokers and agents are there to sell their properties. Many of them are honest and will do the best they can to give you the most accurate information. However, there are those who will dupe a buyer in order to sell the property and receive their commission. It is important to be aware of these tactics. Although we don't like to admit that they happen, they most certainly do.
Comparable sales are really the only way you can determine the true value of a property. It may take a comparable from another city, or even county of identical characteristics to determine the most accurate value. If necessary, ask a trustworthy broker or agent for assistance, as they will know their market inside and out, and be able to point you in the right direction as to what the property is really worth. Get two or three opinions in order to validate any information you might receive.
| Tony Seruga, Yolanda Seruga and Yolanda Bishop of http://www.maverickrei.com specialize in commercial and investment real estate. As of May, 2006, they and their partners are managing over $600 million dollars worth of new projects. |
Top 7 Ways To Get Rich
Want to be one of the lucky ones on the road to riches, want to be on the freeway to financial freedom, on your way to wealth?
Here are the top 7 roads to riches, the top 7 easiest and fastest ways to acquire wealth ...
Inherit it
This is how today's old money families got their wealth. In the 1800's and early 1900's, before anti-trust laws, income taxes and political correctness, America's finest families built empires and amassed great wealth; in industries such as oil, banking, newspapers, sugar, transportation, land, bootlegging and even prostitution. And that original wealth was passed down to succeeding generations. The number one easiest and fastest way to acquire wealth is to inherit it. Unfortunately, inheriting wealth is mainly a matter of blood; you have to be born into the right family.
Marry it
If you can't inherit it the second easiest and fastest way to acquire wealth is to marry someone who is already wealthy. And sometimes that person may even be kind, generous, compatible and loveable. And, if not, divorce can pay off handsomely. Just remember to get married (and divorced) in a state that has favorable community property laws.
Work for it
If you can't inherit wealth and can't marry it then you can work for it. People rarely get rich having a job. Rather, they build a company and own it. And then often take that company public, collecting hundreds of millions, or billions, of dollars in doing so.
Or, they invent something useful and valuable which greatly benefits society, such as explosive devices like dynamite, or the paper clip or the thigh master or eBay.
Win it
If you can't inherit wealth, can't marry it or can't work for it then maybe you can win it. Lotteries abound, paying out multi-million dollar jackpots, and eventually someone always wins them. Unfortunately, you have a greater chance of being struck by lightning then winning the lottery. But, hey, it only costs a buck!
Steal it or deal it
If you can't inherit wealth and you can't marry it, work for it, or win it then maybe you could steal it or deal it.
You could become a CEO or chief financial officer for a big cash-rich company, cook the books, steal millions of dollars, buy a $20 million dollar home, lie to the feds, and hope you don't get caught, convicted and sent to Club Fed. I don't recommend anyone try to get rich this way.
Also not recommended is to deal it; to become a drug lord and generate hundreds of millions of dollars in cash dealing heroin, crack, meth and other non-FDA approved goodies and wholesaling it to pushers who will gladly resell it to anyone to wants it, ranging from children to movie stars. After all, aren't drug dealers just supplying what people want; even if it creates crime, ruins lives, kills people or could put you in jail for the rest of your life. Not a legal (or moral) way to get rich.
Gamble for it
If you can't inherit money, can't marry it, can't work for it, can't win it, can't steal or deal it then maybe you could gamble for it. Over 50 million people play poker. A few even make millions of dollars at it. You've seen them on television, winning or losing upwards of a million dollars on the turn of a card. Looks easy, doesn't it? They don't look so tough on TV; I bet any decent poker player (like me for instance) has a good chance of beating them on a lucky day. So maybe you could simply plunk down $3,000-$25,000 per tournament entry fee, or get a backer, join the World Poker Tour, win a few tournaments and get rich! Or maybe, in reality, the average amateur poker player has a snowball's chance in hell of getting rich that way.
Invest and get rich
If you can't inherit wealth, can't marry it, can't work for it, can't win it, can't steal or deal it or can't gamble for it then maybe you can invest and get rich. There are 2 good ways to invest and get rich; the real estate market and the stock market.
According to historical data, over time, real etate goes up a average of 10% a year. So getting rich in real estate tends to take a long time. And also requires a large down payment. Hard to get rich quick that way.
On the other hand, the stock market can be a good way to get rich. Stocks can go up dramatically over a relatively short period of time and make you rich but you have to have the money to invest and you have to pick the right stocks at the right time.
To recap how to get rich:
1. inherit it
2. marry it
3. work for it
4. win it
5. steal it or deal it
6. gamble for it
7. invest for it
These are the top 7 easiest and quickest ways people can get rich. How will YOU do it?
| Alan Korber is the creator and publisher of the successful Korber Strategy, a simple easy-to-understand stock market investment strategy that can pinpoint stocks likely to go up 50%-100% in the next 12 months. His website is http://www.akorber.com |
Tuesday, March 3, 2009
Strict Loan Documentation Standards Will Help Prevent the Next Housing Bubble
By: Robert Thomson
One of the most egregious practices of the Great Housing Bubble was the fabrication of income by borrowers that was facilitated and promoted by originating lenders. Stated-income loan programs were widespread, and they were the cause of much of the uncertainty in the secondary mortgage market during the initial stages of the credit crunch in the deflation of the bubble. Basically, investors had no idea if the borrowers to whom they had lent billions of dollars were capable of paying them back.
Without proper documentation of income, investors lost all confidence in the secondary mortgage market. Stated-income loan programs were one of the first casualties of the credit crunch. These programs should be eliminated totally due to the inherent potential for fraud and the undermining of confidence in the secondary mortgage market stated-income loans create. If lenders can be sued based on the content of the loan documents, and if borrowers can be fined or go to jail for committing fraud or misrepresentation on loan documents, both parties have strong incentive to prepare these documents completely and correctly. Originating lenders will argue this adds to their costs and will result in higher application fees. The amount in question is very small, particularly relative to the dollar amount of the transaction. A small amount of additional expense here will provide huge benefits by assuring investors the borrowers to whom they are loaning money really have the income to pay them back. The benefit far outweighs the cost.
If such a law were passed, agency interpretation and court case precedents will end up defining adequacy in loan documentation. A single W2 does not establish a work history, but 2 years worth is probably excessive documentation. One of the most contentious areas will likely be documenting the income of the self-employed. In theory, the self employed must document their incomes to the US government either through Schedule C reports or corporate K-1s. The argument the self-employed have traditionally made is that these documents understate their income. Since many self employed take questionable tax deductions, there is probably some truth to the claim that tax records understate their income; however, why should the self-employed get to have both benefits? If the self-employed had to use their tax returns as loan documentation, they probably would not be quite so aggressive in taking deductions. A new business without a tax return or with only one year of taxable receipts probably is not stable enough to meet standards of income necessary to assume a long-term debt.
The poor quality of loan documentation during the bubble was a mistake of originating lenders; therefore, in this proposal much of the burden of paperwork and liability for mistakes falls on the lenders. During the deflation of the bubble, lenders paid an enormous price for some of their lax paperwork standards, but much of the problem was also due to borrowers misrepresenting themselves in the loan documents. There were instances where lenders encouraged this behavior, but in the majority of cases, the document fraud was perpetrated by the borrowers. The only recourse available to a lender is a civil suit as there are few criminal penalties associated with loan documentation and almost no enforcement. It can be very difficult and costly for lenders to pursue civil damages, and few lenders attempt it even when they have a strong case. To create a more balanced set of responsibilities, the borrowers must face criminal penalties for fraud and misrepresentation on loan documents. If borrowers know the lender can turn documents over to a prosecutor who will charge the borrower with a crime if they make false material statements, borrowers will be much less likely to commit these acts.
If loan documentation standards are tightened, much of the fraud in the system would disappear. Mortgage fraud inflated prices and reduced investor confidence in mortgage-backed securities. The inflated prices set the market up for a fall. The reduced investor confidence in mortgage-backed securities halted the flow of investment capital into the housing sector and exacerbated the decline of house prices. These problems would have been avoided if loan documentation standards were higher.
Article Source: ABC Article Directory
Lawrence Roberts is the author of The Great Housing Bubble: Why Did House Prices Fall? Learn more and get FREE eBooks at: www.thegreathousingbubble.com/ Read the author's daily dispatches at The Irvine Housing Blog: www.irvinehousingblog.com/
One of the most egregious practices of the Great Housing Bubble was the fabrication of income by borrowers that was facilitated and promoted by originating lenders. Stated-income loan programs were widespread, and they were the cause of much of the uncertainty in the secondary mortgage market during the initial stages of the credit crunch in the deflation of the bubble. Basically, investors had no idea if the borrowers to whom they had lent billions of dollars were capable of paying them back.
Without proper documentation of income, investors lost all confidence in the secondary mortgage market. Stated-income loan programs were one of the first casualties of the credit crunch. These programs should be eliminated totally due to the inherent potential for fraud and the undermining of confidence in the secondary mortgage market stated-income loans create. If lenders can be sued based on the content of the loan documents, and if borrowers can be fined or go to jail for committing fraud or misrepresentation on loan documents, both parties have strong incentive to prepare these documents completely and correctly. Originating lenders will argue this adds to their costs and will result in higher application fees. The amount in question is very small, particularly relative to the dollar amount of the transaction. A small amount of additional expense here will provide huge benefits by assuring investors the borrowers to whom they are loaning money really have the income to pay them back. The benefit far outweighs the cost.
If such a law were passed, agency interpretation and court case precedents will end up defining adequacy in loan documentation. A single W2 does not establish a work history, but 2 years worth is probably excessive documentation. One of the most contentious areas will likely be documenting the income of the self-employed. In theory, the self employed must document their incomes to the US government either through Schedule C reports or corporate K-1s. The argument the self-employed have traditionally made is that these documents understate their income. Since many self employed take questionable tax deductions, there is probably some truth to the claim that tax records understate their income; however, why should the self-employed get to have both benefits? If the self-employed had to use their tax returns as loan documentation, they probably would not be quite so aggressive in taking deductions. A new business without a tax return or with only one year of taxable receipts probably is not stable enough to meet standards of income necessary to assume a long-term debt.
The poor quality of loan documentation during the bubble was a mistake of originating lenders; therefore, in this proposal much of the burden of paperwork and liability for mistakes falls on the lenders. During the deflation of the bubble, lenders paid an enormous price for some of their lax paperwork standards, but much of the problem was also due to borrowers misrepresenting themselves in the loan documents. There were instances where lenders encouraged this behavior, but in the majority of cases, the document fraud was perpetrated by the borrowers. The only recourse available to a lender is a civil suit as there are few criminal penalties associated with loan documentation and almost no enforcement. It can be very difficult and costly for lenders to pursue civil damages, and few lenders attempt it even when they have a strong case. To create a more balanced set of responsibilities, the borrowers must face criminal penalties for fraud and misrepresentation on loan documents. If borrowers know the lender can turn documents over to a prosecutor who will charge the borrower with a crime if they make false material statements, borrowers will be much less likely to commit these acts.
If loan documentation standards are tightened, much of the fraud in the system would disappear. Mortgage fraud inflated prices and reduced investor confidence in mortgage-backed securities. The inflated prices set the market up for a fall. The reduced investor confidence in mortgage-backed securities halted the flow of investment capital into the housing sector and exacerbated the decline of house prices. These problems would have been avoided if loan documentation standards were higher.
Article Source: ABC Article Directory
Lawrence Roberts is the author of The Great Housing Bubble: Why Did House Prices Fall? Learn more and get FREE eBooks at: www.thegreathousingbubble.com/ Read the author's daily dispatches at The Irvine Housing Blog: www.irvinehousingblog.com/
Find Apartment Rentals minus the Hassle
By: Kenn Fong
When you are looking for apartment rentals, it can sometimes be a nerve wracking process. Frustration is pretty much par for the course. It is especially overwhelming when you are looking for your first apartment. The good news is that a little organization can make the process much, much easier. You simply need to know exactly what you are looking for, what you are able to spend, and what concessions you are willing to make.
One of the biggest things that you need to make sure that you do before you even head out to look for an apartment is make a list of everything that you want out of an apartment. How many bedrooms you are looking for, are the appliances new, is the water and heat included in the monthly cost? These are all very important questions that should be considered before you look for your dream apartment.
If, for example, you have pets, you will want to look for buildings which accept them. Other considerations include the kind of amenities you are looking for - gym, pool, laundry room, parking garage, et cetera. All of these things can help you narrow down your apartment search.
After completing your list, however, you need decide which of those features do not need. If, for example, there is a gym or a YMCA down the street, you may be able to do without the in house gym. You need to be willing to make some compromises, depending on what is on the market and what you can afford.
One thing that you need to remember when you are searching for the perfect apartment is to compromise. You may not be able to afford everything that is written down on your list, you definitely need to take your budget into consideration and if you go into apartment hunting with this attitude, it will be a lot less frustrating.
You need to make sure that you are not going to go out apartment hunting with the flat or apartment of your dreams in mind. Making compromises and concessions is an absolute necessity when looking for an apartment.
After your list is compiled and you have come up with some potential apartments, then you need to start taking specific notes. Make a list of addresses, names - for owners, landlords, and so on - and the features that each apartment has. Now you are ready to visit each one and talk to landlords, asking specific questions that will ultimately lead you to finding your new apartment!
Article Source: ABC Article Directory
More on Garage Construction Cost and Selling a Foreclosure
When you are looking for apartment rentals, it can sometimes be a nerve wracking process. Frustration is pretty much par for the course. It is especially overwhelming when you are looking for your first apartment. The good news is that a little organization can make the process much, much easier. You simply need to know exactly what you are looking for, what you are able to spend, and what concessions you are willing to make.
One of the biggest things that you need to make sure that you do before you even head out to look for an apartment is make a list of everything that you want out of an apartment. How many bedrooms you are looking for, are the appliances new, is the water and heat included in the monthly cost? These are all very important questions that should be considered before you look for your dream apartment.
If, for example, you have pets, you will want to look for buildings which accept them. Other considerations include the kind of amenities you are looking for - gym, pool, laundry room, parking garage, et cetera. All of these things can help you narrow down your apartment search.
After completing your list, however, you need decide which of those features do not need. If, for example, there is a gym or a YMCA down the street, you may be able to do without the in house gym. You need to be willing to make some compromises, depending on what is on the market and what you can afford.
One thing that you need to remember when you are searching for the perfect apartment is to compromise. You may not be able to afford everything that is written down on your list, you definitely need to take your budget into consideration and if you go into apartment hunting with this attitude, it will be a lot less frustrating.
You need to make sure that you are not going to go out apartment hunting with the flat or apartment of your dreams in mind. Making compromises and concessions is an absolute necessity when looking for an apartment.
After your list is compiled and you have come up with some potential apartments, then you need to start taking specific notes. Make a list of addresses, names - for owners, landlords, and so on - and the features that each apartment has. Now you are ready to visit each one and talk to landlords, asking specific questions that will ultimately lead you to finding your new apartment!
Article Source: ABC Article Directory
More on Garage Construction Cost and Selling a Foreclosure
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