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
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