Types of Real Estate to Invest

April 21st, 2012 by admin No comments »

Types of Real Estate to Invest  photoThere are different types of real estate, and different ways to invest in them. Which way is best is for you to decide, according to your particular needs. Here are a few ways to consider, with their advantages and disadvantages.

1. Rental houses. Advantages: One of the easier ways to get started, and good long term return on investment. Disadvantages: Being a landlord isn’t much fun, and you typically wait a long time for the big pay-off.

2. Rent-to-own houses. Advantages: When you buy, then sell on a rent-to-own arrangement, you get higher rent, and the buyer is usually responsible for maintenance. Disadvantages: The bookkeeping is tricky, and most tenants don’t complete the purchase (this can be an advantage too, but it does mean more work for you).

3. Low income rentals. Advantages: The same as with any rentals, but with higher cash flow. Disadvantages: The same as with other rentals, but with more repairs and tenant problems.

4. Fixer-uppers. Advantages: A quick return on your investment, and it can be more creative work. Disadvantages: Higher risk (many unpredictables) and you get taxed heavily on the gain.

5. Buy for cash, sell for terms. Advantages: You get a high rate of return by paying cash to get a good price, and selling on easy terms to get a high price AND high interest. Disadvantages: You tie up your capital for a long time.

6. Buy land, split it and sell it. Advantages: It is simpler than most real estate investments, with the possibility of great profits. Disadvantages: It can take a long time, and you have expenses, but no cash flow while you wait.

7. Boarding houses. Advantages: You can get a lot more cash flow renting a house by the room, especially in a college town. Disadvantages: You can get a lot more headaches renting a house by the room, especially in a college town.

8. Commercial real estate. Advantages: Long term triple-net leases mean little management and high returns. Disadvantages: Tough market to break into, and you can lose income on vacant storefronts for a year at a time.

9. Buy, live in it, and sell. Advantages: The new tax law means you can fix it up, and sell for a big tax-free profit after two years, then start the process again. Disadvantages: You have to move a lot.

10. Speculation. Advantages: Buying in the path of growth and holding until values rise can yield large profits, especially if you buy low to start. Disadvantages: Prices aren’t that predictable, you have expenses with no income while you’re waiting, and transaction costs can eat much of the profits.

Wholesaling! in Real Estate Industry

April 19th, 2012 by admin No comments »

Wholesaling! in Real Estate Industry photoIn the real estate industry, wholesaling is considered as an entire business itself and it gives you a great chance to generate super-fast profits and not only this you can do all this even without acquiring the title on the property. It is very common to pick a check at closing, along with the seller and buyer being present there. It is not a difficult task to earn some thousands of dollars in a very short period of some three to four days but if you find a deal.

In this business of wholesale success is accomplished at locating good deals and it also includes properly marketing them and primarily to the people who are in the rehabbing and retailing business. The first purchaser is always willing to take a smaller and a faster profit leaving the larger profit to an investor with all i.e. the time and money to buy, repair and wait till the house is finally sold out. Some people make good income by buying the property and then reselling it immediately but only once or twice a month.

These deals do not require any money or credit and the best part is even not bosses. It completely relies on you, that if you locate a deal someone is always ready to buy it from you.

It is not difficult to find bargain hunters and neither it is difficult for them to find bargains. Usually bargain hunters do pick up a bargain of at least $5000 – 6000. The process of wholesaling should not take more than 20 days from the very beginning till the end. If you need some tips for it here you have some: -

While making a deal you must not pay too much. You must remember that you are selling it to bargain hunters. Leave them a lot of room to make a profit or it would be difficult for you to find a buyer. It means that they should not net more than 20 percent of the sales price after all the expenses.

To exit from a transaction quickly you must try to sell it for cash only. You must make sure that your buyer can get you the cash payment and is not relying on bank finance. As it would not be easy for them to get the loan and will also stick you by in the procedure. If you find a buyer who is not able to conclude the deal within 15 days or less, then you better look for another buyer.
You can use an assignment of contract and your closing agent can collect your fee for you.

Wholesaling is a very easy real estate business. You don not have to learn much to enter it. It completely depends on you what profit do you make as there are people who are doing one to ten deals per month and are cashing out a decent earning. It is an option where you can make a handsome amount for which many people have to work a complete year and the best part is you can do it in few deals i.e. in just few days.