Phil Hartog, Investment In Real Estate

Author: Peter Mason
Profitable Real Estate Investment Property
Over the past 20 or 30 years, the number of homes bought and sold as investment property has continued to rise. In a recent year, one home of every four was sold as an investment property rather than only as a family home. The main reason for the interest in real estate as an investment - increase in prices have made investment a profitable business.

In this same period of two or three decades, the number of real estate investment programs and systems has made buying property possible for anyone willing to spend a little time studying the steps. One of the most popular methods used continues to be “flipping.” When most people think of flipping as an action, they think of it being quick. That is at the heart of the method.

Those who focus on flipping homes or other property buy the property and sell it as soon as they can, for a profit. Some have found this to be an excellent way to generate cash flow, and eventually they use the capital for larger investments that may take a bit more time to resell. One of the keys to successful flipping, of course, is the ability to buy a property with a buyer in mind. This can be risky for a couple of reasons. If the investor does not have sufficient capital and the property doesn’t sell right away, further investment can be difficult or impossible. Even with strong working capital, an investor can be caught holding a property if the prospective buyer or buyers change their minds.

Any real estate investment plan must be carried out with attention to detail. With flipping or with long term investing, all prices should account for tax costs, insurance, service charges, maintenance and repairs. A quick turn of property by flipping, that might otherwise include a solid profit, can go sour if unseen costs or buyer demands add to the expenses.

Some folks combine the overall increase in real estate value with a rental program that can take care of most, or all, of the costs of owning property. However, this method of investment does have added factors. While a profit can be made in the future with the sale of the property, the months or years as a rental property will include time and money for finding renters, overseeing maintenance and so on. Successful rental property managers urge a great deal of patience and preparation when entering the rental property industry.

Foreclosure property is another avenue traveled by some in the real estate industry. This method can generate excellent profits, but may require significant capital and the ability to tolerate risk. If an owner cannot make payments for a period of time, the bank or other lender may foreclose, giving the customer a period of time to come up with a solution. If an investor comes along with an offer that will solve the original owner’s problem, a sale can often be arranged. But this type of investment method should never be undertaken without solid planning and attention to detail. Whether the investment system involves flipping, renting, foreclosure or “paper” investing with several others, patience and planning are absolutely necessary.

Author: Grant Eckert
Though there’s no such thing as a “sure thing,” real estate is still considered the best investment you can make for your financial future - and with good reason. With the favorable housing market for buyers and for sellers, real estate is an almost guaranteed way to increase your income as well as your net worth. Here are the top four reasons why you might want to make real estate your business too.

The first reason for investing in real estate is common sense - everyone needs a place to live or work. When you need to have a space for a certain function, you turn to the real estate market, whether you’re renting or buying. Because this demand is never going to go away, investing in real estate is a move that is certain to pay off in the future. Even as housing prices rise and buyers are more hesitant, there is still a market for renting. And when the housing prices go down, the buyers will be ready to buy again. No matter what the market is doing, real estate still sells.

The next reason for making real estate your main investment is that it can continue to increase in value over the years. By adding additions to a property or installing new features, you can continue to make the piece of property valuable. The initial price that you paid for the property can be recouped as well as turn a profit if you’ve made substantial improvements. If you’re looking to make a profit from the selling of properties, you will want to continue to make improvements and repairs on the home so that it’s in good repair for future sales. In addition, if you are constantly making improvements to a rental property, you can increase the rental rates to compensate for these features.

You will also find that real estate is a great investment because it is so simple to get into. In many cases with option ARM mortgages, you won’t have to pay a lot of money to buy a property and then can turn around to sell to someone else. Known as flipping houses, this has become common practice with many real estate investors. While you will need to make the initial investment and then wait for someone to buy your home, you will be able to make a large amount of money in exchange. Buy properties in popular areas and you will be able to make even larger amounts of money.

Finally, real estate is a worthwhile investment when you’re in an area of development. Cities and suburbs outside of bigger metropolitan areas are often much more likely to have a favorable housing market because most people don’t want to live inside the city, but do want to live near the city as that’s where they work. But as a result, these houses are less expensive to buy in the outer regions of the busier areas, making it simple for you to invest when the housing market is new.

The flexibility of real estate is also something that makes it a great investment. While it used to be difficult for the buyer to buy a home, it’s easier than ever with a wide range of mortgages, making it easier for the seller to sell. If you are a homeowner that’s not looking to sell, but owns your own home, you can use the equity in your home to add value to your home as well as to your life. The investment you’ve made will continue to pay off for years to come.

Author: Alex Anderson
Look in your wallet. The cash you see is not being invested and is not making you more money. That dollar in pocket change will buy you a soda, but soon it’s gone and that indicates a temporary value because you will get thirsty again by tomorrow. Each month you pay your house note, that money isn’t working to make you more money, but it is giving you value. Value is something that will increase. Paying your house note gives you value because your house, as a general rule, will go up in value. But, does it go up at the same rate as the interest you pay? If it does not, is that a problem?

On the surface, it seems that it is the smart thing to do to pay off that house mortgage as quickly as possible. It also seems smart to either get a 15 year loan or to make double payments with the idea to reduce the amount of interest you are paying as well as paying off the mortgage sooner with the added benefit of more equity, faster.

Is that a good and valuable use of your income? Most folks would say yes, no question.

If we dig a bit deeper and look at the situation from a different angle, we can see another dimension to this value question. Let’s say that you have a great job and great credit. You get a fifteen year mortgage loan for a home making a large down payment. Your monthly notes are rather high, but you were prepared for it. The large down payment, and the shorter term mortgage drastically reduces your interest payments. Great! But, wait. What kind of tax savings do you get through out the term of the loan? Considering the fact that interest in mortgage loans is tax deductible, you have not gotten much of a tax break. So what? You own your home after 15 years, right?

What if you lose your job? Become injured? What if you are 50 and fifteen years away from retirement? Is it a good use of your money then?

Take half of that money you were going to use for a down payment and invest it in real estate property. Get a 30 year loan, instead of a 15 year loan. The amount of interest you pay goes up, yes, but you get a tax deduction on it. It takes self-discipline for this to work, but you can take the money you save on the lower monthly notes and invest this, too. At the end of 15 years, you not only have your tax savings, but you also have the savings and investments that are at fair market value more than what you owe on the balance of your home mortgage.

What most people do not realize is that equity in your home is not earning you a return on your investment. Real Estate investment properties yield a greater return than do most other forms of investments in the long term. When your investment pays for itself through rental income, that will equal greater leverage and greater value for your dollar.

Author: Kris Koonar
If you have come across recent real estate market predictions and are contemplating whether you should venture in to it, then think again. You must know that the real estate market keeps on fluctuating constantly and there is no time of the year when you cannot find great properties for investing your money. There are few useful tips that you can follow for increasing your chances of success in the real estate market.

All around the world you can find great investment property markets. The best thing about these markets is that, the initial investment required in a short turn around time is very low. Generally, there has been some slowing down in the real estate markets of UK, America, Australia and Europe but more highly profitable real estate markets are emerging in other parts of the world too. In case you are not sure about things, it is highly recommended to ask an expert for some good advice.

There are a few things that should be done only by professionals because they can not only help you check whether an investment property is structurally sound or not but they also have a better understanding of the legal renting and purchasing aspects of real estate properties. So in case of any doubts, get in contact with a real estate professional so that your queries are solved.

One of the most common mistakes made by many real estate investors is their budget. They either overspend or don’t set aside enough money that later leads to chaos. Always remember that when you buy any real estate property and want to get some renovations done, it is essential to ensure that the entire expected cost fits your budget. You must also be ready for some extra fees that come along like accounting fee, legal fee, insurance cost, real estate agency fee, utilities and taxation.

It is never too late to venture into the real estate investment field. You just need to make the right moves at the right time if you don’t want to lose your hard earned money due to one wrong decision. Some of the investment tips for 2008 could be:

Investment in properties abroad:

All over the world there are numerous untapped property markets, offering the investors great investment returns in the form of short term to medium term capital growth and rental yields. With the slowing down of property markets in Australia, UK, Europe and USA, globally several markets are emerging where an investor can reap huge profits.

Making profitable plans:

It is very important to ensure that the plans for investment you are making will bring back profit in the long run. You must examine a real estate market well before investing. Compare the value of the property across that county or city and determine whether what you are getting is worth your money. Also take in to account the rental yield you want to obtain from it and if it is realistic or not.

Never waste time in assuming a property as being structurally sound or thinking that there won’t be any significant changes in the tax laws for a year.