Real Estate as a Business

One of the widely selected businesses in the passive income group is real estate. Why real estate? Because people perceive this business as almost sure profit business. Majority of families dream of owning a house. This makes the real estate market a huge market. It is also a general perception that a house is an asset. It is usually the biggest single investment for an average income family.

The perception that it is a sure profit business is not always true in reality although the chances of making a profit against losing money is higher. There are times real estate properties are sold at a loss; not to mention those properties that have been mortgaged to banks or financing companies when the appraised or loaned money in exchange for the house is always lower than prevailing or actual price, should the house be foreclosed for non-payment of loans.

The perception that a house is always an asset is also not correct; it can (in many instances) be a liability. If you own a house or intend to have one, consider the following factors to determine if it is an asset or a liability:

  • Property tax (which is an expense).
  • Mortgage payment to the bank or loan company (consider the interest charge which is also an expense.
  • If you are having the house rented to a tenant, is the rental enough to cover above-mentioned expenses?
  • Other incidental expenses (including maintenance).
  • Offset the expenses against the income you will generate from the house and you will know if it is an asset or liability. If you are using the house for yourself, compare these expenses to the rent you would pay your landlord. Assuming you are confident that the house won’t be foreclosed in the event of non-payment of loans, you have to consider the value of the house against the total money you will invest on it once it has been fully paid for. That way, you will know if the house you bought is too expensive or not, and if you are going to make money out of it once you sell it.

The mortgage payment you make to the bank may leave you without any savings, and you will miss out on other opportunities to make money because of your obligation on the house.

What you just read are eye openers or wake up calls just in case they haven’t occurred to you. They are not meant to be recommendations. It is a case-to-case basis depending on the situation. Still, the decision is yours.

When it comes to the value of the real estate property you own or want to buy, some of the determinants that can make it more valuable or less valuable are:

  • Location.
  • Accessibility to transportation, schools, stores, church, and service-oriented establishments.
  • Security of surroundings.
  • Environmental condition like elevation (susceptibility to flooding), road condition.
  • Sanitation or cleanliness of surroundings.
  • Weather condition; in temperate climates, a corner lot is more expensive but a corner lot in snowy areas is cheaper due to more work involved in shoveling snow.

If you are looking for a house to buy, you can make an offer as low as half the asking price if you feel it is too high. Do not think that a much lower offer would offend the seller. It is part of business. If consumer items on sale can go as low as half the regular price, a house can also be priced in the same manner.

If you offer to buy a house and the seller accepts but you are still having second thoughts if you want to buy or not, you can come up with conditions like: “subject to approval of partner,” wherein your partner could be your wife or business associate or a friend.

Should you be in the business of buying or selling real estate, a good practice would be to find buyers first before closing a deal with sellers even if you have found the seller first. With this kind of set up, your profit is realized the moment you buy the house, not after you sell it.

In the business of owning real estate properties intended for rental to tenants, hire a property manager or supervisor. A good manager when you pay him/her well is an asset for your business. He/she will reciprocate what you pay with dedicated service and valuable information which you can use for your other real estate businesses. It also allows you more time and attention to other moneymaking ventures which makes your work a lot easier.

Information about bargains on real estate can be available in law offices and in foreclosed departments of banks and loan companies. Court houses handling civil suits regarding land disputes are also sources of information. It is most likely that properties for sale are handled through bidding.

You can also buy a big piece of land and sub-divide it into small ones before putting it up for sale, similar to sub-division developers but in a small way. This is one way to increase the value of the house you sell, thereby increasing your profit margin. Or you can do it the other way around – by buying small lands linked to each other; consolidate it into one big piece, and sell it to a ready buyer.

Another possible source of real estate business is memorial lots. Some rich people invest their money into buying many pieces of these lots and wait for prospective buyers. Your marketing arm can be the sales people of the very company where you bought the lots from. They just draw commissions from you every time a transaction they recommend materializes.

The options on real estate are various and numerous. Your creative juices can be put to good use in this line of business.

Investing

Investing can be a very profitable venture if you have the right knowledge about it. Investors can be categorized into two:

  1. The ones who invest their money on ready-made stocks like a packaged deal. They can be likened to RTW (ready-to-wear) clothing. They are similar to buying a computer that comes with the seller’s recommendation of monitor, CPU, printer, keyboard, etc. combined to make a package. Or it is like a set menu in a restaurant. The investor doesn’t have to worry or think much, leaving the choices in the hands of the broker.
  2. The ones who make, create, assemble, or customize their own investments. They are known as professional investors because they come up with their own creative combination of investment packages. They can be likened to tailor-made clothing.

Being in this category requires extraordinary skills such as the following:
You must be able to see with your mind what is usually missed by others. The mind works creatively. It is like predicting something that is likely to happen.

You must be able to position yourself as the important go-between or middleman. It’s like arranging a deal between a buyer and a seller in real estate.

You must be able to organize professional or smart people – people who are even more intelligent than you are in their own field of expertise. You hire their services and utilize their talent to suit your creative ideas.
In a way, wealth does not always come in the form of money. Wealth is also knowing how to invest. Knowing how to invest is active thinking. The more ways you expose or exercise your mind on investing, the stronger and more creative it becomes.

Other Recommendable Moneymaking Ventures

One of the best-liked source of passive income is the network marketing business, also popularly known as multi-level marketing. You need not come up with a huge capital unlike the common or conventional way of doing business. It does not require any employee. You do all the work yourself. But it requires hard work and patience. You must be committed and it takes time to realize a six-figure per annum income.

Portfolio Income is derived from paper assets; i.e. stock market, bonds, mutual funds, notes (IOUs) and the like. Most professional investors invest in this kind of income. This kind of investing requires financial skills. The wider the scope of financial skills you have, the better your chances of creating wealth.

Some people prefer to specialize on a certain field. The world of specialists is a world of learning more about less. As their knowledge increases on a certain field, their area of coverage decreases. From where they are employed now, it will be difficult to look for another job of the same line and income. That is why, it is advisable that they become union members of their field of specialization for their own protection.

As much as possible, you must venture into a business that doesn’t require your presence much, giving you more time to look for other opportunities. Small businesses like coin-operated machines (gumballs, joy rides, snack foods and drinks) situated in shopping centers are favorites. The individual sales come in small amounts but the volume comes big when totaled and the profit margin is very attractive.

If you are acquiring a franchise, determine your return of investment and be meticulous on the terms stipulated on the contract.

People with special skills on music and writing collect royalties from their intellectual properties. Collector’s items (stamps, rare coins, antiques, paintings, precious stones and metals, cards) usually appreciate in value. There are countless other businesses you can consider going into. Only one thing to keep in mind. Know the business first before you go into it and keep your mind as creative as it can be.

Real Estate Recommendations Will Save Your Money

You may have been hearing regarding how the existing economic system is generating real-estate a buyer’s market place, but have you any idea utilizing this to your benefit? This information has suggestions regarding how to strategy acquiring real-estate in the plausible method that can make sure you get what you wish at a price within your budget.

Be aware when getting a home inspector. Get tips from family and friends, which is typically wise to hire your own personal inspector, whether or not the seller gives to have it examined. Do not go with the very first inspector you discover, call and meet with a minimum of about three so that you can have confidence with your selection.

Prior to purchasing a home, you should make certain your credit score is audio. Your credit ranking can decide whether or not you receive authorized for the home loan. Make sure to examine your credit history with all a few organizations prior to conversing with a lender. Also, forgo any large obtain until soon after shutting down on the new house.

Take the time to complete study concerning the place where you are selling or buying a property. You will discover the regional revenue ranges, joblessness charges and inhabitants amounts before determining if this is a great place to transfer your household. It helps you learn a great bit in regards to the local community where you are shifting.

One important hint in relation to property is that you simply seek advice from numerous areas for funding your home. This is very important due to the selection of funding school prices, programs, and legitimacy. Even if the first offer you appears to be fantastic, there can be far better deals accessible. Always have regards to your deal written in writing.

An important tip to keep in mind with property purchasing is to attempt to increase your credit rating as far as possible before you apply for a mortgage loan. This will be significant since your credit rating specifically effects your A.P.R., which can lead to the savings or deficits of 1000s of dollars. Everything from looking at for mistakes on the document, to making certain you aren’t hauling a higher harmony on anyone charge card, will assist you to bring your report up.

Check out your real estate agent’s historical past. A great real estate agent gives you the labels and telephone numbers of past consumers. Be sure you give them a call, and find out their knowledge about the agent. An effective question to question is that if they could list their home with the exact same agent in the foreseeable future. If not, which may be a red flag.

Maintain your alternatives open up. Go to several properties and online auctions, even up to shutting on the home associated with preference. Research other homes completely to find out what you may well be passing up on. The worst thing you want to do is shut on a house, just to discover which a prevent away, a better home was less expensive and much more centrally located to suit your needs.

Regardless if you are selling or buying a house, don’t ignore how much time a purchase in fact requires to undergo. Even though an offer has been created doesn’t mean that the golf ball is going yet. The owner may possibly hesitate on accepting the provide. The customer may have difficulty offering his present house. Possibly celebration could possibly have difficulty with loans. The customer could request that repairs are made and also the seller could disagree. Nevertheless long you might think the method will take, add another several a few months being risk-free.

When deciding on a house to acquire, take notice of the base and also other structural parts of the house. These things cost lots of money to repair, so unless you are willing to invest efforts and a considerable amount of cash in the home, go forward and look at other houses.

Before choosing a house and even before house-seeking, you ought to think about hiring a agent. There are several methods and lawful pitfalls whenever you invest in a property. Thinking about that it is probably, the most important purchase you may at any time make, there’s no humiliation to get support. A real estate professional offers suggestions when deciding on a residence and also in moving the purchase process.

Invest Effectively with Real Estate

The site where you want your real estate to be located is very important. You need to have some strategies to advertise your place and make them more appealing to people. Choose a place that has a good environment where people can live peacefully and safe. It is good to choose a place that has easy access in schools, business centers and other public places. In having real estate as your business you need to have some tactics to attract more people to lease or buy your place. You can choose a place that is near some public places like schools, market, business center and mall. Most of all, make sure that your place is clean and attractive to people.

After fixing all the problems of the house, then start computing all the expenses that you have. Account all the money that you have spent and will be spending before deciding for the rate of the rent. If you’re done with that you can now have your price for the rent.The rental should cover the expenses that you spend for the place and the income that you want to have per month.

Another type of real estate business is the house sales. This is the type of real estate that is residential. This kind of estate is common in areas that are quiet and has scenic beauty. Some are near business centers so that the employees don’t need to travel long distances for their work.

The house sale business is another good real estate business. This one accommodates those people with stable job and is planning to have family and own the place.This place is preferably located near business centers and is more spacious than rental apartments. The people living in this type of residence are business men and tycoons. So you need to make sure that the palace is safe and well secured.

A number of individuals want to attain their personal estate. Settling on a stable place is what everyone longs for because they don’t want to keep on moving. Deciding on what property to go for may seem effortless as long as you have the cash to back it up, but it may not be a breeze, if you do not know what you need to do in the first place. However, the investment is not the only requirement in this activity; there’s still more.For this particular reason, coordinating with experts when it comes to real estate tips is recommended to give you a glimpse on how apartment sales, house sales, or other kinds of real estate transactions proceed, before you could finally obtain one of your own.

In looking for advice in real estate, distinct people may give different outlooks as well.Moreover, the most vital aspect is their sincerity to assist you, and if they are true to the aim of giving you the best deal there is, then their advice would lead you to this achievement. This expenditure may be the largest in your entire life, so it should be planned as carefully as possible, and not with haste.

Examine your credit standing. This will enable you to find out in advance if there are an loans that you may apply for, and the interest rate that you need to pay.You must be able to contemplate first if the monthly payment is just right and affordable for you. Evaluation of your credit standing is essential in the early stage prior to scouting for the property that appeals to you.

Double Your Income with Real Estate Sales

Have you ever wondered what makes some real estate agents succeed where others fail? Remember that doubling your income is all about doubling your business development efforts. If you are serious about doubling your income within the next six months, you must learn how to turn your time and energy into a profit. Once you decide you really want to double your income, don’t let anyone or anything stop you from earning it. Marketing yourself as a real estate agent is most crucial to your success. Yet the average agent won’t put the time and effort into effective marketing tactics to connect with their clients. Many agents waste a lot of time educating each and every client on the transaction process, answering common questions and giving listing presentations.

You need to be effective and proactive in your approach with all your clients. Why not provide all your clients with a package of information that educates them on the transaction process and the answers to most of their questions about you and your company. Top agents do this and use what is called a Pre-Listing Package. The Pre-Listing Package is the most powerful and important impression you can make on a buyer or seller. The goal of package is to establish credibility and show the prospective client that you are competent, organized and professional before ever meeting with them. Imagine that you just set an appointment with a motivated seller and when you arrive at their home, they already have the listing contract signed! This is not uncommon with real estate professionals that use Pre-Listing Package because they have an advantage and edge over other agents.

You don’t have to imagine this if you send a package to all prospects a few days before each and every appointment. This package introduces you and your company and explains to prospective clients how you are best qualified for all their real estate needs. Using a package definitely separates you from the competition. The package establishes rapport and can guarantee listings every time. There is a big difference between real estate agents and real estate professionals. The Pre-Listing Package is that difference, and is a must for all real estate agents.

Having a professional Pre-Listing Package will decrease time spent spend at appointments and increase your listings. You can dramatically increase your listing and sales potential in a matter of months! Using a package is your ticket to real estate success! It provides the foundation for any real estate agent with any income goal who is serious about getting listings. I’m sure you have seen agents who have been working for months or even years and haven’t reached their full potential in income or listings. If you haven’t seen this, then that agent very well may be you. By using a package you can receive the following benefits:

  • Sky rocket your income and listings in a matter of months.
  • Cut your pre-listing presentation appointment time in half.
  • Establish credibility and rapport with a client before you ever meet.
  • Show potential clients that you are organized, competent and professional.
  • Separate yourself from the competition and give yourself an advantage over other “agents” to make an ever-lasting professional impression.
  • Eliminate presentation anxiety and nervousness.
  • Earn double the referrals.

There is certain information that must be included in your package to make it most effective. Also realize that every top real estate professional is well scripted, and this is one of the main reasons that they are confident and get listings. Review your package along with practicing a script so you can develop the confidence and get the income and listings you deserve. Whatever your market niche, providing prospective clients with a professional Pre-Listing Package is a great way to set you apart and make securing their business much easier. Good luck and much success.

The Real Estate Investing Fundamentals

Is there a secret formula to real estate investing fundamentals? When we look at property moguls, like Donald Trump, who have made millions investing in real estate, we usually think that there has to be some secret blueprint to investing in real estate, and profiting from that investment, however, that is not the case.

There are certain fundamentals, golden rules and unchangeable truths that apply to real estate investing, whether you are a first time dabbler, or a seasoned professional. Most of these are just plain good old fashioned common sense.

Do Your Homework

At the moment, there are lots of bargains to be had on the market, as distressed home owners scuttle to realize their real estate investments, maintain their financial stability, and avoid foreclosure, however, when faced with a bargain that seems too good to be true, it just might be.

Make sure you check whether any major changes are planned to the area – a major industrial development or new highway extension on your doorstep can limit the profit you will make on your real estate investment!

Figure Out Why You Are Investing

There are many reasons people choose to venture into real estate investing. Do you want a long term investment, that earns you a rental income, or are you looking for a property you can quickly upgrade and flip for a profit? Is your focus on the fickle residential market, or do you prefer the more stable commercial property market?
Knowing what your goals is the very first time in structuring and planning your real estate investing portfolio.

Know Your Appetite for Risk

With great risk comes great reward. Sometimes. Knowing whether you can handle the sometimes stressful environment of high risk investment, in real estate or otherwise, can help guide you to the right real estate investment choices for you.
There’s no use opting for a higher risk property investment portfolio if you don’t have the stomach for the stress that accompanies it. In fact, if you consider higher risk investments stressful, they’re probably not for you!
If you prefer safer choices, real estate investment can still work for you, just choose property in established areas, where your rental income and steady growth is more assured.

Don’t Overextend Yourself

It may be tempting, when caught up in the high that accompanies successful real estate investing, to bite off more than you can chew. Consider, however, that if you invest with the intention of renting out your properties, that there may be times that you cannot find suitable tenants. Will you be able to cover all the payments on your properties if that happens? If not, take a step back, rethink your real estate investment plans, and proceed accordingly.

Real Estate Investing is a Safe Choice

Whatever your answers to the questions that were raised above, real estate remains a safe, profitable choice. Knowing your goals, temperament, and whether you’re in real estate investment for the long haul, or a quick buck, will merely help you make sound choices, give you a balanced portfolio, and ensure that your investments pay dividends for years to come.