Boy, does the title of this article sound like a great, late night infomercial or what….. Can't you just see images of fancy cars, people laying on the beach, expensive homes, and all the other ways these promoters try to get you to sign up for their 3 easy payments.
Now, what about a steady get wealthy program for the rest of us? Suppose I could show you a method to:
Increase your net worth by $150,000+ each year;
Take on minimal risk; spend only a few hours per week; and increase your rate of wealth production over time.
Would you be interested? Probably the answer is HECK YES!!!! But are you really interested? I will let you be the judge.
First, let me state that what I am about to discuss is really geared for those individuals that have some disposable income and good credit; i.e., the bulk of middle to middle/upper class America. If you have poor credit or are strapped for cash, then I suggest you solve those issues first and then consider implementing this strategy.
Next, let me also state that what I am about to suggest is as exciting as watching corn grow in Nebraska; however, what any professional investor will tell you is that if your investing is exciting and really gets your blood pumping, then you are doing it wrong!! Instead, what you want is a clear game plan on how to succeed, grow and when an opportunity fits your game plan, you immediately pounce to make it happen.
So, what if I could show you some exotic opportunity that had the following characteristics:
$16,058 Cash Required To Purchase; · Expected Gain In 5 Years: $83,000 Initial Due Diligence Time: 15 Hrs Hours Per Year: 20 Hrs Very Low-Risk
Now, suppose I gave you the opportunity to do this investment twice, thus making the expected gain $166,000, in 5 years. Now, suppose you plan to invest this way once every year. That means during Year 1, you would need $32,000 in cash and in Year 2, you would need the same as well. However, after Year 2, you were now able to recover your original cash inputs and reinvest it for years, 3, 4, 5, … What you have just created now is a perpetual wealth building machine.
Sound Good?
When presented this way, most people would agree that this sounds good. But, in reality, we know that MOST PEOPLE WILL WALK AWAY FROM THIS OPPORTUNITY. So, suppose I presented such an opportunity to somebody not used to investing. Let's see how a typical conversation would go.
New Investor: Sounds interesting but how do I know it will do what you say?
Chris: You don't…. Nobody can predict the future but you can look at hard numbers to see if the assumptions make sense to you. Even though this is not a guarantee, it is LIKELY to occur or may be even better than predicted.
New Investor: But this takes a lot of time to look into and understand.
Chris: Realistically, we all have some extra time available and in reality, to analyze just a few (1-5) deals a year is not hard. But let's put this in dollars and cents terms. From above, it appears that we could make $166,000 for about 150 Hrs total work…. Or $1,106/Hr. That is not "bad grits" as we say here in the south.
Friday, September 12, 2008
Real Estate Brokers
Real estate agencies and real estate sales agents; are you looking to increase your market share? A step toward reaching that goal is to adopt the model of “Teamwork/Partnering”. Real estate, by its structure and competitive nature, can inhibit “Teamwork/Partnering” because real estate sales agents are usually independent contractors and consequently that can lead to an all for me attitude. The agency is only as successful as the sales agents and vice-versa. Real estate sales agents procure listings, which produce business and revenue for the agency and sales agents. The agency, through marketing and advertising, generates increased market exposure that attracts buyers for the current listings and sellers, drawn in by the agency’s portfolio of listings. The Boston Red Sox have players with specialized roles such as; 3rd base, pitcher, etc., so it is the same with real estate sales. Agents may have strengths in specialized roles like: high end single family, condos, geographic markets, and varying sales experience. All of these factors must be considered when implementing “Teamwork/Partnering”.
“Team Work/Partnering”: Inexperienced Agents
The Boston Red Sox send their rookies to minor leagues so that they may have the opportunity to develop their skills until they are ready to play in the big leagues. More often than not, new agents with little experience (“rookies”) are thrown into the “starting line up” without adequate training or time to develop. This is one of the biggest fauxs pas real estate agencies make. Nearly every other profession requires specialized apprenticeship programs for “rookies”. Solve this problem by teaming up less experienced agents (apprentice agent) with the agency’s more knowledgeable agents (mentor agent), who often times are burdened with a heavy portfolio of listings. Compensation can be negotiated to keep both mentor and apprentice happy. The mentor agent can free up time for marketing, contract issues and pursuing new listings. The apprentice agent can handle property viewings and become an active participant in the entire real estate process working hand in hand with real estate transactions under the watchful eye of their mentor. During this process the apprentice agents should be provided guidance to insure they have the greatest opportunity for success. The managing broker must monitor and evaluate the apprentice agent’s progress; as this will allow him/her to safely recruit and develop new untested agents while insuring the agency is not vulnerable to legal mishaps resulting from lack of knowledge or experience.
“Team Work/Partnering”: Niche and Agent Experience
“Teamwork/Partnering” should also include niche specific expertise relationships. For example, Shane has vast knowledge of marketing and selling multi-family properties. Hannah has just set up an appointment while on office duty to list a 3-unit multi-family home. However, Hannah has never handled such a property.
Scenario #1: sales Hannah goes on the appointment and loses the listing to an agent with more experience selling multi-family properties.
Scenario #2: Shane and Hannah work together utilizing Shane’s experience and thereby increasing the chances dramatically of securing the listing. Shane is rewarded by sharing the listing; while Hannah picks up valuable experience in multi-family properties and the seller gets two agents for the price of one.
“Team Work/Partnering”: Geographic Market Experience
Geographic market area is also a great way to build “Teamwork/Partnering”. For example; Meaghan is the only agent with any real success in Ocean-town, and now has a number of listings there. The agency does not have a strong market share in Ocean-town, but would certainly like to. Rachel received a call requesting an appointment to list a home in Ocean-town. The seller mentioned she saw the agency signs in her area. Rachel hasn’t worked in Ocean-town, but has more overall sales experience than Meaghan. The ordinary solution would be to have Rachel refer the listing to Meaghan; but together they can offer the sellers a clear understanding of the Ocean-town market coupled with vast sales experience. Meaghan and Rachel both get the listing. The agency succeeds in increasing the market share and there are now two sales agents that have experience in Ocean-town.
In closing, “Teamwork/Partnering” is a successful model that more and more real estate professionals are turning to. It takes time to implement and there may be some resistance at first, but if encouraged and supported by the agency, even the most reluctant agents will soon be on board. The role of the managing broker is to encourage “Teamwork/Partnering” relationships; even if it means handing down some business to sales agents who are willing to work together to get things started. Their success in a short time will be a model for others to follow, and soon “Teamwork/Partnering” will be embraced by all.
“Team Work/Partnering”: Inexperienced Agents
The Boston Red Sox send their rookies to minor leagues so that they may have the opportunity to develop their skills until they are ready to play in the big leagues. More often than not, new agents with little experience (“rookies”) are thrown into the “starting line up” without adequate training or time to develop. This is one of the biggest fauxs pas real estate agencies make. Nearly every other profession requires specialized apprenticeship programs for “rookies”. Solve this problem by teaming up less experienced agents (apprentice agent) with the agency’s more knowledgeable agents (mentor agent), who often times are burdened with a heavy portfolio of listings. Compensation can be negotiated to keep both mentor and apprentice happy. The mentor agent can free up time for marketing, contract issues and pursuing new listings. The apprentice agent can handle property viewings and become an active participant in the entire real estate process working hand in hand with real estate transactions under the watchful eye of their mentor. During this process the apprentice agents should be provided guidance to insure they have the greatest opportunity for success. The managing broker must monitor and evaluate the apprentice agent’s progress; as this will allow him/her to safely recruit and develop new untested agents while insuring the agency is not vulnerable to legal mishaps resulting from lack of knowledge or experience.
“Team Work/Partnering”: Niche and Agent Experience
“Teamwork/Partnering” should also include niche specific expertise relationships. For example, Shane has vast knowledge of marketing and selling multi-family properties. Hannah has just set up an appointment while on office duty to list a 3-unit multi-family home. However, Hannah has never handled such a property.
Scenario #1: sales Hannah goes on the appointment and loses the listing to an agent with more experience selling multi-family properties.
Scenario #2: Shane and Hannah work together utilizing Shane’s experience and thereby increasing the chances dramatically of securing the listing. Shane is rewarded by sharing the listing; while Hannah picks up valuable experience in multi-family properties and the seller gets two agents for the price of one.
“Team Work/Partnering”: Geographic Market Experience
Geographic market area is also a great way to build “Teamwork/Partnering”. For example; Meaghan is the only agent with any real success in Ocean-town, and now has a number of listings there. The agency does not have a strong market share in Ocean-town, but would certainly like to. Rachel received a call requesting an appointment to list a home in Ocean-town. The seller mentioned she saw the agency signs in her area. Rachel hasn’t worked in Ocean-town, but has more overall sales experience than Meaghan. The ordinary solution would be to have Rachel refer the listing to Meaghan; but together they can offer the sellers a clear understanding of the Ocean-town market coupled with vast sales experience. Meaghan and Rachel both get the listing. The agency succeeds in increasing the market share and there are now two sales agents that have experience in Ocean-town.
In closing, “Teamwork/Partnering” is a successful model that more and more real estate professionals are turning to. It takes time to implement and there may be some resistance at first, but if encouraged and supported by the agency, even the most reluctant agents will soon be on board. The role of the managing broker is to encourage “Teamwork/Partnering” relationships; even if it means handing down some business to sales agents who are willing to work together to get things started. Their success in a short time will be a model for others to follow, and soon “Teamwork/Partnering” will be embraced by all.
Real Estate Investing For College
Real estate investing for college is very interesting thing! Investing for college does not really have to be difficult. In fact, now it is as well easier that ever before. Investment strategies plays extremely important role in college investment. According to the Economic Growth and Tax Reconciliation Act of 2001 have been improving tremendously and options for child’s education have also increased.
Developing a plan for investing in college and for your child’s education is the most long term effective decisions you would make ever. Whether you are planning to save for your self or for your kids, you need to have a systematic money investing plan. While there are many ways to cover the investing for Real Estate College, the majority of students prefer mixture of funding from savings, student loans, scholarships, and other part-time jobs.
The most brilliant decision would be to open a college real estate investing account when the child is take birth. Another most important thing would to understand the necessity to have a saving on your child’s name. By investing in Real Estate College you are gradually building a portfolio with a good range of account. A saving account is the most convenient to earn interest on your investment. Investing for college may start out as a long-term goal, but as your child gets older, it becomes a short-term goal. You can get apt information even through the real estate investing book that increases the knowledge and information in the real estate field. People who speak in real estate market are the people with knowledge in real estate industry. A real estate book which is introduced in electronic format is called as Real estate E-book.
When your child is young enough, you can plan and can also afford for investing in college more aggressively, because your investment will have time to recover from possible downturns in the market. But the by time your child is planning to join a high school or college, you may not be willing to take up the risk of serious downturn because you don’t have the time to wait for the market to recover. You need plan an investment aggressively and also need to protect the value of your investment, so that you investment is available when ever required by you.
Developing a plan for investing in college and for your child’s education is the most long term effective decisions you would make ever. Whether you are planning to save for your self or for your kids, you need to have a systematic money investing plan. While there are many ways to cover the investing for Real Estate College, the majority of students prefer mixture of funding from savings, student loans, scholarships, and other part-time jobs.
The most brilliant decision would be to open a college real estate investing account when the child is take birth. Another most important thing would to understand the necessity to have a saving on your child’s name. By investing in Real Estate College you are gradually building a portfolio with a good range of account. A saving account is the most convenient to earn interest on your investment. Investing for college may start out as a long-term goal, but as your child gets older, it becomes a short-term goal. You can get apt information even through the real estate investing book that increases the knowledge and information in the real estate field. People who speak in real estate market are the people with knowledge in real estate industry. A real estate book which is introduced in electronic format is called as Real estate E-book.
When your child is young enough, you can plan and can also afford for investing in college more aggressively, because your investment will have time to recover from possible downturns in the market. But the by time your child is planning to join a high school or college, you may not be willing to take up the risk of serious downturn because you don’t have the time to wait for the market to recover. You need plan an investment aggressively and also need to protect the value of your investment, so that you investment is available when ever required by you.
How To Think (Eastern) European..and make a Fortune in Real Estate
I have been investing and advising real estate investors in Eastern Europe for the better part of a decade. A growing number of investors with a pioneering spirit have been lured to this part of the world, in search of hot investment opportunities that can yield profits that are uncommon in North America and Western Europe.
I have seen many smart, successful investors come here from America and try to apply American investment techniques with varying levels of success. Anyone looking to invest in Eastern Europe would be well advised to understand the unique factors that motivate the market in this region. Many of the distinguishing factors of Eastern European real estate are actually distinguishing factors of European real estate while others are purely regional in nature.
Here is the long and short of what you need to know to think Eastern European and invest wisely in Eastern Europe :
The European Union drives the market … .or it does at least partially. Most Eastern European countries are being considered for EU membership or soon will be. The prices of the European Union set the benchmark for prices in emerging European markets and drive speculation. Eastern Europe is not similar to Central South America which has no similar benchmark to follow. Europe tends to be more expensive then America in almost all facets but in particular in regards to real estate. Prices may seem high by American standards in some Eastern European locales (particularly Capitol cities) but may be quite low by European standards.
Time and time again, Central and Eastern European markets have proved that the EU has a tremendous impact in increasing property values. Just look at Hungary, Poland, and the Czech Republic . Each market saw a steady growth in value in the time leading up to EU ascension and continued/s to see remarkable growth for a period after. Note also, that many of the prices in the above countries for everything from apartments to land are more then they are in most American locations.
In some ways Bulgaria or Croatia joining the European Union is akin to Alaska or Hawaii joining the United States of America. It is a radical transition with radical implications.
Prices have gone way up and, though they may not reach London or Paris prices, still have long ways to go.
Cheaper is not always better. I am told of the story of an American woman from Washington state that was looking at a raw land opportunity in the north of Romania in 2002. When she discovered that per square meter was actually higher then in her hometown she promptly advised her agent that there was no way she was going to pay more money for land in Romania then she would in suburban America. Her thought process is quite understandable. However, it also proved to be quite incorrect. Land in her hometown has shown reasonable growth over the past 4 odd years but the land that she could have acquired in Eastern Europe would have earned her about a 400% profit has she sold in the summer of 2006. Similarly, many investors come to me and ask me "how much land can I get for x amount of dollars." The answer I inevitably give them is "a lot, but unless you are starting a park or a farm, I'd rather help you buy the most profitable land, not simply the most land."
An investment in a smaller plot of land at a higher price can be better then a lot of land at a lower price. In the right area, the property value will also increase much more rapidly then somewhere in the middle of nowhere where property is particularly cheap. The game of Eastern European investment is capitalizing on the rapid growth of property value. If you pay more for your land then it would cost in Hometown, USA it can still be an incredible steal.
Follow the market. My friend bought an apartment in 2001 for $10,000 and she just sold it for $60,000. She doesn't have any real estate training. She more or less made the profit by accident. She just "followed the market" to use her words.
Had I seen the apartment 5 years ago, not fully appreciating then what I appreciate now, frankly I wouldn't have given even $5,000 for the place. The neighborhood is full of old, grey, semi-dilapidated looking buildings. I would have assumed, that someone would come and knock them all down one good day....Boy, was I wrong.... Now a studio in one of the building sells for $60,000, a 2-bedroom for over $100,000. Rent is minimum $400 a month.
Europeans like to live in the city, in apartments often over houses in the suburbs. So now matter how much new development there is, a premium remains on apartment complexes inside of the city.
The moral of the story is follow the market.
Western Europeans, Brits in particular, have popularized investing in "Off Plan" properties to capitalize gains in Eastern European markets.
I was recently speaking with a US-based real estate friend of mine and referred to off plan opportunities in Eastern Europe. He was relatively unclear on what I was talking about. Even the most qualified real estate investors in America aren't clued-on to the off plan real estate phenomena in Europe and the UK in particular.
If you google the term "off plan properties" you'll see scores of web sites listed, most of them from the United Kingdom. Off Plan properties are big business on the other side of the pond and are increasingly the most common way for British investors to seize opportunities in emerging markets of Eastern Europe.
UK based firms with British nationals on the ground in various Eastern-block countries establish relationships with qualified developers who are preparing to launch new product (usually apartments in apartment buildings) and strike agreements with them to represent those properties to there current and future clientele back in Western Europe. In doing so, they secure below market prices to make there offer as attractive as possible and move as many pre or in-construction stage apartments as they can.
Buyers pay between 15-40% down and then usually the rest within 12-18 months when they are handed the key.
Generally, investors can also qualify for mortgages. With there new investment property as collateral, and pay for the second balance via the rent they can then receive. The multitude of reasons why off plan opportunities are so attractive to UK investors is outside the scope of this article but can be summarized succinctly; the investor has all of the work done for him or her.
The agency has located a new building, in a strategic location, with high rent potential in a region where property values are accumulating on a regular basis much higher then in the UK or Western Europe (or America for that matter.) The agency can also manage the property and help the buyer secure financing. This is why thousands of apartments are sold off-plan to UK and other investors every month. Off plans are by-and-large how Europeans invest in Eastern Europe.
I have seen many smart, successful investors come here from America and try to apply American investment techniques with varying levels of success. Anyone looking to invest in Eastern Europe would be well advised to understand the unique factors that motivate the market in this region. Many of the distinguishing factors of Eastern European real estate are actually distinguishing factors of European real estate while others are purely regional in nature.
Here is the long and short of what you need to know to think Eastern European and invest wisely in Eastern Europe :
The European Union drives the market … .or it does at least partially. Most Eastern European countries are being considered for EU membership or soon will be. The prices of the European Union set the benchmark for prices in emerging European markets and drive speculation. Eastern Europe is not similar to Central South America which has no similar benchmark to follow. Europe tends to be more expensive then America in almost all facets but in particular in regards to real estate. Prices may seem high by American standards in some Eastern European locales (particularly Capitol cities) but may be quite low by European standards.
Time and time again, Central and Eastern European markets have proved that the EU has a tremendous impact in increasing property values. Just look at Hungary, Poland, and the Czech Republic . Each market saw a steady growth in value in the time leading up to EU ascension and continued/s to see remarkable growth for a period after. Note also, that many of the prices in the above countries for everything from apartments to land are more then they are in most American locations.
In some ways Bulgaria or Croatia joining the European Union is akin to Alaska or Hawaii joining the United States of America. It is a radical transition with radical implications.
Prices have gone way up and, though they may not reach London or Paris prices, still have long ways to go.
Cheaper is not always better. I am told of the story of an American woman from Washington state that was looking at a raw land opportunity in the north of Romania in 2002. When she discovered that per square meter was actually higher then in her hometown she promptly advised her agent that there was no way she was going to pay more money for land in Romania then she would in suburban America. Her thought process is quite understandable. However, it also proved to be quite incorrect. Land in her hometown has shown reasonable growth over the past 4 odd years but the land that she could have acquired in Eastern Europe would have earned her about a 400% profit has she sold in the summer of 2006. Similarly, many investors come to me and ask me "how much land can I get for x amount of dollars." The answer I inevitably give them is "a lot, but unless you are starting a park or a farm, I'd rather help you buy the most profitable land, not simply the most land."
An investment in a smaller plot of land at a higher price can be better then a lot of land at a lower price. In the right area, the property value will also increase much more rapidly then somewhere in the middle of nowhere where property is particularly cheap. The game of Eastern European investment is capitalizing on the rapid growth of property value. If you pay more for your land then it would cost in Hometown, USA it can still be an incredible steal.
Follow the market. My friend bought an apartment in 2001 for $10,000 and she just sold it for $60,000. She doesn't have any real estate training. She more or less made the profit by accident. She just "followed the market" to use her words.
Had I seen the apartment 5 years ago, not fully appreciating then what I appreciate now, frankly I wouldn't have given even $5,000 for the place. The neighborhood is full of old, grey, semi-dilapidated looking buildings. I would have assumed, that someone would come and knock them all down one good day....Boy, was I wrong.... Now a studio in one of the building sells for $60,000, a 2-bedroom for over $100,000. Rent is minimum $400 a month.
Europeans like to live in the city, in apartments often over houses in the suburbs. So now matter how much new development there is, a premium remains on apartment complexes inside of the city.
The moral of the story is follow the market.
Western Europeans, Brits in particular, have popularized investing in "Off Plan" properties to capitalize gains in Eastern European markets.
I was recently speaking with a US-based real estate friend of mine and referred to off plan opportunities in Eastern Europe. He was relatively unclear on what I was talking about. Even the most qualified real estate investors in America aren't clued-on to the off plan real estate phenomena in Europe and the UK in particular.
If you google the term "off plan properties" you'll see scores of web sites listed, most of them from the United Kingdom. Off Plan properties are big business on the other side of the pond and are increasingly the most common way for British investors to seize opportunities in emerging markets of Eastern Europe.
UK based firms with British nationals on the ground in various Eastern-block countries establish relationships with qualified developers who are preparing to launch new product (usually apartments in apartment buildings) and strike agreements with them to represent those properties to there current and future clientele back in Western Europe. In doing so, they secure below market prices to make there offer as attractive as possible and move as many pre or in-construction stage apartments as they can.
Buyers pay between 15-40% down and then usually the rest within 12-18 months when they are handed the key.
Generally, investors can also qualify for mortgages. With there new investment property as collateral, and pay for the second balance via the rent they can then receive. The multitude of reasons why off plan opportunities are so attractive to UK investors is outside the scope of this article but can be summarized succinctly; the investor has all of the work done for him or her.
The agency has located a new building, in a strategic location, with high rent potential in a region where property values are accumulating on a regular basis much higher then in the UK or Western Europe (or America for that matter.) The agency can also manage the property and help the buyer secure financing. This is why thousands of apartments are sold off-plan to UK and other investors every month. Off plans are by-and-large how Europeans invest in Eastern Europe.
Making Your Fortune with Virtual Real Estate
Every now and then someone puts together a couple of obvious thoughts, packages them with a snappy name and captures the imagination of the world.
Virtual Real Estate (VRE) is just such a case.
John Reese – a ‘guru's guru', and famous for his obsession with testing – did just that in 2006. And not only is the idea snappy and smart, it's also available to anyone and everyone with time and patience. John claims to make hundreds of thousands with the idea and given his reputation, I believe him, but, I'm equally sure everyone can make something. The size of the ‘something' is in your hands.
So what is the idea?
VRE is really a web page, filled with content and optimized through key words, on which Google AdSense or the Yahoo Publisher Network (YPN) advertisements are placed. The Google etc ads are, of course, made automatically appropriate to the content. So if you're writing about buying a golf club; ads for golf clubs will appear. Every time someone clicks on an ad, the page owner gets a little shot of income.
A single web page is, naturally, not going to bring in much – even if someone finds it. So the trick of VRE is to create sites containing hundreds or thousands of pages, (or networks of inter-linked mini-sites) hence the need for time and patience. The bigger the site, the more attractive it is to the search engines that will gobble up such a feast of content, and, over time it will be well served with *free traffic*.
That's the concept and IT WORKS because it goes "with the flow" of the Internet.
*It satisfies what has emerged as the internet's primary purpose – providing information.
*It lines up with the philosophies of the search engines – content.
*And it uses a tool that the search engines depend on for their core profitability – AdSense and YPN. Brilliant!
So who is doing VRE?
Well, VRE practitioners fall into two groups – the "force-feeders" and the "organic farmers."
The Force Feeders
The Force Feeders want to set up passive, money engines that will chug along providing a stream of cash. This is how they do it.
Step One: they select a theme that meets the following criteria:
• Keywords associated with the theme that have a high bid price in Google AdWords; this means a high pay out in Google AdSense and YPN
• Those keywords attract a high number of searches; partly why they are high priced
• The keywords have low competition in the search results; not many other webpages are ranking in the search engines for these terms.
Step Two: they publish a page (or massive collection of pages) with *keyword optimized* content derived from the web itself through automated feeds and copying articles etc. They may even make the content dynamic, and even more attractive to the engines.
Step Three: they place Google or Yahoo ads and flesh it all out with affiliate links.
They now have a site that attracts high-paying, high-search, low-competition keywords and gets lots of people looking at its pages (traffic), lots of people finding its pages (targetted customers), and thereby solid Google AdSense etc revenue.
Great so far?
But (there is always is a but!) the side effect of these sites is the creation of massive duplication of content across the web. This clutters up the search engines and they really don't like it! This has led to a backlash from Google that (as so often happens on the web) crimps the effectiveness of this program for those coming in after the first wave.
The Organic Farmer
I‘ve focused on the word ‘organic' because this player believes success in life (and web business) comes ultimately by sticking with the natural flow, compared with the ‘force feeder' who (like his real-world farming counterpoint) tries to accelerate and warp natural growth processes.
Virtual Real Estate (VRE) is just such a case.
John Reese – a ‘guru's guru', and famous for his obsession with testing – did just that in 2006. And not only is the idea snappy and smart, it's also available to anyone and everyone with time and patience. John claims to make hundreds of thousands with the idea and given his reputation, I believe him, but, I'm equally sure everyone can make something. The size of the ‘something' is in your hands.
So what is the idea?
VRE is really a web page, filled with content and optimized through key words, on which Google AdSense or the Yahoo Publisher Network (YPN) advertisements are placed. The Google etc ads are, of course, made automatically appropriate to the content. So if you're writing about buying a golf club; ads for golf clubs will appear. Every time someone clicks on an ad, the page owner gets a little shot of income.
A single web page is, naturally, not going to bring in much – even if someone finds it. So the trick of VRE is to create sites containing hundreds or thousands of pages, (or networks of inter-linked mini-sites) hence the need for time and patience. The bigger the site, the more attractive it is to the search engines that will gobble up such a feast of content, and, over time it will be well served with *free traffic*.
That's the concept and IT WORKS because it goes "with the flow" of the Internet.
*It satisfies what has emerged as the internet's primary purpose – providing information.
*It lines up with the philosophies of the search engines – content.
*And it uses a tool that the search engines depend on for their core profitability – AdSense and YPN. Brilliant!
So who is doing VRE?
Well, VRE practitioners fall into two groups – the "force-feeders" and the "organic farmers."
The Force Feeders
The Force Feeders want to set up passive, money engines that will chug along providing a stream of cash. This is how they do it.
Step One: they select a theme that meets the following criteria:
• Keywords associated with the theme that have a high bid price in Google AdWords; this means a high pay out in Google AdSense and YPN
• Those keywords attract a high number of searches; partly why they are high priced
• The keywords have low competition in the search results; not many other webpages are ranking in the search engines for these terms.
Step Two: they publish a page (or massive collection of pages) with *keyword optimized* content derived from the web itself through automated feeds and copying articles etc. They may even make the content dynamic, and even more attractive to the engines.
Step Three: they place Google or Yahoo ads and flesh it all out with affiliate links.
They now have a site that attracts high-paying, high-search, low-competition keywords and gets lots of people looking at its pages (traffic), lots of people finding its pages (targetted customers), and thereby solid Google AdSense etc revenue.
Great so far?
But (there is always is a but!) the side effect of these sites is the creation of massive duplication of content across the web. This clutters up the search engines and they really don't like it! This has led to a backlash from Google that (as so often happens on the web) crimps the effectiveness of this program for those coming in after the first wave.
The Organic Farmer
I‘ve focused on the word ‘organic' because this player believes success in life (and web business) comes ultimately by sticking with the natural flow, compared with the ‘force feeder' who (like his real-world farming counterpoint) tries to accelerate and warp natural growth processes.
Thursday, September 11, 2008
Make Big Money In Real Estate
Real Estate is one of the oldest forms of investing known to man.
Real Estate investing is easy and fortunes are made in a simple manner. For example, and investor decides that a desert area will eventually become an industrial development. He purchases a number of acres at a very low price. If his guess turns out to be correct, ten years later he sells the land hundred times more than what he paid for it.This can happen in any part of the country and is not an exceptional case.
As the population keeps growing in the U.S., land prices continue to raise and it means that Real Estate will continue to offer one of the best investment opportunities in the country.
Compared to most forms of investment, Real Estate offers greater profit potential. Of course, not every piece of land will turn out to be a winner, and despite the great potential rewards in some cases risks are involved, so the necessity of careful study before invest.
One of the problem of Real Estate is his lack of liquidity.
Liquid assists are those easily converted into cash like stocks or bons. Most Real Estate investments take years before you can make some money, so it is not wise to tie up all your assets in this type of investment. Your financial situation will determine how much you can wisely invest in properties.
There is a difference between a land speculator and an investor.
A speculator buys land with the intention to make a quick sale and fast profits and will not hold land for a long period of time. An investor, on the other hand, looks for a long time gain, and usually buys only what he can afford to keep for an indefinite period of time.
If you are new at this field, it is wise to refrain from any a speculation until you become more informed, and you will have to devote considerable time to study and research. It is wise also to consult specialists before you act.
Without realizing it, you already made a very successful investment in Real Estate if you bought your own home.
Before you look for areas to invest, consider the condition of your own house. If you have any plan for selling it, good landscaping has been known to considerably increase the value of a home.
Large profits can be attained by purchasing run-down homes and restoring them for eventual selling, but some factors have to be considered:
* You must know something about architecture and remodeling and get and idea of how much it will cost to get the house back into shape. Consider what you will be able to do yourself and what it will cost you if you have to have it done.
* The location of the house is the most important factor to consider. Study the neighborhood, shopping, and transportation facilities.
It can also be profitable to lease land for commercial use. Land which borders highway is extremely valuable for purpose such as warehouse, gas station, etc.
Land development companies frequently run advertisements offering country retreats. Be wary of these offers as they themselves make a large profit at the time they sell you the land, so it is much more profitable for you to buy your own.
When you buy property, buy at a price that involves a minimum financial risk. Invest only a modest amount of your own capital, when you sell, determine if a cash or installment sale is the best, based on your over-all income tax status. Learn by looking back on the mistakes made in the past and by reviewing the opportunities you have missed.
Prepare a list of all properties available in your area and think up the best future use of the properties. Learn to purchase land before there is a demand. To buy land well in advance is the only economical way at today's prices. Then hold the property until you can resale for large profits. Don't sell all your desirable properties and keep just lemons.
If you are willing to leave the cities, you should not have any trouble finding inexpensive land for sale. If you discover a tract of land appealing to you but not listed for sale, contact the Country Register's Office and he will tell you who is the owner. Get in touch with him and he could be willing to sell.
Real Estate investing is easy and fortunes are made in a simple manner. For example, and investor decides that a desert area will eventually become an industrial development. He purchases a number of acres at a very low price. If his guess turns out to be correct, ten years later he sells the land hundred times more than what he paid for it.This can happen in any part of the country and is not an exceptional case.
As the population keeps growing in the U.S., land prices continue to raise and it means that Real Estate will continue to offer one of the best investment opportunities in the country.
Compared to most forms of investment, Real Estate offers greater profit potential. Of course, not every piece of land will turn out to be a winner, and despite the great potential rewards in some cases risks are involved, so the necessity of careful study before invest.
One of the problem of Real Estate is his lack of liquidity.
Liquid assists are those easily converted into cash like stocks or bons. Most Real Estate investments take years before you can make some money, so it is not wise to tie up all your assets in this type of investment. Your financial situation will determine how much you can wisely invest in properties.
There is a difference between a land speculator and an investor.
A speculator buys land with the intention to make a quick sale and fast profits and will not hold land for a long period of time. An investor, on the other hand, looks for a long time gain, and usually buys only what he can afford to keep for an indefinite period of time.
If you are new at this field, it is wise to refrain from any a speculation until you become more informed, and you will have to devote considerable time to study and research. It is wise also to consult specialists before you act.
Without realizing it, you already made a very successful investment in Real Estate if you bought your own home.
Before you look for areas to invest, consider the condition of your own house. If you have any plan for selling it, good landscaping has been known to considerably increase the value of a home.
Large profits can be attained by purchasing run-down homes and restoring them for eventual selling, but some factors have to be considered:
* You must know something about architecture and remodeling and get and idea of how much it will cost to get the house back into shape. Consider what you will be able to do yourself and what it will cost you if you have to have it done.
* The location of the house is the most important factor to consider. Study the neighborhood, shopping, and transportation facilities.
It can also be profitable to lease land for commercial use. Land which borders highway is extremely valuable for purpose such as warehouse, gas station, etc.
Land development companies frequently run advertisements offering country retreats. Be wary of these offers as they themselves make a large profit at the time they sell you the land, so it is much more profitable for you to buy your own.
When you buy property, buy at a price that involves a minimum financial risk. Invest only a modest amount of your own capital, when you sell, determine if a cash or installment sale is the best, based on your over-all income tax status. Learn by looking back on the mistakes made in the past and by reviewing the opportunities you have missed.
Prepare a list of all properties available in your area and think up the best future use of the properties. Learn to purchase land before there is a demand. To buy land well in advance is the only economical way at today's prices. Then hold the property until you can resale for large profits. Don't sell all your desirable properties and keep just lemons.
If you are willing to leave the cities, you should not have any trouble finding inexpensive land for sale. If you discover a tract of land appealing to you but not listed for sale, contact the Country Register's Office and he will tell you who is the owner. Get in touch with him and he could be willing to sell.
After Bankruptcy, Rebuild Your Credit Before Buying Real Estate
You have gone through bankruptcy and you do not owe anyone. Now is the perfect time to purchase that home you have always wanted — right? Wrong! Yes, you can probably locate a real estate mortgage lender, since you cannot declare chapter 7 bankruptcy again for at least 6 years. The problem is that you will pay the highest finance charges for the privilege of obtaining that real estate mortgage, charges that will extend over the life of the real estate loan.
Before even looking at real estate, get your credit straightened up first. The bankruptcy will appear on all three of your credit reports from seven-to-ten years, which will make you a higher risk to real estate lenders. You cannot do anything about this; however, you can show real estate lenders that you are handling credit much better now by rebuilding it. This can lower your risk factor, when obtaining a real estate mortgage. Using the following improvement steps, you actually can rebuild your credit in a relatively short time.
First, get copies of your credit report from the credit agencies, and clean them up. You have the right to one free report from all three agencies annually, which can be obtained through www.annualcreditreport.com.
Ensure that creditors, who were listed in your bankruptcy, have cleared their information from your credit reports. Otherwise, it will appear as if you still owe them money and are not paying.
Ensure any creditors not listed in your bankruptcy and you are paying regularly have been reporting your good credit record to all three agencies. Contact any not reporting this and ask them to do so. This will increase your chances of getting a loan for your real estate.
If there was a specific event or cause for your bankruptcy, you can add up to a 100-word explanation to your credit report at each agency. The real estate lender will get this explanation as part of your credit report.
It will look especially good to real estate lenders if you have received credit counseling, and the counseling will help you in several ways. A good credit counseling agency will help you create a budget and counsel you in how to use and stick to it. They offer counseling on using credit in your future, as well as how to re-establish your credit. They can help you move toward your goal of buying real estate. Once you have successfully completed credit counseling, ask them for something in writing to that effect. It can help when applying for your real estate loan
Before even looking at real estate, get your credit straightened up first. The bankruptcy will appear on all three of your credit reports from seven-to-ten years, which will make you a higher risk to real estate lenders. You cannot do anything about this; however, you can show real estate lenders that you are handling credit much better now by rebuilding it. This can lower your risk factor, when obtaining a real estate mortgage. Using the following improvement steps, you actually can rebuild your credit in a relatively short time.
First, get copies of your credit report from the credit agencies, and clean them up. You have the right to one free report from all three agencies annually, which can be obtained through www.annualcreditreport.com.
Ensure that creditors, who were listed in your bankruptcy, have cleared their information from your credit reports. Otherwise, it will appear as if you still owe them money and are not paying.
Ensure any creditors not listed in your bankruptcy and you are paying regularly have been reporting your good credit record to all three agencies. Contact any not reporting this and ask them to do so. This will increase your chances of getting a loan for your real estate.
If there was a specific event or cause for your bankruptcy, you can add up to a 100-word explanation to your credit report at each agency. The real estate lender will get this explanation as part of your credit report.
It will look especially good to real estate lenders if you have received credit counseling, and the counseling will help you in several ways. A good credit counseling agency will help you create a budget and counsel you in how to use and stick to it. They offer counseling on using credit in your future, as well as how to re-establish your credit. They can help you move toward your goal of buying real estate. Once you have successfully completed credit counseling, ask them for something in writing to that effect. It can help when applying for your real estate loan
Simple Steps to Building a Buyer's List: Commercial Real Estate
When you are in the business of rehabbing or wholesaling real estate a buyer's list can be your best friend. There are many ways to go about obtaining a buyer's list such as buying one from a host of companies. However, nothing can compare to building your own list for many different reasons.
When you build your own buyer's list, you know for sure who the people are on your list. In other words, you are not simply buying names, having no real idea if the people listed are actually interested in purchasing wholesale or rehab real estate. For that matter, you have no idea if these people are actually interested in purchasing real estate from your area. Buying a list is never a good idea as a whole.
Building your own list gives you many advantages. The people listed on your buyers list have actually given you their information personally. They have expressed an interest in buying real estate from you and what is more, they have expressed an interest in buying real estate in the area in which you offer it.
Another advantage of a buyer's list is that it allows you to target specific areas of interest. You may have more investors looking to buy real estate on one side of town than they are on the other. Buy building a buyer's list you have the opportunity to get a good grasp on what your buyers want and where they want it, allowing you to make the appropriate decisions on your investment. With a buyer's list you have a better chance at selling and getting a return profit. The real estate sells quickly, in most cases, and the profit starts rolling in, if you have done your homework, research, and built a reliable buyer's list.
With that being said, here are some steps you can take to build your own buyer's list, without even having any property on hand at the start.
Advertisement – Your local newspaper is the best place to start. The key is to make it realistic and eye catching. You have to stand out, but you also want the prescreening of potential buyer's to take place through the advertisement. In other words, you want to include the types of property you intend to sell, good credit required, and serious buyer's only. You could also stretch things a little and say you currently have 16 or 17 properties. This is ok, because you are building your list.
Provide your telephone number and maybe even an incentive for their purchase, such as a free product or something similar. Be sure to identify that you are advertising to investors.
Clubs - Another great way to build your buyers list is to join real estate investment clubs. These clubs hold meetings on a monthly basis and generally are brimming with interested, potential investors. One thing you need to take note of is that you must cater to your potential buyers. Many people buy property with hopes of selling it, then look for a buyer. In other words, they are looking for a buyer for that property. It should be the other way around, you should have a buyer, then find the property based on what they are looking for.
Keep It Fresh – You want to make sure that your buyer's list holds only fresh names, telephone numbers, and other information. You want to have variety as well, keep names of investors on the list that are interested in various types of properties, this will help ensure that you always have options.
Make sure you take names off the list, as they are no longer interested, leave the investing business, or move out of your area. This is an important aspect of your buyer's list, if you do not update it, you may find that you run out of investors or buyers and create unhappy people at the same time, which could hurt your business.
When you build your own buyer's list, you know for sure who the people are on your list. In other words, you are not simply buying names, having no real idea if the people listed are actually interested in purchasing wholesale or rehab real estate. For that matter, you have no idea if these people are actually interested in purchasing real estate from your area. Buying a list is never a good idea as a whole.
Building your own list gives you many advantages. The people listed on your buyers list have actually given you their information personally. They have expressed an interest in buying real estate from you and what is more, they have expressed an interest in buying real estate in the area in which you offer it.
Another advantage of a buyer's list is that it allows you to target specific areas of interest. You may have more investors looking to buy real estate on one side of town than they are on the other. Buy building a buyer's list you have the opportunity to get a good grasp on what your buyers want and where they want it, allowing you to make the appropriate decisions on your investment. With a buyer's list you have a better chance at selling and getting a return profit. The real estate sells quickly, in most cases, and the profit starts rolling in, if you have done your homework, research, and built a reliable buyer's list.
With that being said, here are some steps you can take to build your own buyer's list, without even having any property on hand at the start.
Advertisement – Your local newspaper is the best place to start. The key is to make it realistic and eye catching. You have to stand out, but you also want the prescreening of potential buyer's to take place through the advertisement. In other words, you want to include the types of property you intend to sell, good credit required, and serious buyer's only. You could also stretch things a little and say you currently have 16 or 17 properties. This is ok, because you are building your list.
Provide your telephone number and maybe even an incentive for their purchase, such as a free product or something similar. Be sure to identify that you are advertising to investors.
Clubs - Another great way to build your buyers list is to join real estate investment clubs. These clubs hold meetings on a monthly basis and generally are brimming with interested, potential investors. One thing you need to take note of is that you must cater to your potential buyers. Many people buy property with hopes of selling it, then look for a buyer. In other words, they are looking for a buyer for that property. It should be the other way around, you should have a buyer, then find the property based on what they are looking for.
Keep It Fresh – You want to make sure that your buyer's list holds only fresh names, telephone numbers, and other information. You want to have variety as well, keep names of investors on the list that are interested in various types of properties, this will help ensure that you always have options.
Make sure you take names off the list, as they are no longer interested, leave the investing business, or move out of your area. This is an important aspect of your buyer's list, if you do not update it, you may find that you run out of investors or buyers and create unhappy people at the same time, which could hurt your business.
The Real Estate Mom’s Home Office
Combining work with home life for the real-estate mom is a never-ending battle between business and family obligations. One of the ways to balance this ongoing issue is for the real-estate mom to create a home office. Here, she can have a place to focus on her business while being close to her kids. The key to optimizing this strategy is organization.
Organization comes in many forms. To begin with, as a real estate professional, you need to have the proper tools at your disposal. While this probably sounds simple, lack of organization can be a death knell to your business. It doesn’t have to be, with the proper planning and execution; your home office can exceed your expectations!
To help you get started, here are four tips to organize your real-estate home office:
1. Organize your real estate desk with the proper equipment. You need some basics including a dedicated desk area for just you that won’t be used by other family members. You will also need room for your laptop or your own dedicated desk top computer separate from the one the kids use. To organize that area get some of the basic necessities, without letting your area become too crowed: a good filing system, a garbage can, and basic office supplies such as pens, highlighters, paperclips, a stapler, and paper. Get rid of the clutter and leave plenty of room to spread out your files and work.
2. Different in-baskets for personal and business. You’re a mom as well as a real estate professional, so be sure to have a place your kids can drop permission slips and other school related material in for your review. Sound impersonal? It isn’t – and in one quick glance, you’ll know what school items need your attention. The other, of course, is for your real estate business, so you have a spot to put essential paperwork until you have a chance to file it.
3. Set up a planning tool, such as Top Producer. This is so essential, I cannot stress it enough. You absolutely need this so you can easily view both personal and business functions. From the meeting with your child’s teacher to the meeting with that new client, all in one place, easy for you to see. Not only helpful, but vital, this will completely erase the chance of you double scheduling yourself. Nothing is worse than having to choose between your children and an important business meeting.
4. Setting Limitations. Your kids are important. Part of the reason you’re at home is so you are accessible to them. That being said, however, they also need to understand you’re working. Set limitations with them so they know how to approach you in non-emergency circumstances. If you’re in the middle of a conference call in which you cannot be interrupted, let them know this. You can even designate a signal – it can be as simple as a closed door, or a bandanna on the doorknob – that lets them know Mommy can’t be interrupted unless it is an emergency. Explain to them what an emergency entails to you, because remember – to a child, if they want your attention, it’s always an emergency!
These tips are just the beginning of the steps you can take to get your real estate home office organized and running smoothly. As you spend more time working from home, you’ll discover what is successful for you and what isn’t. A home office can truly bridge the gap between career and family – if done properly, with the correct expectations in place. It will allow you to remain the force in your family you need to be, as well as continuing to get your career where you want it to be.
Organization comes in many forms. To begin with, as a real estate professional, you need to have the proper tools at your disposal. While this probably sounds simple, lack of organization can be a death knell to your business. It doesn’t have to be, with the proper planning and execution; your home office can exceed your expectations!
To help you get started, here are four tips to organize your real-estate home office:
1. Organize your real estate desk with the proper equipment. You need some basics including a dedicated desk area for just you that won’t be used by other family members. You will also need room for your laptop or your own dedicated desk top computer separate from the one the kids use. To organize that area get some of the basic necessities, without letting your area become too crowed: a good filing system, a garbage can, and basic office supplies such as pens, highlighters, paperclips, a stapler, and paper. Get rid of the clutter and leave plenty of room to spread out your files and work.
2. Different in-baskets for personal and business. You’re a mom as well as a real estate professional, so be sure to have a place your kids can drop permission slips and other school related material in for your review. Sound impersonal? It isn’t – and in one quick glance, you’ll know what school items need your attention. The other, of course, is for your real estate business, so you have a spot to put essential paperwork until you have a chance to file it.
3. Set up a planning tool, such as Top Producer. This is so essential, I cannot stress it enough. You absolutely need this so you can easily view both personal and business functions. From the meeting with your child’s teacher to the meeting with that new client, all in one place, easy for you to see. Not only helpful, but vital, this will completely erase the chance of you double scheduling yourself. Nothing is worse than having to choose between your children and an important business meeting.
4. Setting Limitations. Your kids are important. Part of the reason you’re at home is so you are accessible to them. That being said, however, they also need to understand you’re working. Set limitations with them so they know how to approach you in non-emergency circumstances. If you’re in the middle of a conference call in which you cannot be interrupted, let them know this. You can even designate a signal – it can be as simple as a closed door, or a bandanna on the doorknob – that lets them know Mommy can’t be interrupted unless it is an emergency. Explain to them what an emergency entails to you, because remember – to a child, if they want your attention, it’s always an emergency!
These tips are just the beginning of the steps you can take to get your real estate home office organized and running smoothly. As you spend more time working from home, you’ll discover what is successful for you and what isn’t. A home office can truly bridge the gap between career and family – if done properly, with the correct expectations in place. It will allow you to remain the force in your family you need to be, as well as continuing to get your career where you want it to be.
My Second Real Estate
My second deal was a sandwich lease option deal and a true nothing down, no credit needed, real estate deal. I rented the house from the seller with an option to buy, and rented the house to my buyer at a higher rent and a higher price to buy.
You may remember that I did an all cash deal for my first deal. It took several months before I entered my next deal. While I did speak to several sellers and received many leads I was short on cash to do my next deal. I have been self employed most of my life and haven’t had good credit for quite some time. I have paid my bills on time for several years but haven’t done well at obtaining the types of credit that strengthen ones credit scores. I had planned on borrowing out the cash I put into my first deal but was never satisfied with what loans I could receive against it and never did put a mortgage on that property.
About three months after the first deal this second deal of mine came about as a referral from a mortgage broker who had contacted me about selling his own property. This referral was a client of his who had to move from Memphis to Minneapolis due to a job transfer. The home was beautiful and required no work. The only money I spent on the house was to have the leaves bagged as it has a half acre lot with mature trees and a beautiful pie shaped lot with 80% of the yard being fenced in the back. The home is 4 to 5 bedrooms with 3 and a half baths with a very nice open floor plan and good solid construction. The area the property is in was being over built by new builders and used homes simply are not selling. The average selling price in our county is around $175k and this home had been on the market for $225k and not selling. Without all the overbuilding in the area it might be worth $245k or more.
When the seller contacted me they let me know they owed $215k and had an $1850 payment including taxes and insurance. All they wanted was to cover the note. I had taken Wendy Patton’s course on lease options and I knew that was a strategy I wanted to use. I agreed to cover the note once I had a suitable tenant/buyer and collected funds. I ran my first ads for the property in November which isn’t a great rental month. At first I tried to ask for a $6k option fee and $2195 per month rent. Had it been Feb or Mar I may have gotten it. I had little inquiry about the property. I had a yard sign with flyers and pictures online and ran ads in the local paper. Typically I got a call or two a week and had someone look at the property every couple of weeks. I had someone fill out the paperwork and seemed ready to pay their money twice and they couldn’t come up with the money and move in. Finally after almost 3 months I had a doctor and a nurse take the property with a $3000 non-refundable option fee and $1950 per month with a $100 credit for each month of on time rent. The agreed upon sales price was $249k which is the best part of the deal for me with a 24 month term on the lease. We did build in for the rent to go up to $2050 after 12 months. This tenant pays the rent on time almost every month and I think in the end they will likely buy the property. Most of the $3k option fee was eaten up with about $1500 in newspaper ads for the house. I make a $100 profit on the monthly rent. While I did spend about $1600 out of pocket I did get the $3000 up front. This is a very thin deal but if the current tenant doesn’t exercise the option I think I will be able to go up to $260k on the next tenant and get a bit more rent and option fee.
What you can learn from this deal: 1. I agreed to pay too much rent on this property. $1850 was too much and should have been more like $1600 per month so I could have made better cash flow. I think if I had held out another month I could have gotten more up front and a little more rent. A good rent guideline is to not pay the seller more than .6 times my selling price which would have been $1500 in this case. 2. We filed a memorandum of option on the property title. This shows the world that we have an interest in the property and it cannot be sold or refinanced without our approval. 3. This sandwich lease option only works if the seller has good credit and should continue to do so. 4. This property was really too expensive for a lease option and is much better in my market on a property that would sell between $100k and $200k. 5. It is hard to find sellers who will agree to this but there are lots of them out there, you just have to keep asking sellers to agree to this kind of deal. 6. Lease options are great for selling as you get tax benefits, and multiple paydays.
You may remember that I did an all cash deal for my first deal. It took several months before I entered my next deal. While I did speak to several sellers and received many leads I was short on cash to do my next deal. I have been self employed most of my life and haven’t had good credit for quite some time. I have paid my bills on time for several years but haven’t done well at obtaining the types of credit that strengthen ones credit scores. I had planned on borrowing out the cash I put into my first deal but was never satisfied with what loans I could receive against it and never did put a mortgage on that property.
About three months after the first deal this second deal of mine came about as a referral from a mortgage broker who had contacted me about selling his own property. This referral was a client of his who had to move from Memphis to Minneapolis due to a job transfer. The home was beautiful and required no work. The only money I spent on the house was to have the leaves bagged as it has a half acre lot with mature trees and a beautiful pie shaped lot with 80% of the yard being fenced in the back. The home is 4 to 5 bedrooms with 3 and a half baths with a very nice open floor plan and good solid construction. The area the property is in was being over built by new builders and used homes simply are not selling. The average selling price in our county is around $175k and this home had been on the market for $225k and not selling. Without all the overbuilding in the area it might be worth $245k or more.
When the seller contacted me they let me know they owed $215k and had an $1850 payment including taxes and insurance. All they wanted was to cover the note. I had taken Wendy Patton’s course on lease options and I knew that was a strategy I wanted to use. I agreed to cover the note once I had a suitable tenant/buyer and collected funds. I ran my first ads for the property in November which isn’t a great rental month. At first I tried to ask for a $6k option fee and $2195 per month rent. Had it been Feb or Mar I may have gotten it. I had little inquiry about the property. I had a yard sign with flyers and pictures online and ran ads in the local paper. Typically I got a call or two a week and had someone look at the property every couple of weeks. I had someone fill out the paperwork and seemed ready to pay their money twice and they couldn’t come up with the money and move in. Finally after almost 3 months I had a doctor and a nurse take the property with a $3000 non-refundable option fee and $1950 per month with a $100 credit for each month of on time rent. The agreed upon sales price was $249k which is the best part of the deal for me with a 24 month term on the lease. We did build in for the rent to go up to $2050 after 12 months. This tenant pays the rent on time almost every month and I think in the end they will likely buy the property. Most of the $3k option fee was eaten up with about $1500 in newspaper ads for the house. I make a $100 profit on the monthly rent. While I did spend about $1600 out of pocket I did get the $3000 up front. This is a very thin deal but if the current tenant doesn’t exercise the option I think I will be able to go up to $260k on the next tenant and get a bit more rent and option fee.
What you can learn from this deal: 1. I agreed to pay too much rent on this property. $1850 was too much and should have been more like $1600 per month so I could have made better cash flow. I think if I had held out another month I could have gotten more up front and a little more rent. A good rent guideline is to not pay the seller more than .6 times my selling price which would have been $1500 in this case. 2. We filed a memorandum of option on the property title. This shows the world that we have an interest in the property and it cannot be sold or refinanced without our approval. 3. This sandwich lease option only works if the seller has good credit and should continue to do so. 4. This property was really too expensive for a lease option and is much better in my market on a property that would sell between $100k and $200k. 5. It is hard to find sellers who will agree to this but there are lots of them out there, you just have to keep asking sellers to agree to this kind of deal. 6. Lease options are great for selling as you get tax benefits, and multiple paydays.
Wednesday, September 10, 2008
Sell Real Estate FAST
The real estate market has been showing signs of slowing and more and more properties are advertised for sale; however, one real estate transaction type is gaining in popularity and that is the "seller second". In such a scenario, the seller holds a second mortgage allowing the buyer to purchase the home with little or no-money-down. The down payment or a portion thereof is effectively financed with the "seller second".
Since the first mortgage balance will be less than 100% of the sale's price, there is a lower inherent risk to the first mortgage lender who in turn is willing to approve a buyer who would otherwise not qualify for a no-money-down first mortgage. This dramatically increases the pool of potential buyers and that leads to a quick sale in today's market.
Typical minimum credit score requirements for a no-money-down loan are 580 or above; but, with the assistance of a 5% (5% of the sale's price) "seller held second", a buyer can purchase a home with a 550 credit score. With a 20% seller held second, a buyer with a 500 credit score can buy a home no-money-down. With a 35% seller held second, there are no credit score requirements for the buyer.
After closing, the buyer will have two monthly mortgage payments, one payment to the first mortgage holder and a second payment to the seller. The second mortgage is typically structured as a thirty-year amortization with a five-year balloon. At the end of the first year, the buyer can refinance the first and second mortgage into one new first mortgage and at that time the seller will recoup the balance of the "seller second". In the meantime the seller will receive interest only payments from the buyer.
A year ago, it was a seller's market. Properties were selling as soon as the real estate 'for sale' sign was planted in the yard. At that time, it was not uncommon to hear of bidding wars in the driveway and the subject property would end up selling for more than the asking price. Now we are in a different market. We have entered a buyer's market. Properties remain listed for sale for periods of time that exceed a sellers comfort level. Driving down a typical street in Any Town, USA, one might see numerous 'for sale' signs and even signs reading the likes of "price reduced". Reducing the price of a house does not significantly increase the pool of buyers that potentially qualify for financing for that property and therefore, demand remains unchanged as the result of a price reduction. The solution can be found through offering a "seller second".
A "seller second" effectively increases the number of buyers that qualify for financing and subsequently increases the demand. FICO statistics seem to indicate there are approximately 25% of the scorable population in this country that have a credit score between 500 and 649. Offering a "seller second" to buyers in this range can turn them into qualified borrowers and happy homeowners.
To offer a "seller held second", a seller will need to have sufficient equity in the property. Also, sellers need to understand that there is a risk of default by the potential buyer.
Since the first mortgage balance will be less than 100% of the sale's price, there is a lower inherent risk to the first mortgage lender who in turn is willing to approve a buyer who would otherwise not qualify for a no-money-down first mortgage. This dramatically increases the pool of potential buyers and that leads to a quick sale in today's market.
Typical minimum credit score requirements for a no-money-down loan are 580 or above; but, with the assistance of a 5% (5% of the sale's price) "seller held second", a buyer can purchase a home with a 550 credit score. With a 20% seller held second, a buyer with a 500 credit score can buy a home no-money-down. With a 35% seller held second, there are no credit score requirements for the buyer.
After closing, the buyer will have two monthly mortgage payments, one payment to the first mortgage holder and a second payment to the seller. The second mortgage is typically structured as a thirty-year amortization with a five-year balloon. At the end of the first year, the buyer can refinance the first and second mortgage into one new first mortgage and at that time the seller will recoup the balance of the "seller second". In the meantime the seller will receive interest only payments from the buyer.
A year ago, it was a seller's market. Properties were selling as soon as the real estate 'for sale' sign was planted in the yard. At that time, it was not uncommon to hear of bidding wars in the driveway and the subject property would end up selling for more than the asking price. Now we are in a different market. We have entered a buyer's market. Properties remain listed for sale for periods of time that exceed a sellers comfort level. Driving down a typical street in Any Town, USA, one might see numerous 'for sale' signs and even signs reading the likes of "price reduced". Reducing the price of a house does not significantly increase the pool of buyers that potentially qualify for financing for that property and therefore, demand remains unchanged as the result of a price reduction. The solution can be found through offering a "seller second".
A "seller second" effectively increases the number of buyers that qualify for financing and subsequently increases the demand. FICO statistics seem to indicate there are approximately 25% of the scorable population in this country that have a credit score between 500 and 649. Offering a "seller second" to buyers in this range can turn them into qualified borrowers and happy homeowners.
To offer a "seller held second", a seller will need to have sufficient equity in the property. Also, sellers need to understand that there is a risk of default by the potential buyer.
Some Valuable Real Estate Secrets
Making a good investment is of great consequence to people these days. When it comes to money people often act differently. Others may invest their money aggressively while others tend to be more cautious. The key is finding an investment that suits your style.
The modern world presents plenty of opportunity for investing your capital. Among the best possible ways to invest your money is through real estate. But before you do so, learning a few real estates secrets will be of immense help.
One of the real estate secrets used by investors is buying and reselling homes. You start by buying a home in a popular location. Then you start fixing it up by repainting it or by adding a few tasteful designs or sections. Wait for a few years as your house’s value rises then sell it to an interested buyer for a profit. Doesn’t sound complicated at all does it? If you have doubts if this is feasible, let me assure you that people do this all the time. My father uses real estate secrets to earn some serious money.
He bought a nice house in Kansas about seven years ago for a quarter of a million and recent appraisals of the house he bought total about 800,000 dollars. Quite impressive, wouldn’t you agree? What do you think do you have any real estate secrets you want to use? If you play your cards right you can even double your investment, the real estate business can be really lucrative.
It’s also important to indigoid location in the real estates business. Beauty and design are not the basis of a Finding a potentially profitable house. Beauty may be crucial in other business, but in real estate it’s all about location. A well made house located in an inaccessible place will unlikely gain any investor money. Real estate value rises on a house‘s proximity to amenities, school districts and safety. This is a major real estate secret. If you want to boost your knowledge about the real estate business by knowing more real estates secrets, start searching about it in Google. All the advise on investments are waiting for you.
The modern world presents plenty of opportunity for investing your capital. Among the best possible ways to invest your money is through real estate. But before you do so, learning a few real estates secrets will be of immense help.
One of the real estate secrets used by investors is buying and reselling homes. You start by buying a home in a popular location. Then you start fixing it up by repainting it or by adding a few tasteful designs or sections. Wait for a few years as your house’s value rises then sell it to an interested buyer for a profit. Doesn’t sound complicated at all does it? If you have doubts if this is feasible, let me assure you that people do this all the time. My father uses real estate secrets to earn some serious money.
He bought a nice house in Kansas about seven years ago for a quarter of a million and recent appraisals of the house he bought total about 800,000 dollars. Quite impressive, wouldn’t you agree? What do you think do you have any real estate secrets you want to use? If you play your cards right you can even double your investment, the real estate business can be really lucrative.
It’s also important to indigoid location in the real estates business. Beauty and design are not the basis of a Finding a potentially profitable house. Beauty may be crucial in other business, but in real estate it’s all about location. A well made house located in an inaccessible place will unlikely gain any investor money. Real estate value rises on a house‘s proximity to amenities, school districts and safety. This is a major real estate secret. If you want to boost your knowledge about the real estate business by knowing more real estates secrets, start searching about it in Google. All the advise on investments are waiting for you.
Gain Control of Real Estate
The scenario is all too familiar: soon-to-be homeowners secure financing, lock in a 30-day rate, and wait for their closing date. They have no control over the closing process, and can't get a straight answer from their Realtor, their mortgage broker, or their title company. Feeling helpless, they watch as their scheduled closing date passes by and their locked-in interest rate expires, increasing by a half-point. "On a $500,000 mortgage, that half-point means they will pay an additional $60,000 over the life of their loan," says Samuel Ingram, President of MyClosingSpace.com (www.MyClosingSpace.com), an innovative service that allows homeowners to gain control of the real estate closing process. "A real estate 'closing' is not a date," says Ingram. "It's a process. When the homeowners aren't in control of that process, they're at the mercy of their Realtor, attorney, mortgage broker, and title company. And they can end up paying a hefty price."
MyClosingSpace.com was designed to give consumers the control that's missing from the traditional real estate transaction process. The company facilitates real estate transactions while giving those who are buying or refinancing a home access to the critical information that ensures an on-time closing. "We become the homeowner's partner every step of the way, through title search, escrow, settlement, and closing," says Ingram.
The control begins with the company's leading edge technology, which generates an online real-time quote for title insurance and closing costs. "A homebuyer or homeowner simply has to enter the property's zip code, the price of the house, and the mortgage amount, and they will receive an online quote instantly," says Ingram. "That gives them the information they need to make their own decision."
Further, MyClosingSpace.com has a team of experts that communicates with real estate professionals on the homeowner's behalf. "Our clients don't have to go from one company to another with a thick folder of papers in hand," says Ingram. "Plus, they only have to make one phone call to get the answers they need from our exceptional customer service team."
MyClosingSpace.com takes the mystery out of closing costs, which are often inflated by various parties in a real estate transaction. Consumers can use MyClosingSpace.com's free online quote tool for any number of properties. "With MyClosingSpace, homeowners know upfront exactly how much their closing costs will be," says Ingram. Because MyClosingSpace.com doesn't engage in revenue sharing arrangements with lenders, attorneys, or Realtors, consumers save an average of 30 percent on closing costs.
Concludes Ingram, "With our real-time quote tools and online ordering, we can ensure that homeowners close on time, every time, and avoid penalties and interest rate increases that can cost tens of thousands of dollars." That's money homeowners can put to good use in furnishing their new home.
MyClosingSpace.com was designed to give consumers the control that's missing from the traditional real estate transaction process. The company facilitates real estate transactions while giving those who are buying or refinancing a home access to the critical information that ensures an on-time closing. "We become the homeowner's partner every step of the way, through title search, escrow, settlement, and closing," says Ingram.
The control begins with the company's leading edge technology, which generates an online real-time quote for title insurance and closing costs. "A homebuyer or homeowner simply has to enter the property's zip code, the price of the house, and the mortgage amount, and they will receive an online quote instantly," says Ingram. "That gives them the information they need to make their own decision."
Further, MyClosingSpace.com has a team of experts that communicates with real estate professionals on the homeowner's behalf. "Our clients don't have to go from one company to another with a thick folder of papers in hand," says Ingram. "Plus, they only have to make one phone call to get the answers they need from our exceptional customer service team."
MyClosingSpace.com takes the mystery out of closing costs, which are often inflated by various parties in a real estate transaction. Consumers can use MyClosingSpace.com's free online quote tool for any number of properties. "With MyClosingSpace, homeowners know upfront exactly how much their closing costs will be," says Ingram. Because MyClosingSpace.com doesn't engage in revenue sharing arrangements with lenders, attorneys, or Realtors, consumers save an average of 30 percent on closing costs.
Concludes Ingram, "With our real-time quote tools and online ordering, we can ensure that homeowners close on time, every time, and avoid penalties and interest rate increases that can cost tens of thousands of dollars." That's money homeowners can put to good use in furnishing their new home.
Real Estate Sydney
For the 10th consecutive year Sydney has been voted one of the world's best cities (Top 10 Cities Overall) by the international "Travel & Leisure Magazine". It scored an 87 per cent approval rating among travellers and tourist industry workers. It was fourth after Florence (87.09%), Rome (86.15 %), and Bangkok (86.11%).
The last two years it has been number one on this list. Judge by yourself and take a trip to one of the worlds most beautiful cities!
Size
Sydney is one of the largest cities in its land size. It reaches across 1580 square kilometres. This is the same as London and more than double New York's 780 square kilometres. Amsterdam is 167 square kilometres, and Paris is a mere 105 square kilometres. There are 1, 426, 266 dwellings in Sydney.
Population
Sydney's population is 3,536,000 people.
Sydney is Australia\'s oldest city, the economic powerhouse of the nation and the country's capital in everything but name. It's blessed with sun-drenched natural attractions, dizzy skyscrapers, delicious and daring restaurants, superb shopping and friendly folk.
Although it's come a long way from its convict beginnings, it still has a rough and ready energy, and offers an invigorating blend of the old and the new, the raw and the refined. While high culture attracts some to the Opera House, gaudy nightlife attracts others to Kings Cross.
It's a city blessed with long stretches of heavenly beaches, a pleasant climate that sees over 300 sunny days a year, an economy that's stronger than it should be, a stable local government, and a population of open-minded, outgoing entrepreneurial types who are itching to show the whole place off.
Orientation
Sydney wasn't a planned city and its layout is further complicated by its hills and the numerous inlets of the harbour, its focal point. The centre of Sydney is on the south shore of the harbour, about 7km (4mi) inland from the harbour heads. Skyscrapers in the Central Business District (CBD) vie for dominance and harbour views, but the city's relentlessness is softened by shady Hyde Park and The Domain parkland to the east, Darling Harbour to the west and the main harbour to the north. The Sydney Harbour Bridge and the harbour tunnel link the city centre with the satellite CBD of North Sydney and the suburbs of the North Shore. Sydney Airport is about 10km (6mi) south of the city centre. Central station, Sydney's main train station, is in the south of the city centre, and the main bus terminal is located outside it.
Currency
Dollars and cents. Notes: $5, $10, $20, $50 and $100 bills. Coins: 5 cents, 10 cents, 20 cents, 50 cents, $1 and $2. The Australia dollar is floated on the world currency market and is presently fluctuating at around 74 to 75 cents to the US dollar.
Health
Sydney, like most parts of Australia, presents no real health risks for foreign visitors. Tap water is good, restaurants and eating places are required by law to maintain a high standard of food preparation, and the city is generally clean. Smog is less of a problem than with cities such as London, Hong Kong and Bangkok, but is still quite high. Exposure to the sun can be a problem for those who are fair-skinned. Also, those with little experience in swimming in the surf should be cautious when swimming at Sydney's famous surf beaches, Bondi and Manly, and should always swim between the warning flags erected by lifeguards. Medical costs in Australia are not exorbitant like in the United States and Europe, but travel insurance is still recommended.
The last two years it has been number one on this list. Judge by yourself and take a trip to one of the worlds most beautiful cities!
Size
Sydney is one of the largest cities in its land size. It reaches across 1580 square kilometres. This is the same as London and more than double New York's 780 square kilometres. Amsterdam is 167 square kilometres, and Paris is a mere 105 square kilometres. There are 1, 426, 266 dwellings in Sydney.
Population
Sydney's population is 3,536,000 people.
Sydney is Australia\'s oldest city, the economic powerhouse of the nation and the country's capital in everything but name. It's blessed with sun-drenched natural attractions, dizzy skyscrapers, delicious and daring restaurants, superb shopping and friendly folk.
Although it's come a long way from its convict beginnings, it still has a rough and ready energy, and offers an invigorating blend of the old and the new, the raw and the refined. While high culture attracts some to the Opera House, gaudy nightlife attracts others to Kings Cross.
It's a city blessed with long stretches of heavenly beaches, a pleasant climate that sees over 300 sunny days a year, an economy that's stronger than it should be, a stable local government, and a population of open-minded, outgoing entrepreneurial types who are itching to show the whole place off.
Orientation
Sydney wasn't a planned city and its layout is further complicated by its hills and the numerous inlets of the harbour, its focal point. The centre of Sydney is on the south shore of the harbour, about 7km (4mi) inland from the harbour heads. Skyscrapers in the Central Business District (CBD) vie for dominance and harbour views, but the city's relentlessness is softened by shady Hyde Park and The Domain parkland to the east, Darling Harbour to the west and the main harbour to the north. The Sydney Harbour Bridge and the harbour tunnel link the city centre with the satellite CBD of North Sydney and the suburbs of the North Shore. Sydney Airport is about 10km (6mi) south of the city centre. Central station, Sydney's main train station, is in the south of the city centre, and the main bus terminal is located outside it.
Currency
Dollars and cents. Notes: $5, $10, $20, $50 and $100 bills. Coins: 5 cents, 10 cents, 20 cents, 50 cents, $1 and $2. The Australia dollar is floated on the world currency market and is presently fluctuating at around 74 to 75 cents to the US dollar.
Health
Sydney, like most parts of Australia, presents no real health risks for foreign visitors. Tap water is good, restaurants and eating places are required by law to maintain a high standard of food preparation, and the city is generally clean. Smog is less of a problem than with cities such as London, Hong Kong and Bangkok, but is still quite high. Exposure to the sun can be a problem for those who are fair-skinned. Also, those with little experience in swimming in the surf should be cautious when swimming at Sydney's famous surf beaches, Bondi and Manly, and should always swim between the warning flags erected by lifeguards. Medical costs in Australia are not exorbitant like in the United States and Europe, but travel insurance is still recommended.
Smart Real Estate Investing Tips
Real estate investing is a topic that many people wonder about. The earning potential of a smart investor is extremely high, because unlike nearly every other type of investment, real estate does not typically decrease in value. When you are looking for a way to ensure your security for the future, or to build a retirement portfolio, real estate is a good vehicle to use. Here are some things that you might want to know about real estate investing…
- Work with a mortgage broker. When you are considering financing options for the purchase of your investment property, contact a mortgage broker to see if he can help you to find financing that is the most advantageous for you. Shop around, and talk to several different brokers to get a feel for experience and access.
- Don’t pass over properties that you may be able to resell to other investors. Sometimes it is a good idea to purchase a property that is an excellent value simply because it is a property that is attractive to other investors. Keep in mind that when you purchase a property that is not what you are looking for or one that requires extensive work, it may end up being a long term investment. However, when someone who specializes in rehabbing comes along you are likely to make a substantial commission on the sale.
- Research potential properties before purchasing them. When buying a rental property, there are several key features that you should be looking for. The first is sustainability. Is the property in solid condition and is it going to stay that way with minimal upkeep? The second is the location. Yes, location is extremely important for most rental properties. You need to ensure that your tenants can get to where they need to go and that the property is near commonly used retailers and service providers. The third is the average income of the area. This is different from physical location, because you should keep in mind that a high rent area is definitely a better location than a low rent area. And, in high rent areas location is often less of a concern than in low rent areas.
- Start by purchasing a home of your own. If you are not already a homeowner, it is probably a good idea to purchase a home before you purchase an investment property. There are several reasons, but perhaps the most important is that you will learn the process of purchasing a property by actually buying one. It is not unusual for investors to turn their first home into their first investment property, because the property and the market become familiar entities.
- Let potential home sellers know you’re looking to buy. One way to find hidden investment properties is to distribute flyers around a neighborhood in which you would like to buy. Consider having someone drop them door to door. A thousand flyers will only cost you around fifty dollars, and you never know who might give you a call to discuss or point you in the direction of a property. And, much like business cards, you never know who is going to see your contact information. This is an excellent outreach technique when you would like to get your name out there and to find properties that meet your criteria.
- Consider living in your own rental property. A good strategy to consider when you are looking to purchase an investment property is purchasing a multi-unit property and becoming an occupant. The advantages include low cost living, because the other rents coming in should cover a good portion of the mortgage payments, higher deductions at the end of the year and the ability to stay current on maintenance.
- Find a great attorney. Before you become involved in the purchase of an investment property, you should form a relationship with a real estate attorney who is familiar with situations similar to yours. This is especially true if you are attempting to purchase a property with non-conventional financing, because an attorney will help you to ensure that you are making good decisions in terms of your investment.
- Know exactly what you’re getting in to. If you are considering purchasing a rental property with existing tenants, it is imperative that you have access to all tenant records prior to signing a purchase agreement. Otherwise, you may be inheriting another landlord’s problem. Keep in mind that you will most likely not be able to increase the rent amounts after purchasing an occupied property for at least the duration of the existing lease.
Hopefully, the information presented here has given you new insight into the world of real estate investing. Our intention is that you can now take this information and put it into play in your own investment plan. Careful planning is the first step to financial freedom, and real estate is an excellent vehicle for carrying out the plan.
- Work with a mortgage broker. When you are considering financing options for the purchase of your investment property, contact a mortgage broker to see if he can help you to find financing that is the most advantageous for you. Shop around, and talk to several different brokers to get a feel for experience and access.
- Don’t pass over properties that you may be able to resell to other investors. Sometimes it is a good idea to purchase a property that is an excellent value simply because it is a property that is attractive to other investors. Keep in mind that when you purchase a property that is not what you are looking for or one that requires extensive work, it may end up being a long term investment. However, when someone who specializes in rehabbing comes along you are likely to make a substantial commission on the sale.
- Research potential properties before purchasing them. When buying a rental property, there are several key features that you should be looking for. The first is sustainability. Is the property in solid condition and is it going to stay that way with minimal upkeep? The second is the location. Yes, location is extremely important for most rental properties. You need to ensure that your tenants can get to where they need to go and that the property is near commonly used retailers and service providers. The third is the average income of the area. This is different from physical location, because you should keep in mind that a high rent area is definitely a better location than a low rent area. And, in high rent areas location is often less of a concern than in low rent areas.
- Start by purchasing a home of your own. If you are not already a homeowner, it is probably a good idea to purchase a home before you purchase an investment property. There are several reasons, but perhaps the most important is that you will learn the process of purchasing a property by actually buying one. It is not unusual for investors to turn their first home into their first investment property, because the property and the market become familiar entities.
- Let potential home sellers know you’re looking to buy. One way to find hidden investment properties is to distribute flyers around a neighborhood in which you would like to buy. Consider having someone drop them door to door. A thousand flyers will only cost you around fifty dollars, and you never know who might give you a call to discuss or point you in the direction of a property. And, much like business cards, you never know who is going to see your contact information. This is an excellent outreach technique when you would like to get your name out there and to find properties that meet your criteria.
- Consider living in your own rental property. A good strategy to consider when you are looking to purchase an investment property is purchasing a multi-unit property and becoming an occupant. The advantages include low cost living, because the other rents coming in should cover a good portion of the mortgage payments, higher deductions at the end of the year and the ability to stay current on maintenance.
- Find a great attorney. Before you become involved in the purchase of an investment property, you should form a relationship with a real estate attorney who is familiar with situations similar to yours. This is especially true if you are attempting to purchase a property with non-conventional financing, because an attorney will help you to ensure that you are making good decisions in terms of your investment.
- Know exactly what you’re getting in to. If you are considering purchasing a rental property with existing tenants, it is imperative that you have access to all tenant records prior to signing a purchase agreement. Otherwise, you may be inheriting another landlord’s problem. Keep in mind that you will most likely not be able to increase the rent amounts after purchasing an occupied property for at least the duration of the existing lease.
Hopefully, the information presented here has given you new insight into the world of real estate investing. Our intention is that you can now take this information and put it into play in your own investment plan. Careful planning is the first step to financial freedom, and real estate is an excellent vehicle for carrying out the plan.
Monday, September 8, 2008
Toronto Real Estate
You have decided to take the leap into becoming a homeowner. You’ve done your homework, you can recite the CMHC fee schedule, you can calculate land transfer tax in your head, and you have even bought the DVD box set of Flip this House.
But what about choosing a neighbourhood?
While personal considerations such as living close to family (or keeping a comfortable distance from them) may limit your selection to only a few Toronto neighbourhoods, there are otherwise over two hundred communities across the city from which to choose. Here is a sampling of some of the more popular neighbourhoods for first time home buyers:
Riverdale and Danforth Village
From Broadview to Woodbine, straddling the first few streets on either side of the Danforth, and Danforth Village combine to offer a selection of stylish entry-level character homes. Perfect for the young urban dweller with a disdain for the uniformity of suburbia, this area offers convenient subway access, cool Danforth dining and shopping, and a range of prices for every budget. Riverdale is superb both for finding homes with great bones for the ambitious do-it-yourselfer, and finding magazine-quality renos for those you want to just move in and impress their friends.
Riverdale and Danforth Village Real Estate Values: Entry-level Danforth Village homes range from $250-400,000 while entry Riverdale homes range from $400,000-550,000.
East York
The portion of East York spanning from the Danforth north to O’Connor Drive offers some of the best value in all of Toronto. It is still possible to find homes for under $325,000 that are on quiet streets, are close to the subway, and that don’t give you an icky feeling when you step inside. The author can personally attest that East York is a very pleasant place to live, as it is where she bought her first two homes!
Thinking about eventually either having a family, or needing more space? Consider one of the traditional East York bungalows, and then have one of the rapid renovation companies that specialize in “topping-up” bungalows add a second floor when you need it. (This is also a respectable way to add value to your investment; some of these topped-up bungalows are fetching $500-600,000 on resale).
East York Real Estate Values: While some semis and small detached homes can be found for as low as the $250-300,000 range, a much greater selection is between $300-400,000.
Harbourfront
Who said that just because you are a first time homebuyer, you can’t have a view of the water and be right in downtown Toronto? While you can’t expect a sprawling Harbourfront condo penthouse for under $200,000, there are bachelors and junior one-bedroom units in contemporary buildings with excellent facilities that sell for as little as $180,000. In addition to building amenities, you have Harboufront’s cultural attractions and Lake Ontario’s outdoor activities outside your door, with streetcars and the downtown only steps away.
Davisville Village
Right in the middle of the city, Davisville Village offers some of the best-priced housing options within the desirable Yonge Street corridor. Offering the convenience of a brief subway ride to downtown, Yonge St. shopping, and loads of fun restaurants and pubs, Davisville Village has been attracting young buyers looking for their first home or condo. The hoards of singles in their twenties and thirties who reside in the numerous condos near Yonge and Eglinton are what have earned the neighbourhood the moniker of Young and Eligible.
But what about choosing a neighbourhood?
While personal considerations such as living close to family (or keeping a comfortable distance from them) may limit your selection to only a few Toronto neighbourhoods, there are otherwise over two hundred communities across the city from which to choose. Here is a sampling of some of the more popular neighbourhoods for first time home buyers:
Riverdale and Danforth Village
From Broadview to Woodbine, straddling the first few streets on either side of the Danforth, and Danforth Village combine to offer a selection of stylish entry-level character homes. Perfect for the young urban dweller with a disdain for the uniformity of suburbia, this area offers convenient subway access, cool Danforth dining and shopping, and a range of prices for every budget. Riverdale is superb both for finding homes with great bones for the ambitious do-it-yourselfer, and finding magazine-quality renos for those you want to just move in and impress their friends.
Riverdale and Danforth Village Real Estate Values: Entry-level Danforth Village homes range from $250-400,000 while entry Riverdale homes range from $400,000-550,000.
East York
The portion of East York spanning from the Danforth north to O’Connor Drive offers some of the best value in all of Toronto. It is still possible to find homes for under $325,000 that are on quiet streets, are close to the subway, and that don’t give you an icky feeling when you step inside. The author can personally attest that East York is a very pleasant place to live, as it is where she bought her first two homes!
Thinking about eventually either having a family, or needing more space? Consider one of the traditional East York bungalows, and then have one of the rapid renovation companies that specialize in “topping-up” bungalows add a second floor when you need it. (This is also a respectable way to add value to your investment; some of these topped-up bungalows are fetching $500-600,000 on resale).
East York Real Estate Values: While some semis and small detached homes can be found for as low as the $250-300,000 range, a much greater selection is between $300-400,000.
Harbourfront
Who said that just because you are a first time homebuyer, you can’t have a view of the water and be right in downtown Toronto? While you can’t expect a sprawling Harbourfront condo penthouse for under $200,000, there are bachelors and junior one-bedroom units in contemporary buildings with excellent facilities that sell for as little as $180,000. In addition to building amenities, you have Harboufront’s cultural attractions and Lake Ontario’s outdoor activities outside your door, with streetcars and the downtown only steps away.
Davisville Village
Right in the middle of the city, Davisville Village offers some of the best-priced housing options within the desirable Yonge Street corridor. Offering the convenience of a brief subway ride to downtown, Yonge St. shopping, and loads of fun restaurants and pubs, Davisville Village has been attracting young buyers looking for their first home or condo. The hoards of singles in their twenties and thirties who reside in the numerous condos near Yonge and Eglinton are what have earned the neighbourhood the moniker of Young and Eligible.
Building Real Estate
Your next few months constructing your new home could prove to be a time consuming and daunting task. You must recognize that it is difficult, if not impossible to have everything go smoothly. When buying a home while it is under construction you must have some key notes available. First, the contract of purchase and sale must be clear and very detailed to outline your expectations. It must describe the specifics including the details of the labor and materials used to satisfy your buying agreement. These stand from of construction contracts are available and these forms of agreement are designed to provide an enforceable agreement between the seller (builder) and the buyer.
If your developer asks for a deposit (which he will) make sure that it will be deposited into a trust account. If the agreement should default, the deposit should always be returned back to yourself. If the developer wishes to hold your deposit as a stake holder, the return of your deposit may be more difficult. In addition to the standard contract of purchase and sale, you should include a specifications sheet and the plans for the house. Building contracts are long, complex documents. Both parties (builder/seller and buyer) should obtain legal advice prior to entering into a building contract.
Do the walk though! Insist that prior to possession date, both parties conduct a walk-through of the property prior to possession date. Make sure that all the work is completed and agreed upon. At this time, both the seller and the buyer should sign and date the list. Copies should be given to both parties, realtor’s and lawyers involved. The crown has developed a program in 1998 called the Home Owners Protection Office. Essentially it is designed to protect the quality of construction in a new home development. This office licenses residential builders and building envelope renovators, monitor’s the provisions of mandatory third-party home warranty insurance and researches/educates the residential construction industry and consumers.
If you are the owner of a leaky home, the HPO will administer no-interest repair loan programs and PST relief grants for owners. They’re set up to ensure that no one has to lose their home due to the cost of repairing a leaky home. The reconstruction loan program provides no interest loans to homeowners and housing co-op’s who are unable to pay for the cost of repairs.
Your warranty includes a minimum of two years on labor and materials. Five years on the building envelope which includes water penetration. And ten years on the structure. In order to minimize confusion about warranties, the HPO created this 2, 5, 10 year home warranty insurance logo. It’s now used in the marketing campaigns of your local realtors and builders in the Residential real estate market of British Columbia homes. This should take place when you first occupy the home. You could always find more information on this topic by visiting http://www.hop.bc.ca
Finally make sure that your realtor inserts a clause clearly stating that the occupancy certificate must be obtained on or before completion date. However, landscaping and other outside work can still be in the process of completion. Your occupancy permit merely allows you to move into your new home! We hope this article helped you think of some things that you might not normally know. Please do not rely on this article as a guide or legal advice as you should always consult your lawyer or local realtor for advice, they are the expert.
If your developer asks for a deposit (which he will) make sure that it will be deposited into a trust account. If the agreement should default, the deposit should always be returned back to yourself. If the developer wishes to hold your deposit as a stake holder, the return of your deposit may be more difficult. In addition to the standard contract of purchase and sale, you should include a specifications sheet and the plans for the house. Building contracts are long, complex documents. Both parties (builder/seller and buyer) should obtain legal advice prior to entering into a building contract.
Do the walk though! Insist that prior to possession date, both parties conduct a walk-through of the property prior to possession date. Make sure that all the work is completed and agreed upon. At this time, both the seller and the buyer should sign and date the list. Copies should be given to both parties, realtor’s and lawyers involved. The crown has developed a program in 1998 called the Home Owners Protection Office. Essentially it is designed to protect the quality of construction in a new home development. This office licenses residential builders and building envelope renovators, monitor’s the provisions of mandatory third-party home warranty insurance and researches/educates the residential construction industry and consumers.
If you are the owner of a leaky home, the HPO will administer no-interest repair loan programs and PST relief grants for owners. They’re set up to ensure that no one has to lose their home due to the cost of repairing a leaky home. The reconstruction loan program provides no interest loans to homeowners and housing co-op’s who are unable to pay for the cost of repairs.
Your warranty includes a minimum of two years on labor and materials. Five years on the building envelope which includes water penetration. And ten years on the structure. In order to minimize confusion about warranties, the HPO created this 2, 5, 10 year home warranty insurance logo. It’s now used in the marketing campaigns of your local realtors and builders in the Residential real estate market of British Columbia homes. This should take place when you first occupy the home. You could always find more information on this topic by visiting http://www.hop.bc.ca
Finally make sure that your realtor inserts a clause clearly stating that the occupancy certificate must be obtained on or before completion date. However, landscaping and other outside work can still be in the process of completion. Your occupancy permit merely allows you to move into your new home! We hope this article helped you think of some things that you might not normally know. Please do not rely on this article as a guide or legal advice as you should always consult your lawyer or local realtor for advice, they are the expert.
Real Estate Asset Protection
Keep the ownership of the real estate anonymous. Anonymous Panama Corporations and Anonymous Panama Foundations do this extremely well; in fact better than any other jurisdiction we are aware of. Anonymous ownership of real estate reduces your profile as a target for lawsuits and collection attorneys can not go after something they do not know even exists.
If a structure of Anonymity is not practical the next best solution is to take away the attachable equity through the use of lawful mortgages and other encumbrances filed on the property locally by anonymous Panama Corporations or Foundations.
You should only use a Law Firm for asset protection so you have attorney client privilege. The law firm used should be out of the reach of the court where the real estate is located. If a lawyer in your country forms an offshore structure for you what are you going to do when he winds up in the lawsuit with you - defrauding creditors would be one possible allegation, or if he has the judge order him to open up his records concerning you. If you felt the courts, laws, judges, lawyers etc. in your country were fair and equitable you wouldn’t be reading this. Don’t make the mistake of using a law firm in another country which also has flawed privacy laws. The courts in his country will probably cooperate with the courts in your country.
As a last resort but still a valuable one the asset protection structure should present itself to your pursuing financial adversaries as so burdensome, onerous, confusing, time consuming and expensive that they will accept a settlement from you for a mere fraction of the debt in question. This is an often overlooked positive outcome that lets you keep your property and settle the debts for pennies on the dollar, sort of a bankruptcy without going bankrupt.
Detailed Information Follows:
Today many people in different countries are very worried about their real estate being lost due to court actions leaving them homeless or without their real estate portfolio. Real estate is not portable and unfortunately is one of the first things aggressive collection attorneys go after. Since the ownership of real estate in many jurisdictions is open and transparent, the real estate ownership rolls are often used to determine if a person has enough wealth to go after in a civil lawsuit, in other words it flags you as a target. Real estate ownership records are also used to accomplish identity theft since a lot can be learned about the owner from the public records like when the mortgages were taken out, from which company and for how much, the full names and addresses of the owners, etc. This information is then used combined with other public databases like driver’s licenses, phone and utility records etc. to create a profile of the victim which is used to steal their identity. Lack of privacy is invasive and also encourages litigation and criminal activity.
So how do you protect your real estate in as anonymous manner as possible? Some sample strategies are briefly described below.
Mortgages:
One real estate asset protection strategy is to borrow against the real estate using mortgages or trust deeds. Typically in most jurisdictions the borrowed money is not taxable as income since it must be repaid. Usually one can borrow up to 80% of the value of the house. Collection attorneys will not spend money to go after a house with 20% or less available equity. This is also true concerning government collection agencies. It is felt that auctions in the courtroom or on the steps of the courthouse will not bring in more than 80% of the appraised value since these auction buyers are looking for a substantial discount. One important point to be considered is the collection attorney may want to know where the borrowed money from the mortgage is to see if it is within his reach like in the country concerned. If the money is offshore they rarely will pursue it. They are not lawyers outside of their country and must retain local lawyers who usually smell deep pockets and charge high fees for this type of service which will rarely ever has a happy ending for them. The country where the money is may be hostile to such collection actions as is very often the case and makes it hard for these cases to be pursued. These countries often dismiss these cases for lack of venue or jurisdiction. Also the collection attorney from your country often has to post a cash bond to cover court costs if they lose which again deters such actions. The potential problem with the above scenario is now you have a mortgage on property that may have been free and clear. You need to go through a credit check and reveal personal information much of it will wind up in public or semi-public databases like credit agencies databases. Now you have to make the payments and pay the interest rates. There are usually penalties involved if you terminate the lease early. Many of these loans have variable interest rates which can go up and now you have a blood sucking Mortgage Company on your property title. There is a better way.
If a structure of Anonymity is not practical the next best solution is to take away the attachable equity through the use of lawful mortgages and other encumbrances filed on the property locally by anonymous Panama Corporations or Foundations.
You should only use a Law Firm for asset protection so you have attorney client privilege. The law firm used should be out of the reach of the court where the real estate is located. If a lawyer in your country forms an offshore structure for you what are you going to do when he winds up in the lawsuit with you - defrauding creditors would be one possible allegation, or if he has the judge order him to open up his records concerning you. If you felt the courts, laws, judges, lawyers etc. in your country were fair and equitable you wouldn’t be reading this. Don’t make the mistake of using a law firm in another country which also has flawed privacy laws. The courts in his country will probably cooperate with the courts in your country.
As a last resort but still a valuable one the asset protection structure should present itself to your pursuing financial adversaries as so burdensome, onerous, confusing, time consuming and expensive that they will accept a settlement from you for a mere fraction of the debt in question. This is an often overlooked positive outcome that lets you keep your property and settle the debts for pennies on the dollar, sort of a bankruptcy without going bankrupt.
Detailed Information Follows:
Today many people in different countries are very worried about their real estate being lost due to court actions leaving them homeless or without their real estate portfolio. Real estate is not portable and unfortunately is one of the first things aggressive collection attorneys go after. Since the ownership of real estate in many jurisdictions is open and transparent, the real estate ownership rolls are often used to determine if a person has enough wealth to go after in a civil lawsuit, in other words it flags you as a target. Real estate ownership records are also used to accomplish identity theft since a lot can be learned about the owner from the public records like when the mortgages were taken out, from which company and for how much, the full names and addresses of the owners, etc. This information is then used combined with other public databases like driver’s licenses, phone and utility records etc. to create a profile of the victim which is used to steal their identity. Lack of privacy is invasive and also encourages litigation and criminal activity.
So how do you protect your real estate in as anonymous manner as possible? Some sample strategies are briefly described below.
Mortgages:
One real estate asset protection strategy is to borrow against the real estate using mortgages or trust deeds. Typically in most jurisdictions the borrowed money is not taxable as income since it must be repaid. Usually one can borrow up to 80% of the value of the house. Collection attorneys will not spend money to go after a house with 20% or less available equity. This is also true concerning government collection agencies. It is felt that auctions in the courtroom or on the steps of the courthouse will not bring in more than 80% of the appraised value since these auction buyers are looking for a substantial discount. One important point to be considered is the collection attorney may want to know where the borrowed money from the mortgage is to see if it is within his reach like in the country concerned. If the money is offshore they rarely will pursue it. They are not lawyers outside of their country and must retain local lawyers who usually smell deep pockets and charge high fees for this type of service which will rarely ever has a happy ending for them. The country where the money is may be hostile to such collection actions as is very often the case and makes it hard for these cases to be pursued. These countries often dismiss these cases for lack of venue or jurisdiction. Also the collection attorney from your country often has to post a cash bond to cover court costs if they lose which again deters such actions. The potential problem with the above scenario is now you have a mortgage on property that may have been free and clear. You need to go through a credit check and reveal personal information much of it will wind up in public or semi-public databases like credit agencies databases. Now you have to make the payments and pay the interest rates. There are usually penalties involved if you terminate the lease early. Many of these loans have variable interest rates which can go up and now you have a blood sucking Mortgage Company on your property title. There is a better way.
Prosper with Virtual Real Estate
A growing but underground movement is quickly gaining steam online. Others outside the Internet business world may be missing this expanding industry.
Since the dot.com boom and its bust many people outside the Internet marketing world have understandably been skeptical about the net being a realistic path to business and financial wealth. However, almost a billion people around the world use the net as an information gathering, ecommerce, or, more recently, social networking resource. This critical mass of worldwide Internet traffic means that billions of dollars in online business are being generated by a variety of different Internet industries.
Nevertheless, even some Internet business owners aren’t really sold on the medium’s potential. Despite the seemingly boundless potential online marketing opportunities, all too often many netpreneurs complain that they aren’t realizing their dreams of a viable Internet business.
By contrast, many people choose to invest in real estate. Real estate is a stable, reliable, and usually profitable investment. The people invested in real estate would probably scoff at any comparison of the value of net-based assets against actual real estate.
Could you convince Donald Trump that internet-based virtual real estate might be as valuable as traditional real estate? But when you factor the billions of dollars Google, Amazon, eBay, and Yahoo! are generating with their digital assets into the argument, even the Donald would give this booming industry another look—and probably already is.
With some savvy planning, many people may see wealth from online digital assets in the near future. In the next three weeks, I will reflect on how digital assets can begin to build a virtual real estate empire for you in some creative ways that may even rival traditional real estate. First, let’s define virtual real estate and digital assets.
Virtual real estate, or a VRE site, is a term coined by the online sales success John Reese. Reese is known for his legendary one million dollar sales day during which he sold his Traffic Secrets course. He also covers industries with promising virtual real estate potential in his monthly membership site, The Reese Report. You can read my review of the Reese Report at…
http://www.searchengineplan.com/seo-reviews/reesereportreview.htm.
VRE sites, according to Reese, are websites that become valuable because they can carry and be monetized with Google Adsense(tm) or the Yahoo! Publisher’s Network (or YPN advertising network). The Virtual Real Estate or VRE business sector is becoming a burgeoning industry online. This began in earnest once Google started to allow website owners or publishers to carry Adsense™ contextual-based ads on their sites.
In the past, if you had a site that wasn't a viable ecommerce site, you were out of luck doing business online. There were only a few other ways to make money online such as selling on eBay or promoting affiliate programs. Running a business based on ad revenue was really the domain of major traffic sites like the MSNs, Googles, and Yahoo!s of the world.
The tide has turned and now small website owners can make significant income by placing Google Adsense(tm) or Yahoo! Publishers Network (YPN) ads on their sites. The VRE industry is more than a cottage industry. I have read reports from reliable sources that claim Google presently generates about 40% - 50% of its ad revenue from Adsense(tm). According to investment and stock information reported on the Yahoo! Financial site, Google generated over $6.1 billion in 2005. Since Google is on target to be a $7.5 billion company, you do the math. A recent report by Business 2.0 magazine stated, “Adsense alone is expected to generate sales of $4 billion this year.”
This means some savvy web marketers will become millionaires marketing and reselling Adsense(tm) ads and related services. One such person is the Adsense™ Go To Guru, Joel Comm. Comm is one of the most successful netpreneurs to profit and then leverage the earning potential of the Adsense(tm) windfall. Comm used extensive research on his sites with Adsense™ presentation to develop Adsense best practices to maximize the earning power of the ads.
Joel recounts how he started out only making less than 10 dollars a day in Adsense(tm) and later was able to make a six-figure income on Google's ad program. Next, Comm wrote an Adsense ebook that became a best seller on Click Bank. He then leveraged his knowledge to write a print version of the book to become an Amazon, New York Times, and Time magazine bestseller—moving over a reputed four million copies of his book! Joel Comm's insights are now standard Adsense™ conventional wisdom used by millions of sites to generate more click-throughs. You can read a review of Joel’s Adsense Book at…
http://www.searchengineplan.com/seo-reviews/joelcomm.htm
On the other hand, many Internet purists have disdain for the VRE gold rush and see it as fools’ gold. They make a point that too many Adsense(tm) supported sites are cluttering up the Internet with useless, valueless, and duplicate content. Google's criteria even forbids people from starting sites just for the purpose of generating Adsense(tm) revenue. Furthermore, respected Internet marketers like John Humprey have opined in recent months that his Content Desk Team feels traditional Adsense sponsored sites are dead, and instead, he promotes what he calls “authority sites.”
In the second part of this series, we will discuss Google’s attempt to stem the tide of quasi-content VRE sites and YPN’s rise to become a serious player in the publisher’s ad reseller industry. We will discuss if VRE sites are a long-term business model that is here to stay or a temporary phenomena in online marketing. Until then, I hope and pray you are always on top in your business and personal life.
Since the dot.com boom and its bust many people outside the Internet marketing world have understandably been skeptical about the net being a realistic path to business and financial wealth. However, almost a billion people around the world use the net as an information gathering, ecommerce, or, more recently, social networking resource. This critical mass of worldwide Internet traffic means that billions of dollars in online business are being generated by a variety of different Internet industries.
Nevertheless, even some Internet business owners aren’t really sold on the medium’s potential. Despite the seemingly boundless potential online marketing opportunities, all too often many netpreneurs complain that they aren’t realizing their dreams of a viable Internet business.
By contrast, many people choose to invest in real estate. Real estate is a stable, reliable, and usually profitable investment. The people invested in real estate would probably scoff at any comparison of the value of net-based assets against actual real estate.
Could you convince Donald Trump that internet-based virtual real estate might be as valuable as traditional real estate? But when you factor the billions of dollars Google, Amazon, eBay, and Yahoo! are generating with their digital assets into the argument, even the Donald would give this booming industry another look—and probably already is.
With some savvy planning, many people may see wealth from online digital assets in the near future. In the next three weeks, I will reflect on how digital assets can begin to build a virtual real estate empire for you in some creative ways that may even rival traditional real estate. First, let’s define virtual real estate and digital assets.
Virtual real estate, or a VRE site, is a term coined by the online sales success John Reese. Reese is known for his legendary one million dollar sales day during which he sold his Traffic Secrets course. He also covers industries with promising virtual real estate potential in his monthly membership site, The Reese Report. You can read my review of the Reese Report at…
http://www.searchengineplan.com/seo-reviews/reesereportreview.htm.
VRE sites, according to Reese, are websites that become valuable because they can carry and be monetized with Google Adsense(tm) or the Yahoo! Publisher’s Network (or YPN advertising network). The Virtual Real Estate or VRE business sector is becoming a burgeoning industry online. This began in earnest once Google started to allow website owners or publishers to carry Adsense™ contextual-based ads on their sites.
In the past, if you had a site that wasn't a viable ecommerce site, you were out of luck doing business online. There were only a few other ways to make money online such as selling on eBay or promoting affiliate programs. Running a business based on ad revenue was really the domain of major traffic sites like the MSNs, Googles, and Yahoo!s of the world.
The tide has turned and now small website owners can make significant income by placing Google Adsense(tm) or Yahoo! Publishers Network (YPN) ads on their sites. The VRE industry is more than a cottage industry. I have read reports from reliable sources that claim Google presently generates about 40% - 50% of its ad revenue from Adsense(tm). According to investment and stock information reported on the Yahoo! Financial site, Google generated over $6.1 billion in 2005. Since Google is on target to be a $7.5 billion company, you do the math. A recent report by Business 2.0 magazine stated, “Adsense alone is expected to generate sales of $4 billion this year.”
This means some savvy web marketers will become millionaires marketing and reselling Adsense(tm) ads and related services. One such person is the Adsense™ Go To Guru, Joel Comm. Comm is one of the most successful netpreneurs to profit and then leverage the earning potential of the Adsense(tm) windfall. Comm used extensive research on his sites with Adsense™ presentation to develop Adsense best practices to maximize the earning power of the ads.
Joel recounts how he started out only making less than 10 dollars a day in Adsense(tm) and later was able to make a six-figure income on Google's ad program. Next, Comm wrote an Adsense ebook that became a best seller on Click Bank. He then leveraged his knowledge to write a print version of the book to become an Amazon, New York Times, and Time magazine bestseller—moving over a reputed four million copies of his book! Joel Comm's insights are now standard Adsense™ conventional wisdom used by millions of sites to generate more click-throughs. You can read a review of Joel’s Adsense Book at…
http://www.searchengineplan.com/seo-reviews/joelcomm.htm
On the other hand, many Internet purists have disdain for the VRE gold rush and see it as fools’ gold. They make a point that too many Adsense(tm) supported sites are cluttering up the Internet with useless, valueless, and duplicate content. Google's criteria even forbids people from starting sites just for the purpose of generating Adsense(tm) revenue. Furthermore, respected Internet marketers like John Humprey have opined in recent months that his Content Desk Team feels traditional Adsense sponsored sites are dead, and instead, he promotes what he calls “authority sites.”
In the second part of this series, we will discuss Google’s attempt to stem the tide of quasi-content VRE sites and YPN’s rise to become a serious player in the publisher’s ad reseller industry. We will discuss if VRE sites are a long-term business model that is here to stay or a temporary phenomena in online marketing. Until then, I hope and pray you are always on top in your business and personal life.
Real Estate Investing Or Landlording
Real estate investing is the classic wealth vehicle that has taken people from living hand to mouth to the pinnacle of wealth.
It's the vehicle of choice because it's accessible to all of us. Everone has a least rented a house or apartment, and most of us have bought a house. So knowing what it's like to be renter or homeowner we have first hand knowledge of our customers when we set out to be real estate investors.
The classic real estate investing model is buy a bunch of houses, rent them out and in 30 years the mortgages will be paid off, the properties will have at least doubled in value, the rents will be twice what they were when you started ... with no loan payment.
The goal sounds inspiring. Imagine having 10 properties you bought 30 years ago, each for $80,000, now be worth $350,000 apiece as a result of a average annual appreciation rate of 5%. You would have a portfolio worth about $3,500,000. Monthly rents, on the low side, of $1,200 per house would give you gross monthly rents of $12,000. After T&I you probably put $9,000 in your pocket.
I think you would agree this is an extremely modest goal, but what a payoff!!
What a payoff indeed ... for those who actually stick with it. You see there's a problem with the above scenario, and that is the early years are really tough.
Cashflow is slim, expenses are high, and most investors who take this on don't make it through.
They run out of cash.
The short-term solution is to change your focus from buying and holding to quick-turning houses for cash. Quick-turning houses, getting them under contract super cheap and flipping them to another investor for $5-20,000 or more will take care of your cashflow needs today while you hold your rental properties for long term growth. This is great ... money, cash!
It's the vehicle of choice because it's accessible to all of us. Everone has a least rented a house or apartment, and most of us have bought a house. So knowing what it's like to be renter or homeowner we have first hand knowledge of our customers when we set out to be real estate investors.
The classic real estate investing model is buy a bunch of houses, rent them out and in 30 years the mortgages will be paid off, the properties will have at least doubled in value, the rents will be twice what they were when you started ... with no loan payment.
The goal sounds inspiring. Imagine having 10 properties you bought 30 years ago, each for $80,000, now be worth $350,000 apiece as a result of a average annual appreciation rate of 5%. You would have a portfolio worth about $3,500,000. Monthly rents, on the low side, of $1,200 per house would give you gross monthly rents of $12,000. After T&I you probably put $9,000 in your pocket.
I think you would agree this is an extremely modest goal, but what a payoff!!
What a payoff indeed ... for those who actually stick with it. You see there's a problem with the above scenario, and that is the early years are really tough.
Cashflow is slim, expenses are high, and most investors who take this on don't make it through.
They run out of cash.
The short-term solution is to change your focus from buying and holding to quick-turning houses for cash. Quick-turning houses, getting them under contract super cheap and flipping them to another investor for $5-20,000 or more will take care of your cashflow needs today while you hold your rental properties for long term growth. This is great ... money, cash!
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