Real Estate Business

Here’s a short list in which many investors are utilizing to close the deal on real estate investments day in and day out. Would you like to get your hands on it? Well below you’ll find the list in which many potential investors would kill for or you ready to do the same?

Winging It – virtually every real estate course made available online or in the offices of real estate investors advises potential investors to practice the “fake it, ’til you make it” strategy and to just go with the flow even without a plan. This is one of the many ways so many people are swindled out of hundreds and thousands, and sometimes millions of dollars. You never want to go into a business without a plan.

The Absence of a Professional Team – if you’re seriously considering breaking into the business of real estate; good luck. The important thing to remember is to not go at it alone. It’s important that you build a team of professional that have your best interest at heart. This may be difficult from the offset but with research and information it can be accomplished.

Breaking the Bank on a Deal – never enter into a business deal with the intent of purchasing a home without first knowing the worth of the property. There’s never a bad time to invest in real estate regardless of what the media is saying.

Building Business Entities without Your Name – to many people end up losing everything they own for this very reason, don’t become a victim of this. If you’re in the business of gambling, it would be best to go to Las Vegas. It’s important that you do extensive research in order to get a better understanding of how corporate entities work.

The Wild, Wild West Mentality – if you’re under the impression that you can do whatever you like when facing homeowners in dire need, it would be best to take a look in the mirror and rethink your assumptions. It’s all about following the rules if you want to be successful in this line of work.

Title Researching or Not – this can lead you into an abyss with no possible way of getting out. Title searching is important and should not be taken lightly, so it would be smart of anyone investing time, money and life into real estate to learn how to search titles wherever necessary.

Cash Reservations – in the real estate business it will always be about the money, no matter what. It’s not always about using your money to find deals, land deals or close deals; however, it will always take money to make money in real estate regardless of what anyone may say.

Your Education Should Not Go Ignored – education has always been the gateway to success and it doesn’t change in the business of real estate, and education should not be based upon some infomercial you saw last night. Educating yourself can come in various forms but don’t waste money on education that you could be using for handling deals. Too many people spend hundreds and thousands of dollars on real estate classes only to have nothing to show for it. Let your education speak for itself through the closing of MASSIVE DEALS.

Crunching the Numbers Correctly – this is one way many people learn the hard way about real estate investing because they end up misjudging either their purchase figures or their fixer up and/or holding cash. This is one mistake that could end your career before it even gets started.

 

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Starting a Real Estate Business

One of the booming sunrise sectors in the world is undoubtedly Real Estate. Today, it has been recognized as one of the most lucrative investment alternatives. A good number of individuals irrespective of the demographic facets are seen considering real estate as a serious investment mainly because this is one such sector the value of which is sure to shoot up in the long run.

Moreover, this sector has ended up creating a win win situation for all the stakeholders who happen to hold direct or indirect interest in the same. This is one of the vital reasons that has contributed to the growth of real estate business in general, which is exactly why we see a number of real estate companies and agencies laying base in every nook and corner of the street.

There may be plenty of people out there who are keenly looking forward to establish their very own successful real estate companies. However, they are often confused as to where they should start from. In order to bring an end to the dilemma faced by all such people out there, we will be helping you with a brief blueprint that we believe may end up playing a crucial role in your real estate journey.

The Starting Point – Raise Your Start Up Capital:

One primary requirement for kick-starting a business is to begin by raising the much needed start up capital, the core role of which is to meet the various fixed and variable costs. This concept holds equally true in case of a real estate business. In order to give birth to your dream, you need to begin by locating and eventually investing in the office space, buying the necessary office equipment, designing logos and preparing other marketing material and of-course diverting funds towards insurance. Similarly, you will also require funds to meet the routine operating expenses in the days to come. Once the funds are in place, the first step can be easily met.

Meet Regulatory Requirements:

It is essential for you to note that you cannot really begin transacting in the real estate arena on any day at random. In most of the countries, you need to hold a valid license in order to be able to operate as a consultant. It is advisable for you to get on board a reliable legal counsel in order to better acquaint yourself with the rules and regulations that are prevalent in the real estate platform of your country. Once you have the necessary license in hand, you can begin your operations as a real estate consultant.

Get into Your Hiring Boots:

Next up you will be required to initiate the recruitment and selection processes in order to hire agents to your team. At this point, it is essential for you to draft an independent contractor agreement so as to maintain clarity and transparent communication between you as the employer and your individual agents. The agreement should necessarily house details regarding the ratio in which the commission would be distributed, code of ethics that need to be imbibed by the agents and of-course the general office related policies and procedures.

Fix in Your Mind – Customer is the Whole & Sole:

Once you are through with the above three steps, you need to proceed further in order to build a loyal customer base. In order to survive and succeed as a real estate entrepreneur, a stable clientele becomes a must. You can reap results in this area by investing towards direct and indirect advertising, integrated marketing communication models and of-course a tad bit of public relations. Similarly, you can also lay weightage on joining hands with a Search Engine Optimization company, which is believed to play a critical role in improving your visibility and presence in the market.

The Ultimate Add-on – A professional looking website:

The above elements are basically the preliminary droplets that would end up contributing to your wide ocean of real estate business. Apart from the above aspects, there is yet another component, which if added to your business initiation program is sure to benefit you in a massive way. The building block about which we are talking here is the need to develop and introduce a relevant, innovative and of-course distinct looking professional website for your business unit.

If we were to rely on the statistics, then we can easily come to the conclusion that in the recent times it has been found that over eighty percent of the individuals begin their home search online. This is exactly why a professional website is likely to come handy to your real estate unit. Similarly, a website can also help you survive the cut-throat competition by making your details available to the prospective clients at large.

However, one area that most of the companies end up giving a miss is with regards to the listings. Most of the real estate agents rely heavily on the Multiple Listing Service and fail to recognize the importance of listing out all the properties that come under their basket, on their respective websites. It is quite obvious that only when you offer a holistic listing on your website will you be able to hear your cash registers ringing, which is actually the end result of a wide number of sales.

 

Invest My Money in Real Estate Business

investment-property

Now a days we can see the trend of investing money in real estate business is increasing day by day. It ranges from acquiring one small house or plot to acquiring a big estate. Nowadays we can see the presence of top level companies in real estate business in addition to ordinary buyer. It shows how important this real estate business in current world. None of the big players neglect the importance of real-estate industry. There are many factors behind the success of this business. Some of them are:

1. More safety for your investment

2. Price of land and properties will always go high

3. Investing in real estate is like increasing assets

4. Low risk business compared to many other investment

Real-estate seems to be low risky business compared to other major investments. Let us consider the share market business. Investing money in share market is high risky. We cannot predict the exact income generated from share marketing due to the high volatile nature of the business. If we are lucky we will be able to get a good amount from share market business. If we are unlucky we may face a big lose of money. Real-estate business do not have such a risk. We can expect a minimum money back guaranty in real-estate business. It is because of some characters of real-estate industry. Properties we acquire are solid and not a paper money like in share market. It is an asset which too can contribute additional income.

If we invest our money in purchasing a building, it is the process of acquiring additional asset. Even if we do not sell this building to a different person we can get rent from it. It is an additional source of income in addition to an investment for future business. In addition to this, market value of a building and land will always go high. So we can always expect more by investing our money in real-estate industry. This feature make our business a low risky one.

It is important to know the basic trends in real-estate before investing your money in it. You should not invest your money in a business without knowing the pulse and trend of it. So if you are seriously planning to invest your money in buying land and building, you may consider the advice from the experts in the field. There are many local consultancies which are ready to guide to properly and advice to how and when you should invest your money.

Real Estate Investing Career

Real Estate Investing can be a great career choice for the person who wants to build that type of business. And it is a business. One must start off looking at it as a business and operate it daily as you would any other business.

Let me offer you a few tips on building a successful real estate investing career;

1) Decide on what you want – there are so many ways you can build your business.
A) Wholesaling – many people start off here. They find a property and then sell it to another investor and make a fee for doing the transaction.
B) Rehabbing- If you are OK with fixing and repairing houses (or overseeing a crew that does that) then this may be the way to go.
C) Landlording – here you purchase and hold real estate receiving rental payments each month
D) Sellig – here all you do is sell the real estate you acquire looking to do little or no work to it. You look for either homeowners or investors.

2) Decide on how you want to get there -If you want you can do either one or all of these methods. The key is to determine how you want to spend your days dealing with real estate. For a wholesaler you will need to create a network of investors to buy your deals. For a rehabber you will need to assemble a crew of professionals, observe local building codes, etc. For the landlord you will need to find good cash flowing rentals and deal with either tenants or property management companies. To sell you will either need a real estate license or connect with local realtors to sell your deals.

3) Set financial goals for your investing career – how much money do you want to make monthly? Annually? Wholesaling provides quick money ($2,000- $10,000 range): Rehabbing provides larger payday but takes months to realize ($15,000-$40,000 or more); Landlording provides steady monthly rental income; Selling can give you commission or owners income.

4) Think long term – whichever strategy you choose, look to develop long term systems that will sustain your business. Cash flow is king so establish ways to keep the cash flowing into your business and before long your business will be taking care of you nicely.

5) Use LLC’s and Corporations- these will help protect your assets and make title transfers easier to convey to buyers.

 

Real Estate Investing

Many people hear and read about how to invest real estate but do not really know what real estate investing really entails. They know that it has something to do with making money buying and selling houses which it, in simplified form, actually is. To be a success as a real estate investor you will need to learn a lot more than just knowing how to buy and sell houses. Study real estate investing thoroughly before starting to invest.

The first thing you will do as an investor is to buy a property. This property could be many things: a house, a mobile home, land, apartment buildings, office buildings, etc. Before you purchase your real estate you need to know what you are going to do with it. Have a plan in place with the exact steps you are going to take to make your profit from this purchase.

One of the easiest ways to get started as an investor is to buy a single family house at a below market price, improve the house to raise it’s value, then resell for a profit. This is now commonly known as flipping a property. Of course, there are a lot of other factors involved such as financing, finding the right property, etc.

Another way for beginners to get started is by purchasing real estate to be used as rental property. You will not get a large amount up front but you will generate a monthly income. You can buy one property at a time and slowly build up your real estate portfolio with your equities building on each property.

Buying foreclosed and pre-foreclosed property is another way to make money from real estate. These properties are usually below market value but most of them need a lot of repairs. Buying foreclosure properties usually involves bidding on them at an auction, but sometimes they can be bought through a real estate agent or straight from the lender.

Buying distressed properties can also be a good way to get a property cheaper. These are usually pre-foreclosures. Distressed properties usually have some negative effect on their value because of appearance, condition, or the financial situation of the owner. You will likely be working with a bank that holds the mortgage on these properties.

There are many ways to invest real estate and these were just a few. Once you start investing you will start seeing other opportunities for investing in real estate such as short sales, using hard money for investing and many other investment strategies. Some require very little down, like wholesaling or bird dogging. Start researching, studying, and learning about how to invest real estate and maybe soon you will be building your real estate portfolio.

Perspectives in National Property for Home Buyers and Home Sellers

invest real estate

Since the economic downfall occurred, most realtors, sellers and buyers have been challenged to cope with the real estate market. For some people who have cash to purchase home or acquire a mortgage, this might not be a good way to own a property. In other case, real estate is somehow a buyer’s option for market despite of economic crisis. For sellers, they are preparing to cope with this shift in order to acquire property based on the current market. Here are some perspectives for home buyers and home sellers about countrywide property for the real estate market today.

For home buyers, they firstly look for the real estate market today. Since buyers are said to be the large group of source of income of every realtor, they usually take advantage to be picky in choosing the right property to purchase. However, they usually end up to the properties that give instant equity. They grab the chance to purchase foreclosed or short sale properties where the buyers can get into equity. But the disadvantage of this is that most of these properties require lots of repairs.

They usually want to get an instant equity because they believe that they can save money unlike in direct home purchase. If you one of the people who prefer to obtain instant equity, you are required to prepare in two ways. First is the need of partial payment. It might be five to twenty percent or more depending to the type of loan that they are requiring. Second is through credit in which they have to make sure that the credit score is sufficiently high in order to get the lending approval.

For home sellers, they usually look for pricing a property that is put up for sale. Since price is said to be the important criteria of real estate transaction, they mostly consider having an assessment for the aspects of their properties wherein they put the bases of pricing. However, they also come up to sell a property that is foreclosed or short sale due to fact that this property is easy to sell. They also look for proper location for selling the properties. One of the rules of real estate that they often believe is having a perfect location for the property because it is a great factor for the buyers.

Real Estate Development – Three Essential Things You Must Do Before Starting in Property Development

If you start your property development business the right way, you are building a foundation for success. Start it the wrong way, and you could be headed for disappointment, stress, and possibly even large financial losses.1. Manage Your Property Development Projects As A BusinessUnless you’re prepared to forfeit some of your profits and engage someone you trust to look after your property development project, it’s very important that the mechanics of property development are understood fully so you don’t end up in all sorts of trouble. We decided right from the start to treat building our property portfolio as a real ongoing business and therefore created a property development strategy and planned and acted accordingly.Advice from our property development legal and accounting advisors was to set up our property development business in the right type of entity from the very beginning – some things can’t be “bolted on” later. We also ensure that we keep good records and use property development accounting and property management software. We found a strategy that would be a good fit for us, looked at the big picture and began with the end in mind.Initial and ongoing property development education is extremely important. A good place to start is to learn the basic techniques of property development. Then continual reading and listening to financial news to determine current and future trends.2. Develop A Property Developer Millionaire MindsetLearning and implementing the mechanics of property development may allow you some level of initial success, but newcomers who aren’t passionate about property development and don’t alter their way of thinking and create a property developer’s mindset inevitably can run into problems. Many of the decisions you make as a property developer are counter-cyclical, for example, you may be buying when other inexperienced property developers are making panicked sales.People who haven’t mastered their emotions around money tend to make poorer decisions under those circumstances. For example, many novice property developers aren’t able to preserve when needed, and a lot simply give up after struggling, both financially and emotionally, during their first attempt at property development.We’ve spent a lot of time researching the rich and identified certain common characteristics and habits that contributed towards their success. As soon as we adopted some of these ourselves, we were able to accelerate our learning curve and we saw a marked improvement in our own ability to make larger profits through property development in a much shorter amount of time.3. Learn How To Leverage your TimeWe had a clear vision and a huge desire to work smarter and not harder so we sat down and worked out an achievable step-by-step plan that would enable us to reach our goals much quicker.One thing that made a huge impact on us achieving our goals faster was adopting the ‘Pareto Principle’ (more commonly known as the 80/20 rule). This helped us to stay focused on the “20 percent of things that mattered to achieve the 80% of results” and saved us from wasting an enormous amount of time and energy on things that just weren’t necessary.We also leveraged off other people’s knowledge (OPK) other people’s time (OPT) and other people’s money (OPM). We built a great team of experts who continually advise and support us – especially a ‘property development savvy’ lawyer, accountant and finance broker.
A strong foundation requires a good business plan, the right mental attitude, and the ability to get the greatest possible results from the time you invest in your property development business.If you try to start in real estate investing or property development without this strong foundation, you are subject to a much higher level of risk, and the consequences can be catastrophic. Start well, on the other hand, and you can use property development strategies to build a long-term, profitable real estate empire.

How to Successfully Develop Commercial Real Estate – Part 2

In Part 1, we pointed out how complicated developing commercial real estate can seem unless the focus is on the most important aspects of each phase of the development process. We also pointed out in Part 1 that there is a fundamental component that stretches across each of the major areas of the development process, from buying the land, to building the building, to attracting tenants, to managing the space as landlord and even refinancing or selling the completed project. This single component is money. All development projects need money, one must acquire the land, pay for certain up-front costs, pay to get the project built, and pay to support the building while finding enough tenants to fill it. Since development projects can be expensive most developers look to third parties such as commercial banks and investors to supply the money needed to “finance” the development project.So how does a developer get a commercial bank and equity investors to finance a new development project? Once again, focusing on the single most important factor to the lender and the investor supplies the answer. The single most important factor in attracting money (financing) to a development project is the belief they will get paid back (and hopefully make a little money). The most reliable way to prove to investors that they will get paid back is to attract rent paying tenants to the project.The tenant is the most valuable asset in any commercial real estate development project. Sign up the right tenant or tenant mix and you may be able to choose from a pool of eager construction lenders and equity investors to finance your development project. What makes the tenant so important? The tenant is the person or entity that will enter into a long-term agreement to pay rent, bring people to the site and make it attractive for other tenants and businesses. Rent creates cash flow and cash flow help lenders and investors form a reasonable belief they will get paid back. Of course, in a development project certain tenants, are more valuable than others. Most lenders and investors want to see tenants with, a long history of operational success, solid financials, well established brand or niche and a financially stable parent company or owner to guarantee the long term commitment or lease agreement.The lease agreement might be the most important document a developer can produce. It is the document that will be given the most weight by lenders and equity investors in determining their desire to loan or invest. The lease agreement establishes a legal obligation on the part of the tenant to pay the developer rent often over a long period of time. Of course, getting a tenant to sign a long term lease is not that simple. Remember the building(s) is not yet built and probably will not be for a couple of years. So how does a developer find these coveted tenants and get them to sign a legally binding contract to pay them rent in a building that doesn’t exist yet? We will explore the fundamental key to successfully finding and securing tenants in Part 3 of this Article.