Paradise Hills, San Diego, Real Estate Market Trends And Community Information, August 2006

Author: Real Estate Pros
Source: articledashboard.com

COMMUNITY INFORMATION

The community of Paradise Hills is situated in south San Diego County within the state of California. There are approximately 37,272 residents in this Zip code (92139) and 10,401 households. The median age of residents is 31.3.years.

TEMPERATURE

The temperature in Paradise Hills is relatively moderate. The warmest time of year occurs in August during which temperatures reach an average high of 72ฐF. The coldest time of year occurs in December with average temperatures falling to 57ฐ F.

HOME AND REAL ESTATE PRICES

The housing options in Paradise Hills include single-family homes and properties, condominiums, townhouses, and apartments. The price of housing is as follows:

ท One bedroom townhouse/condominium start in the mid $200,000s.
ท Two bedroom townhouse/condominium start in the high $200,000s.
ท Three bedroom townhouse/condominium start in the mid $300,000s.
ท Three bedroom single-family homes start in the high $300,000s.
ท Four bedroom single-family homes start in the mid $400,000s.

REAL ESTATE MARKET TRENDS
As with most products and services in the United States, price shifts in the real estate industry are subject to the forces of supply and demand. Whether it’s a buyers market or a seller’s market, it is useful to evaluate home sales data for the most recent month available (June 2006), compared against the same period in the previous year (June 2005).

The median price of single-family homes jumped from $484,500 in June 2005 to $507,500 in June 2006, which represents a 4.7% increase. Fewer homes sold in June 2006 (8 homes) than in June 2005 (16 homes). The average time to sell a home increased from 56 days in June 2005 to 76 days in June 2006.

The median price of condominiums and townhomes jumped from $342,500 in June 2005 to $387,500 in June 2006, which represents a 13.1% increase. More units sold in June 2006 (10 units) than in June 2005 (8 units). Units sold a little slower in June 2006 (56 days) than in June 2005 (55 days).

Homebuyers and home sellers should keep in mind that the data above is simply a snapshot in time. Therefore, the data must be evaluated over a longer duration to understand enduring market trends.

A New Era in Real Estate Investing

Author: Akiba Miniefee
Source: articlezap.com

This is the beginning of a new era for real estate investing and consulting. I am very excited about the future of this business and want to share my knowledge. This article will tell you a little bit about my background as a real estate investor, and will provide information about how my company, Acquired Asset Solutions, Inc., can help you to prosper.

I came to this business in late 2003 after my longtime friend Dr. J.L. Hutchinson Jr. contacted me to tell me about his success in real estate investment. He was interested in sharing his knowledge with me and in telling me all about his business, Tricomm Worldwide. I agreed to visit his office to see how Tricomm worked, and after a couple of hours of him showing me real estate deal after real estate deal, I realized I was in the wrong business.

At the time, I worked in legal investigation. I had been in the field for the past nine years. The work was very time-consuming, and I was looking for a change. When Mr. Hutchinson explained how real estate investing can provide passive income, I was very intrigued! After mulling over the pros and cons of switching careers for a while, I finally made the decision and called Mr. Hutchinson to tell him that I wanted to learn more. He initially offered me an entry-level position in the Research and Development (R & D) department finding real estate opportunities.

This was a huge step for me, since I had no background in real estate. But to my surprise, I picked this new career up fairly quickly. In my first week at Tricomm, I was trained in spotting great real estate deals. I was also taught how to find real estate bargains and creative ways to find motivated sellers and learned the basics of calculating appreciation, cap rates and returns on investments.

I did my first three real estate transactions for $1 a property, securing three single-family homes in Cleveland, Ohio from a seller tired of getting violations from the city for high grass. When I saw photos of the properties, I was surprised by their good condition and saw the potential for either flipping or holding the properties. I ended up flipping the properties fairly quickly.

In this first deal, I also dealt with a bird dog (a type of beginner investor). This meant there were two beginners on my first transaction, but with Dr. Hutchinson’s help, we were successful. After six months, I was promoted to R&D coordinator and began developing deals found by the researchers in my department. I specialized in securing seller-financed opportunities.

In 2005, I was promoted to Real Estate consultant and became partner and vice president of the firm. After directly coaching more than fifty full-time real estate investors and participating in over 3,000 transactions, I left the company in 2007 to begin a new firm. This new company, Secured REO Services (SRS) was dedicated to Property Preservation and Asset Protection for default servicing companies and banks.

After much success and some failure with SRS, I decided to return to Real Estate Investment and began consulting real estate investors full time. This started with acquiring REO’s for SRS and developed into my consultancy and intermediary company, Acquired Asset Solutions, Inc.

At its core, Acquired helps investors around the country by offering consulting for both new and seasoned real estate investors wanting to create or expand their portfolios. The most direct way we do this is through our own Research and Development department, which specializes in finding real estate opportunities that most investors cannot find on their own.Our consulting services are another vital aid to investors. We have trained and experienced Real Estate Investment Consultants, or REIC’s, that guide and support investors through each deal and offer in-person and online training to their clients.

Many investors in the consulting program are looking to become full-time real estate investors and build their real estate holdings by creating real estate investment companies. We have six and twelve-month programs dedicated to helping investors achieve their goals.
For real estate investors with larger amounts of liquid assets, we have many real estate opportunities available that are below wholesale prices. Many investors also seek our assistance in acting as a seller’s intermediary—putting them in direct contact with traders and asset managers at banks divesting of REO packages. We have developed relationships with many banks—at last count, we were working with fifty compilers!

One of the first things that I advise new investors to do is to research the business to find out about such things as: the best markets, where to get hard money, real estate lending, and the real estate networks available on the worldwide web. New investors should also research companies like ours that can assist in researching and securing properties.

For the first time in years, investors have a chance to acquire long-term holds or short-term flips and make a lot of money doing so. In 2008, we were able to acquire eight properties with $6,000. Now for the same amount of money, I can secure properties at 18-20 cents on the dollar in the Midwest. Here in California, desirable properties are available at between 60-70 cents on the dollar—an outstanding bargain! We can facilitate these transactions for those seeking bulk REO packages.

Some companies claim to facilitate bulk REO packages by promoting unrealistic numbers such as 40-50 cents on the dollar—a figure that is pure fantasy! While it is possible that in the future, these prices may be real, today these companies are just wasting people’s time chasing bulk REO tapes that do not exist.

It is possible get involved at any level in the real estate business. We are very excited about where we are headed as an investment company and the opportunities out there for all real estate investors.

For those of us fortunate enough to be in this business or even those of us buying for the first time, prosperity is a realistic goal. I wrote this article not only to tell people about our company, but to wake up those people sleeping through this historic time and to push investors that are hanging on to their cash while hoping the market will collapse further. If you are short on cash, you can still buy…maybe not a bulk REO tape, but certainly a wholesale deal. These properties will require repair, but can be fixed up with a little money, flipped or kept as a long-term hold.

Please listen to our radio show, REI Reality check, to get facts and insight regarding this business. You will learn a lot from this realistic and simplified way of buying—you do not want to miss this show! Check it out at www.acqas.com/ATMblog. Also, visit our website for consulting services or real estate deals at: www.acqas.com.

Akiba Miniefee is a San Diego based real Estate Investment Consultant. Read Akiba Miniefee Profile

Luxury Real Estate Marketing – Syndicate You! Part 2

Author: Ron Seigel
Source: ezinearticles.com

In Part 1 of this blog series we covered the wonderful opportunity to not only syndicate your listings as a means of generating leads for your luxury real estate marketing practice, but also syndicating YOU by leveraging the power of the new media tools.

By creating a name for yourself on the internet, a one-woman or a one-man brand, focusing on publishing content that you are passionate about, you can significantly expand your sphere of influence. What is truly exciting about this opportunity is the relatively low cost of entry into the field and the potential for tremendous return on your investment.

Recently, a movie that was produced for $15,000 generated $7.1 within the first two weeks of its release. The film’s buzz on Twitter and Facebook propelled it to #5 at the box office. Word-of-mouth advertising via social media also helped to make the movie, Julie & Julia (Julia Child) a hit. Barnes & Noble reported that they temporarily ran out of Julia Child’s, Mastering the Art of French Cooking because of the renewed interest that the movie triggered. And, the book is once again a best seller.

An important key to becoming a one-woman or one-man brand, through new media syndication (blogging, video, podcasting, article distribution, etc) is finding an uncontested niche. If you carve out a newsworthy market space and generate compelling stories, others will help you spread the word because they are excited to “join” your brand.

Here is an example of a potential uncontested niche that you could cover as a syndicated columnist and also, contribute extraordinary value if you are passionate about the subject: Local sports. This does not include major league baseball, basketball, football, soccer, etc. It does include the little league, the high school sports scene, beach volleyball, the ultimate Frisbee league and more.

The entire purpose of this exercise is to engage more and more local community members to interact with you and each other, and also become well known and well thought of in the process. You will be surprised at how much real estate business can flow from syndicating YOU, without ever mentioning a thing about real estate. Just feature your real estate credentials along with some calls to action (to contact you for specific real estate needs, e.g., a CMA).

Ron and Alexandra Seigel are the managing partners of Napa Consultants, International the leading luxury real estate marketing firm, specializing in web design, personal branding, and company branding. Gain the competitive edge in your luxury real estate marketplace. Visit our highly acclaimed blog, the Language of Luxury. “Get Fluent. Get Affluent!” Learn more about gaining and sustaining market leadership at http://www.NapaConsultants.com.

Mistakes That Real Estate Investors Make

Author: Bruce Swedal
Source: articlesbase.com

The world of real estate investing has quickly become one of the most exciting careers of the business world. A lot of people believe this due to the vast amount of money that you are able to generate from this career. However, even if you have had recent success with real estate investing it does not mean that somewhere down the line that you could not fail. One of the best ways that you can prevent yourself from failing is by knowing the mistakes that other real estate investors are making and then, teach yourself how to avoid them in your career. DealsWhen you are in the world of real estate investing you need to be sure that you have more than one deal going at any given time. If you choose to do just one deal at a time then you are opening yourself up for a variety of different problems. The main one being is that if that one deal should happen to fall through then you will quickly find yourself with nothing else that you are able to fall back on. As a result of you not having a backup it can create a big time lapse for you and you must remember that time is definitely money. Another big issue of doing only one deal at a time is that you most generally end up putting a lot more time into making the deals work that it will quickly not become a very good opportunity for you. Exit StrategyMost generally when you are purchasing a property for your real estate investing plan then you usually will have a pretty clear idea of what that property is going to be able to do for you but, what happens if that idea does not pan out? You should always be sure that you have 3 different exit strategies in place so that if one fails you will have others to fall back on. If you do not practice this step you are going to quickly find yourself with a lot of dead end deals and nowhere to go with them. EstimatesIf you under estimate the total cost of all repairs and other essential things that you will need to make the property sellable you stand to lose a lot of money. Most investors will double the estimated costs of all repairs so that if they do happen to go over budget on a particular aspect of the repairs they will have a small cushion to play with. All of these are big mistakes that a lot of real estate investors make. You need to learn how to avoid them to become successful in your own real estate investing career.

Denver Homes Luxury Denver Homes

Real Estate on the Big Island

Author: J. Michael Key
Source: ezinearticles.com

Tourists traveling to the Hawaiian Islands most often flock to popular destinations like Pearl Harbor or Waikiki (on the Island of Oahu) or Kihei or LaHaina (on the Island of Maui). Often, the “Big Island” of Hawaii seems overlooked. In reality, however, Hawaii is the island with the most overall land and the most diversity.

The town of Kailua-Kona area is well known because the Ironman Triathlon begins at the Kailua harbor beach. There is also a town named Kailua on Oahu, so this one is hyphenated. This area is famous for producing coffee.

This infamous Kona coffee is grown on the island and even grows well on the sides of the Hualalai volcano at over 1,000 feet above sea level. The volcanic soil is rich and the warm tropical air of the region rises and then condenses into rain. In addition, the higher elevations cool off at night. Together, this provides ideal growing conditions for the coffee beans.

The Island of Hawaii is bigger than the combination of all the other islands together in terms of land mass. There are five active volcanoes on the Island, with Kilauea currently the most active. You may hear about it on the news since it is active nearly continuously and it produces a near steady flow of lava pouring out into the Pacific Ocean. Many tourists visit the volcano, but it is not near the more populated areas of the island.

The next two most talked-about volcanoes on the island are Mauna Loa, which stands at 13,680 feet above sea level, and Mauna Kea, which stands at 13,796 feet above sea level. Toward the top of the Mauna Kea volcano there is the famed Keck telescope. Both of these volcanoes extend more than 30,000 feet from the base of the ocean and sometimes have snow on the top of them.

Since most people would not think any part of Hawaii would have snow, they would be surprised by that and probably some of the other terrain in Hawaii, as well. While one area may be tropical forest, other areas are very nearly a desert. Still others are high plains, treeless mountain terrain, and forested mountains. In addition, there are farmland and tropical orchards where macadamia nuts, plumeria, and coffee are grown.

Hawaii is much larger than the other islands. In fact, Hawaii is so large that you could drive for the entire day and never retrace your route. As a result, residents of this island don’t suffer “island fever” the way many people on the smaller islands do. In addition, life for residents on this island is more community based and doesn’t seem like as much of a tourist attraction. Residents go to work, church, and soccer practice just like residents in suburbs all over the nation. There is even a huge park with lit playing fields located to the north of the Kailua harbor in the area that used to be the airport.

Housing is affordable on the Island of Hawaii with lots of middle-class residences available for purchase. However, the islands are also home to many very impressive estates. In fact, Hawaii is a very diverse area rich in community with many real estate options to choose from.

Michael Key has written extensively for 30 years on a wide variety of topics. For more information on Big Island real estate visit the O’oma Plantation website at http://www.oomaplantation.com/.

Source the Internet to get information on california real estate

Author: Stephen Kreutzer
Source: articleage.com

Right now, because everyone can use the world wide web, it’s
child’s play to find all you look for in regards to california
real estate. Can you recall the time as you had to consult a
dictionary when you wanted to find something relevant to
california real estate? I bet I hit the nail on the head, right?
Right now there’s lots of news available since the World wide
web is growing with each hour. The only thing we need is a place
to begin.

So, when you are new to california real estate you would perhaps
begin your research with one of the well-known search engines
like Altavista. The end of the story? You are puzzled, because
the search engines listed millions of possible results on
california real estate. As a result it’s your job to come up
with the desired resources and leave the cheap sites behind. Did
you ever hear about “internet portals”? Typically they are a
valuable point to begin your analysis. People who have a good
education about california real estate come up with all the
information you ask for and most of the time it’s free!

Where would you want to go with your california real estate
issues? Internet groups or communities are a great method to get
california real estate-related material. If you would like to
get in touch with a california real estate specialist you can
write to a forum or join a california real estate group. Instead
of only researching “california real estate” on Google, Yahoo or
Ask Jeeves, you might start a research on “california real
estate forum” or “california real estate group”.

Another excellent way to come up with useful california real
estate ideas delivered by email is a so-called “electronic
magazine”. As with a newspaper, you have to subscribe to an
electronic magazine in the first place. An electronic magazine
is mostly a free service, but every now and then you have to pay
for it. If so, one can anticipate first class quality advice on
california real estate! If you become a guru about california
real estate by yourself, selling an ezine could be an excellent
method to generate extra revenue.

Info products are another idea for people with limited time to
research the Internet. If don’t mind spend some bucks and you
don’t feel like to research the Internet, go and obtain a report
or expert interview on CD or even DVD. Life can be uncomplicated
if you have sufficient money… ;-)

One of the most exciting features of recent online resources is
that you are able to swiftly and without any problems find
whatsoever you’re shopping for about california real estate. Now
it’s your turn to learn all things you need about california
real estate!

An Explanation of Real Estate Tax Sales

Author: Chintamani Abhyankar
Source: ezinearticles.com

As a homeowner, you have an obligation to pay your property taxes. If you fail to do so, the tax authority can take action against you. This action usually comes in the form of a property tax sale. There are two sorts of property tax sales.

In a tax lien sale, the tax authority, usually the county, offers its right to the tax lien on the property for sale. The buyer of the lien may then exercise the lien in order to profit from it.

In a tax deed sale, the county offers full ownership of the property itself for sale.

When you bid on a tax lien sale, you are bidding on the tax debt. You are not going to come away from a tax lien sale owning a property. In fact, you will be paying off the owner’s tax debt in exchange for first lien position on the title. The homeowner now owes you ahead of mortgage lenders, deeds of trust or anyone with a claim against the property, with the exception of the state. These sales are held at public auction, with the highest bidder winning the tax lien. To verify this position, the buyer receives a tax lien certificate.

Now, when the delinquent homeowner pays off their tax lien debt to the buyer, the buyer can consider an interest penalty of from sixteen to twenty-four percent. This is where buying tax liens becomes quite profitable. If the tax lien debt is not paid back to buyer in full, plus interest, by a designated time, the buyer has the right to foreclose and acquire the property.

At a tax deed sale, you are purchasing the property itself. If you are the highest bidder, you win the property and the right to take possession without any mortgages, deeds of trust, liens, or any obligation whatsoever attached to the real estate property. Properties at such auctions are usually sold for taxes owed, plus any fees and court costs, etc. They are generally very good real estate deals to make.

In order to find out where and when tax lien and tax deed sales are taking place, it is probably best to contact the county government offices or check on their website.

Before you purchase a property, be sure to review it thoroughly. Visit the property before the sale and attempt to determine its value. You want to safeguard yourself against risk as much as is possible. You know what they say about buying a pig in a poke.

If you scratch the lucrative surface of property tax sales, you will find many attractive bargains. If you want to know a little amount secrets behind this attractive investment opportunity, here are some useful tips offered by Chintamani Abhyankar.

Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous Tax eBook “Stop donating your money to IRS” which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.

Your Real Estate Website – First Consider Your Home Page

Author: Marte Cliff
Source: ezinearticles.com

Have you looked at many realtor websites? If you have, you’ll notice that most of them look alike. It’s almost like they were stamped from a cookie-cutter, with the only difference being the name of the firm. (Actually, I think many of them were.)

The only obvious purpose of most real estate websites seems to be that of offering a MLS search, or perhaps some Chamber of Commerce type information about the City.

And while that’s very generous of you, I don’t think that should be the purpose of your personal real estate website.

I think the purpose of your website should be to bring you leads. Don’t you agree?

With that in mind, you need to break out of the cookie-cutter mold and create a site that doesn’t look and feel like all the rest. Instead you need to create a site that demonstrates

Your area knowledge
Your marketing abilities
Your negotiation skills
Your care and concern for clients and customers
Your ability and willingness to offer guidance
Your problem-solving abilities
Your work ethic

That means your landing page needs to offer something more – even if you feel tied to showing a home search box on the first page, it needs to be accompanied by something that will lead your visitors to learn more about you and your services.

Even a paragraph or two that leads into your “about me” page and into your buyer and seller pages is better than saying nothing and assuming that your visitors will eventually find those pages. They might – but then again they might not.

Why make people search for the information you want them to have?

“Make it easy for the customers” is one of the mantras of business today – so make it easy for yours to realize that you are the agent who will guide them and help them realize their goals.

Marte Cliff is a Freelance Copywriter and former real estate broker who specializes in writing for real estate and related industries.

She’ll help you with one letter, or an entire marketing plan. For Real estate agents and brokers who are ready to get full value from their websites, she offers web copywriting and lead generation packages. She also offers a course called the Real Estate Career Builder, which covers best practices along with marketing methods. You’ll find it at http://www.promotemyrealestatecareer.com

Marte’s weekly ezine for real estate professionals offers tips and hints for building a successful business. To subscribe, and to see the other resources available for real estate sales professionals, visit her at http://www.marte-cliff.com/RealEstate.html

Real Estate Search Tips

Author: Richard A. Lorenc
Source: articleage.com

Using the Internet as a tool for finding real estate for sale
and/or a real estate agent can be a rewarding technique or a
frustrating experience. There are hundreds of thousands of real
estate agents and brokers who have websites and often thousands
in the larger metro areas and many hundreds in the smaller
markets. The number of real estate related websites have grown
considerably over the past several years with the high volume of
real estate sales and new agents entering the business.

Agent Websites – Many real estate agents have their own
websites and their usefulness varies with the success and
experience of the agents and their webmasters. Most will display
the listings from the particular agent (if any) and sometimes
will also display other listings that may or may not be listings
of the agent. If no listings are displayed, the agent may be a
buyer’s agent or has no current listing active. The website may
also have a feature to search for active MLS (Multiple Listing
Service) listings. The search features can vary widely depending
on the website provider/builder. Some websites restrict use to
individuals who have registered with the agent and others permit
unlimited use without registration. Those agents requiring
registration typically use the information provided for
follow-up contact either via telephone, mail or email. Other
agent websites provide contact forms, chat lines and other means
for follow-up communications. The timeliness and quality of
responses can vary widely. The attrition rate for agents is
high, often over 80% during their first year so many websites
may be active but have been abandoned by their owners. Other
active agents are remiss in checking for messages and requests
go unanswered for days or weeks.

Broker Websites – Most real estate brokers
(international, national, regional and local) maintain websites.
They normally have property search features by area and often
will have individual real estate agent access information. Some
may limit the MLS information provided to the listings of the
given real estate broker, others will display any active MLS
listing within the given area, county, state or country.

Builder/Developer Websites – Most residential real estate
builders and developers maintain websites. These websites may be
specific to a sub-division being built or generic for the
regional and nationwide builders with access to specific
cities/states and the sub-divisions being developed. Usefulness
varies considerably with many providing detailed information on
house designs, available inventory, contact information and site
sales office hours.

Real Estate Related Referral Websites – There has been a
proliferation of real estate referral websites offering
individuals with agent referrals for a given area once they have
been provided details of your contact information, whether
interested in buying or selling and the specifics on the area
and home. Referral real estate websites typically have real
estate agents subscribers who pay fees for referrals. These fees
may be based on a per lead cost to the agent, a monthly fee to
the agent for a specific number of leads or a percentage of the
real estate commission paid if the lead culminates in a sale.
Typically the only criteria for an agent to utilize these
referral services is that the agent is legally licensed to do
business in their state.

Real Estate Listing Websites – There are a number of
national real estate websites providing limited listing
information and varying degrees of specificity in search
criteria. Some are more user friendly then others. Some have
real estate agent/broker fee paid subscription services to
highlight listings and or selected agents/brokers.

http://www.realtor.com – http://www.living.net -
http://realestate.yahoo.com

Search Engines – SEO (Search Engine Optimization) is an
obsession for most webmasters and real estate agents. Simply
stated, real estate agents, brokers, builders and referral
companies want to be in the first page or two of search results
so that the individual web surfer will be directed to their
website. These individuals and firms may be paying significant
fees to firms offering first or second page placement on a given
search engine. The major search engines such as Google, Yahoo,
MSN and hundreds of others use different algorithms to determine
how websites get ranked and their order of placement on the
results pages. To make it even more interesting/confusing, the
big search engines also offer websites owners various
sponsorship page positioning on a fee basis albeit they identify
the sites as such.

http://www.google.com – http://www.yahoo.com -
http://www.msn.com

Tips to Make Your Real Estate Search a Rewarding One!

1. Most major search engines have basic and advanced search
options and provide information and directions for using them.
Take five extra minutes and learn how to use the advanced
functions and you’ll be happy you did!

2. Learn as much as possible about the region, state, city and
neighborhood you are interested in to maximize your search
results.

3. Be specific in your search criteria. The more general and
generic the search, the less pertinent the results will be.

4. All search engines are not alike! Use more than one when
conducting a search, as the results will vary greatly.

Once you are seriously considering buying or selling residential
real estate direct your search to finding an experienced agent
that is responsive and has your best interests in mind. Then
have your real estate agent do the digging into the market to
present the listings and homes you will be most interested in.

Delving Into Commercial Real Estate Investing

Author: Chris B. Jenkins
Source: ezinearticles.com

You might already be familiar with the ins and outs of residential real estate investing, having concluded more than a few lucrative deals. But it’s not enough, and you turn your eyes toward the more challenging and rewarding affair of commercial real estate investing. Before crossing over, check on these few pointers that might make the transition smoother.

A commercial real estate is essentially property that is meant to support business and produce income. Residential real estate, of course, is for providing homes. With this basic difference, what are the things you need to keep in mind? For starters, commercial real estate makes more money. Consider first its value. Unlike residential space, commercial space is priced according to the available useable square footage. Some residential property may also follow this formula, but that is more exception than rule. In addition to the value of space, commercial property generates more income per square footage as well. In comparison to a residential property leased to just one family, your commercial property of the same square footage that is leased to five tenants will give you more for your square foot.

Given then that your commercial property costs more and earns more, it only follows that banks will treat it differently, differently meaning more expenses. A loan for commercial property will require a down payment that is around 30 percent more than what will be asked for residential property. And this will only apply if your bank actually finances enterprises on commercial property. Some banks do not entertain the venture. An important thing to keep in mind regarding banks and commercial property is that, contrary to widely held belief, commercial property is also subject to foreclosure, albeit reluctantly in the part of banks.

Other than the difference in value and gains, commercial real estate investing also offers a measure of risk diversification that you won’t see in its residential counterpart. To illustrate: you lease out shopping space, you have twenty occupied slots, five of your tenants decide to leave, and you lose 20 percent of your potential profit. That’s only 20 percent, not the all-or-nothing that you get with residential property. You also have a more stable source of income, considering that leases on commercial space are usually longer than on residential ones.

Before you commit yourself to an investment on a particular commercial property, make sure to collect some relevant background information. Start with the sellers; go through their cash flow statement, you’ll likely be seeing the same thing once you’ve acquired the property, at least in the first few months. Pay special attention to vacancy rates. Next, check up on the current tenants. Find out if their business is doing well. Had any problems with the rent? Also, ask about what they liked about the previous management and how things were handled. Lastly, gauge the economic health of your location. Investigate the population’s financial standing, their average income and income stability. Find out if new residential properties are being planned in the area. And, of course, check on businesses in the area. Are they coming or going? Would there be more demand for storefronts in the foreseeable future?

Finally, did you know there are 7 secrets that most successful Real Estate Investors don’t want you to know? In my free report SHOCK & AWE Crisis Investing, I”ll reveal these and many more techniques that can improve your bottom line.

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