Real Estate Investing in Rentals – the $10 Million Real Estate Investing Mistake

Author: Dr.Phil Speerbr
Source: downloadbr
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Renting to tenants is no longer where the money is for real estate investing. I became a multi-millionaire landlord in the 1980s by buying $10 million in rental houses. Yet, I consider this real estate investing approach the biggest mistake in my real estate investing career. I call it my $10 Million Mistake.
Back then, real estate investing in rentals was buying a house, renting it to tenants for a rental fee that covered the mortgage, and waiting for an increase in value. Interest rates were as high as 25%. Inflation was rampant. You could buy a house, and it would almost double in value in 10 or so years.
Boy, have things changed in real estate investing! Interest rates have recently been the lowest in 46 years. Inflation is flat. The same rental house in some areas is appraising for less today than it appraised three years ago. The major profit to real estate investing in rentals is the pay-down of the mortgage by the tenant. Otherwise, profit comes from the difference between the rental fee and the mortgage payment.
One month vacancy per year, which is not uncommon, might convert into an annual investment loss, even if (1) tenants dont leave owing rent, (2) the property is not damaged, or (3) repair cost is negligible. All of these possibilities are very unlikely.
One month vacancy per year can eliminate usage profit for the year. Spend your time on fix up repairs, even part time, and you go more in the hole. How much you lose depends on how much your time is worth.
Real estate investing is intended to be profitable. Vacancies, repairs, and time expenditure might mean you are only making a donation to the great cause of improving the nations housing.
The scenario changes if the mortgage is negligible and note payments are significantly less than rents. But the beginning investor does not often create this situation.
Fixing up properties for resale is a better venue for real estate investing today. Go a step beyond the norm, and learn how to help a renter get financing for your fixed up house. Go another step by converting a junker into a Dream House, and you will attract prospects to your property like bees to honey. Turning a Plain Jane into a Doll House demands extra work, but attracts better quality buyers. Real estate investing is extremely profitable, but your choice of real estate investing venue is critical to optimal profitability.
Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.CashinHouses.com/. Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online Academy of Advanced Real Estate Investing Techniques – http://www.AAREIT.com/.br
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Why You Shouldnt Use S Corporations for Real Estate Investing

Author: Stephen Nelsonbr
Source: articlerich.combr
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New real estate investors commonly think about putting their real estate investments inside an S corporation. And this idea, at first blush, sounds promising. S corporations are popular. One hears about all the tax benefits they deliver. You dont have to think too long about this stuff to conclude, Hey, why not?

Sadly, while many people do hold real estate through an S corporation, an S corporation doesnt make sense for a handful of practical reasons:

No Benefit to Using S Corporation

The first reason you shouldnt put real estate inside an S corporation? Simple. S corporations dont deliver special or extra tax benefits to real estate investors.

Income and deductions within an S corporation retain their character as they pass through the S corporation and flow onto the S corporation owners tax return. Accordingly, an S corporation doesnt let you avoid the passive loss limitation rules (which often trip up real estate investors). And the S corporation doesnt increase the number of tax deductions you get.

Note: If youre concerned about limiting your legal liability, you dont need to use an S corporation. You can use a limited liability company.

Forces an Extra, More Complicated tax return

One thing putting real estate inside an S corporation does do? A real estate investment S corporation automatically forces you to do an extra, more complicated tax return.

Heres why I say this: A real estate investment that you own or that you own through a one-owner limited liability company can report its income and deductions on a single, simple schedule inside your regular individual income tax return.

Unfortunately, if you own the exact same investment inside an S corporation, youll need to file a full-blown S corporation tax return. The S corporation tax return will annually cost you at least several hundred dollars–and maybe even a bit more. Yikes.

May Trigger More Complicated Accounting

You what else happens when you put real estate inside an S corporation? Very probably, youll be forced to use a small business accounting system like QuickBooks. Why? Because when you do your S corporation tax return, youll need to include not just statements of income and deductions in your return. Youll also need to include balance sheets at the start and at the end of the year.

Checkbook programs like Quicken will produce statements of income and deductions. No problem. But youll probably need to buy, learn and then use a full-fledged small business accounting system to produce good balance sheets if youre doing your real estate investing inside an S corporation.

Note: Technically speaking, an S corporation doesnt need to include balance sheets with its corporate income tax return until the corporations assets exceed $250,000. In some areas of the country, accordingly, a small real estate investor might be able to own one or more properties and not tip over this threshold. In many parts of the country, however, a single property will cost more than $250,000 and, therefore, will mean balance sheets are required if the investment is stored inside an S corporation.

Limits Your Depreciation Write-offs

A real estate investment S corporation will also often limit your depreciation write-offs. Why this occurs is a little tricky to understand. But in a nutshell, when individuals and partnerships borrow money to purchase the real estate, they may be able claim tax write-offs for depreciation on the owner tax returns.

Note: There are rules which limit these so-called passive losses. But if you can trick your way around the passive loss limitation rules–and maybe people can–you can use the depreciation as a tax deduction on your personal return.

So heres the problem with an S corporation: You cant get tax deductions for things the S corporation borrows money for. If the S corporation purchases the real estate using a mortgage, for example, the S corporations shareholders probably wont be able claim the depreciation loss.

The reason for this is that you dont get credit (or what tax laws call basis) for loans other people make to the S corporation. You only get credit (basis) for money you invest in the S corporation or money you lend. And you need basis to claim the deduction.

Note: S corporations and their shareholders can use back-to-back loans to get basis. With back-to-back loans, the mortgage company first loans to the shareholder and then, second, the shareholder loans to the S corporation. Then the S corporation buys the real estate with the mortgage from the shareholder. This approach, which often works with non-real estate loans, usually doesnt work with mortgages. The bank wants to have a first-row security interest in the property.
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Tax accountant and author Stephen L. Nelson specializes in serving the accounting needs of entrepreneurs and investors. A best-selling author of books about Quicken and QuickBooks, Nelson also publishes the a href=http://www.scorporationsexplained.com/index.htm rel=nofollowS Corporation Explained/a and a href=http://www.llcsexplained.com/index.htm rel=nofollowLimited Liability Company Explained/a web sites.br
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Real Estate Investing Guide-Learn About Real Estate Investing

Author: Sardool Sikandarbr
Source: articleage.combr
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Real estate investment is a great opportunity to earn profits and generate a cash flow. There is a slight difference between real estate investment and other types of investment. Real estate investment can be categorized as a long-term investment or short-term investment. Good real estate investor has ability to invest in real estate at right time.
Real estate investment requires proper knowledge and concentration to invest in good piece of land. Sometimes heavy investment gives wrong results in the future and sometimes with a small investment you can earn more. Investors should be alert at the time of investment in real estate.
If youre going to rent your property you should have sufficient knowledge about tenant problems and requirements of tenants. You should be aware of all financial as well as legal requirements for your real estate. Investment goals are the primary factor for real estate investment. Decide your investment goals like what you want to do with your real estate.
Real estate market offers different types of strategies to invest in real estate. You should choose the best strategy as per your needs. Efficient real estate investors are able to make their fortunes in real estate business. People who invest in this business can live comfortably. They dont have any tension about their survival. They can earn more and more profits with single right time real estate investment
Investment in real estate requires great commercial skills and knowledge like other businesses. Real estate business needs additional risk because sometimes youre at risk in this business. Thats why a person with a great will power can easily handle this business. Forecasting in real estate investing can spoil your future so dont overestimate your investment.
About Author: Author presents a website on Real Estate Investing. The website offers great knowledge about real estate investment and some tips on how to invest at right time. Also offers information about real estate investment training, real estate investing seminars, commercial real estate training, and a guide for real estate investing book. You can also visit his site about Real Estate License.br
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Real Estate Investment 2005 – The Hottest Countries for Investment in 2005

Author: Rhiannon Williamsonbr
Source: articleage.combr
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Whether you are a real estate investor looking for a steady and safe investment in a proven market or a real estate speculator willing to gamble on the unknown and undiscovered in the hopes of gaining a significant ROI (return on investment), this article covers the real estate investment hotspots for 2005.
A recent UK government report discovered that there was a 250% increase between 2000 and 2004 in the number of Britons buying property abroad solely for investment purposes, and this trend does not seem to be limited to the UK nor does it seem to be slowing down!
The global stock markets seem to be in decline, there is a worldwide pension crisis looming and we have uncertainty in the Middle East, in the UK the housing market is unaffordable, possibly over inflated and unlikely to bring significant returns for investors late in on the game and so more and more of us are looking further a field for our investment opportunities. This has led us to look around the world for the next big thing – the next real estate boom.
So whats hot for 2005?
The latest EU entrants are proving of continued interest to the property investor as are those countries in line for EU ascension in 2007.
The likes of Malta, Poland, the Czech Republic and Cyprus who joined the EU in 2004 were hot before they joined and have proved solid for investors already in the market and are looking like safe bets for 2005 as well. Growth is set to be steady, the economies of these countries are improving and investor confidence is strong.
Hungary, Slovakia, Bulgaria, Croatia, Turkey and even North Cyprus who are lining up for ascension consideration in 2007 have solid emerging real estate markets which are proving of interest to the property speculator. Clearly the risk involved in investing in countries not already in line with EU fiscal and legal legislation is greater, however, so are potential returns.
The attraction of such markets to property speculators is quite simple – these countries are working hard to improve infrastructure, attract inward investment, stabilise their economies and promote tourism, and ultimately they are hoping for EU ascension as this brings with it vast potential for economic advancement. In the meantime these countries often have deflated real estate markets offering incredible property bargains and undiscovered and under exposed tourism potential – all of which adds up to potentially significant returns for anyone in on the real estate investment game.
Eastern Europe is opening up thanks to the budget airlines carving swathes of routes into all corners – from Ljubljana to Salzburg, from Krakow to Riga – and also thanks to overseas property investment clubs. It is now possible to invest in overseas property funds meaning your money can go far further than you ever have to!
Its possible to invest in funds which purchase and manage real estate in Spain, Slovenia, Poland, Bulgaria, Croatia etc., etc. These funds work just like any other general investment fund. The investors money is pooled and the fund managers then purchase a range of investments – in this case a range of properties in various locations – and manage them.
Anyone looking to invest in such a property fund should expect a minimum investment of around $10,000 – $20,000 with a 1% upfront fee, a 1% management fee and a performance fee. Obviously charges and investment rates vary from fund to fund and returns are not guaranteed.
There is still room for expansion in the popular property hotspots of Spain, France, Italy and Portugal. The markets in these countries are proven, strong and ever popular, and if you head off the beaten track, away from the main tourist destinations and airports you are still likely to find significant real estate investment opportunities.
New flight routes and new areas of interest in these European destinations are attracting more real estate investors month on month and the word in the market is that if you are interested in these countries you should consider the northern parts of Costa Almeria or Costa Calida in Spain for example, the Costa de Prata in Portugal or Languedoc, the Cote dAzur and surprisingly, Paris in France.
Further a field Dubai and Florida are established, proven markets with room for growth, Bahrain and Canada are countries worth considering, as are New Zealand and South Africa. The latter is of particular interest to speculators as it is set to host the world cup in 2010, the Rand is weak, the political situation is stable, it is possible to buy yourself out of crime hotspots and the scenery is diverse, breath taking and stunning and the property market is definitely hot!
If you are considering real estate investment for the first time or are keen to increase your presence in the real estate investment market place, make sure you are comfortable with any investment before you go ahead and sign on the dotted line. Read around and do plenty of research – the internet is a great place to start – research the country you are considering investing in, and any investment, real estate or legal company you are considering getting involved with. Seek independent advice and always keep in mind that the value of any investment can go down as well as up.
To your success – cheers!
Rhiannon Williamson is an experienced publisher who has produced articles for leading travel and tourism guides and financial magazines. Her specialist knowledge about both travel and finance gives her site Shelter Offshore the unique ability to literally cover every single aspect of moving living abroad – including the often less discussed offshore tax advantages that can be available when leaving our homeland.br
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Real Estate Investing – Securing Finance For Your Real Estate Investment Needs

Author: Mike Lautensack
Source: ezinearticles.com

Real estate investment is basically investing in immovable properties especially buildings. Real estate investment is an amazing and earning business opportunity, if you know exactly what to do. One of the major problems that are encountered in investment is seeking finance for the property you are investing in. If you are able to do that successfully there are more chances for you to thrive in market.

Securing finance for your real estate investment can be tough due to several reasons which are:

Economic Recession
Bad credit worth
Risk factors of the property you are investing in
Property location in a place that has no market value
There are also some other factors to these. We will look into the factors that will help you to secure finances for real estate investment with relative ease, considering the above four points.

Any lender you approach is sure to ask your credit worthiness. He can even ask for documents to prove your financial stability. The lender will check your income and especially the debts. The greater unpaid debts you have, you will have trouble getting the loan. The fundamental principle of credit worth is that you must assure the lender that you are capable of repaying the loan.

Another factor to ascertain is that you must be very careful about the location you are investing into. Always prefer to invest in properties with greater market value. This will not only ensure greater future benefits for you but also for the lender. This will definitely entitle you to receive the loan easily. The lender will also take into consideration the property size and the amount of investment you are making.

Less the risk factor of your property more likely you are to receive the loan. The risk factors basically include the chances of your property getting default. There can be many reasons associated as to why a property can get default. The most usual ones are not paying the tax liens or mortgages for many months on stretch. Assurance to the lender that no such thing will happen with your property will certainly help you in securing the finances. This assurance can easily be given by your previous property records. Make sure that there are no potential risks attached to the property you are investing into.

An important thing is that if you are deciding to invest in a commercial property then it is important that the business you are investing will bring large amount of profits as it will increase your capability of repaying the loan and hence the trust of the lender.

Whenever you are looking for the right financier for your investment make sure that you select the right one, someone with whom you can be at ease as the financier will be the most important person in your real estate investment business. Also assure that you know what the lender is looking for and check whether you fulfill all the requirements that will entitle you to receive the loan.

In the end, no matter there is economic recession, you will still manage to secure finance for your real estate investment with just the right tactics. So ascertain that you have all the necessary proofs and documents to gain the confidence of the financier.

I invite you to learn more about Real Estate Investing and become a member of our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html.

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to Real Estate Investing Blog.

How Directory Listing Boosts Real Estate Sales

Author: Puripong Koomsin
Source: articledashboard.com

The real estate industry is a competitive one, and as a player in that market, you’ve got to play every edge that you can find. You’ve got your listings on MLS, submitted your ads to the newspaper classifieds, bought space in local realty For Sale magazines and even set up your own website. Now you need to maximize your exposure by getting the word out about the service that you offer. Listing your real estate related web site with a real estate directory is an excellent way to help drive targeted traffic to your website.

What’s ‘targeted traffic’?
Targeted traffic is what you want to make it worth while having a web site. The prettiest web site in the world is only useful if it provides leads for your sales. In order to do that, you need to attract traffic – and not just any traffic. You want web site visitors that are looking for what you’re selling – whether it’s homes, inspections or contractor services.

How to Get Targeted Traffic
You COULD just submit your web site to the search engines? and watch your listing get lost in the thousands of realtor, real estate, house for sale, sell houses and other realty-related web sites. Most web experts agree that in order to benefit from search engine traffic, your listing needs to appear in the first three pages of the search engine results.

There are ways to boost the flow of targeted traffic to your web site – and on the World Wide Web, increased traffic means increased sales. A real estate directory can help boost your real estate sales in a number of ways.

Why List Your Realty Site with a Real Estate Directory?
On the web, fewer means more. When you rely on Google and Yahoo! and MSN searches for your traffic, you’re a tiny minnow in the ocean. There are literally thousands of other real estate sites competing for a spot in those first three pages. Want to be a big fish in a little pond?

A listing on the right real estate directory will put you where your potential customers and clients will see you – on a site that’s designed for people who are looking for information about what you sell. Suppose you buy foreclosed homes in California. Because a real estate directory categorizes its listings, your potential clients don’t have to wade through three pages of listings for real estate agents and home mortgage companies to find your listing.

Because the real estate directory has links to and from many web sites that are relevant to real estate, it’s far more likely to rank higher in the page results than any single-realtor site. When you submit your web site to a real estate directory, you’re leveraging the popularity and page ranking of the directory to bring traffic to your web site.

How a real estate directory boosts YOUR web site’s ranking
But you’re also helping to boost the position of your own web site in the rankings. Because many search engines count the links to your web site to establish the popularity of your web site, every link from an outside site gives yours a little boost. Even more importantly, when a web site that Google recognizes as an authority links to your site, you get an extra little bump up in the listings.

Reciprocal links, search engine submissions and submissions to directories are all important pieces of your web presence and marketing. By paying close attention to them all, you’ll find that your web site pays off in increased sales.

Real Estate Investment Success Series Tip #4 -How to Spot a Real Estate Investment Bargain

Author: Joel Teo
Source: articleage.com

As mentioned in our previous article, like in value investing in stocks as made popular by Benjamin Graham, money is made in the purchase of real estate investment property. You want therefore to purchase property with good rental yield and that is at a discount relative to the surrounding area. This article identifies three ways to find a below market real estate deal so that you can either resell it later at a higher price or enjoy lower mortgage instalment payments and from that a greater cash flow.
Method #1- Distress sales and foreclosure
The general rule of thumb in real estate investment is that the target property might sell for a price lower than the areas average if the owner is in distress. There are two possible situations that you might want to look out for so that you can negotiate with the owner to reduce their asking price.
Firstly, look out for mortgage foreclosures on property and monitor the property auction sites. Banks may under-finance property meaning that they might not want to risk financing the property and then have to sell the property at a loss during a recession (negative equity situation). So what happens is when the mortgagor (the owner) is in default of his mortgage, the bank would foreclose the property and auction off the property and sell it off. Note that under the common law, while the bank is supposed to get the best value for the owner, this sometimes does not happen and the best way the bank can discharge its liability is to auction off the property.
As we can tell from the above analysis, the bank usually just wants to get the selling price enough to cover the outstanding mortgage and so the reserve price for such auctions may be below valuation prices. Spend some time attending such real estate auctions and it could pay off in helping you get a property at below market value.
Method #2- Migration
When people want to migrate out of a country fast, there is a high chance that they will not be picky about what price the property can fetch. These people generally want to sell off their property fast and the first prospective buyer that appears on the horizon for their real estate would usually benefit from this. On your part, you would want to get an independent valuation of the real estate and then make an offer.
Ann wanted a property near the city’s amenities and was looking for such a property. There was a family that was moving over to France and sold it to her at a bargain. It turned out that what that family wanted was hard cash fast so that they could move out. Ann gave it to them and all parties were very satisfied. Thus bargains can be found if you know more about your seller’s reason for selling.
Method #3- Look for landlords with attitude problems
This strategy is rooted in human nature and you may chuckle when you hear it. In some areas, some properties are always yielding lower rentals than other places and this might be because of the landlord rather than any other fundamental reason. If the landlord has a bad temper for instance and then finds it hard to get tenants who can stay, might try to entice present tenants to stay with lower rentals. This would therefore translate into a lower valuation for the property. At the point where you appear on the scene, some of these sellers are willing to accept a lower price to get a problem off their hands.
Things to note with this real estate investment method include spending some time with neighbours staying around the property in question to find out any hidden defects, bad tenants or crime related problems that the owner may not be telling you about the area. It may not be all the landlord’s fault.
In conclusion, we have spotted three ways that you can take into account when analyzing a real estate investment. Real estate investment can be said to be like any other form of shopping as you want the best quality for the lowest price. But do not be let paralysis by analysis stop you from taking action. Here’s wishing you all the best in your real estate investment endeavours!
Joel Teo takes a keen interest in real estate investment as part of a larger investment portfolio. For more tips on real estate investing check out our
real estate investment success series at our
real estate investing resource

Real Estate Investors – 7 Great Tips on Finding Motivated Sellers

Author: Mike Lautensack
Source: ezinearticles.com

To increase your profit margin in a real estate investment property, it is important to develop a plan for locating motivated sellers who are willing to offer you a property that is significantly below market value.

The main question that most beginning real estate investors ask me is:In addition to the marketing ideas learned in the teleseminar series, what are some other ways I can find motivated sellers of real estate property? Here are some additional tips on finding motivated sellers of real estate property.

7 Great Tips on Finding Motivated Sellers

Estate Sales:Search ads and listings for real estate property that is being offered as part of an estate sale.Often in an estate sale the sellers of the property are motivated, especially if the property was left to more than one recipient.Instead of disputing over who will occupy the property, the sellers are motivated because they would rather sell and then divide up the cash received for the property.

Out of Area Owners: Use networking to find owners of real estate property who no longer live in the area.Sometimes these owners are motivated to sell due to hassles of owning property at a distance or other related reasons.

Landlords:Contact landlords who have properties for rent.Sometimes you will find that the landlords are motivated to sell, especially if they are evicting a lot of tenants or you see that the property is in need of some repairs.Some landlords prefer not to deal with a realtor so they may be interested in dealing with you privately.

FSBO Ads:Drive around neighborhoods or search the real estate listings for properties that are listed as “For Sale by Owner.”Respond to the ad by saying that you buy houses.Sometimes you will find that the seller is motivated for one reason or another and you can acquire the property at below market value.

HUD Properties:HUD properties are real estate properties that are acquired by the U.S. Department of Housing and Urban Development.If HUD buys a property back in foreclosure it offers the property for sale on an “as is” basis.Some of these properties are available with rehabilitation loans built into the mortgage.
Depending upon the condition of the property and the criteria for the deal, the acquisition of such a property could potentially be profitable.Make sure you do your homework before considering a government foreclosed property.If you do not know what you are doing and how to avoid the mistakes, the transaction could end up in disaster.

Code Violations:Check with your local code enforcement office regarding properties that consistently have building code violations.Sometimes this is a sign that the owner is having difficulty keeping up with the repairs on the property and may be motivated to sell to an investor with the right offer.

Real Estate Bird Dogs:If you do not mind spending some money to locate motivated sellers you can tap into a real estate bird dog.These are people whose business is to seek out profitable real estate investment deals in return for a fee or a percentage of the profit on the investment.If you are seeking the most profit out of your investment this may not be for you.However, if you do not want to take the time to search and do not mind paying the fee, this is another option you can pursue.

I invite you to learn more about Marketing for Private Lenders and get FREE instant access to a 60 minute audio titled The Marketing Plan — Learn the Marketing Secrets of How to Get People Calling to Give You Money For Profitable Real Estate Deals! by going to http://www.realestatewealthtoday.com/PLS-Vol3-Signup.html .

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lender Presentation Kit.

Real Estate Investment – Why it is Big Business?

Author: Rhiannon Williamson
Source: articleage.com

When examining the different asset classes, real estate is generally far less volatile than shares and real estate tends to be the haven that investors flock to when other asset classes are suffering.
It is true to say that investment properties can have many benefits in terms of building long-term wealth, but we must never forget that this wealth is not guaranteed!
Following the global real estate boom of the late 1980’s many investors learnt this hard lesson when they found their properties were worth far less than they had actually paid for them and the bottom seemingly fell out of the over-inflated market. The bottom did not truly fall out of the market however as all real estate retained value; the real estate market simply experienced an overdue rebalance and has gone on to build from this point of stability.
Since the booming 80’s ’sensible’ investments in real estate have still offered major attractions and advantages, and it is back to real estate that investors have turned in recent years.
With real estate prices in some countries soaring, and first time buyers struggling to get onto the first rung of the real estate ladder, many people are looking further a field for investment property opportunities.
A recent report in the UK highlighted a 130% rise in the value of farmland since the 1990’s for example – fuelled entirely by a new breed of non-farming buyers. With bricks and mortar real estate prices in the UK now so exorbitant, these non-farming buyers are looking for alternatives for their money.
They may be unable to afford real-estate investments and unwilling to risk their cash on the ever volatile stock market and so they are buying up fields and pastures to get in on the real estate investment game!
Others interested in property investment have been examining the real estate markets around the globe for value for money, return on investment, potential for growth and development, rental market opportunities and basic stability. With current research showing that up to one in eight Britons intend to purchase an overseas real estate within the next five years you can see that overseas real estate investment is very big business.
Relatively newly discovered property markets are opening up or expanding in countries such as North Cyprus, South Africa and Bulgaria for example – where potential buyers are afforded incredible value for money when it comes to real estate. The real estate market in countries such as these has been artificially restricted through the threat of war or political instability, and now with their recent history showing that they are stable countries with strong economies and populated and governed by those with a first world perspective, property investors are finding markets rich in diversity and potential.
Dubai is another country offering interesting real estate investment opportunities. Since May 2002 when the crown prince of Dubai, Sheikh Mohammed bin Rashid Al Maktoom issued a decree allowing foreigners the right to buy freehold real estate there, the real estate market has exploded!
Properties available in Dubai range from modest one bedroom flats to freehold exclusive islands! And property there still offers very good value for money – furthermore the tax and business advantages in Dubai are very appealing and so real estate investment in Dubai is enjoying a buoyant upward trend.
And then there are the ‘old’ favourites – France, Florida and Spain for example are all countries with a long history of investment real estate appeal – especially for Britons and Northern European residents looking to escape the weather and invest in a home in the sun. Whether you are looking to secure a home for holidays, your retirement or you are looking for a long term investment opportunity these countries still offer the investor potential for real estate growth.
When it comes to considering real estate as an investment vehicle it is a tried and tested method used for attempting to secure long term gains – but as with any investment, gains, returns and security of investment are not guaranteed. Whether real estate investment is right for you and matches your circumstances and attitude to risk is something that you need to consider.
Rhiannon Williamson is an experienced publisher who has produced articles for leading travel and tourism guides and financial magazines. Her specialist knowledge about both travel and finance gives her site Shelter Offshore the unique ability to literally cover every single aspect of moving & living abroad – including the often less discussed offshore tax advantages that can be available when leaving our homeland.

Real Estate Investing – "The First House Purchase"

Author: Dr.Phil Speer
Source: download

Real estate investing usually begins with the purchase of a house, rather than raw land or commercial property. The purchase of a relatively inexpensive house for rental or fix-up purpose is usually lower risk than any other type of real estate investment. And the return on investment can be quicker than from any other type of real estate investment.
Even with the previous acquisition of one or more personal residences spread over past years, the thought of buying a house as a real estate investment can be intimidating. Even though a personal residence acquisition is usually identical with a real estate investing acquisition, the two are seldom envisioned as similar. True, the ramifications of real estate investing property is different. Investing in houses must involve different considerations, such as improvements, usage, and re-sale. But the actual purchase does not differ from the closing procedures for a personal residence.
The first house in a real estate investing career can be scary because it is the beginning of a new business venture. The would-be real estate investor usually recognizes that mistaken judgment can have disastrous consequences. The lack of experience prompts misgivings about the unknown. Genuine confidence is necessary to make the decision to follow through after the preliminary analysis is completed. In fact, it seems to me that real confidence – in contrast to egotistical bravado – is a personality ingredient prerequisite to entry into a real estate investing career.
I was admittedly fearful as I bought my first investment house 25 years ago. I had little valid instruction in making that first purchase. But I was driven by an intense drive to actualize a career I had envisioned for some time. I was like so many would-be investors I have encountered during the intervening years. They keep walking around the pool, dipping their toe into the icy waters, afraid to suck up and take that mighty leap out into the pool’s cold water. But after I bought that first investment house, I bought another and another. Each acquisition got easier and easier. I bought $1 million in properties the first year, and another $1 million in properties the second year. By that time, I knew I was on the way to success. Acting on my fears led to faith in my abilities. And faith and fear cannot remain in the same mind at the same time.
The greatest challenge in my real estate investing career was the purchase of my first house. It might be your greatest challenge, too. But know-how can displace the intimidation, and lead to positive satisfaction in real estate investing.
Phil Speer, Ph.D., started his real estate investing career without the availability of credit or cash. Using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. His net worth was $2 million in only his third year of investing. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at
http://www.CashinHouses.com/. Subscription is free to his Fix-up Ezine – http://www.AAREIT.com/.