Contributors | Real Estate Investing Blog

Posted on: May 1, 2008 Posted by: Real Estate We Blog Comments: 0

Contributors | Real Estate Investing Blog

Most property investors that have been active over the last few years have probably considered looking overseas in their quest for decent investment opportunities. I myself have, on countless occasions, looked into overseas property but most of the time find myself put off by what seems a very difficult and long winded process. One angle I do love the idea of is buying an overseas investment property in an area where you would enjoy holidaying but also getting the added bonus of good capital growth.

I know there are plenty of overseas opportunities out there which give you 30 days free use a year, but how strong are these as investment opportunities and should you be governed by this or not?

I think the first thing to look into is what you expect to gain out of overseas property investment?

  • Medium to long term capital growth
  • Rental Yield
  • Buy to sell opportunity
  • An investment to holiday in as well

Now if your overall aim is to make money from this overseas investment then you should probably take it that if you can get an element of “free holiday” a year it will be a bonus. As far as looking into the individual overseas investment opportunities available I will not go into specific countries now. Read more

Let’s say you’ve spent lots of time learning about real estate investing and finally started looking for properties. You end up finding a potential investment property and now you want to know if it will be cash flow positive. Sure, you could plug all your numbers into an excel spreadsheet and setup some formulas but I’ve got a better option for you.

There’s a free online property analysis tool where you can create, save, and print graphical reports displaying rate of return, cash flow, expenses, and more. I use it all the time whenever I come across a potential investment property even if an APOD (Annual Property Operating Data) is provided. It’s web-based so I can input and access the data from anywhere while I travel. Read more

When dealing with real estate investment properties you want to make sure you’re always protected. I don’t just mean having a proper landlord insurance policy, I’m more referring to what’s called a living trust structure.

The most successful real estate investors out there today all have some sort of trust set up for each and every one of their real estate properties. This could be just their primary residence, or it could be dozens of apartment buildings they own. Since real estate deeds are a publicly accessible document, it means anybody can find out whose name is on title for a specific address. This type of trust structure which is better known as a Living Trust or Master Protection Trust is very useful for your real estate investments. It has many benefits one of which is especially important to celebrities and wealthy individuals. Do you think that Donald Trump or Bill Gates is names are listed as the owner of any property title document? I don’t think so. Read more

For those of you who tried to access the Real Estate Blog over the past several weeks, you may have noticed some problems. I thought these problems would go away but they continued so last week I moved the Real Estate Blog to a new web hosting provider. My previous web hosting provider Host Monster (aff) kept having outages and hindered my site so I had to do something. I was with Host Monster for almost a year and rarely had down time up until recently. Besides the recent outages I’d like believe part of it has to do with the continued success and upward trending web traffic the blog has been receiving. I moved to a new hosting provider by the name of Web Hosting Buzz and have been quite happy with them even though it’s only been a week. Hopefully this up-time will continue and my readers won’t get frustrated when trying to access the site!

Buying HUD (Department of Housing and Urban Development) homes isn’t necessarily a way to get rich quick. These homes are supposed to be sold at market value, after all, which would seemingly make the great deals you hear about a myth. However, there are some profit opportunities here.

One of the reasons you still find good deals on HUD homes – even though they are supposed to sell at market value – is that they are sold “as is.” These are houses that have been foreclosed on and repossessed, so the previous owner may not have had the means nor the motivation to properly care for the home. They often have enough problems to scare away most home buyers. Read more

A real estate purchase agreement is not a rough guide to a deal. It is a contract specifying exactly what legal obligations each side has. In other words, be sure it says what you want it to say, and has everything you need in it.

Normally, if you are buying a property that is listed with a real estate broker, they will have a purchase agreement ready to have the blanks filled in. If you have a buyer’s agent that you work with, he or she will have the necessary forms. There are the routine parts which are necessary, but not easily forgotten or done wrong. These include the following.

The Date – Names of Buyer(s) and Seller(s) – Address Of Property – Legal Description Of Property – Purchase Price And Terms – List Of Anything Included With Property – Date The Deal Should Close By – Closing Process – Disclosure Statement – Signature With Date For Buyer And Seller – Addresses and Phone Numbers Of Buyer And Seller. Read more

Do your due diligence when investing in real estate. You’ve heard that before, but what is due diligence? A simple definition: “The investigation and verification of the details of a particular investment.” Start the process before the offer, but in the offer you also will want to include clauses that allow you to have inspections done, look at certain documents, and review the books.

Due Diligence

Due diligence should always include a look at the books. Review the last 24 month’s income and expense statements, and watch for anything unusual, like expenses that are too low or income that seems higher than usual. Look at the rent roll, and investigate whether rents are over or under the market rates for the area you are in. Check the payroll records if there are employees, and watch for surprises, like accrued vacation time that you’ll have to pay as the new owner. Read more

Why is there cheap real estate? Is it just that some sellers don’t know what their property is worth? Sometimes this is the case, but only rarely. More often a seller is willing to sell for less because it means selling faster or more easily. In other words, sellers will trade a little equity for a fast sale or peace of mind, as in the following situations.

1. Death – After the death of a loved one, family members may want to sell any real estate cheap to be quickly done with the bad memories, or to get their inheritance faster.

2. New Job – A job transfer or new job can give a person a lot of motivation to sell fast, and therefore sell cheap. Often, the seller will end up with two payments, and you will be helping by taking one off his hands. Read more

Right now I’m up in Bend Oregon looking at potential real estate investment properties. I drove up here from San Francisco last Friday and will be here until the 28th. Oregon has really boomed (especially Bend) over the past several years and it shows. I remember coming up here years ago and seeing single family homes going for $250k. Now the same style is going for $450k. Read more

If you come across an “investment” property for sale ad on the internet or in the newspaper, there’s a good chance this person is interested in buying property too. Usually they’re running the ad because they need to free up some equity to finance another deal.

Take this opportunity to contact the person listed in the ad and explain to them you’re also a real estate investor. They might have some deals they don’t want or not enough cash to purchase which is great for you. On the flip-side, you could provide them with some “bird-dog” information as well. Read more

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