Thursday, August 04, 2005
Invest in real estate foreclosures
The Benefits of Real Estate
Before we begin, I want to discuss some of the benefits of real estate. It is important to have a basic understanding of how real estate investing works so you can determine what your goals and objectives will be.
Be Your Own Boss
If you are anything like me, you are sick of working for someone. Have you ever wanted to get out from under the thumbnail of your boss?
There is a scary statistic that states a very small percentage of the population owns all the businesses in this country. Even more disturbing is that over 90% of the workers in our country work for that small percentage.
As stated previously we know that the vast majority of people will retire broke at the age of retirement. If we know that the majority of people will work for someone else and that the majority of people will retire broke, that leaves only a small percentage of people who will retire financially secure. That small percentage is the group of people who own all the businesses.
With that known, it is clear that working for someone else leaves you next to no chance to be financially secure when you retire.
Real estate affords the average person an opportunity to build their own business while simultaneously securing their future. What’s even better than that is real estate investing is fun and exciting!
It’s not like going to a job everyday. As a real estate investor you will be out there making things happen for yourself. This is extremely invigorating. It is nice to know that you will be rewarding yourself, as opposed to your boss or your company, for how hard you work.
The truth is your employer is paying you just enough so that you don’t quit and you are working just hard enough to not get fired!
When you work for yourself, you set your own hours, you go to lunch when you want, you go on vacation when you want, and most importantly YOU determine how much you are worth. The opportunity is there for you to make as much as you want to make.
Appreciation
Perhaps the most powerful benefit of real estate investing is appreciation. Appreciation is the increase in value of real estate over time. Appreciation is one contributor to building equity in a property. Equity is the difference between what is owed on a property and what it can be sold for.
For example, if you buy a house today for $60,000 it is almost guaranteed that the same house will be worth more than $60,000 fifteen years from now. Let’s assume the house is worth $90,000.
If you subtract $60,000 from $90,000 you are left with $30,000. This is your equity in the property. (In fact your equity will be higher because you are also paying down your mortgage balance every month when you make a payment. For further explanation visit:
www.nomoneynocredit.com
Historical evidence shows that real estate has been increasing in value for the last 150 years. Now that is a solid track record! Does that mean that there are NEVER downturns in the real estate market? Of course it doesn’t. Just like most facets of our economy, real estate can fluctuate with ever changing economic conditions. However, if you look at the long-run it is almost guaranteed to appreciate.
What is even more exciting is that for more than 10 years, real estate has appreciated at a rate close to 5% per year. So, what does this mean to you? Let’s look at the following example.
If you were to buy a house today for $100,000 and assumed that real estate is going to appreciate at only 3% per year, that house will be worth $235,656 thirty years from now
Pretty powerful, huh? Don’t ever underestimate the power of compounded interest. What is exciting to me is that this is an example with one house.
What if you bought two or three? How about ten or twenty? How about fifty?
Before we begin, I want to discuss some of the benefits of real estate. It is important to have a basic understanding of how real estate investing works so you can determine what your goals and objectives will be.
Be Your Own Boss
If you are anything like me, you are sick of working for someone. Have you ever wanted to get out from under the thumbnail of your boss?
There is a scary statistic that states a very small percentage of the population owns all the businesses in this country. Even more disturbing is that over 90% of the workers in our country work for that small percentage.
As stated previously we know that the vast majority of people will retire broke at the age of retirement. If we know that the majority of people will work for someone else and that the majority of people will retire broke, that leaves only a small percentage of people who will retire financially secure. That small percentage is the group of people who own all the businesses.
With that known, it is clear that working for someone else leaves you next to no chance to be financially secure when you retire.
Real estate affords the average person an opportunity to build their own business while simultaneously securing their future. What’s even better than that is real estate investing is fun and exciting!
It’s not like going to a job everyday. As a real estate investor you will be out there making things happen for yourself. This is extremely invigorating. It is nice to know that you will be rewarding yourself, as opposed to your boss or your company, for how hard you work.
The truth is your employer is paying you just enough so that you don’t quit and you are working just hard enough to not get fired!
When you work for yourself, you set your own hours, you go to lunch when you want, you go on vacation when you want, and most importantly YOU determine how much you are worth. The opportunity is there for you to make as much as you want to make.
Appreciation
Perhaps the most powerful benefit of real estate investing is appreciation. Appreciation is the increase in value of real estate over time. Appreciation is one contributor to building equity in a property. Equity is the difference between what is owed on a property and what it can be sold for.
For example, if you buy a house today for $60,000 it is almost guaranteed that the same house will be worth more than $60,000 fifteen years from now. Let’s assume the house is worth $90,000.
If you subtract $60,000 from $90,000 you are left with $30,000. This is your equity in the property. (In fact your equity will be higher because you are also paying down your mortgage balance every month when you make a payment. For further explanation visit:
www.nomoneynocredit.com
Historical evidence shows that real estate has been increasing in value for the last 150 years. Now that is a solid track record! Does that mean that there are NEVER downturns in the real estate market? Of course it doesn’t. Just like most facets of our economy, real estate can fluctuate with ever changing economic conditions. However, if you look at the long-run it is almost guaranteed to appreciate.
What is even more exciting is that for more than 10 years, real estate has appreciated at a rate close to 5% per year. So, what does this mean to you? Let’s look at the following example.
If you were to buy a house today for $100,000 and assumed that real estate is going to appreciate at only 3% per year, that house will be worth $235,656 thirty years from now
Pretty powerful, huh? Don’t ever underestimate the power of compounded interest. What is exciting to me is that this is an example with one house.
What if you bought two or three? How about ten or twenty? How about fifty?
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Wednesday, August 03, 2005
Real Estate Foreclosures and Frequently Asked Questions
Q: What are Real Estate Foreclosures?
A: Real estate foreclosures are properties that have been foreclosed on by lenders because the owners have defaulted on the loan payments to the lender. There are many reasons that an owner can default on a loan. Some of the most common reasons are: divorce, illness, death of a spouse, and unemployment. Foreclosures offer an exciting way to buy real estate because they can often be purchased at discount prices. It is not uncommon for foreclosures to sell for 10% to 50% below market.
Q: What types of foreclosure properties are there?
A: There are three primary categories for real estate foreclosures. They are preforeclosures, auction properties, and bank owned properties (REO’s.) Our book covers all three categories.
Q: How to lenders foreclose on a homeowner?
A: Lenders foreclose on property owners using mainly the judicial or non-judicial foreclosure process. States in which a mortgage is used to document property ownership follow the judicial procedure. The judicial procedure requires lenders to file a court case to prove default before they can foreclose on the owners. States in which deeds of trust are used to document ownership follow the non-judicial procedure, which does not require a court case.
Q: Can people make money investing in foreclosures?
A: Yes people can make money in real estate foreclosures because often they can buy the properties at steep discounts. Buying foreclosed properties at discount prices is quickest way to make money investing in real estate. If you are looking for a home you can get a significant amount of equity up front with real estate foreclosures.
Q: Do I need a Realtor to buy real estate foreclosures?
A: Absolutely not! You do not need a realtor to buy pre-foreclosures, auction properties, or REOs. You can buy pre-foreclosures directly from the property owners before the auction. You can buy auction properties from the foreclosure attorneys or auctioneers at the public auction. You can also buy REOs from lenders after they have taken the properties back at the auction. In all three cases, you can buy the properties without a realtor.
Q: Do I need a real estate license to buy foreclosures?
A: No. This is a common misconception. You can be real estate foreclosures without a real estate license.
Q: How to do I find the money to buy foreclosures?
A: You might be surprised to know that there are several sources of investment capital available for funding foreclosure deals. These sources fall into four main categories: conventional financing, partners, lines of credit, and hard money lenders. Conventional financing is available from a number of commercial banks and mortgage companies Partners would be anyone interested in helping fund the deal for part of the profit. You can find partners by word of mouth, via the Internet, or in local newspapers. If you have existing lines of credit (or credit cards) to fund your deals, they can be used to buy foreclosures. The last option is hard money lenders who are in the business of providing loans for real estate deals. Hard money lenders can be found in the newspapers or over the internet.
Q: Does this work outside the US?
A: While this course was designed for the US, many of the ideas can be applied to other countries. If they can’t be applied to your country, we will refund your purchase no questions asked.
A: Real estate foreclosures are properties that have been foreclosed on by lenders because the owners have defaulted on the loan payments to the lender. There are many reasons that an owner can default on a loan. Some of the most common reasons are: divorce, illness, death of a spouse, and unemployment. Foreclosures offer an exciting way to buy real estate because they can often be purchased at discount prices. It is not uncommon for foreclosures to sell for 10% to 50% below market.
Q: What types of foreclosure properties are there?
A: There are three primary categories for real estate foreclosures. They are preforeclosures, auction properties, and bank owned properties (REO’s.) Our book covers all three categories.
Q: How to lenders foreclose on a homeowner?
A: Lenders foreclose on property owners using mainly the judicial or non-judicial foreclosure process. States in which a mortgage is used to document property ownership follow the judicial procedure. The judicial procedure requires lenders to file a court case to prove default before they can foreclose on the owners. States in which deeds of trust are used to document ownership follow the non-judicial procedure, which does not require a court case.
Q: Can people make money investing in foreclosures?
A: Yes people can make money in real estate foreclosures because often they can buy the properties at steep discounts. Buying foreclosed properties at discount prices is quickest way to make money investing in real estate. If you are looking for a home you can get a significant amount of equity up front with real estate foreclosures.
Q: Do I need a Realtor to buy real estate foreclosures?
A: Absolutely not! You do not need a realtor to buy pre-foreclosures, auction properties, or REOs. You can buy pre-foreclosures directly from the property owners before the auction. You can buy auction properties from the foreclosure attorneys or auctioneers at the public auction. You can also buy REOs from lenders after they have taken the properties back at the auction. In all three cases, you can buy the properties without a realtor.
Q: Do I need a real estate license to buy foreclosures?
A: No. This is a common misconception. You can be real estate foreclosures without a real estate license.
Q: How to do I find the money to buy foreclosures?
A: You might be surprised to know that there are several sources of investment capital available for funding foreclosure deals. These sources fall into four main categories: conventional financing, partners, lines of credit, and hard money lenders. Conventional financing is available from a number of commercial banks and mortgage companies Partners would be anyone interested in helping fund the deal for part of the profit. You can find partners by word of mouth, via the Internet, or in local newspapers. If you have existing lines of credit (or credit cards) to fund your deals, they can be used to buy foreclosures. The last option is hard money lenders who are in the business of providing loans for real estate deals. Hard money lenders can be found in the newspapers or over the internet.
Q: Does this work outside the US?
A: While this course was designed for the US, many of the ideas can be applied to other countries. If they can’t be applied to your country, we will refund your purchase no questions asked.
Tuesday, August 02, 2005
Florida Real Estate & Miami Real Estate
Florida Real Estate & Miami Real Estate Will a Tough Hurricane Season Lead to a Tougher Real Estate Market?
This article speculates the effects of a very active hurricane season on the http://www.florida-key-real-estate.net/ [Florida Real Estate] market.
October 12, 2004 -- From Key West to http://www.florida-key-real-estate.net/ [Miami] to Tallahassee and all the areas in between September 2004 will forever live in the minds of Floridians as the month of many visitors many unwelcome visitors: Charlie, Ivan, Frances, Jeanne and dont forget Tropical Storm Bonnie. With an estimated $45 billion in damages to Florida alone the repercussions have yet to be felt. The true question is how will this devastating storm season translate its effects into the http://www.florida-key-real-estate.net/ [Florida Real Estate] economy. One school of thought might speculate that this answer is directly dependent on the trend factor of this activity. Was this an unusually active hurricane season that wont happen for another hundred years or is this going to be a common occurrence from now on?Real estate is a vital component of the Florida economy. http://cgi.tripod.com/miami-realestate/cgi-bin/index.pl [Miami Real Estate], for example, is extremely dependent on foreign investment, much of which comes from Latin America and is directly tied to their investment market perception. Like the famous Sun Tzu said in his famous treatise The Art of War, Perception is Everything. This perception can be greatly influenced by the media attention that this hurricane season has brought. Frequent hurricane activity increases investment risk and could influence the diversion of dollars to other geographic markets. Other areas of real estate investment throughout Florida such as http://www.florida-key-real-estate.net/ [Naples Real Estate], http://www.florida-key-real-estate.net/ [Destin Real Estate], http://www.florida-key-real-estate.net/ [Key West Real Estate] and http://www.florida-key-real-estate.net/ [Tampa Real Estate] are not as dependent as Miami is for foreign capital. With that said, market perceptions are still critical in attracting residential and commercial relocation and development for those fast growing markets as well.Another school of thought might speculate that http://www.freewebs.com/foreclosures/index.html [Real Estate Foreclosure] Investment opportunities can arise in this situation. http://cgi.tripod.com/foreclosures2/cgi-bin/index.pl [Real Estate Foreclosures] and http://www.florida-key-real-estate.net/foreclosures.html [Bank Foreclosures] might create an environment where investors rush to buy up as much below market priced properties as possible. This is a relatively new area of high growth in the real estate market because of the quantity of undervalued properties being offered. These properties arent always readily available on http://www.freewebs.com/mls-listing/index.html [MLS Listings]. But today anyone can access http://www.freewebs.com/foreclosures/index.html [foreclosure listings] using various online services which even offer free trials to interested parties.Only time will tell what the future will be for http://www.freewebs.com/florida-real-estate/index.html [Florida Real Estate]. One thing we know for sure is that Florida will always be a world renound destination spot and haven for international investment. As for now it will be interesting to see if there can be a correlation identified between weather patterns and real estate and whether that will affect the future of real estate valuation and speculation across other highly climatic volatile real estate markets.Whether this trend will continue to grow or decline is a question that will slowly be answered by the free market forces. In the meantime the best thing any real estate investor can do is to make an informed decision utilizing as much information as possible with a free real estate research site like http://www.florida-key-real-estate.net/ [http://www.florida-key-real-estate.net/].More information and free resources about florida real estate, texas real estate and foreclosures can be found at:http://1031-exchange.tripod.com/ [1031 Real Estate Exchanges]http://cgi.tripod.com/realestate-investing/cgi-bin/index.pl [Real Estate Investing Strategies]http://cgi.tripod.com/1031-exchange/cgi-bin/index.pl [1031 Tax Free Real Estate Exchanges]http://www.freewebs.com/real-estate-investments/index.html [Real Estate Investments]http://www.freewebs.com/1031-exchange/index.html [Tax Free Real Estate Exchanges]http://cgi.tripod.com/real-estate-school/cgi-bin/index.pl [Real Estate Schools]http://cgi.tripod.com/foreclosures2/cgi-bin/index.pl [Real Estate Foreclosures]http://cgi.tripod.com/miami-realestate/cgi-bin/index.pl [Miami Real Estate] http://cgi.tripod.com/texas-real-estate/cgi-bin/index.pl [Texas Real Estate] http://www.condo-miami.com/homesales [South Florida Real Estate]http://www.freewebs.com/foreclosures/index.html [Real Estate Foreclosures and Loans]http://www.freewebs.com/florida-real-estate/index.html [Florida Real Estate] http://www.freewebs.com/mls-listing/index.html [MLS Listings]http://www.freewebs.com/texas-real-estate/index.html [Texas Real Estate - Austin, Houston, Dallas, San Antonio, Galveston and More]http://www.freewebs.com/real-estate-schools/index.html [Real Estate Schools and Licensing - Florida, California, Texas, Online Licensing Programs and More]
This article speculates the effects of a very active hurricane season on the http://www.florida-key-real-estate.net/ [Florida Real Estate] market.
October 12, 2004 -- From Key West to http://www.florida-key-real-estate.net/ [Miami] to Tallahassee and all the areas in between September 2004 will forever live in the minds of Floridians as the month of many visitors many unwelcome visitors: Charlie, Ivan, Frances, Jeanne and dont forget Tropical Storm Bonnie. With an estimated $45 billion in damages to Florida alone the repercussions have yet to be felt. The true question is how will this devastating storm season translate its effects into the http://www.florida-key-real-estate.net/ [Florida Real Estate] economy. One school of thought might speculate that this answer is directly dependent on the trend factor of this activity. Was this an unusually active hurricane season that wont happen for another hundred years or is this going to be a common occurrence from now on?Real estate is a vital component of the Florida economy. http://cgi.tripod.com/miami-realestate/cgi-bin/index.pl [Miami Real Estate], for example, is extremely dependent on foreign investment, much of which comes from Latin America and is directly tied to their investment market perception. Like the famous Sun Tzu said in his famous treatise The Art of War, Perception is Everything. This perception can be greatly influenced by the media attention that this hurricane season has brought. Frequent hurricane activity increases investment risk and could influence the diversion of dollars to other geographic markets. Other areas of real estate investment throughout Florida such as http://www.florida-key-real-estate.net/ [Naples Real Estate], http://www.florida-key-real-estate.net/ [Destin Real Estate], http://www.florida-key-real-estate.net/ [Key West Real Estate] and http://www.florida-key-real-estate.net/ [Tampa Real Estate] are not as dependent as Miami is for foreign capital. With that said, market perceptions are still critical in attracting residential and commercial relocation and development for those fast growing markets as well.Another school of thought might speculate that http://www.freewebs.com/foreclosures/index.html [Real Estate Foreclosure] Investment opportunities can arise in this situation. http://cgi.tripod.com/foreclosures2/cgi-bin/index.pl [Real Estate Foreclosures] and http://www.florida-key-real-estate.net/foreclosures.html [Bank Foreclosures] might create an environment where investors rush to buy up as much below market priced properties as possible. This is a relatively new area of high growth in the real estate market because of the quantity of undervalued properties being offered. These properties arent always readily available on http://www.freewebs.com/mls-listing/index.html [MLS Listings]. But today anyone can access http://www.freewebs.com/foreclosures/index.html [foreclosure listings] using various online services which even offer free trials to interested parties.Only time will tell what the future will be for http://www.freewebs.com/florida-real-estate/index.html [Florida Real Estate]. One thing we know for sure is that Florida will always be a world renound destination spot and haven for international investment. As for now it will be interesting to see if there can be a correlation identified between weather patterns and real estate and whether that will affect the future of real estate valuation and speculation across other highly climatic volatile real estate markets.Whether this trend will continue to grow or decline is a question that will slowly be answered by the free market forces. In the meantime the best thing any real estate investor can do is to make an informed decision utilizing as much information as possible with a free real estate research site like http://www.florida-key-real-estate.net/ [http://www.florida-key-real-estate.net/].More information and free resources about florida real estate, texas real estate and foreclosures can be found at:http://1031-exchange.tripod.com/ [1031 Real Estate Exchanges]http://cgi.tripod.com/realestate-investing/cgi-bin/index.pl [Real Estate Investing Strategies]http://cgi.tripod.com/1031-exchange/cgi-bin/index.pl [1031 Tax Free Real Estate Exchanges]http://www.freewebs.com/real-estate-investments/index.html [Real Estate Investments]http://www.freewebs.com/1031-exchange/index.html [Tax Free Real Estate Exchanges]http://cgi.tripod.com/real-estate-school/cgi-bin/index.pl [Real Estate Schools]http://cgi.tripod.com/foreclosures2/cgi-bin/index.pl [Real Estate Foreclosures]http://cgi.tripod.com/miami-realestate/cgi-bin/index.pl [Miami Real Estate] http://cgi.tripod.com/texas-real-estate/cgi-bin/index.pl [Texas Real Estate] http://www.condo-miami.com/homesales [South Florida Real Estate]http://www.freewebs.com/foreclosures/index.html [Real Estate Foreclosures and Loans]http://www.freewebs.com/florida-real-estate/index.html [Florida Real Estate] http://www.freewebs.com/mls-listing/index.html [MLS Listings]http://www.freewebs.com/texas-real-estate/index.html [Texas Real Estate - Austin, Houston, Dallas, San Antonio, Galveston and More]http://www.freewebs.com/real-estate-schools/index.html [Real Estate Schools and Licensing - Florida, California, Texas, Online Licensing Programs and More]
