Miami offers tons of opportunities than any business-minded individual would want to grab for a tidy profit. Real estate properties around the city, either residential or commercial units, are readily available for purchase — either as a long-term or short-term business investment. Diving headlong into investing without even knowing the business can be very hazardous to your financial health; in fact, you need to know the factors involved that will affect your venture to avoid the pitfalls along the way.

Prices Of Real Estate Properties In Miami

The first thing that an investor should know about real estate is that the prices of commercial and residential units aren’t stable. Depending on the demand, the number of unsold homes, as well as the current status of the real estate market; the prices of these properties go up and down without any advanced warning.

If you are planning to invest in Miami real estate, you need to keep in mind to base all your investments according to the status of the real estate market — purchase a property when the prices are lowest and sell them out when the market reaches its peak.

Marketing Is A Business Term

You need to let your potential clients and customers know that your business exists. Whether you are selling cosmetics or a building, marketing plays an integral role in the success of your investment. First, you need to determine the demand of the Miami real estate property if you want to market it properly. You might want to improve it a little bit to make it more appealing to the buyers.

There are assorted strategies you can use to tell the rest of the world that your property is ready to be bought. You can post your property on real estate listings in Miami, local bulletin boards, or even on newspapers. You can even schedule an open-house event to give your potential buyers the grand tour of the property.

If you think that this method is not doing your investment any good, then you might want to hire a real estate agent to help you out. These real estate experts have contacts with real estate firms to help you find the perfect buyer for your property. They are also well-versed in real estate marketing strategies to help improve your real estate’s accessibility to potential clients and customers in and out of the city.

By: Vanessa Doctor

The article “A Successful Investment In Miami Real Estate Properties”, which is shown above, was written by Vanessa Doctor and appeared on the Article Dashboard website.  We most gratefully thank the author and Article Dashboard for the courtesy of permitting RentaVenta.com to republish this work.

This report attempts to weigh the pros and cons of active real estate investment versus passive stock investment alternatives.

This report is going to explain or attempt to give the stock market investors a basic one-on-one interview with a real estate portfolio manager who has consistently made a profit on 100% of the investment products that were actively chosen and managed. Never a loss, always tax advantaged and sheltered.

If you feel real estate investing is more difficult than stock market investing, I believe you are wrong. It’s much safer to the average individual who doesn’t have all kinds of crazy options, puts and calls, true insider tip-offs or hours and hours of time to hopefully understand more than the next guy in order to sell your stock to the next person for more than you paid for it. Unless you’re accredited, you should be institutionalized.

With real estate, if I buy my investment property with owner occupied, 10% down financing, I am using 90% loan-to-value leverage. I don’t suggest you do that in the stock market. If you make a little timing error, your investment career could be over.

So to put it in general terms, $1,000 controls $10,000 and $10,000 controls $100,000. Now if I buy a house that costs $100,000 and I put $10,000 down to control it and the market appreciates 10% the first year, I get my $10,000 back and keep the asset. It becomes a perpetual money machine and I don’t have any of my own money at risk.

Here’s how to play a decent game of real estate investment! Buy something at 20% below its market value. This is not hard to do. It may take you, as a new investor, 3-6 months to find it.
You’re learning curve will let you acquire under market value property at faster and faster rates from months to weeks to days. It takes practice.
So you find a $100,000 property and you put down 20% (investor rate) as the down payment plus $2,500 in closing costs. The bank loans you $80,000 to buy it. If you’re getting older, then pay someone to clean it and paint it. Get the bank to reappraise it for its true value of $120,000 or more. Take out an equity line and get all your money back, tax-free. Now let the tenants pay it off for you while it goes up in value and throws off positive cash flow, and shelters itself from taxation.

The article shown above is a condensed version of the article “A Real Estate Stock Plan” by Dan Auito.  We most gratefully thank the author and Real Estate Investment Club for the courtesy of permitting RentaVenta.com to republish this work.

A great property investment prospect in the Caribbean

Buying a property in a serene and congestion free tropical island is a dream for many people. The Turks and Caicos Islands give the retired people and nature lovers this opportunity. Its awesome natural beauty and marine life attract tourists all over the year. This has resulted in the growth of real estate properties in these islands.

The main reason for the popularity of the Turks and Caicos Investment Properties is the tax-free system of the region. One does not need to pay taxes for income that he makes here. The main language spoken by the inhabitants is English and so foreign people willing to settle here should not face any communication problem. Another advantageous factor of this place is that it uses US Dollar as the chief currency. One can also use major credit cards in these islands when he is spending a vacation.

If a person buys a Turks and Caicos Real Estate property, he can enjoy its sunny climate. These islands have vast stretches of coral reefs. The wonderful beaches make buying a Turks and Caicos Beach Front Condo a worthy idea. As a matter of fact, the most commercialized island is Providenciales, which has an airport with flights to international destinations. The major European and USA based airlines have direct flight to this island.

These islands are ideal for spending family vacations and honeymoons. The tourists also savor the mouth watering sea food of the place. People who are used to the latest communication and amenities will find the telecommunication and media infrastructure of the islands decent. For living in these islands a foreigner requires resident’s permit. If anyone wants to set up a business and take up a job here, he requires a business license or work permit.

The Turks and Caicos Islands supply salt to various parts of the world. In fact, Providenciales Island contains some of the world’s most exotic beaches. Due to the rising tourist numbers, Turks and Caicos Real Estate Developments are gaining momentum. The tourists with deep pockets get enthralled by the beauty of these islands and end up buying vacation properties in the place.
Provo is an island that blends the amenities of modern life with the bliss of nature in a seamless manner. The variety of vegetation and flora in this island can mesmerize the visitors. The natural bounty is mainly responsible for the growth of Providenciales Real Estate.

By: Karen Shaw

The article “A Dream Real Estate Opportunity In Tropical Region”, which is shown above, was written by Karen Shaw and appeared on the Article Dashboard website.  We most gratefully thank the author and Article Dashboard for the courtesy of permitting RentaVenta.com to republish this work.

Here are frequently asked short sale questions that are very helpful especially if you are just getting started or considering short sales as a means to acquiring pre-foreclosures.

7. What percentage of mortgage companies send someone out for an appraisal on a possible short sale?

All lenders order a BPO or full appraisal of the property before making their decision to accept or reject the short sale offer. This is there only way of assessing the value of the property.

8. How late in the pre-foreclosure process can you start a short sale?

Try to allow a window of at least 90 days to effectuate a mortgagee approved, pre-foreclosure Short Sale.

9. What is a Due on Sale clause?

“Due on Sale” Clause (DOS) Provision in a mortgage or deed of trust calling for the total payoff of the loan balance in the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender, at its option, to declare immediately due and payable sums secured by the lender’s security instrument upon a sale of all or any part of the real property securing the loan without the lender’s prior written consent.

For purposes of this definition, a sale or transfer means the conveyance of real property of any right, title or interest therein, whether legal or equitable, whether voluntary or involuntary, by for deed, leasehold interest with a term greater than three years, lease-option contract or any other method of conveyance of real property interests. Standard language which states that the loan must be paid when a house is sold.

10. Will banks allow a short sale when the owner has some or a good amount of equity?

If a property has what the lender would consider a substantial amount of equity, chances are they would consider allowing the property to foreclose and then reselling it closer to the retail value. Focus on homes that do not have much equity. Your job will be to create the equity in the home by negotiating a successful short sale.

The article shown above is a condensed version of the article “10 Frequently Asked Short Sale Questions” by D.C. Fowler.  We most gratefully thank the author and Real Estate Investment Club for the courtesy of permitting RentaVenta.com to republish this work.

Looking for an “in” to real estate investing?

It’s not necessary to have a huge pile of cash and perfect credit to buy a house cheap and resell it for a profit. It’s especially not necessary in the preforeclosure market. Preforeclosures are houses in the default phase of foreclosure; where the bank has filed initial foreclosure papers but the sheriff sale or trustee sale where the bank auctions off the property, or repossesses it if no-one buys at the auction, hasn’t occurred yet. Buying during the preforeclosure period is one of the best ways for anyone to get involved in real estate investing. With little more than a few hundred dollars and some specialized knowledge you can buy a house at a substantial discount and resell it retail picking up a five figure profit check in the process.

Don’t Believe It?

Well, let me give you seven reasons why it’s true:

6.) If your plan is to buy and hold the property, having good enough credit and financials to get bank financing excludes a great many people from getting into real estate. On top of that, if you do get a bank loan, your financial exposure is at it’s maximum when everything is in your own name and personally guaranteed. Buying houses in preforeclosure allows you to simply take over the existing financing already in place. No qualifying needed. You can take title to the property in a land trust, begin making payments on the existing mortgage(s), and still get all the tax advantages, appreciation, depreciation without any of the risk of being personally liable for the mortgage and the property.

7.) If you have ever bid at auction for property at the courthouse steps, you are only too aware of the competition breathing down your neck. Lots of mind games. The 40 thieves are talking trash to you trying to get you not to bid. If you are Larry Bird, no problem. Make sure you have $500K on your credit line though. However if you are not the ‘Bird’ and you don’t pack half a mil’ of credit, you can sneak in and avoid this NBA showdown by buying the house during the preforeclosure period… before the auction.

Make no mistake about it, there are many ways to make healthy profits in real estate investing. But when you look at how easy preforeclosure makes it to buy houses cheap and resell for five figure profit checks, all the while helping people out of agonizing life circumstances, it makes little sense to pursue real estate investing any other way

The article shown above is a condensed version of the article “7 Big Reasons To Invest In Pre-Foreclosures” by Ben Innes-Ker.  We most gratefully thank the author and Real Estate Investment Club for the courtesy of permitting RentaVenta.com to republish this work.

Flipping vs. Speculating

It should be made clear that there is a difference between flipping and speculating. While speculators may be a sub-set of flippers, they are, at best, the amateurs of the real estate investing family. Flippers who have consistent success are more conservative and have a fundamental approach to real estate investing. While it may not be as exciting as speculating, the rewards of more conservative flipping are nearly as generous, and they are paired with far less risk.

The biggest difference between flipping and speculating is that flipping works in any market, whereas speculating only works in certain places at certain times. Las Vegas from 2002 to 2004 was a great time and place to be a speculator, but if you were still in the market in 2006, chances are you got burned by more than the hot desert sun. Basically, speculating often works on the “greater fool” thesis – that you can always find a greater fool than yourself to take a property off your hands in the expectation that he will be able to find yet a greater fool. Eventually, someone is left holding the bag and that’s when the party is over.

Flipping, by contrast, relies on fundamentals. The idea is not to catch a shooting star in a rapidly appreciating market. Rather, the plan is to find undervalued properties, rehab them, present them in an attractive manner, and sell them for a reasonable profit. Not only is a rising market not a requirement of flipping success, it may even be a mild detriment! After all, it is a bit harder to find bargain properties in booming areas. Sure, it can still be done, but the point is that even falling markets are prime for flipping since the holding period is often too short for the value of the property to decline beyond the deep discount at which it is purchased. Assuming that you add value through rehabbing, you almost can’t lose!

Exit Strategies – Always Have a Plan B

While speculators often rely on the “greater fool” strategy, flippers tend to have one of two exit plans: 1) Quickly flip the title to another investor, or 2) Rehab and sell the property at the retail level. While the lion’s share of the profits go to the retailer, a quick wholesale deal can free up your cash (and energy) for the next deal.

If you take a fundamental approach to real estate rehabbing and flipping, your risk is limited and your profits are virtually limitless. It really is the best of all worlds.

The article shown above is a condensed version of the article “Bubble, Schmubble – Flipping Works in Any Market” by Bill Bronchick.  We most gratefully thank the author and Real Estate Investment Club for the courtesy of permitting RentaVenta.com to republish this work.

In my view operating your real estate investing business with integrity is a non-negotiable item.

Almost all contracts have contingency clauses – valid conditions that must be met in order for the agreement to proceed. And the legitimate, appropriate use of contract contingencies I take no issue with. It’s the frequent and free use of these contingencies as a replacement for doing your homework that I find disturbing. As a professional real estate investor, you should always be 100% honest with all parties in a transaction. When you sign your name to a contract, do it with honor.

You should make every offer with the full intent of settling the deal one way or another. If not, don’t ink the deal. If certain circumstances need to fall into place before you can settle on a deal, present the offer, but clearly disclose those circumstances upfront.

There have been times when settling on a deal seemed like it was going to blow up in my face. But every time I was able to find a way to honor my word and put the deals together, even though they weren’t great deals for me.

Yes, I’ve encountered several situations where I couldn’t find a wholesale buyer for a particular deal. Though my intention when I first started flipping houses was to exclusively do wholesale deals, I was forced by my word to honor these contracts and settle on the homes myself. In fact, this is how I started rehabbing houses in the first place. Believe me, anyone and everyone who focuses on wholesale real estate flipping will find him/herself in the same position. When you come to that point, if you’re signing your name with honor, you will find a way to settle the deal with integrity, and either fix and flip the house or hold it until you can find a wholesale buyer (yes, possibly even at a loss).

The Bottom Line…

As an ethical real estate investor, you should sign your name to each and every contract with honor. Anybody can go make an offer, but your name is your name and it has value. If you sign contracts without producing, then in time your name will have little worth. Contingency clauses have their place, but you shouldn’t be using them as a safety net to sign up deals you feel unsure of. You should sign your name with integrity and always do everything within your power to keep your worth. In the long run your reputation as a person of integrity will bring you much more profit and prosperity than any short term gain you may experience by being a weasel.

The article shown above is a condensed version of the article “Flipping Houses Ethics: What’s Your Name Worth” by Steve Cook.  We most gratefully thank the author and Real Estate Investment Club for the courtesy of permitting RentaVenta.com to republish this work.

This is a critical article to read if you have a strong desire to be a real estate investor, but do not have any savings or income to operate on a conventional playing field. Remember that to get a loan from a lender, all you need is cash OR credit. Thus, if you have some money in the bank, or a 401(k) with some money, lenders will loan you money even with poor to marginal credit. If you have excellent credit, you can get a loan with no money in the bank. Thus, you only need credit OR cash to get loans. Remember that after your first deal, you will have filled that requirement, as you will have cash. The hard part is learning how to do that first deal.

If you have neither credit nor cash, and still want to operate on a conventional playing field where you get loans for properties and pay all cash with no “crazy” no money down TV seminar type offers, I have great news for you — Hard money lenders. Most hard money lenders could care less about you or your credit. They look to the property as their security. If you don’t pay on the loan, they know that they can turn around and sell the property for enough to get their money out. If you strike a good deal, they will loan 65% of the value of the property in renovated condition.

Thus, if you find a home that is worth $100,000 fixed up, and you can buy it for $60,000, the lender will give you 65% of the fixed up value of the home, or $65,000. $60,000 of that will get you into the property for no money down, and the extra $5,000 can be used for closing costs and/or repairs. You can then flip this property to another investor for cash, or rehab it yourself for maximum profits. The great thing about these loans is that you can typically close within 7 days. The only drawback is higher fees, but let’s face it, a few extra points on the loan to close is still cheaper than having a partner.

A point on flipping: We have received questions from students as to whether or not flipping is illegal. It is not. Owning a property for a short amount of time and reselling is completely legal.

The only problem that you will have is convincing the appraiser that the property you bought last week for $100,000 is now worth $130,000. In a worst case scenario, your buyer’s lender may require several appraisals to verify the increased value.

Q: I live in a market that’s so hot that houses go on the market and get a close-to-full-price offer in less than a week. I can’t buy properties here for less than full value, and no one is willing to carry terms, since there are thousands of qualified buyers looking for houses. Do I just wait for the market to slow down, or what? S.R, Philadelphia

A: We all live in the market you describe, and have for a long time. The National Association of Realtors has been reporting record-setting sales for three years; mortgage money is plentiful; anyone who wants to work is fully employed in the tightest labor market this century. These factors add up to enormous competition among potential homeowners for properties in nearly every price range. Competition drives up prices, and a “seller’s market” results.
Yet, at the same time, real estate investors are buying properties for pennies on the dollar, negotiating low money-down seller financing, and generally prospering along with everybody else. Why are others making deals when you aren’t? I’d like to suggest that a large part of the reason might be that you’re looking at the wrong properties.

Obviously, a seller who has a nice-looking house in a decent neighborhood and months to sell is not going to agree to your 70% offer or carry sweet financing terms. Why should they? Your competition for this type of property—the homeowner wannabe—is ALWAYS going to outbid you, because they buy for different reasons (school system, aesthetics, love of the zip code) than you do. These sellers are always the most readily identifiable, since they generally list with agents, or at least put a “For Sale by Owner” sign in the yard. However, the obvious sellers are not the ones that the professional real estate investor in this type of market looks to deal with. Despite the good economic times, and despite the fact that many properties are selling for 100% or more of asking price within 30 days, there are still sellers out there with problems that make it impossible to sell quickly (or at least quickly enough to meet the seller’s needs!) or for full price. It’s these sellers that you need to work with, because, in solving their problems, you will be able to make a profit from their properties.

Q: I live in a small city (population 100,000ish) and a number of agents I’ve talked to say that wholesaling won’t work here. Specifically, they tell me that the market is so strong that properties just don’t sell for pennies on the dollar, and that there are just a few investors in town who snatch up all the really good deals. Advice? – DJ, Beaumont, Tx.

A: Yes. Stop listening to real estate agents. You are taking to heart the word of professionals who…

1) don’t understand what you’re trying to do,

2) have a vested interest in convincing you to offer as much as possible, and

3) don’t “get” real estate investors at all.

It may be true that the market in your area is strong: it has been in most of the country for several years now. But the thing driving that strong market is first time and move-up home buyers, and those home buyers are not in the market for the kind of ugly, smelly houses you’re looking for. Sellers who own these junker properties and can’t afford to fix them are, for the most part, left out of the buying frenzy. And believe me, there are plenty of sellers like this in a city of 100,000.

Your first step is to find an agent who is willing to show you the cheapest, ugliest houses in the MLS on a regular basis. But your second step is to implement some ways to find properties that aren’t listed. Calling or writing to preforeclosures, estates, owners of vacant properties, and so on are all ways to generate leads that these agents don’t even know about.

As for the contention that there are “just a few investors in town”, I’d like to place a wager on that. I once read a statistic that said that about 3.5% of the population owns at least one rental property. So in Beaumont, there should be about 3,000 potential buyers for your good deals. And if there are only 10, who cares? If you have good deals, all of them will be happy to pay you take them off your hands.

Incidentally, I believe that the day of the uncooperative agent is about to come to an end. Housing sales are down about 3% this month, and higher interest rates plus increase unemployment are pointing toward a recession. This is actually good news for real estate investors, because a lack of homeowners in the market equals more deals for us. And when agents are no longer able to make the “easy” sales to qualified homeowners, they’ll either get educated about how to deal with investors or they’ll get out of the business.

The article shown above is a condensed version of the article “Can I Wholesale in a Small Town?” by Vena Jones-Cox.  We most gratefully thank the author and Real Estate Investment Club for the courtesy of permitting Renta Venta.com to republish this work.